VMware 2009 Annual Report Download - page 105

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Table of Contents
VMWARE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
VMware has in the past done business, and expects to continue to do business, with Intel and Cisco on a regular arm’s-length basis, on the
same or similar terms as would be negotiated with unrelated third parties. The transactions with Intel and Cisco in 2009, 2008 and 2007 were not
material to VMware’s consolidated financial statements.
In addition, from time to time, VMware may purchase or sell goods and services in the ordinary course of business with financial
institutions that beneficially own 5% or more of VMware’s Class A common stock. VMware has in the past done business, and expects to
continue to do business, with entities affiliated with FMR LLC and UBS AG, financial institutions that beneficially own 5% or more of the
Company’s Class A common stock, on regular, arm’s-length basis, on the same or similar terms as would be negotiated with unrelated third
parties. During 2009 and 2008, VMware invoiced entities believed to be affiliated with FMR LLC and UBS AG for goods and services sold by
VMware. In addition, the Company’s 401(k) plan is administered by Fidelity Investments, an affiliate of FMR LLC, and UBS Financial
Services, Inc., an affiliate of UBS AG, who is VMware’s stock plan administrator. Transactions with FMR LLC and with UBS AG were not
material to VMware’s 2009, 2008 and 2007 consolidated financial statements.
In 2007, VMware entered into an agreement to license software from Softrax Corporation (“Softrax”). A member of the Company’s Board
of Directors is a managing partner and general partner in a limited partnership, which until November 2009 had an equity interest in Softrax of
greater than 10%. The amounts expensed or paid to Softrax in 2009, 2008 and 2007 were not material to VMware’s consolidated financial
statements.
M. Segment Information
VMware operates in one reportable segment. Operating segments are defined as components of an enterprise about which separate
financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing
performance. VMware operates in one segment, therefore all required financial segment information can be found in the consolidated financial
statements.
Revenues by geographic area are as follows (table in thousands):
No country other than the United States had material revenues for the years ended December 31, 2009, 2008 or 2007.
One distributor accounted for 16% of revenues in both 2009 and 2008, respectively, and 12% of revenues in 2007, and another distributor
accounted for 15%, 18%, and 23% of revenues in 2009, 2008 and 2007, respectively. One channel partner accounted for less than 10% in 2009,
but accounted for 11% in both 2008 and 2007, respectively.
102
For the Year Ended December 31,
2009
2008
2007
United States
$
1,039,033
$
987,604
$
720,620
International
984,904
893,423
605,191
Total
$
2,023,937
$
1,881,027
$
1,325,811