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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.
71
For the Year Ended December 31,
2010
2009
2008
Operating activities:
Net income
$
357,439
$
197,098
$
290,133
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
260,551
198,486
158,628
Stock
-
based compensation, excluding amounts capitalized
291,691
231,456
166,516
Excess tax benefits from stock
-
based compensation
(223,457
)
(26,214
)
(85,776
)
Other
13,083
2,816
8,663
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
(77,121
)
(193,610
)
(52,527
)
Other assets
(79,431
)
(14,181
)
(21,910
)
Due to/from EMC, net
(28,508
)
(64,762
)
40,348
Accounts payable
8,881
(17,886
)
3,012
Accrued expenses
120,880
124,685
22,930
Income taxes receivable from EMC
2,508
107,927
(111,050
)
Income taxes payable
89,439
32,779
26,623
Deferred income taxes, net
(56,948
)
(40,476
)
38,908
Unearned revenue
495,382
447,498
315,633
Net cash provided by operating activities
1,174,389
985,616
800,131
Investing activities:
Additions to property and equipment
(131,695
)
(103,375
)
(191,596
)
Capitalized software development costs
(64,149
)
(68,611
)
(90,900
)
Purchases of available
-
for
-
sale securities
(2,101,907
)
—
—
Sales of available
-
for
-
sale securities
389,251
—
—
Maturities of available
-
for
-
sale securities
127,054
—
—
Purchase of strategic investments
(4,800
)
(34,665
)
(1,750
)
Sale of strategic investments
2,648
—
—
Business acquisitions, net of cash acquired
(292,970
)
(356,278
)
(138,569
)
Transfer of net assets under common control
(185,580
)
—
—
Decrease in restricted cash
206
549
928
Net cash used in investing activities
(2,261,942
)
(562,380
)
(421,887
)
Financing activities:
Proceeds from issuance of common stock
431,306
227,666
190,107
Repurchase of common stock
(338,527
)
—
—
Excess tax benefits from stock
-
based compensation
223,457
26,214
85,776
Shares repurchased for tax withholdings on vesting of restricted stock
(86,179
)
(31,467
)
(44,483
)
Net cash provided by financing activities
230,057
222,413
231,400
Net increase (decrease) in cash and cash equivalents
(857,496
)
645,649
609,644
Cash and cash equivalents at beginning of the period
2,486,461
1,840,812
1,231,168
Cash and cash equivalents at end of the period
$
1,628,965
$
2,486,461
$
1,840,812
Supplemental disclosures of cash flow information:
Cash paid for interest
$
6,194
$
10,963
$
20,180
Cash paid (refunded) for taxes
23,428
(74,362
)
74,549
Non
-
cash items:
Changes in capital additions, accrued but not paid
$
(1,338
)
$
(11,303
)
$
19,566
Capitalization of facilities under financing lease transaction
—
—
19,077
Fair value of stock options assumed in acquisition
—
16,187
2,388