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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
VMware does not have any material assets or liabilities that fall into Level 3 of the fair value hierarchy as of December 31, 2014 and 2013 ,
and there have been no transfers between fair value measurement levels during the years ended December 31, 2014 and 2013 .
The following tables set forth the fair value hierarchy of VMware’s money-market funds and available-for-sale securities, including those
securities classified within cash equivalents on the consolidated balance sheets, that were required to be measured at fair value as of
December 31, 2014 and 2013 (tables in millions):
Beginning in 2014 , VMware offers a deferred compensation plan for eligible employees that allows participants to defer payment for part
or all of their compensation. VMware’s results of operations are not significantly affected by this plan since changes in the fair value of the
assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with this plan have not been
included in the above table. Assets and liabilities associated with this plan were approximately $8 million as of December 31, 2014 , and are
included in other assets, net and other liabilities on the consolidated balance sheets.
81
December 31, 2014
Level 1
Level 2
Total
Cash equivalents:
Money-market funds
$
1,130
$
—
$
1,130
U.S. and foreign corporate debt securities —
54
54
Foreign governments and multi-national agency obligations —
2
2
Total cash equivalents
1,130
56
1,186
Short-term investments:
U.S. Government and agency obligations
353
189
542
U.S. and foreign corporate debt securities —
3,234
3,234
Foreign governments and multi-national agency obligations —
23
23
Municipal obligations —
932
932
Asset-backed securities —
53
53
Mortgage-backed securities —
220
220
Total short-term investments
353
4,651
5,004
Total cash equivalents and short-term investments
$
1,483
$
4,707
$
6,190
December 31, 2013
Level 1
Level 2
Total
Cash equivalents:
Money-market funds
$
1,808
$
—
$
1,808
U.S. and foreign corporate debt securities —
12
12
Municipal obligations —
2
2
Total cash equivalents
1,808
14
1,822
Short-term investments:
U.S. Government and agency obligations
385
152
537
U.S. and foreign corporate debt securities —
2,354
2,354
Foreign governments and multi-national agency obligations —
37
37
Municipal obligations —
814
814
Mortgage-backed securities —
128
128
Total short-term investments
385
3,485
3,870
Total cash equivalents and short-term investments
$
2,193
$
3,499
$
5,692