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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table sets forth the computations of basic and diluted net income per share (table in thousands, except per share data):
For the years ended December 31, 2011 , 2010 and 2009 , stock options to purchase 0.8 million , 2.9 million and 20.6 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 year ended December 31, 2011 , no shares of restricted stock were excluded from the diluted earnings per share
calculation. For the years ended December 31, 2010 and 2009 , 0.1 million and 2.9 million shares of restricted stock were excluded from the
diluted earnings per share calculations because their effect would have been anti-dilutive.
C. Investments
Investments as of December 31, 2011 and 2010 consisted of the following (table in thousands):
During the year ended December 31, 2011 , a realized pre-tax gain of $56.0 million was recorded in other income (expense), net on the
consolidated income statement for the sale of VMware’s common stock investment in Terremark Worldwide, Inc., which was acquired by
Verizon in a cash transaction. All other realized gains and realized losses on investments were not material for the years presented.
71
For the Year Ended December 31,
2011
2010
2009
Net income
$
723,936
$
357,439
$
197,098
Weighted-average shares, basic for Class A and Class B
421,188
409,805
394,269
Effect of dilutive securities
10,562
13,641
5,507
Weighted-average shares, diluted for Class A and Class B
431,750
423,446
399,776
Net income per weighted-average share, basic for Class A and Class B
$
1.72
$
0.87
$
0.50
Net income per weighted-average share, diluted for Class A and Class B
$
1.68
$
0.84
$
0.49
December 31, 2011
Cost or
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Aggregate
Fair Value
U.S. Government and agency obligations
$
516,795
$
1,842
$
(23
)
$
518,614
U.S. and foreign corporate debt securities
1,134,009
1,404
(2,036
)
1,133,377
Foreign governments and multi-national agency obligations
58,455
30
(87
)
58,398
Municipal obligations
768,282
1,396
(437
)
769,241
Asset-backed securities
27,107
2
(23
)
27,086
Mortgage-backed securities
49,778
128
(172
)
49,734
Total investments
$
2,554,426
$
4,802
$
(2,778
)
$
2,556,450
December 31, 2010
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