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Table of Contents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
For the years ended December 31, 2010, 2009 and 2008, stock options to purchase 2.9 million, 20.6 million and 11.4 million shares,
respectively, of VMware Class A common stock were excluded from the diluted earnings per share calculations because their effect would have
been anti-dilutive. For the years ended December 31, 2010, 2009 and 2008, 0.1 million, 2.9 million and 5.4 million shares of restricted stock
were excluded from the diluted earnings per share calculations because their effect would have been anti-dilutive.
C. Investments
During 2010, VMware began investing in fixed income securities. Investments as of December 31, 2010 consisted of the following (table
in thousands):
Gross realized gains and gross realized losses on investments in the year ended December 31, 2010 were not material.
As of December 31, 2010, VMware did not have investments in a continuous unrealized loss position for twelve months or greater.
Unrealized losses on investments as of December 31, 2010 that have been in a net loss position for less than twelve months were classified by
investment category as follows (table in thousands):
VMware evaluated its investments in fixed income securities and publicly traded equity securities as of December 31, 2010 and
determined that there were no unrealized losses that indicated an other-than-temporary impairment.
84
Cost or
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Aggregate
Fair Value
U.S. government and agency obligations
$
379,288
$
326
$
(310
)
$
379,304
U.S. and foreign corporate debt securities
522,677
724
(286
)
523,115
Foreign governments and multi
-
national agency obligations
63,101
72
(13
)
63,160
Municipal obligations
660,138
111
(762
)
659,487
Asset
-
backed securities
17,800
9
—
17,809
Total fixed income securities
1,643,004
1,242
(1,371
)
1,642,875
Equity securities
20,000
31,800
—
51,800
Total investments
$
1,663,004
$
33,042
$
(1,371
)
$
1,694,675
Fair
Value
Gross
Unrealized
Losses
U.S. government and agency obligations
$
109,932
$
(310
)
U.S. and foreign corporate debt securities
149,831
(286
)
Foreign governments and multi
-
national agency obligations
26,415
(13
)
Municipal obligations
412,882
(762
)
Total investments
$
699,060
$
(1,371
)