VMware 2013 Annual Report Download - page 94

Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
VMware's ownership interest in Pivotal is 28% as of December 31, 2013 as a result of investments made by a third-party strategic investor. As Pivotal
assumed a net liability from VMware, the investment carried by VMware has a cost basis of zero . Thus the net liability assumed by Pivotal of $17 million as
of December 31, 2013 was classified to additional paid-in capital on VMware’s consolidated balance sheet.
Due To/From Related Parties, Net
As a result of the related-party transactions with EMC and Pivotal described above, amounts due to and from related parties, net as of December 31,
2013 and 2012 consisted of the following (table in millions):
Balances due to or from related parties, which are unrelated to tax obligations, are generally 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. See Note L to the consolidated financial statements
for further information.
P. Segment Information
VMware operates in one reportable operating segment, thus all required financial segment information can be found in the consolidated financial
statements. 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.
Revenues by geographic area for the years ended December 31, 2013 , 2012 and 2011 were as follows (table in millions):
It is not practicable for VMware to determine revenues by country other than the United States for the years ended December 31, 2013 , 2012 and 2011 .
One customer accounted for 15% of revenues in each of the years ended December 31, 2013 , 2012 and 2011 , respectively, and another customer
accounted for 12% , 12% and 11% of revenues in the years ended December 31, 2013 , 2012 and 2011 , respectively. A third customer accounted for 11%
and 10% of revenues in the years ended December 31, 2013 and 2011 , respectively.
Long-lived assets by geographic area, which primarily include property and equipment, net, as of December 31, 2013 and 2012 were as follows (table in
millions):
91
As of December 31,
2013
2012
Due to EMC
$
(92
)
$
(44
)
Due from EMC
93
112
Due to Pivotal
(22
)
n/a
Due from Pivotal
3
n/a
Due from (to) related parties, net
$
(18
)
$
68
Income tax payable due to EMC
$
(22
)
$
(32
)
For the Year Ended December 31,
2013
2012 2011
United States
$
2,485
$
2,229
$
1,824
International
2,722
2,376
1,943
Total
$
5,207
$
4,605
$
3,767
December 31,
2013
2012
United States
$
741
$
563
International
58
51
Total
$
799
$
614