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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
No individual country other than the United States accounted for 10% or more of these assets as of December 31, 2013 and 2012 , respectively.
VMware's product and service solutions are organized into three main product groups:
VMware develops and markets product and service offerings within each of these three product groups. Additionally, synergies are leveraged across
these three product areas. VMWare's products and service solutions from each of its product groups may also be bundled as part of an ELA arrangement.
Accordingly, it is not practicable to determine revenue by each of the three product groups described above, however, the majority of revenues during fiscal
2013, 2012, and 2011 were derived from the SDDC product group.
Q. Selected Quarterly Financial Data (unaudited)
Quarterly financial data for 2013 and 2012 were as follows (tables in millions, except per share amounts):
R. Subsequent Events
On February 24, 2014, VMware acquired A.W.S. Holding, LLC (“AirWatch Holding”), the sole member and equity holder of AirWatch LLC
(“AirWatch”). AirWatch is a leader in enterprise mobile management and security solutions. This acquisition expands VMware's portfolio of mobile
solutions.
The estimated consideration includes approximately $1,181 million in cash and approximately $364 million of installment payments and assumed
unvested equity. The acquisition was funded through a combination of balance sheet cash and proceeds from $1,050 million of additional debt provided by
EMC.
EMC Promissory Notes
On January 21, 2014 , in connection with VMware's acquisition of AirWatch, VMware and EMC entered into a note exchange agreement providing for
the issuance of three promissory notes in the aggregate principal amount of $1,500 million . This amount includes, $450 million that was exchanged for the
$450 million promissory note issued to EMC in April 2007, as amended and restated in June 2011.
The three notes issued may be repaid without penalty or premium, and outstanding principal is due on the following dates: $680 million due May 1,
2018 , $550 million due May 1, 2020 and $270 million due December 1, 2022 . The notes bear interest, payable quarterly in arrears, at the annual rate of
1.75% .
92
•
SDDC
• End-
•
Hybrid Cloud Computing
2013 Q1 2013
Q2 2013
Q3 2013
Q4 2013
Revenues
$
1,191
$
1,243
$
1,289
$
1,483
Net income
174
244
261
335
Net income per share, basic
$
0.41
$
0.57
$
0.61
$
0.78
Net income per share, diluted
$
0.40
$
0.57
$
0.60
$
0.77
2012 Q1 2012
Q2 2012
Q3 2012
Q4 2012
Revenues
$
1,055
$
1,123
$
1,134
$
1,293
Net income
191
192
157
206
Net income per share, basic
$
0.45
$
0.45
$
0.37
$
0.48
Net income per share, diluted
$
0.44
$
0.44
$
0.36
$
0.47