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Table of Contents
TABLE OF CONTENTS
VMware, VMworld, VMware vSphere, VMware vCloud, VMare Fusion, vMotion, Hyperic, ESX, Zimbra and SpringSource are registered
trademarks or trademarks of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be
trademarks of their respective companies.
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements, including, without limitation, statements regarding: the potential
role of our products in cloud computing and other shifts in computing infrastructures; expectations of, and our plans for, achieving future
business growth; future product offerings; plans for future acquisitions; our view of the competitive landscape and our plans for maintaining our
leadership position, funding expansion of our industry segment share and developing long term relationships with our customers; our
anticipation that we will not declare any cash dividends, the availability of suitable facilities for our future operations; our plans for meeting
product development objectives and introducing new products; our revenue outlook and mix; customer demand for our products; trends in
enterprise license agreement (“ELA”) size and renewals and information technology (“IT”) spending in general; projections of, and expectations
for, stock-based compensation expense; the delivery of professional services to our customers; the sufficiency of our liquidity and capital
reserves to fund our operations and business strategy; continuation of our stock repurchase program; factors effecting our tax position; and our
belief that the resolution of pending claims and legal proceedings will not have a material adverse effect on us.
These forward-looking statements involve risks and uncertainties and the cautionary statements set forth above and those contained in the
section of this report entitled “Risk Factors” identify important factors that could cause actual results to differ materially from those predicted in
any such forward-looking statements. We assume no obligation to, and do not currently intend to, update these forward-looking statements.
i
Page
PART I
Item 1.
Business
1
Item 1A.
Risk Factors
11
Item 1B.
Unresolved Staff Comments
36
Item 2.
Properties
37
Item 3.
Legal Proceedings
37
PART II
Item 5.
Market for Registrant
’
s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
40
Item 6.
Selected Financial Data
43
Item 7.
Management
’
s Discussion and Analysis of Financial Condition and Results of Operations
44
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
67
Item 8.
Financial Statements and Supplementary Data
69
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
109
Item 9A.
Controls and Procedures
109
Item 9B.
Other Information
109
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
110
Item 11.
Executive Compensation
110
Item 12.
Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters
110
Item 13.
Certain Relationships and Related Transactions, and Director Independence
110
Item 14.
Principal Accountant Fees and Services
110
PART IV
Item 15.
Exhibits and Financial Statement Schedule
111
Signatures
113