VMware 2012 Annual Report Download - page 103

Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
In December 2012, VMware and EMC launched the Pivotal Initiative, pursuant to which both companies plan to commit technology, people
and programs.
Transactions with Other Related Parties
Cisco Systems holds 6.5 million shares of VMware Class A common stock representing greater than 5% of VMware’s outstanding Class A
common stock. Additionally, one of the members of VMware's Board of Directors has served as an Executive Officer of Intel Corporation since
October 2012. VMware has in the past done business, and expects to continue to do business, with Cisco and Intel on a regular arm’s-length
basis, on the same or similar terms as would be negotiated with unrelated third parties. Transactions with Cisco in the years ended December 31,
2012 , 2011 and 2010 , and with Intel in the year ended December 31, 2012 , had no material impact on VMware’s consolidated financial
statements.
O. Segment Information
VMware operates in one
operating 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’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the
consolidated level. Since VMware operates in one operating segment, all required financial segment information can be found in the
consolidated financial statements.
Revenues by geographic area for the years ended December 31, 2012 , 2011 and 2010 were as follows (table in thousands):
No country other than the United States had material revenues for the years ended December 31, 2012 , 2011 and 2010 .
One customer accounted for 15% , 15% and 13% of revenues in 2012 , 2011 and 2010 , respectively, and another customer accounted for
12% , 11% , and 10% of revenues in 2012 , 2011 and 2010 , respectively. A third customer accounted for 10% and 11% of revenues in 2011 and
2010 , respectively.
Long-lived assets by geographic area, which primarily include property and equipment, net, as of December 31, 2012 , 2011 and 2010 were
as follows (table in thousands):
No country other than the United States accounted for 10% or more of these assets at December 31, 2012 , 2011 and 2010 , respectively.
VMware groups its products into portfolios that are categorized into the following classes:
Cloud Infrastructure and Management products.
The Cloud Infrastructure and Management product group is based upon VMware's flagship
virtualization platform, VMware vSphere. VMware vSphere decouples the entire software environment from its underlying hardware
infrastructure, and also enables the aggregation of multiple servers, storage infrastructures and networks into shared pools of resources that can
be delivered dynamically, securely and reliably to applications as needed. The Cloud Infrastructure and Management group also encompasses
the VMware vCloud Suite and various Cloud Management solutions optimized to work with vSphere environments and designed to simplify and
automate management of dynamic cloud infrastructures.
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For the Year Ended December 31,
2012
2011 2010
United States
$
2,228,575
$
1,824,249
$
1,452,738
International
2,376,472
1,942,847
1,404,605
Total
$
4,605,047
$
3,767,096
$
2,857,343
For the Year Ended December 31,
2012
2011 2010
United States
$
562,862
$
429,678
$
306,182
International
51,207
46,477
43,363
Total
$
614,069
$
476,155
$
349,545