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Table of Contents
VMware, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(amounts in millions, except per share amounts, and shares in thousands)
The accompanying notes are an integral part of the consolidated financial statements.
60
For the Year Ended December 31,
2014
2013
2012
Revenues:
License
$
2,591
$
2,270
$
2,087
Services
3,444
2,937
2,518
Total revenues
6,035
5,207
4,605
Operating expenses (1):
Cost of license revenues
192
210
237
Cost of services revenues
725
520
484
Research and development
1,239
1,082
999
Sales and marketing
2,141
1,815
1,645
General and administrative
695
419
368
Realignment charges
16
68
—
Operating income
1,027
1,093
872
Investment income
38
30
27
Interest expense with EMC
(24
)
(4
)
(5
)
Other income (expense), net
7
28
(1
)
Income before income taxes
1,048
1,147
893
Income tax provision
162
133
147
Net income
$
886
$
1,014
$
746
Net income per weighted-average share, basic for Class A
and Class B
$
2.06
$
2.36
$
1.75
Net income per weighted-
average share, diluted for Class A and Class B
$
2.04
$
2.34
$
1.72
Weighted-average shares, basic for Class A and Class B
430,355
429,093
426,658
Weighted-average shares, diluted for Class A and Class B
434,513
433,415
433,974
__________
(1) Includes stock-based compensation as follows:
Cost of license revenues
$
2
$
2
$
2
Cost of services revenues
42
29
28
Research and development
244
227
210
Sales and marketing
172
144
150
General and administrative
69
56
48
Realignment charges —
6
—