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Table of Contents
In the years ended December 31, 2011 , 2010 and 2009 , $3.9 , $4.1 and $6.5 , respectively, of interest expense was recorded related to the
note payable to EMC and included in interest expense with EMC, on our consolidated statements of income. Our interest income and expenses
as a separate, stand-alone company may be higher or lower than the amounts reflected in the consolidated financial statements. In June 2011, we
and EMC amended the note to extend its maturity date from April 16, 2012 to April 16, 2015 .
As of December 31, 2011 , we had $101.4 due from EMC, which was partially offset by $27.6 due to EMC. As of December 31, 2010 , we
had $76.5 due from EMC, which was partially offset by $21.0 due to EMC. The net amounts due from EMC as of December 31, 2011 and
December 31, 2010 were $73.8 and $55.5 , respectively, and resulted from the related party transactions described above. Additionally, as of
December 31, 2011 we had $3.3 of net income taxes payable due to EMC, which was included in accrued expenses and other on the
consolidated balance sheet. As of December 31, 2010 , we had $144.3 , respectively, of income taxes receivable due from EMC, which was
included in other current assets on our consolidated balance sheet. Balances due to or from EMC which are unrelated to tax obligations are
settled in cash within 60 days of each quarter-end. The timing of the tax payments due to and from EMC is governed by the tax sharing
agreement with EMC.
By nature of EMC's majority ownership of us, the amounts we recorded for our intercompany transactions with EMC may not be
condition, results of operations and cash flows had we engaged in such transactions with an unrelated third party during all periods presented.
Accordingly, our historical results should not be relied upon as an indicator of our future performance as a stand-alone company.
Liquidity and Capital Resources
During 2010, we began investing in fixed income securities, which drove a shift from cash and cash equivalents to short-term investments.
Our fixed income investment portfolio is denominated in U.S. Dollars and consists of various holdings, types and maturities. Our primary
objective for holding fixed income securities is to achieve an appropriate investment return consistent with preserving principal and managing
risk.
Our operating activities in 2011 , 2010 and 2009
, respectively, generated sufficient cash to meet our operating needs. Our cash flows for the
years ended
2011 , 2010 and 2009 were as follows:
In evaluating our liquidity internally, we focus on long-term, sustainable growth in free cash flows and in non-GAAP cash flows from
operating activities (“non-GAAP operating cash flows”). We define non-
GAAP operating cash flows as net cash provided by operating activities
less capitalized software development costs plus the excess tax benefits from stock-based compensation. We define free cash flows, also a non-
GAAP financial measure, as non-GAAP operating cash flows less capital expenditures. See “Non-GAAP Financial Measures” for additional
information.
47
December 31,
2011
2010
Cash and cash equivalents
$
1,955.8
$
1,629.0
Short-term investments
2,556.5
1,694.7
Total cash, cash equivalents and short-term investments
$
4,512.3
$
3,323.7
For the Year Ended December 31,
2011
2010
2009
Net cash provided by (used in):
Operating activities
$
2,025.6
$
1,174.4
$
985.6
Investing activities
(1,611.0
)
(2,261.9
)
(562.4
)
Financing activities
(87.9
)
230.1
222.4
Net increase (decrease) in cash and cash equivalents
$
326.7
$
(857.4
)
$
645.6