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TableofContents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2014 Q1 2014
Q2 2014
Q3 2014
Q4 2014
Revenues $ 1,360
$ 1,457
$ 1,515
$ 1,703
Netincome 199
167
194
326
Netincomepershare,basic $ 0.46
$ 0.39
$ 0.45
$ 0.76
Netincomepershare,diluted $ 0.46
$ 0.38
$ 0.45
$ 0.75
Q. Subsequent Events
OnJanuary22,2016,VMwareapproved,subjecttocompliancewithallapplicablelocallegalobligations,aplantostreamlineitsoperations,withplansto
reinvesttheassociatedsavingsinfield,technicalandsupportresourcesassociatedwithgrowthproducts.Thetotalchargeresultingfromthisplanisestimatedtobe
between$55millionand$65million,consistingprincipallyofemployee-relatedchargestobepaidincashfortheeliminationofapproximately800positionsand
personnel.AnysuchproposalsincountriesoutsidetheUnitedStateswillbesubjecttolocallawandconsultationrequirements.
ActionsassociatedwiththeplanareexpectedtobecompletedbyJune30,2016.Finalizationoftheplanwillbesubjecttolocalinformationandconsultation
processeswithemployeesortheirrepresentativesifrequiredbylaw.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
WecarriedoutanevaluationrequiredbytheSecuritiesExchangeActof1934,amended(the“ExchangeAct”),underthesupervisionandwiththe
participationofourprincipalexecutiveofficerandprincipalfinancialofficer,oftheeffectivenessofthedesignandoperationofourdisclosurecontrolsand
procedures,asdefinedinRule13a-15(e)oftheExchangeAct,asoftheendoftheperiodcoveredbythisreport.Basedonthisevaluation,ourprincipalexecutive
officerandprincipalfinancialofficerconcludedthat,asoftheendoftheperiodcoveredbythisreport,ourdisclosurecontrolsandprocedureswereeffectiveto
providereasonableassurancethatinformationrequiredtobedisclosedbyusinthereportsthatwefileorsubmitundertheExchangeActisrecorded,processed,
summarizedandreportedwithinthetimeperiodsspecifiedintheSecuritiesandExchangeCommission’srulesandformsandtoprovidereasonableassurancethat
suchinformationisaccumulatedandcommunicatedtoourmanagement,includingourprincipalexecutiveofficerandprincipalfinancialofficer,asappropriateto
allowtimelydecisionsregardingrequireddisclosures.
Management’s Report on Internal Control over Financial Reporting
Managementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,asdefinedinRule13a-15(f)oftheExchange
Act.ManagementhasassessedtheeffectivenessofourinternalcontroloverfinancialreportingasofDecember31,2015basedoncriteriaestablishedinInternal
Control-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.Asaresultofthisassessment,
managementconcludedthat,asofDecember31,2015,ourinternalcontroloverfinancialreportingwaseffectiveinprovidingreasonableassuranceregardingthe
reliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.The
effectivenessofourinternalcontroloverfinancialreportingasofDecember31,2015hasbeenauditedbyPricewaterhouseCoopers,LLP,anindependent
registeredpublicaccountingfirm,asstatedintheirreportwhichappearsinItem8ofthisAnnualReportonForm10-K.
Changes in Internal Controls Over Financial Reporting
TherewerenochangesinourinternalcontroloverfinancialreportingduringthemostrecentfiscalquarterendedDecember31,2015thatmateriallyaffected,
orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.
Limitations on Controls
Ourdisclosurecontrolsandproceduresandinternalcontroloverfinancialreportingaredesignedtoprovidereasonableassuranceofachievingtheirobjectives
asspecifiedabove.Ourmanagement,includingourprincipalexecutiveofficerandprincipalfinancialofficer,conductedanevaluationoftheeffectivenessofour
internalcontroloverfinancialreportingbasedon
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