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Table of Contents
VMware, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
The accompanying notes are an integral part of the consolidated financial statements.
60
For the Year Ended December 31,
2007
2006
2005
Cash flows from operating activities:
Net income
$
218,137
$
85,890
$
66,775
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
104,027
66,573
39,461
In
-
process research and development
—
3,700
—
Stock
-
based compensation, excluding amounts capitalized
92,406
51,226
27,071
Other adjustments
(167
)
5,076
202
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
(88,969
)
(97,992
)
(51,967
)
Other assets
(977
)
(9,076
)
(2,120
)
Due to (from) EMC, net
5,004
(48,365
)
29,252
Accounts payable
15,571
31,762
7,751
Accrued expenses
61,620
60,904
20,909
Income taxes payable to EMC
(17,812
)
(6,006
)
44,062
Deferred income taxes, net
(78,486
)
(21,888
)
(22,683
)
Deferred revenue
242,082
158,059
79,534
Net cash provided by operating activities
552,436
279,863
238,247
Cash flows from investing activities:
Additions to property and equipment, net
(136,395
)
(52,574
)
(20,652
)
Purchase of headquarters facilities from EMC
(132,564
)
—
—
Capitalized software development costs
(47,735
)
(32,523
)
(21,558
)
Business acquisitions, net of cash acquired
(82,535
)
(46,541
)
(2,163
)
Increase in restricted cash
(4,466
)
(10,744
)
(1,280
)
Net cash used in investing activities
(403,695
)
(142,382
)
(45,653
)
Cash flows from financing activities:
Dividends paid to EMC
—
—
(
190,000
)
Proceeds from Class A common stock issued in IPO, net of issuance costs
1,035,233
—
—
Proceeds from Class A common stock issued to Intel Capital, net of issuance costs
218,300
—
—
Proceeds from exercises of stock options
2,760
—
—
Repayment of note payable to EMC
(350,000
)
—
—
Net cash provided (used) by financing activities
906,293
—
(
190,000
)
Net increase in cash and cash equivalents
1,055,034
137,481
2,594
Cash and cash equivalents at beginning of the period
176,134
38,653
36,059
Cash and cash equivalents at end of the period
$
1,231,168
$
176,134
$
38,653
Supplemental disclosures of cash flow information
Cash paid for interest
$
19,991
$
481
$
512
Cash paid for taxes
$
118,413
$
64,074
$
7,121
Non
-
cash items:
Dividends declared via note payable to EMC
$
—
$
800,000
$
—
Fair value of EMC stock options issued in acquisition
$
—
$
689
$
—