Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 04, 2017 | Sep. 01, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | VMWARE, INC. | |
Entity Central Index Key | 1,124,610 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Aug. 4, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 108,947,278 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 300,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | ||
Revenue: | ||||||
License | $ 125 | $ 732 | $ 644 | $ 1,342 | $ 1,216 | |
Services | 371 | 1,168 | 1,049 | 2,294 | 2,066 | |
Total revenue | 496 | 1,900 | 1,693 | 3,636 | 3,282 | |
Operating expenses: | ||||||
Cost of license revenue | [1] | 13 | 39 | 40 | 78 | 81 |
Cost of services revenue | [1] | 80 | 231 | 221 | 481 | 432 |
Research and development | [1] | 150 | 428 | 363 | 849 | 720 |
Sales and marketing | [1] | 231 | 668 | 580 | 1,255 | 1,144 |
General and administrative | [1] | 63 | 160 | 167 | 311 | 338 |
Realignment and loss on disposition | [1] | 0 | 36 | (1) | 86 | 52 |
Operating income (loss) | (41) | 338 | 323 | 576 | 515 | |
Investment income | 8 | 25 | 19 | 48 | 35 | |
Interest expense with Dell | (2) | (7) | (7) | (13) | (13) | |
Other income (expense), net | 1 | 51 | 2 | 54 | 0 | |
Income (loss) before income tax | (34) | 407 | 337 | 665 | 537 | |
Income tax provision (benefit) | (26) | 73 | 72 | 99 | 111 | |
Net income (loss) | $ (8) | $ 334 | $ 265 | $ 566 | $ 426 | |
Net income (loss) per weighted-average share, basic for Class A and Class B (USD per share) | $ (0.02) | $ 0.82 | $ 0.62 | $ 1.39 | $ 1 | |
Net income (loss) per weighted-average share, diluted for Class A and Class B (USD per share) | $ (0.02) | $ 0.81 | $ 0.62 | $ 1.37 | $ 1 | |
Weighted-average shares, basic for Class A and Class B (shares) | 408,625 | 408,399 | 425,107 | 408,415 | 424,169 | |
Weighted-average shares, diluted for Class A and Class B (shares) | 408,625 | 412,768 | 427,102 | 413,920 | 425,729 | |
Cost of license revenue | ||||||
Operating expenses: | ||||||
Stock-based compensation | $ 0 | $ 0 | $ 0 | $ 1 | $ 1 | |
Cost of services revenue | ||||||
Operating expenses: | ||||||
Stock-based compensation | 5 | 12 | 13 | 25 | 25 | |
Research and development | ||||||
Operating expenses: | ||||||
Stock-based compensation | 31 | 89 | 74 | 170 | 144 | |
Sales and marketing | ||||||
Operating expenses: | ||||||
Stock-based compensation | 19 | 48 | 47 | 98 | 95 | |
General and administrative | ||||||
Operating expenses: | ||||||
Stock-based compensation | $ 7 | $ 20 | $ 18 | $ 37 | $ 36 | |
[1] | Includes stock-based compensation as follows: Cost of license revenue $0 $0 $1 $1 $0, Cost of services revenue $12 $13 $25 $25 $5, Research and development $89 $74 $170 $144 $31, Sales and marketing $48 $47 $98 $95 $19, General and administrative $20 $18 $37 $36 $7. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (8) | $ 334 | $ 265 | $ 566 | $ 426 |
Changes in market value of available-for-sale securities: | |||||
Unrealized gains, net of tax provision | 2 | 8 | 10 | 15 | 24 |
Reclassification of losses realized during the period, net of tax benefit | 0 | 0 | 0 | 2 | 3 |
Net change in market value of available-for-sale securities | 2 | 8 | 10 | 17 | 27 |
Changes in market value of effective foreign currency forward contracts: | |||||
Unrealized gains (losses), net of tax provision | 3 | (5) | (3) | 1 | 0 |
Reclassification of losses realized during the period, net of tax benefit | 0 | 2 | 1 | 2 | 1 |
Net change in market value of effective foreign currency forward contracts | 3 | (3) | (2) | 3 | 1 |
Total other comprehensive income | 5 | 5 | 8 | 20 | 28 |
Total comprehensive income (loss), net of taxes | $ (3) | $ 339 | $ 273 | $ 586 | $ 454 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||
Tax provision (benefit) on unrealized gains (losses) on available-for-sale securities | $ 1 | $ 5 | $ 6 | $ 9 | $ 15 |
Tax (provision) benefit on reclassification of (gains) losses on available-for-sale securities realized during the period | 0 | 0 | 0 | 1 | 2 |
Tax provision (benefit) on unrealized gains (losses) on effective foreign currency forward contracts | 0 | 3 | 0 | 3 | 0 |
Tax (provision) benefit on reclassification of (gains) losses on effective foreign currency forward contracts realized during the period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 3,552 | $ 3,220 | $ 2,790 |
Short-term investments | 5,350 | 5,173 | 5,195 |
Accounts receivable, net of allowance for doubtful accounts of $2, $2 and $2 | 1,189 | 1,192 | 1,856 |
Due from related parties, net | 207 | 93 | 132 |
Other current assets | 173 | 173 | 362 |
Total current assets | 10,471 | 9,851 | 10,335 |
Property and equipment, net | 1,005 | 1,042 | 1,049 |
Other assets | 262 | 249 | 248 |
Deferred tax assets | 691 | 716 | 462 |
Intangible assets, net | 476 | 507 | 517 |
Goodwill | 4,270 | 4,032 | 4,032 |
Total assets | 17,175 | 16,397 | 16,643 |
Current liabilities: | |||
Accounts payable | 116 | 53 | 125 |
Accrued expenses and other | 1,016 | 887 | 898 |
Note payable to Dell | 680 | 0 | 0 |
Unearned revenue | 3,464 | 3,349 | 3,531 |
Total current liabilities | 5,276 | 4,289 | 4,554 |
Notes payable to Dell | 820 | 1,500 | 1,500 |
Unearned revenue | 2,040 | 1,991 | 2,093 |
Other liabilities | 440 | 401 | 399 |
Total liabilities | 8,576 | 8,181 | 8,546 |
Contingencies (refer to Note I) | |||
Stockholders’ equity: | |||
Additional paid-in capital | 1,640 | 1,843 | 1,721 |
Accumulated other comprehensive income (loss) | 16 | (4) | (9) |
Retained earnings | 6,939 | 6,373 | 6,381 |
Total stockholders’ equity | 8,599 | 8,216 | 8,097 |
Total liabilities and stockholders’ equity | 17,175 | 16,397 | 16,643 |
Class A Common Stock | |||
Stockholders’ equity: | |||
Common stock | 1 | 1 | 1 |
Class B Convertible Common Stock | |||
Stockholders’ equity: | |||
Common stock | $ 3 | $ 3 | $ 3 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 2 | $ 2 | $ 2 |
Class A Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 |
Common stock, shares issued (shares) | 109,651,000 | 110,060,000 | 108,351,000 |
Common stock, shares outstanding (shares) | 109,651,000 | 110,060,000 | 108,351,000 |
Class B Convertible Common Stock | |||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares outstanding (shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | |
Operating activities: | |||
Net income (loss) | $ (8) | $ 566 | $ 426 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 29 | 165 | 174 |
Stock-based compensation | 62 | 331 | 301 |
Excess tax benefits from stock-based compensation | (5) | 0 | (1) |
Deferred income taxes, net | (254) | 35 | (5) |
Loss on disposition | 0 | 79 | 0 |
(Gain) loss on Dell stock purchase | (1) | 2 | 0 |
Impairment of strategic investments | 0 | 2 | 5 |
Gain on disposition of strategic investments | 0 | (38) | (1) |
Other | 0 | 1 | 5 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 664 | 4 | 417 |
Other assets | 190 | (27) | (23) |
Due to/from related parties, net | 39 | (114) | (18) |
Accounts payable | (68) | 60 | (10) |
Accrued expenses | (41) | 122 | 18 |
Income taxes payable | 38 | 8 | (36) |
Unearned revenue | (284) | 199 | 45 |
Net cash provided by operating activities | 361 | 1,395 | 1,297 |
Investing activities: | |||
Additions to property and equipment | (18) | (105) | (79) |
Purchases of available-for-sale securities | (38) | (2,152) | (2,211) |
Sales of available-for-sale securities | 43 | 1,253 | 979 |
Maturities of available-for-sale securities | 20 | 770 | 619 |
Proceeds from disposition of assets | 0 | 0 | 3 |
Purchases of strategic investments | 0 | (32) | (27) |
Proceeds from sales of strategic investments | 0 | 6 | 1 |
Business combinations, net of cash acquired | 0 | (236) | (59) |
Net cash paid on disposition of business | 0 | (41) | 0 |
Increase in restricted cash | 0 | 0 | (2) |
Net cash provided by (used in) investing activities | 7 | (537) | (776) |
Financing activities: | |||
Proceeds from issuance of common stock | 61 | 76 | 52 |
Payment to acquire non-controlling interests | 0 | 0 | (4) |
Repurchase of common stock | 0 | (425) | 0 |
Excess tax benefits from stock-based compensation | 5 | 0 | 1 |
Shares repurchased for tax withholdings on vesting of restricted stock | (4) | (177) | (72) |
Net cash provided by (used in) financing activities | 62 | (526) | (23) |
Net increase in cash and cash equivalents | 430 | 332 | 498 |
Cash and cash equivalents at beginning of the period | 2,790 | 3,220 | 2,493 |
Cash and cash equivalents at end of the period | 3,220 | 3,552 | 2,991 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 0 | 16 | 14 |
Cash paid for taxes, net | 3 | 63 | 135 |
Non-cash items: | |||
Changes in capital additions, accrued but not paid | $ (6) | $ 6 | $ (19) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Aug. 04, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background VMware, Inc. (“VMware” or the “Company”) is a leader in virtualization and cloud infrastructure solutions that enable businesses to transform the way they build, deliver and consume information technology resources in a manner that is based on their specific needs. VMware’s virtualization infrastructure solutions, which include a suite of products and services designed to deliver a software-defined data center, run on industry-standard desktop computers, servers and mobile devices and support a wide range of operating system and application environments, as well as networking and storage infrastructures. Change in Fiscal Year End Effective January 1, 2017 , VMware’s fiscal year changed from a fiscal year ending on December 31 of each calendar year to a fiscal year consisting of a 52- or 53-week period ending on the Friday nearest to January 31 of each year. The period that began on January 1, 2017 and ended on February 3, 2017 is reflected as a transition period (the “Transition Period”). VMware’s first full fiscal year 2018 under the revised fiscal calendar is a 52-week year that began on February 4, 2017 and will end on February 2, 2018 . The Company has included its unaudited condensed consolidated financial statements for the Transition Period in this report on Form 10-Q. As permitted under SEC rules, prior-period financial statements have not been recast, as management believes (i) the three and six months ended June 30, 2016 are comparable to the three and six months ended August 4, 2017 and (ii) recasting prior-period results was not practicable or cost justified. Accounting Principles The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, for a fair statement of VMware’s condensed consolidated results of operations, financial position and cash flows for the periods presented. Results of operations are not necessarily indicative of the results that may be expected for the full fiscal year 2018. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in VMware’s 2016 Annual Report on Form 10-K. Effective September 7, 2016, Dell Technologies Inc. (“Dell”) (formerly Denali Holding Inc.) acquired EMC Corporation (“EMC”), including EMC’s majority control of VMware (the “Dell Acquisition”). As a result of the Dell Acquisition, EMC became a wholly-owned subsidiary of Dell and VMware became an indirectly held, majority-owned subsidiary of Dell. As of August 4, 2017 , Dell controlled 81.4% of VMware’s outstanding common stock and 97.5% of the combined voting power of VMware’s outstanding common stock, including 33 million shares of VMware’s Class A common stock and all of VMware’s Class B common stock. As VMware is a majority-owned and controlled subsidiary of Dell, its results of operations and financial position are consolidated with Dell’s financial statements. Transactions prior to the effective date of the Dell Acquisition represent transactions only with EMC and its consolidated subsidiaries (“Parent”). Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s intercompany transactions with Dell and its consolidated subsidiaries may not be considered arm’s length with an unrelated third party. Therefore, the financial statements included herein may not necessarily reflect the results of operations, financial position and cash flows had VMware engaged in such transactions with an unrelated third party during all periods presented. Accordingly, VMware’s historical financial information is not necessarily indicative of what the Company’s results of operations, financial position and cash flows will be in the future if and when VMware contracts at arm’s length with unrelated third parties for products and services the Company receives from and provides to Dell. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of VMware and its subsidiaries. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with Dell and its consolidated subsidiaries are generally settled in cash and are classified on the condensed consolidated statements of cash flows based upon the nature of the underlying transaction. Use of Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent liabilities at the date of the financial statements. Estimates are used for, but not limited to, trade receivable valuation, marketing development funds and rebates, useful lives assigned to fixed assets and intangible assets, valuation of goodwill and definite-lived intangibles, income taxes, stock-based compensation and contingencies. Actual results could differ from those estimates. New Accounting Pronouncements Topic 606, Revenue from Contracts with Customers During May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). In 2016, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12, which provide interpretive clarifications on the new guidance in Topic 606 (collectively, “Topic 606”). The updated revenue standard replaces all existing revenue recognition guidance under GAAP and establishes common principles for recognizing revenue for all industries. It also provides guidance on the accounting for costs to fulfill or obtain a customer contract. The core principle underlying the updated standard is the recognition of revenue based on consideration expected to be entitled from the transfer of goods or services to a customer. The updated standard is effective for interim and annual periods beginning after December 15, 2017 and permits the use of either the full retrospective or cumulative effect transition method. VMware plans to adopt Topic 606 using the full retrospective transition method when it becomes effective for the Company in the first quarter of fiscal 2019. While the Company is continuing to assess the potential impacts of Topic 606, VMware currently expects unearned license revenue related to the sale of perpetual licenses will decline significantly upon adoption. Currently, VMware defers all license revenue related to the sale of its perpetual licenses in the event certain revenue recognition criteria are not met. However, under Topic 606, the Company would generally expect that substantially all license revenue related to the sale of its perpetual licenses will be recognized upon delivery. Topic 606 is also expected to impact the timing and recognition of costs to obtain contracts with customers, such as commissions. Under the new standard, incremental costs to obtain contracts with customers are deferred and recognized over the expected period of benefit. As a result, VMware expects deferred commission costs to increase. The Company is continuing to evaluate the effects that Topic 606 will have on its consolidated financial statements and related disclosures, and its preliminary assessments are subject to change. ASU No. 2016-02, Leases During February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The updated standard also requires additional disclosure regarding leasing arrangements. It is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures, and expects that most of its lease commitments will be subject to the updated standard and recognized as lease liabilities and right-of-use assets upon adoption. ASU No. 2016-16, Income Taxes During October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance required the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective for annual and interim periods beginning after December 15, 2017 and requires a modified retrospective transition method. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. ASU No. 2016-09, Compensation VMware adopted ASU No. 2016-09, Compensation–Stock Compensation (Topic 718), on a prospective basis, effective February 4, 2017. Prior periods have not been reclassified to conform to the fiscal 2018 presentation. Net excess tax benefits recognized in connection with stock-based awards are now included in the income tax provision on the condensed consolidated statements of income. Net excess tax benefits recognized during the three and six months ended August 4, 2017 were $13 million and $44 million , respectively. Prior to adopting the updated standard, such amounts were recognized in additional paid-in capital on the Company’s consolidated balance sheets. Additionally, all tax-related cash flows resulting from stock-based awards are reported as operating activities in the statements of cash flows. Prior to adopting the updated standard, excess tax benefits were reported as a cash inflow from financing activities in the statements of cash flows. |
Related Parties
Related Parties | 6 Months Ended |
Aug. 04, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The information provided below includes a summary of the transactions entered into with Dell and Dell’s consolidated subsidiaries, including EMC. Transactions prior to September 7, 2016 reflect transactions only with EMC and its consolidated subsidiaries. Transactions with Dell VMware and Dell engaged in the following ongoing intercompany transactions, which resulted in revenue and receipts and unearned revenue for VMware: • Pursuant to ongoing reseller arrangements with Dell, Dell bundles VMware’s products and services with Dell’s products and sells them to end users. Reseller revenue is presented net of related marketing development funds and rebates paid to Dell. • Dell purchases products and services from VMware for internal use. • VMware provides professional services to end users based upon contractual agreements with Dell. • Pursuant to an ongoing distribution agreement, VMware acts as the selling agent for certain products and services of Pivotal Software, Inc. (“Pivotal”), a subsidiary of Dell, in exchange for an agency fee. Under this agreement, cash is collected from the end user by VMware and remitted to Pivotal, net of the contractual agency fee. • VMware provides various services to Pivotal. Support costs incurred by VMware are reimbursed to VMware and are recorded as a reduction to the costs incurred by VMware. Dell purchases VMware products and services directly from VMware, as well as through VMware’s channel partners. Information about VMware’s revenue and receipts, and unearned revenue from such arrangements, for the periods presented consisted of the following (table in millions): Revenue and Receipts Unearned Revenue Transition Period As of Three Months Ended Six Months Ended January 1 to Transition Period August 4, June 30, August 4, June 30, February 3, August 4, December 31, February 3, 2017 2016 2017 2016 2017 2017 2016 2017 Reseller revenue $ 282 $ 85 $ 505 $ 163 $ 44 $ 806 $ 637 $ 616 Internal-use revenue 4 14 9 19 7 9 15 18 Professional services revenue 26 26 55 51 3 — — — Agency fee revenue — 1 1 2 — — — — Reimbursement for services to Pivotal — — — 1 — n/a n/a n/a VMware and Dell engaged in the following ongoing intercompany transactions, which resulted in costs to VMware: • VMware purchases and leases products and purchases services from Dell. • In certain geographic regions where VMware does not have an established legal entity, VMware contracts with Dell subsidiaries for support services and Dell personnel who are managed by VMware. The costs incurred by Dell on VMware’s behalf related to these employees are charged to VMware with a mark-up intended to approximate costs that would have been incurred had VMware contracted for such services with an unrelated third party. These costs are included as expenses on VMware’s condensed consolidated statements of income and primarily include salaries, benefits, travel and occupancy expenses. Dell also incurs certain administrative costs on VMware’s behalf in the United States that are recorded as expenses on VMware’s condensed consolidated statements of income. • From time to time, VMware invoices end users on behalf of Dell for certain services rendered by Dell. Cash related to these services is collected from the end user by VMware and remitted to Dell. Information about VMware’s costs from such arrangements during the periods presented consisted of the following (table in millions): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Purchases and leases of products and purchases of services $ 32 $ 17 $ 68 $ 34 $ 14 Dell subsidiary support and administrative costs 33 21 62 44 13 VMware also purchases Dell products through Dell’s channel partners. Purchases of Dell products through Dell’s channel partners were not significant during the periods presented. During the second quarter of fiscal 2018, VMware acquired Wavefront, Inc. (“Wavefront”). Upon closing of the acquisition, Dell was paid $20 million in cash for its ownership interest in Wavefront. Dell Financial Services (“DFS”) DFS provided financing to certain of VMware’s end customers based on the customer’s discretion. Upon acceptance of the financing arrangement by both VMware’s end customer and DFS, amounts classified as trade accounts receivable are reclassified to due from related parties, net on the condensed consolidated balance sheets. Revenue recognized on transactions financed through DFS was recorded net of financing fees, which were $7 million and $9 million during the three and six months ended August 4, 2017 , respectively. Financing fees during the Transition Period were not significant. Tax Sharing Agreement with Dell VMware has made payments to Dell pursuant to a tax sharing agreement. The following table summarizes the payments made during the periods presented (table in millions): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Payments from VMware to Dell $ 12 $ 54 $ 12 $ 95 $ — The timing of the tax payments due to and from related parties is governed by a tax sharing agreement. Payments from VMware to Dell under the tax sharing agreement relate to VMware’s portion of federal income taxes on Dell’s consolidated tax return as well as state tax payments for combined states. The amounts that VMware pays to Dell for its portion of federal income taxes on Dell’s consolidated tax return differ from the amounts VMware would owe on a separate tax return basis and the difference is presented as a component of stockholders’ equity. The difference between the amount of tax calculated on a separate return basis and the amount of tax calculated pursuant to the tax sharing agreement was not significant during the three and six months ended August 4, 2017 and the Transition Period , and was $14 million and $15 million during the three and six months ended June 30, 2016 , respectively. Due To/From Related Parties, Net Amounts due to and from related parties, net as of the periods presented consisted of the following (table in millions): Transition Period August 4, December 31, February 3, 2017 2016 2017 Due (to) related parties $ (67 ) $ (71 ) $ (85 ) Due from related parties 274 203 178 Due from related parties, net $ 207 $ 132 $ 93 Income tax related asset, net $ — $ 181 $ — Income tax due (to) related parties (14 ) — (21 ) Amounts included in due from related parties, net, which are unrelated to DFS and tax obligations, are generally settled in cash within 60 days of each quarter-end. Stock Purchase Agreements with Dell On March 29, 2017, VMware entered into a stock purchase agreement to purchase $300 million of VMware Class A common stock from Dell. During the first quarter of fiscal 2018, VMware paid Dell $300 million in exchange for an initial delivery of 2.7 million shares, or approximately 80% of the expected total shares to be received and retired under the arrangement. On May 10, 2017, the stock purchase agreement with Dell was completed and VMware received an additional 0.7 million shares. The aggregate number of 3.4 million shares purchased was determined based upon the volume-weighted average price during a defined period, less an agreed upon discount. On December 15, 2016, VMware entered into a stock purchase agreement to purchase $500 million of VMware Class A common stock from Dell. VMware purchased 4.8 million shares for $375 million through December 31, 2016. On February 15, 2017, the stock purchase agreement with Dell was completed. A total of $500 million was paid in exchange for 6.2 million shares. The aggregate number of shares purchased was determined based upon the volume-weighted average price during a defined period, less an agreed upon discount. On August 23, 2017, VMware entered into a stock purchase agreement to purchase $300 million of VMware Class A common stock from Dell. Purchases under this agreement are expected to occur during fiscal 2018. The aggregate number of shares purchased will be determined based upon a volume-weighted average price during a defined period, less an agreed upon discount. Notes Payable to Dell VMware entered into a note exchange agreement with its Parent on January 21, 2014 providing for the issuance of three promissory notes in the aggregate principal amount of $1,500 million . The three notes issued may be prepaid without penalty or premium, and outstanding principal is due on the following dates: $680 million due May 1, 2018 , $550 million due May 1, 2020 and $270 million due December 1, 2022 . As of August 4, 2017 , $680 million was classified as a current liability. The notes bear interest, payable quarterly in arrears, at the annual rate of 1.75% . During the three and six months ended August 4, 2017 , $7 million and $13 million , respectively, of interest expense was recognized. During the three and six months ended June 30, 2016 and the Transition Period , $7 million , $13 million and $2 million , respectively, of interest expense was recognized. On August 21, 2017, VMware repaid certain of the notes payable to Dell in the aggregate principal amount of $1,230 million . The aggregate principal amount included repayment of the note due May 1, 2018 at par value and repayment of the note due May 1, 2020 at a discount. Refer to Note N for further information regarding subsequent events. |
Business Combinations, Definite
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill | 6 Months Ended |
Aug. 04, 2017 | |
Business Combinations [Abstract] | |
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill | Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill Business Combinations During the second quarter of fiscal 2018, VMware completed the acquisitions of Wavefront and Apteligent, Inc., which were not material to the condensed consolidated financial statements. These acquisitions are part of a strategy to accelerate the development of VMware’s Cloud services and other technologies. The aggregate purchase price for the two acquisitions was $238 million , net of cash acquired of $35 million . The aggregate purchase price included $36 million of identifiable intangible assets and $238 million of goodwill that is not expected to be deductible for tax purposes. The identifiable intangible assets primarily relate to purchased technology, with estimated useful lives of five years . The fair value of assumed unvested equity attributed to post-combination services was $37 million and will be expensed over the remaining requisite service periods on a straight-line basis. The estimated fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. Prior to the closing of the acquisition, VMware held an ownership interest in Wavefront. Upon completion of the step acquisition, VMware recognized a gain of $34 million in other income (expense), net for the remeasurement of its ownership interest to fair value, which was $49 million . The gain recognized on the step acquisition is not expected to be taxable and resulted in a discrete tax benefit of $13 million during the second quarter of fiscal 2018. Upon closing of the acquisition, Dell was paid $20 million in cash for its ownership interest in Wavefront. The pro forma financial information assuming the acquisition had occurred as of the beginning of the fiscal year prior to the fiscal year of acquisition, as well as the revenue and earnings generated during the current fiscal year, were not material for disclosure purposes. Definite-Lived Intangible Assets, Net As of the periods presented , definite-lived intangible assets consisted of the following (amounts in tables in millions): August 4, 2017 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.5 $ 663 $ (412 ) $ 251 Leasehold interest 34.9 149 (26 ) 123 Customer relationships and customer lists 8.2 135 (71 ) 64 Trademarks and tradenames 8.5 63 (27 ) 36 Other 5.7 5 (3 ) 2 Total definite-lived intangible assets $ 1,015 $ (539 ) $ 476 December 31, 2016 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 641 $ (358 ) $ 283 Leasehold interest 34.9 149 (24 ) 125 Customer relationships and customer lists 8.3 132 (62 ) 70 Trademarks and tradenames 8.7 61 (23 ) 38 Other 5.7 4 (3 ) 1 Total definite-lived intangible assets $ 987 $ (470 ) $ 517 Transition Period February 3, 2017 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.5 $ 641 $ (366 ) $ 275 Leasehold interest 34.9 149 (24 ) 125 Customer relationships and customer lists 8.3 132 (64 ) 68 Trademarks and tradenames 8.7 61 (23 ) 38 Other 5.7 4 (3 ) 1 Total definite-lived intangible assets $ 987 $ (480 ) $ 507 Amortization expense on definite-lived intangible assets was $34 million and $66 million during the three and six months ended August 4, 2017 , respectively, and $32 million and $65 million during the three and six months ended June 30, 2016 , respectively. Amortization expense on definite-lived intangible assets was $10 million during the Transition Period . Based on intangible assets recorded as of August 4, 2017 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (table in millions): Remainder of 2018 $ 67 2019 124 2020 100 2021 46 2022 31 Thereafter 108 Total $ 476 Goodwill The following table summarizes the changes in the carrying amount of goodwill during the six months ended August 4, 2017 (table in millions): Balance, February 3, 2017 $ 4,032 Increase in goodwill related to business combinations 238 Balance, August 4, 2017 $ 4,270 |
Realignment and Loss on Disposi
Realignment and Loss on Disposition | 6 Months Ended |
Aug. 04, 2017 | |
Restructuring and Related Activities [Abstract] | |
Realignment and Loss on Disposition | Realignment and Loss on Disposition Disposition of VMware vCloud Air Business During the second quarter of fiscal 2018, VMware completed the sale of its VMware vCloud Air business (“vCloud Air”) to OVH US LLC (“OVH”). Losses recognized in connection with this transaction were $36 million and $86 million during the three and six months ended August 4, 2017, respectively, and were recorded in realignment and loss on disposition on the condensed consolidated statements of income. Losses recognized on the disposition of vCloud Air include the impairment of fixed assets identified as part of the sale, as well as the costs associated with certain transition services, which primarily include employee-related expenses and costs associated with data-center colocation services. Transition services are to be provided over a period of 18 months , starting from the date of the sale. The losses recognized on the disposition of vCloud Air are deductible for tax purposes and resulted in a discrete tax benefit of $12 million during the second quarter of fiscal 2018. In connection with the disposition of vCloud Air, approximately $35 million of total unearned revenue, including $18 million of unearned license revenue, was transferred to OVH during the second quarter of fiscal 2018. Realignment On January 22, 2016, VMware approved a plan to streamline its operations, with plans to reinvest the associated savings in field, technical and support resources associated with growth products. As a result of these actions, approximately 800 positions were eliminated during the six months ended June 30, 2016 . VMware recognized $49 million of severance-related realignment expenses during the six months ended June 30, 2016 on the condensed consolidated statements of income. Additionally, VMware consolidated certain facilities as part of this plan, which resulted in the recognition of $3 million of related expenses during the six months ended June 30, 2016 . Actions associated with this plan were substantially completed by December 31, 2016. The following table summarizes the activity for the accrued realignment expenses for the period presented (table in millions): Six Months Ended June 30, 2016 Balance as of January 1, 2016 Realignment Utilization Balance as of June 30, 2016 Severance-related costs $ 3 $ 49 $ (50 ) $ 2 Costs to exit facilities — 3 — 3 Total $ 3 $ 52 $ (50 ) $ 5 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 6 Months Ended |
Aug. 04, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period, as calculated using the treasury stock method. Potentially dilutive securities primarily include unvested restricted stock units, including performance stock units, and stock options, including purchase options under VMware’s employee stock purchase plan. Securities are excluded from the computations of diluted net income (loss) per share if their effect would be anti-dilutive. VMware uses the two-class method to calculate net income (loss) per share as both classes share the same rights in dividends, therefore basic and diluted earnings per share are the same for both classes. The following table sets forth the computations of basic and diluted net income (loss) per share during the periods presented (table in millions, except per share amounts and shares in thousands): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Net income (loss) $ 334 $ 265 $ 566 $ 426 $ (8 ) Weighted-average shares, basic for Class A and Class B 408,399 425,107 408,415 424,169 408,625 Effect of other dilutive securities 4,369 1,995 5,505 1,560 — Weighted-average shares, diluted for Class A and Class B 412,768 427,102 413,920 425,729 408,625 Net income (loss) per weighted-average share, basic for Class A and Class B $ 0.82 $ 0.62 $ 1.39 $ 1.00 $ (0.02 ) Net income (loss) per weighted-average share, diluted for Class A and Class B (1) $ 0.81 $ 0.62 $ 1.37 $ 1.00 $ (0.02 ) (1) During the Transition Period, VMware incurred a net loss. As a result, all potentially dilutive securities were anti-dilutive and excluded from the computation of diluted net loss per share. The following table sets forth the weighted-average common share equivalents of Class A common stock that were excluded from the diluted net income (loss) per share calculations during the periods presented , because their effect would have been anti-dilutive (shares in thousands): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Anti-dilutive securities: Employee stock options 845 2,065 870 2,207 2,353 Restricted stock units 499 3,315 250 9,512 3,259 Total 1,344 5,380 1,120 11,719 5,612 |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 6 Months Ended |
Aug. 04, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Cash, cash equivalents and investments as of the periods presented consisted of the following (tables in millions): August 4, 2017 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 473 $ — $ — $ 473 Cash equivalents: Money-market funds $ 2,848 $ — $ — $ 2,848 U.S. Government and agency obligations 45 — — 45 U.S. and foreign corporate debt securities 183 — — 183 Foreign governments and multi-national agency obligations 3 — — 3 Total cash equivalents $ 3,079 $ — $ — $ 3,079 Short-term investments: U.S. Government and agency obligations $ 940 $ — $ (2 ) $ 938 U.S. and foreign corporate debt securities 4,170 8 (5 ) 4,173 Foreign governments and multi-national agency obligations 74 — — 74 Mortgage-backed securities 134 — (1 ) 133 Marketable available-for-sale equity securities 15 17 — 32 Total short-term investments $ 5,333 $ 25 $ (8 ) $ 5,350 December 31, 2016 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 512 $ — $ — $ 512 Cash equivalents: Money-market funds $ 2,235 $ — $ — $ 2,235 Time deposits 26 — — 26 Municipal obligations 17 — — 17 Total cash equivalents $ 2,278 $ — $ — $ 2,278 Short-term investments: U.S. Government and agency obligations $ 734 $ — $ (3 ) $ 731 U.S. and foreign corporate debt securities 3,885 2 (18 ) 3,869 Foreign governments and multi-national agency obligations 32 — — 32 Municipal obligations 365 — — 365 Asset-backed securities 4 — — 4 Mortgage-backed securities 196 — (2 ) 194 Total short-term investments $ 5,216 $ 2 $ (23 ) $ 5,195 Other assets: Marketable available-for-sale equity securities $ 15 $ 7 $ — $ 22 Transition Period February 3, 2017 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 720 $ — $ — $ 720 Cash equivalents: Money-market funds $ 2,471 $ — $ — $ 2,471 Time deposits 26 — — 26 Municipal obligations 3 — — 3 Total cash equivalents $ 2,500 $ — $ — $ 2,500 Short-term investments: U.S. Government and agency obligations $ 733 $ — $ (3 ) $ 730 U.S. and foreign corporate debt securities 3,884 3 (16 ) 3,871 Foreign governments and multi-national agency obligations 32 — — 32 Municipal obligations 350 — — 350 Asset-backed securities 4 — — 4 Mortgage-backed securities 188 — (2 ) 186 Total short-term investments $ 5,191 $ 3 $ (21 ) $ 5,173 Other assets: Marketable available-for-sale equity securities $ 15 $ 7 $ — $ 22 VMware evaluated its available-for-sale investments as of August 4, 2017 , December 31, 2016 and February 3, 2017 for other-than-temporary declines in fair value and did not consider any to be other-than-temporarily impaired. The realized gains and losses on investments during the three and six months ended August 4, 2017 and June 30, 2016 and the Transition Period were not significant. Unrealized losses on cash equivalents and available-for-sale investments, which have been in a net loss position for less than twelve months as of the periods presented, were classified by sector as follows (table in millions): Transition Period August 4, 2017 December 31, 2016 February 3, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government and agency obligations $ 720 $ (2 ) $ 608 $ (3 ) $ 527 $ (3 ) U.S. and foreign corporate debt securities 1,587 (5 ) 2,595 (18 ) 2,287 (16 ) Mortgage-backed securities 102 (1 ) 164 (2 ) 151 (2 ) Total $ 2,409 $ (8 ) $ 3,367 $ (23 ) $ 2,965 $ (21 ) As of the periods presented, unrealized losses on cash equivalents and available-for-sale investments in the other investment categories, which have been in a net loss position for less than twelve months, were not significant. Unrealized losses on cash equivalents and available-for-sale investments, which have been in a net loss position for twelve months or greater, were not significant for the periods presented. Contractual Maturities The contractual maturities of fixed income securities included in short-term investments on the condensed consolidated balance sheets and held as of August 4, 2017 , consisted of the following (table in millions): Amortized Cost Basis Aggregate Fair Value Due within one year $ 1,990 $ 1,989 Due after 1 year through 5 years 3,138 3,140 Due after 5 years through 10 years 95 95 Due after 10 years 95 94 Total fixed income securities $ 5,318 $ 5,318 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 04, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Certain financial assets and liabilities are measured at fair value on a recurring basis. VMware determines fair value using the following hierarchy: • Level 1 - Quoted prices in active markets for identical assets or liabilities • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are noted active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities VMware’s fixed income securities are primarily classified as Level 2, with the exception of some of the U.S. Government and agency obligations that are classified as Level 1. Additionally, VMware’s Level 2 classification includes forward contracts and notes payable to Dell. As of August 4, 2017 , December 31, 2016 and February 3, 2017 , VMware’s Level 2 investment securities were generally priced using non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. VMware did not have any significant assets or liabilities that fell into Level 3 of the fair value hierarchy for the periods presented, and there have been no transfers between fair value measurement levels during the periods presented . The following tables set forth the fair value hierarchy of VMware’s cash equivalents, short-term investments and derivatives that were required to be measured at fair value as of the periods presented (tables in millions): August 4, 2017 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,848 $ — $ 2,848 U.S. Government and agency obligations — 45 45 U.S. and foreign corporate debt securities — 183 183 Foreign governments and multi-national agency obligations — 3 3 Total cash equivalents $ 2,848 $ 231 $ 3,079 Short-term investments: U.S. Government and agency obligations $ 659 $ 279 $ 938 U.S. and foreign corporate debt securities — 4,173 4,173 Foreign governments and multi-national agency obligations — 74 74 Mortgage-backed securities — 133 133 Marketable available-for-sale equity securities 32 — 32 Total short-term investments $ 691 $ 4,659 $ 5,350 Other current assets: Forward contracts $ — $ 10 $ 10 December 31, 2016 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,235 $ — $ 2,235 Time deposits — 26 26 Municipal obligations — 17 17 Total cash equivalents $ 2,235 $ 43 $ 2,278 Short-term investments: U.S. Government and agency obligations $ 441 $ 290 $ 731 U.S. and foreign corporate debt securities — 3,869 3,869 Foreign governments and multi-national agency obligations — 32 32 Municipal obligations — 365 365 Asset-backed securities — 4 4 Mortgage-backed securities — 194 194 Total short-term investments $ 441 $ 4,754 $ 5,195 Other current assets: Derivative due to stock purchase with Dell $ — $ 8 $ 8 Other assets: Marketable available-for-sale equity securities $ 22 $ — $ 22 Transition Period February 3, 2017 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,471 $ — $ 2,471 Time deposits — 26 26 Municipal obligations — 3 3 Total cash equivalents $ 2,471 $ 29 $ 2,500 Short-term investments: U.S. Government and agency obligations $ 445 $ 285 $ 730 U.S. and foreign corporate debt securities — 3,871 3,871 Foreign governments and multi-national agency obligations — 32 32 Municipal obligations — 350 350 Asset-backed securities — 4 4 Mortgage-backed securities — 186 186 Total short-term investments $ 445 $ 4,728 $ 5,173 Other current assets: Derivative due to stock purchase with Dell $ — $ 9 $ 9 Other assets: Marketable available-for-sale equity securities $ 22 $ — $ 22 During the first quarter of 2018, marketable available-for-sale equity securities were reclassified to short-term investments on the condensed consolidated balance sheets, as restrictions on the Company’s ability to sell the common stock lapse within twelve months of the balance sheet date. As of December 31, 2016 and February 3, 2017 , these securities were classified as other assets. Notes payable to Dell are not adjusted to fair value. The fair value of the notes payable to Dell was approximately $1,477 million , $1,489 million and $1,492 million as of August 4, 2017 , December 31, 2016 and February 3, 2017 , respectively. Fair value was estimated primarily based on observable market interest rates (Level 2 inputs). VMware offers a deferred compensation plan for eligible employees, which allows participants to defer payment for part or all of their compensation. The net impact to the condensed consolidated statements of income is not significant since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with this plan have not been included in the above tables. Assets and liabilities associated with this plan were the same at approximately $48 million , $35 million and $36 million as of August 4, 2017 , December 31, 2016 and February 3, 2017 , respectively, and are included in other assets and other liabilities on the condensed consolidated balance sheets. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis VMware holds strategic investments in its portfolio accounted for using the cost method. These strategic investments are periodically assessed for other-than-temporary impairment. VMware uses Level 3 inputs as part of its impairment analysis, including pre- and post-money valuations of recent financing events, the impact of financing events on its ownership percentages, and other available information relevant to the issuer’s historical and forecasted performance. The estimated fair value of these investments is considered in VMware’s impairment review if any events or changes in circumstances occur that might have a significant adverse effect on their value. If VMware determines that an other-than-temporary impairment has occurred, VMware writes down the investment to its fair value. Strategic investments are included in other assets on the condensed consolidated balance sheets. The carrying value of VMware’s strategic investments was $151 million , $139 million and $139 million as of August 4, 2017 , December 31, 2016 and February 3, 2017 , respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Aug. 04, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities VMware conducts business on a global basis in multiple foreign currencies, subjecting the Company to foreign currency risk. To mitigate a portion of this risk, VMware utilizes hedging contracts as described below, which potentially expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreements. VMware manages counterparty risk by seeking counterparties of high credit quality, by monitoring credit ratings and credit spreads of, and other relevant public information about its counterparties. VMware does not, and does not intend to, use derivative instruments for trading or speculative purposes. Cash Flow Hedges To mitigate its exposure to foreign currency fluctuations resulting from certain operating expenses denominated in certain foreign currencies, VMware enters into forward contracts that are designated as cash flow hedging instruments as the accounting criteria for such designation have been met. Therefore, the effective portion of gains or losses resulting from changes in the fair value of these instruments is initially reported in accumulated other comprehensive income (loss) on the condensed consolidated balance sheets and is subsequently reclassified to the related operating expense line item on the condensed consolidated statements of income in the same period that the underlying expenses are incurred. During the three and six months ended August 4, 2017 and June 30, 2016 and the Transition Period , the effective portion of gains or losses reclassified to the condensed consolidated statements of income was not significant. Interest charges or “forward points” on VMware’s forward contracts are excluded from the assessment of hedge effectiveness and are recorded in other income (expense), net on the condensed consolidated statements of income as incurred. These forward contracts have contractual maturities of twelve months or less, and as of August 4, 2017 , December 31, 2016 and February 3, 2017 , outstanding forward contracts had a total notional value of $134 million , $22 million and $250 million , respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the three and six months ended August 4, 2017 and June 30, 2016 and the Transition Period , all cash flow hedges were considered effective. Forward Contracts Not Designated as Hedges VMware has established a program that utilizes forward contracts to offset the foreign currency risk associated with net outstanding monetary asset and liability positions. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are reported in other income (expense), net on the condensed consolidated statements of income. These forward contracts have a contractual maturity of one month, and as of August 4, 2017 , December 31, 2016 and February 3, 2017 , outstanding forward contracts had a total notional value of $854 million , $875 million and $834 million , respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the three and six months ended August 4, 2017 , VMware recognized losses of $27 million and $35 million , respectively, relating to the settlement of forward contracts. During the three and six months ended June 30, 2016 and the Transition Period , VMware recognized a gain of $11 million , and losses of $12 million and $18 million , respectively. Gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income. The combined gains and losses related to forward contracts and the underlying foreign currency denominated assets and liabilities resulted in net gains of $10 million and $13 million during the three and six months ended August 4, 2017 , respectively. Net losses during the three and six months ended June 30, 2016 and the Transition Period were not significant . Net gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income. |
Contingencies
Contingencies | 6 Months Ended |
Aug. 04, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation On March 27, 2015, Phoenix Technologies (“Phoenix”) filed a complaint against VMware in the U.S. District Court for the Northern District of California asserting claims for copyright infringement and breach of contract relating to a version of Phoenix’s BIOS software that VMware licensed from Phoenix. Following trial, the jury issued its verdict on June 12, 2017, finding that VMware did not infringe on any of the four bases asserted by Phoenix. The Court entered judgment in VMware’s favor, and the parties are in the post-trial briefing stage. The Company intends to continue vigorously defending itself against this lawsuit. On March 4, 2015, Christoph Hellwig, a software developer who alleged that software code he wrote is used in a component of the Company’s vSphere product, filed a lawsuit against VMware in the Hamburg Regional Court in Germany alleging copyright infringement for failing to comply with the terms of the open source General Public License v.2 (“GPL v.2”). On July 8, 2016, the German court issued a written decision dismissing Mr. Hellwig’s lawsuit. Mr. Hellwig has appealed the Regional Court’s decision. No hearing schedule has yet been set by the appellate court. While VMware believes that it has valid defenses against each of the above legal matters, given the unpredictable nature of legal proceedings, an unfavorable resolution of one or more legal proceedings, claims, or investigations could have a material adverse effect on VMware’s condensed consolidated financial statements. On November 17, 2015, Francis M. Ford, a VMware Class A stockholder, filed an action in the Delaware Chancery Court against certain current and former VMware directors, among others (collectively, the “Defendants”), alleging that the Defendants breached their fiduciary duties in connection with the Dell Acquisition, and the proposed issuance of tracking stock that is intended to track the performance of VMware. The plaintiff did not assert claims directly against VMware, but purported to bring class claims on behalf of other VMware Class A stockholders and derivative claims on behalf of VMware. On May 2, 2017, the Delaware Chancery Court granted Defendants’ motion to dismiss without leave to amend, dismissing all claims against all Defendants. The time limitation for the plaintiff to file an appeal lapsed on June 1, 2017. VMware accrues for a liability when a determination has been made that a loss is both probable and the amount of the loss can be reasonably estimated. If only a range can be estimated and no amount within the range is a better estimate than any other amount, an accrual is recorded for the minimum amount in the range. Significant judgment is required in both the determination that the occurrence of a loss is probable and is reasonably estimable. In making such judgments, VMware considers the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Legal costs are generally recognized as expense when incurred. VMware is also subject to other legal, administrative and regulatory proceedings, claims, demands and investigations in the ordinary course of business or in connection with business mergers and acquisitions, including claims with respect to commercial, contracting and sales practices, product liability, intellectual property, employment, corporate and securities law, class action, whistleblower and other matters. From time to time, VMware also receives inquiries from and has discussions with government entities and stockholders on various matters. As of August 4, 2017 , amounts accrued relating to these other matters arising as part of the ordinary course of business were considered immaterial. VMware does not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on its condensed consolidated financial statements. |
Unearned Revenue
Unearned Revenue | 6 Months Ended |
Aug. 04, 2017 | |
Deferred Revenue Disclosure [Abstract] | |
Unearned Revenue | Unearned Revenue Unearned revenue as of the periods presented consisted of the following (table in millions): Transition Period August 4, December 31, February 3, 2017 2016 2017 Unearned license revenue $ 519 $ 503 $ 484 Unearned software maintenance revenue 4,522 4,628 4,405 Unearned professional services revenue 463 493 451 Total unearned revenue $ 5,504 $ 5,624 $ 5,340 Unearned license revenue is generally recognized upon delivery of existing or future products or services, or is otherwise recognized ratably over the term of the arrangement. Future products include, in some cases, emerging products that are offered as part of product promotions where the purchaser of an existing product is entitled to receive the future product at no additional charge. To the extent the future product has not been delivered and vendor-specific objective evidence (“VSOE”) of fair value cannot be established, the revenue for the entire order is deferred until all product delivery obligations have been fulfilled. In the event the arrangement does not include professional services, unearned license revenue may also be recognized ratably, if the customer is granted the right to receive unspecified future products or VSOE of fair value on the software maintenance element of the arrangement does not exist. Unearned license revenue derived from commitments to future products that have not been delivered represents a significant portion of total unearned license revenue as of August 4, 2017 . VMware expects unearned license revenue to substantially decline upon the adoption of Topic 606. Unearned software maintenance revenue is attributable to VMware’s maintenance contracts and is generally recognized ratably over the contract period. The weighted-average remaining term as of August 4, 2017 was approximately two years . Unearned professional services revenue results primarily from prepaid professional services, including training, and is generally recognized as the services are delivered. Unearned license and software maintenance revenue will fluctuate based upon a variety of factors including sales volume, the timing of both product promotion offers and delivery of the future products offered, and the amount of arrangements sold with ratable revenue recognition. Additionally, the amount of unearned revenue derived from transactions denominated in a foreign currency is affected by fluctuations in the foreign currencies in which VMware invoices. In connection with the disposition of vCloud Air, approximately $35 million of total unearned revenue, including $18 million of unearned license revenue, was transferred to OVH during the second quarter of fiscal 2018. Refer to Note D for further information. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Aug. 04, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity VMware Stock Repurchases During January 2017, VMware’s board of directors authorized the repurchase of up to $1,200 million of VMware’s Class A common stock through the end of fiscal 2018. Subsequent to the fiscal quarter ended August 4, 2017, VMware’s board of directors authorized the repurchase of up to an additional $1,000 million of Class A common stock through August 31, 2018. The $1,000 million authorization is in addition to VMware’s ongoing $1,200 million stock repurchase program authorized in January 2017, of which $900 million remained available for repurchase as of August 4, 2017. Stock will be purchased from time to time in open market transactions, subject to market conditions. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including VMware’s stock price, cash requirements for operations and business combinations, corporate, legal and regulatory requirements and other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases can be discontinued at any time VMware believes additional purchases are not warranted. From time to time, VMware also purchases stock in private transactions, such as those with Dell. All shares repurchased under VMware’s stock repurchase programs are retired. The following table summarizes stock repurchase activity, including shares purchased from Dell, during the period presented (aggregate purchase price in millions, shares in thousands): Three Months Ended Six Months Ended August 4, August 4, 2017 2017 Aggregate purchase price (1)(2)(3) $ 60 $ 425 Class A common shares repurchased 666 4,827 Weighted-average price per share $ 90.04 $ 88.05 (1) The aggregate purchase price of repurchased shares is classified as a reduction to additional paid-in capital. (2) The aggregate purchase price of $60 million during the three months ended August 4, 2017 includes the purchase price associated with the final delivery of 0.7 million shares under the March 29, 2017 agreement with Dell. (3) The aggregate purchase price of $425 million during the six months ended August 4, 2017 includes the purchase price associated with the final delivery of 1.4 million shares under the December 15, 2016 agreement with Dell, as well as the delivery of 3.4 million shares under the March 29, 2017 agreement with Dell. During the three and six months ended June 30, 2016 and the Transition Period , VMware did not repurchase any shares of its Class A common stock. VMware Restricted Stock VMware’s restricted stock primarily consists of restricted stock unit (“RSU”) awards granted to employees. The value of an RSU grant is based on VMware’s stock price on the date of grant. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of VMware Class A common stock. VMware’s restricted stock also includes performance stock unit (“PSU”) awards, which have been granted to certain VMware executives and employees. The PSU awards include performance conditions and, in certain cases, a time-based or market-based vesting component. Upon vesting, PSU awards will convert into VMware’s Class A common stock at various ratios ranging from 0.5 to 2.0 shares per PSU, depending upon the degree of achievement of the performance or market-based target designated by each individual award. If minimum performance thresholds are not achieved, then no shares will be issued. The following table summarizes restricted stock activity since January 1, 2017 (units in thousands): Number of Units Weighted-Average Grant Date Fair Value (per unit) Outstanding, January 1, 2017 20,866 $ 67.54 Vested (256 ) 77.07 Forfeited (159 ) 68.11 Outstanding, February 3, 2017 20,451 67.41 Granted 6,474 89.15 Vested (5,191 ) 66.16 Forfeited (1,056 ) 71.00 Outstanding, August 4, 2017 20,678 74.43 The total fair value of VMware restricted stock that vested during the six months ended August 4, 2017 and the Transition Period was $488 million and $21 million , respectively. As of August 4, 2017 , restricted stock representing 20.7 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $1,925 million based on VMware’s closing stock price as of August 4, 2017 . Accumulated Other Comprehensive Income (Loss) The changes in components of accumulated other comprehensive income (loss) during the periods presented were as follows (tables in millions): Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2017 $ (8 ) $ (1 ) $ (9 ) Unrealized gains, net of tax provision of $1, $— and $1 2 3 5 Balance, February 3, 2017 $ (6 ) $ 2 $ (4 ) Unrealized gains, net of tax provision of $9, $3, and $12 15 1 16 Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision of $1, $— and $1 2 2 4 Other comprehensive income, net 17 3 20 Balance, August 4, 2017 $ 11 $ 5 $ 16 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2016 $ (7 ) $ (1 ) $ (8 ) Unrealized gain, net of tax provision of $15, $—, and $15 24 — 24 Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision of $2, $—, and $2 3 1 4 Balance, June 30, 2016 $ 20 $ — $ 20 Unrealized gains and losses on VMware’s available-for-sale securities are reclassified to investment income on the condensed consolidated statements of income in the period that such gains and losses are realized. The effective portion of gains or losses resulting from changes in the fair value of forward contracts designated as cash flow hedging instruments is reclassified to its related operating expense line item on the condensed consolidated statements of income in the same period that the underlying expenses are incurred. The amounts recorded to their related operating expense functional line items on the condensed consolidated statements of income were not significant to the individual functional line items during the periods presented . |
Segment Information
Segment Information | 6 Months Ended |
Aug. 04, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information VMware operates in one reportable operating segment, thus all required financial segment information is included in the condensed consolidated financial statements. Operating segments are defined as components of an enterprise for 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. Revenue by geographic area during the periods presented was as follows (table in millions): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 United States $ 963 $ 870 $ 1,823 $ 1,671 $ 248 International 937 823 1,813 1,611 248 Total $ 1,900 $ 1,693 $ 3,636 $ 3,282 $ 496 Revenue by geographic area is based on the ship-to addresses of VMware’s customers. No individual country other than the United States accounted for 10% or more of revenue during the three and six months ended August 4, 2017 and June 30, 2016 and the Transition Period . Long-lived assets by geographic area, which primarily include property and equipment, net, as of the periods presented were as follows (table in millions): Transition Period August 4, December 31, February 3, 2017 2016 2017 United States $ 727 $ 784 $ 777 International 123 132 131 Total $ 850 $ 916 $ 908 No individual country other than the United States accounted for 10% or more of these assets as of August 4, 2017 , December 31, 2016 and February 3, 2017 . |
Transition Period
Transition Period | 6 Months Ended |
Aug. 04, 2017 | |
Transition Period Comparable Data [Abstract] | |
Transition Period | Transition Period Comparable Financial Information In conjunction with VMware’s change in fiscal year end, the Company had a Transition Period of 34 days that began on January 1, 2017 and ended on February 3, 2017. The most comparable prior-year period, the one month ended January 31, 2016, had a duration of 31 days . The following table presents certain financial information during the periods presented (table in millions, except per share amounts and shares in thousands): Transition Period Comparable Period January 1 to January 1 to February 3, January 31, 2017 2016 Total revenue $ 496 $ 470 Operating income (loss) (41 ) 22 Income tax provision (benefit) (26 ) 4 Net income (loss) (8 ) 22 Net income (loss) per weighted-average share, basic for Class A and Class B $ (0.02 ) $ 0.05 Net income (loss) per weighted-average share, diluted for Class A and Class B $ (0.02 ) $ 0.05 Weighted-average shares, basic for Class A and Class B 408,625 422,067 Weighted-average shares, diluted for Class A and Class B (1) 408,625 423,092 (1) During the Transition Period, VMware incurred a net loss. As a result, all potentially dilutive securities were anti-dilutive and excluded from the computation of diluted net loss per share. Income Taxes The Company’s net deferred tax assets were $462 million and $716 million as of December 31, 2016 and February 3, 2017 , respectively. The increase from December 31, 2016 to February 3, 2017 primarily resulted from higher deferred tax assets related to unearned revenue which were $324 million and $566 million as of December 31, 2016 and February 3, 2017 , respectively. The increase in deferred tax assets was a result of the Dell Acquisition and VMware’s new fiscal year calendar. VMware believes it is more-likely-than-not that the net deferred tax assets as of December 31, 2016 and February 3, 2017 will be realized in the foreseeable future as VMware believes that it will generate sufficient taxable income in future years. VMware's ability to generate sufficient taxable income in future years in appropriate tax jurisdictions will determine the amount of net deferred tax asset balances to be realized in future periods. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Aug. 04, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Debt Offering On August 21, 2017, VMware issued three unsecured senior notes pursuant to a public debt offering in the aggregate amount of $4,000 million , consisting of outstanding principal due on the following dates: $1,250 million due August 21, 2020, $1,500 million due August 21, 2022 and $1,250 million due August 21, 2027. The notes bear interest, payable semi-annually, at annual rates of 2.30% , 2.95% and 3.90% , respectively, and contain restrictive covenants that, in certain circumstances, limit VMware’s ability to create certain liens, to enter into certain sale and leaseback transactions and to consolidate, merge, sell or otherwise dispose of all or substantially all of VMware’s assets. Upon closing, a portion of the net proceeds from the offering was used to repay certain promissory notes previously issued to the Company’s Parent in the aggregate principal amount of $1,230 million . The aggregate principal amount included repayment of the note due May 1, 2018 at par value and the repayment of the note due May 1, 2020 at a discount. The Company intends to use the remaining net proceeds to fund additional repurchases of up to $1,000 million of its Class A common stock through August 31, 2018 and for general corporate purposes, including mergers and acquisitions and repaying other indebtedness. Refer to Note B for further information regarding notes payable to Dell and Note K for further information regarding VMware common stock repurchases. |
Overview and Basis of Present22
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Aug. 04, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Change in Fiscal Year End | Change in Fiscal Year End Effective January 1, 2017 , VMware’s fiscal year changed from a fiscal year ending on December 31 of each calendar year to a fiscal year consisting of a 52- or 53-week period ending on the Friday nearest to January 31 of each year. The period that began on January 1, 2017 and ended on February 3, 2017 is reflected as a transition period (the “Transition Period”). VMware’s first full fiscal year 2018 under the revised fiscal calendar is a 52-week year that began on February 4, 2017 and will end on February 2, 2018 . The Company has included its unaudited condensed consolidated financial statements for the Transition Period in this report on Form 10-Q. As permitted under SEC rules, prior-period financial statements have not been recast, as management believes (i) the three and six months ended June 30, 2016 are comparable to the three and six months ended August 4, 2017 and (ii) recasting prior-period results was not practicable or cost justified. |
Accounting Principals and Unaudited Interim Financial Information | Accounting Principles The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, for a fair statement of VMware’s condensed consolidated results of operations, financial position and cash flows for the periods presented. Results of operations are not necessarily indicative of the results that may be expected for the full fiscal year 2018. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in VMware’s 2016 Annual Report on Form 10-K. Effective September 7, 2016, Dell Technologies Inc. (“Dell”) (formerly Denali Holding Inc.) acquired EMC Corporation (“EMC”), including EMC’s majority control of VMware (the “Dell Acquisition”). As a result of the Dell Acquisition, EMC became a wholly-owned subsidiary of Dell and VMware became an indirectly held, majority-owned subsidiary of Dell. As of August 4, 2017 , Dell controlled 81.4% of VMware’s outstanding common stock and 97.5% of the combined voting power of VMware’s outstanding common stock, including 33 million shares of VMware’s Class A common stock and all of VMware’s Class B common stock. As VMware is a majority-owned and controlled subsidiary of Dell, its results of operations and financial position are consolidated with Dell’s financial statements. Transactions prior to the effective date of the Dell Acquisition represent transactions only with EMC and its consolidated subsidiaries (“Parent”). Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s intercompany transactions with Dell and its consolidated subsidiaries may not be considered arm’s length with an unrelated third party. Therefore, the financial statements included herein may not necessarily reflect the results of operations, financial position and cash flows had VMware engaged in such transactions with an unrelated third party during all periods presented. Accordingly, VMware’s historical financial information is not necessarily indicative of what the Company’s results of operations, financial position and cash flows will be in the future if and when VMware contracts at arm’s length with unrelated third parties for products and services the Company receives from and provides to Dell. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of VMware and its subsidiaries. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with Dell and its consolidated subsidiaries are generally settled in cash and are classified on the condensed consolidated statements of cash flows based upon the nature of the underlying transaction. |
Use of Accounting Estimates | Use of Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses during the reporting periods, and the disclosure of contingent liabilities at the date of the financial statements. Estimates are used for, but not limited to, trade receivable valuation, marketing development funds and rebates, useful lives assigned to fixed assets and intangible assets, valuation of goodwill and definite-lived intangibles, income taxes, stock-based compensation and contingencies. Actual results could differ from those estimates. |
New Accounting Pronouncements | New Accounting Pronouncements Topic 606, Revenue from Contracts with Customers During May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). In 2016, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12, which provide interpretive clarifications on the new guidance in Topic 606 (collectively, “Topic 606”). The updated revenue standard replaces all existing revenue recognition guidance under GAAP and establishes common principles for recognizing revenue for all industries. It also provides guidance on the accounting for costs to fulfill or obtain a customer contract. The core principle underlying the updated standard is the recognition of revenue based on consideration expected to be entitled from the transfer of goods or services to a customer. The updated standard is effective for interim and annual periods beginning after December 15, 2017 and permits the use of either the full retrospective or cumulative effect transition method. VMware plans to adopt Topic 606 using the full retrospective transition method when it becomes effective for the Company in the first quarter of fiscal 2019. While the Company is continuing to assess the potential impacts of Topic 606, VMware currently expects unearned license revenue related to the sale of perpetual licenses will decline significantly upon adoption. Currently, VMware defers all license revenue related to the sale of its perpetual licenses in the event certain revenue recognition criteria are not met. However, under Topic 606, the Company would generally expect that substantially all license revenue related to the sale of its perpetual licenses will be recognized upon delivery. Topic 606 is also expected to impact the timing and recognition of costs to obtain contracts with customers, such as commissions. Under the new standard, incremental costs to obtain contracts with customers are deferred and recognized over the expected period of benefit. As a result, VMware expects deferred commission costs to increase. The Company is continuing to evaluate the effects that Topic 606 will have on its consolidated financial statements and related disclosures, and its preliminary assessments are subject to change. ASU No. 2016-02, Leases During February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The updated standard also requires additional disclosure regarding leasing arrangements. It is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures, and expects that most of its lease commitments will be subject to the updated standard and recognized as lease liabilities and right-of-use assets upon adoption. ASU No. 2016-16, Income Taxes During October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance required the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective for annual and interim periods beginning after December 15, 2017 and requires a modified retrospective transition method. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. ASU No. 2016-09, Compensation VMware adopted ASU No. 2016-09, Compensation–Stock Compensation (Topic 718), on a prospective basis, effective February 4, 2017. Prior periods have not been reclassified to conform to the fiscal 2018 presentation. Net excess tax benefits recognized in connection with stock-based awards are now included in the income tax provision on the condensed consolidated statements of income. Net excess tax benefits recognized during the three and six months ended August 4, 2017 were $13 million and $44 million , respectively. Prior to adopting the updated standard, such amounts were recognized in additional paid-in capital on the Company’s consolidated balance sheets. Additionally, all tax-related cash flows resulting from stock-based awards are reported as operating activities in the statements of cash flows. Prior to adopting the updated standard, excess tax benefits were reported as a cash inflow from financing activities in the statements of cash flows. |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Information about VMware’s revenue and receipts, and unearned revenue from such arrangements, for the periods presented consisted of the following (table in millions): Revenue and Receipts Unearned Revenue Transition Period As of Three Months Ended Six Months Ended January 1 to Transition Period August 4, June 30, August 4, June 30, February 3, August 4, December 31, February 3, 2017 2016 2017 2016 2017 2017 2016 2017 Reseller revenue $ 282 $ 85 $ 505 $ 163 $ 44 $ 806 $ 637 $ 616 Internal-use revenue 4 14 9 19 7 9 15 18 Professional services revenue 26 26 55 51 3 — — — Agency fee revenue — 1 1 2 — — — — Reimbursement for services to Pivotal — — — 1 — n/a n/a n/a Information about VMware’s costs from such arrangements during the periods presented consisted of the following (table in millions): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Purchases and leases of products and purchases of services $ 32 $ 17 $ 68 $ 34 $ 14 Dell subsidiary support and administrative costs 33 21 62 44 13 Amounts due to and from related parties, net as of the periods presented consisted of the following (table in millions): Transition Period August 4, December 31, February 3, 2017 2016 2017 Due (to) related parties $ (67 ) $ (71 ) $ (85 ) Due from related parties 274 203 178 Due from related parties, net $ 207 $ 132 $ 93 Income tax related asset, net $ — $ 181 $ — Income tax due (to) related parties (14 ) — (21 ) VMware has made payments to Dell pursuant to a tax sharing agreement. The following table summarizes the payments made during the periods presented (table in millions): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Payments from VMware to Dell $ 12 $ 54 $ 12 $ 95 $ — |
Business Combinations, Defini24
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Business Combinations [Abstract] | |
Schedule of Definite-Lived Intangible Assets | As of the periods presented , definite-lived intangible assets consisted of the following (amounts in tables in millions): August 4, 2017 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.5 $ 663 $ (412 ) $ 251 Leasehold interest 34.9 149 (26 ) 123 Customer relationships and customer lists 8.2 135 (71 ) 64 Trademarks and tradenames 8.5 63 (27 ) 36 Other 5.7 5 (3 ) 2 Total definite-lived intangible assets $ 1,015 $ (539 ) $ 476 December 31, 2016 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 641 $ (358 ) $ 283 Leasehold interest 34.9 149 (24 ) 125 Customer relationships and customer lists 8.3 132 (62 ) 70 Trademarks and tradenames 8.7 61 (23 ) 38 Other 5.7 4 (3 ) 1 Total definite-lived intangible assets $ 987 $ (470 ) $ 517 Transition Period February 3, 2017 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.5 $ 641 $ (366 ) $ 275 Leasehold interest 34.9 149 (24 ) 125 Customer relationships and customer lists 8.3 132 (64 ) 68 Trademarks and tradenames 8.7 61 (23 ) 38 Other 5.7 4 (3 ) 1 Total definite-lived intangible assets $ 987 $ (480 ) $ 507 |
Schedule of Estimated Annual Amortization Expense | Based on intangible assets recorded as of August 4, 2017 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (table in millions): Remainder of 2018 $ 67 2019 124 2020 100 2021 46 2022 31 Thereafter 108 Total $ 476 |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill during the six months ended August 4, 2017 (table in millions): Balance, February 3, 2017 $ 4,032 Increase in goodwill related to business combinations 238 Balance, August 4, 2017 $ 4,270 |
Realignment and Loss on Dispo25
Realignment and Loss on Disposition (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Accrued Realignment Charges | The following table summarizes the activity for the accrued realignment expenses for the period presented (table in millions): Six Months Ended June 30, 2016 Balance as of January 1, 2016 Realignment Utilization Balance as of June 30, 2016 Severance-related costs $ 3 $ 49 $ (50 ) $ 2 Costs to exit facilities — 3 — 3 Total $ 3 $ 52 $ (50 ) $ 5 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income per Share | The following table sets forth the computations of basic and diluted net income (loss) per share during the periods presented (table in millions, except per share amounts and shares in thousands): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Net income (loss) $ 334 $ 265 $ 566 $ 426 $ (8 ) Weighted-average shares, basic for Class A and Class B 408,399 425,107 408,415 424,169 408,625 Effect of other dilutive securities 4,369 1,995 5,505 1,560 — Weighted-average shares, diluted for Class A and Class B 412,768 427,102 413,920 425,729 408,625 Net income (loss) per weighted-average share, basic for Class A and Class B $ 0.82 $ 0.62 $ 1.39 $ 1.00 $ (0.02 ) Net income (loss) per weighted-average share, diluted for Class A and Class B (1) $ 0.81 $ 0.62 $ 1.37 $ 1.00 $ (0.02 ) (1) During the Transition Period, VMware incurred a net loss. As a result, all potentially dilutive securities were anti-dilutive and excluded from the computation of diluted net loss per share. |
Antidilutive Securities Excluded from Computation of Net Income per Share | The following table sets forth the weighted-average common share equivalents of Class A common stock that were excluded from the diluted net income (loss) per share calculations during the periods presented , because their effect would have been anti-dilutive (shares in thousands): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 Anti-dilutive securities: Employee stock options 845 2,065 870 2,207 2,353 Restricted stock units 499 3,315 250 9,512 3,259 Total 1,344 5,380 1,120 11,719 5,612 |
Cash, Cash Equivalents and In27
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, cash equivalents and investments as of the periods presented consisted of the following (tables in millions): August 4, 2017 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 473 $ — $ — $ 473 Cash equivalents: Money-market funds $ 2,848 $ — $ — $ 2,848 U.S. Government and agency obligations 45 — — 45 U.S. and foreign corporate debt securities 183 — — 183 Foreign governments and multi-national agency obligations 3 — — 3 Total cash equivalents $ 3,079 $ — $ — $ 3,079 Short-term investments: U.S. Government and agency obligations $ 940 $ — $ (2 ) $ 938 U.S. and foreign corporate debt securities 4,170 8 (5 ) 4,173 Foreign governments and multi-national agency obligations 74 — — 74 Mortgage-backed securities 134 — (1 ) 133 Marketable available-for-sale equity securities 15 17 — 32 Total short-term investments $ 5,333 $ 25 $ (8 ) $ 5,350 December 31, 2016 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 512 $ — $ — $ 512 Cash equivalents: Money-market funds $ 2,235 $ — $ — $ 2,235 Time deposits 26 — — 26 Municipal obligations 17 — — 17 Total cash equivalents $ 2,278 $ — $ — $ 2,278 Short-term investments: U.S. Government and agency obligations $ 734 $ — $ (3 ) $ 731 U.S. and foreign corporate debt securities 3,885 2 (18 ) 3,869 Foreign governments and multi-national agency obligations 32 — — 32 Municipal obligations 365 — — 365 Asset-backed securities 4 — — 4 Mortgage-backed securities 196 — (2 ) 194 Total short-term investments $ 5,216 $ 2 $ (23 ) $ 5,195 Other assets: Marketable available-for-sale equity securities $ 15 $ 7 $ — $ 22 Transition Period February 3, 2017 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 720 $ — $ — $ 720 Cash equivalents: Money-market funds $ 2,471 $ — $ — $ 2,471 Time deposits 26 — — 26 Municipal obligations 3 — — 3 Total cash equivalents $ 2,500 $ — $ — $ 2,500 Short-term investments: U.S. Government and agency obligations $ 733 $ — $ (3 ) $ 730 U.S. and foreign corporate debt securities 3,884 3 (16 ) 3,871 Foreign governments and multi-national agency obligations 32 — — 32 Municipal obligations 350 — — 350 Asset-backed securities 4 — — 4 Mortgage-backed securities 188 — (2 ) 186 Total short-term investments $ 5,191 $ 3 $ (21 ) $ 5,173 Other assets: Marketable available-for-sale equity securities $ 15 $ 7 $ — $ 22 |
Unrealized Losses on Cash Equivalents and Available-For-Sale Investments | Unrealized losses on cash equivalents and available-for-sale investments, which have been in a net loss position for less than twelve months as of the periods presented, were classified by sector as follows (table in millions): Transition Period August 4, 2017 December 31, 2016 February 3, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government and agency obligations $ 720 $ (2 ) $ 608 $ (3 ) $ 527 $ (3 ) U.S. and foreign corporate debt securities 1,587 (5 ) 2,595 (18 ) 2,287 (16 ) Mortgage-backed securities 102 (1 ) 164 (2 ) 151 (2 ) Total $ 2,409 $ (8 ) $ 3,367 $ (23 ) $ 2,965 $ (21 ) |
Contractual Maturities | The contractual maturities of fixed income securities included in short-term investments on the condensed consolidated balance sheets and held as of August 4, 2017 , consisted of the following (table in millions): Amortized Cost Basis Aggregate Fair Value Due within one year $ 1,990 $ 1,989 Due after 1 year through 5 years 3,138 3,140 Due after 5 years through 10 years 95 95 Due after 10 years 95 94 Total fixed income securities $ 5,318 $ 5,318 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy | The following tables set forth the fair value hierarchy of VMware’s cash equivalents, short-term investments and derivatives that were required to be measured at fair value as of the periods presented (tables in millions): August 4, 2017 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,848 $ — $ 2,848 U.S. Government and agency obligations — 45 45 U.S. and foreign corporate debt securities — 183 183 Foreign governments and multi-national agency obligations — 3 3 Total cash equivalents $ 2,848 $ 231 $ 3,079 Short-term investments: U.S. Government and agency obligations $ 659 $ 279 $ 938 U.S. and foreign corporate debt securities — 4,173 4,173 Foreign governments and multi-national agency obligations — 74 74 Mortgage-backed securities — 133 133 Marketable available-for-sale equity securities 32 — 32 Total short-term investments $ 691 $ 4,659 $ 5,350 Other current assets: Forward contracts $ — $ 10 $ 10 December 31, 2016 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,235 $ — $ 2,235 Time deposits — 26 26 Municipal obligations — 17 17 Total cash equivalents $ 2,235 $ 43 $ 2,278 Short-term investments: U.S. Government and agency obligations $ 441 $ 290 $ 731 U.S. and foreign corporate debt securities — 3,869 3,869 Foreign governments and multi-national agency obligations — 32 32 Municipal obligations — 365 365 Asset-backed securities — 4 4 Mortgage-backed securities — 194 194 Total short-term investments $ 441 $ 4,754 $ 5,195 Other current assets: Derivative due to stock purchase with Dell $ — $ 8 $ 8 Other assets: Marketable available-for-sale equity securities $ 22 $ — $ 22 Transition Period February 3, 2017 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,471 $ — $ 2,471 Time deposits — 26 26 Municipal obligations — 3 3 Total cash equivalents $ 2,471 $ 29 $ 2,500 Short-term investments: U.S. Government and agency obligations $ 445 $ 285 $ 730 U.S. and foreign corporate debt securities — 3,871 3,871 Foreign governments and multi-national agency obligations — 32 32 Municipal obligations — 350 350 Asset-backed securities — 4 4 Mortgage-backed securities — 186 186 Total short-term investments $ 445 $ 4,728 $ 5,173 Other current assets: Derivative due to stock purchase with Dell $ — $ 9 $ 9 Other assets: Marketable available-for-sale equity securities $ 22 $ — $ 22 |
Unearned Revenue (Tables)
Unearned Revenue (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Deferred Revenue Disclosure [Abstract] | |
Summary of Unearned Revenue | Unearned revenue as of the periods presented consisted of the following (table in millions): Transition Period August 4, December 31, February 3, 2017 2016 2017 Unearned license revenue $ 519 $ 503 $ 484 Unearned software maintenance revenue 4,522 4,628 4,405 Unearned professional services revenue 463 493 451 Total unearned revenue $ 5,504 $ 5,624 $ 5,340 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Activity | The following table summarizes stock repurchase activity, including shares purchased from Dell, during the period presented (aggregate purchase price in millions, shares in thousands): Three Months Ended Six Months Ended August 4, August 4, 2017 2017 Aggregate purchase price (1)(2)(3) $ 60 $ 425 Class A common shares repurchased 666 4,827 Weighted-average price per share $ 90.04 $ 88.05 (1) The aggregate purchase price of repurchased shares is classified as a reduction to additional paid-in capital. (2) The aggregate purchase price of $60 million during the three months ended August 4, 2017 includes the purchase price associated with the final delivery of 0.7 million shares under the March 29, 2017 agreement with Dell. (3) The aggregate purchase price of $425 million during the six months ended August 4, 2017 includes the purchase price associated with the final delivery of 1.4 million shares under the December 15, 2016 agreement with Dell, as well as the delivery of 3.4 million shares under the March 29, 2017 agreement with Dell. |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity since January 1, 2017 (units in thousands): Number of Units Weighted-Average Grant Date Fair Value (per unit) Outstanding, January 1, 2017 20,866 $ 67.54 Vested (256 ) 77.07 Forfeited (159 ) 68.11 Outstanding, February 3, 2017 20,451 67.41 Granted 6,474 89.15 Vested (5,191 ) 66.16 Forfeited (1,056 ) 71.00 Outstanding, August 4, 2017 20,678 74.43 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in components of accumulated other comprehensive income (loss) during the periods presented were as follows (tables in millions): Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2017 $ (8 ) $ (1 ) $ (9 ) Unrealized gains, net of tax provision of $1, $— and $1 2 3 5 Balance, February 3, 2017 $ (6 ) $ 2 $ (4 ) Unrealized gains, net of tax provision of $9, $3, and $12 15 1 16 Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision of $1, $— and $1 2 2 4 Other comprehensive income, net 17 3 20 Balance, August 4, 2017 $ 11 $ 5 $ 16 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2016 $ (7 ) $ (1 ) $ (8 ) Unrealized gain, net of tax provision of $15, $—, and $15 24 — 24 Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision of $2, $—, and $2 3 1 4 Balance, June 30, 2016 $ 20 $ — $ 20 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | Revenue by geographic area during the periods presented was as follows (table in millions): Transition Period Three Months Ended Six Months Ended January 1 to August 4, June 30, August 4, June 30, February 3, 2017 2016 2017 2016 2017 United States $ 963 $ 870 $ 1,823 $ 1,671 $ 248 International 937 823 1,813 1,611 248 Total $ 1,900 $ 1,693 $ 3,636 $ 3,282 $ 496 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area, which primarily include property and equipment, net, as of the periods presented were as follows (table in millions): Transition Period August 4, December 31, February 3, 2017 2016 2017 United States $ 727 $ 784 $ 777 International 123 132 131 Total $ 850 $ 916 $ 908 |
Transition Period (Tables)
Transition Period (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Transition Period Comparable Data [Abstract] | |
Transition Period Comparable Data | The following table presents certain financial information during the periods presented (table in millions, except per share amounts and shares in thousands): Transition Period Comparable Period January 1 to January 1 to February 3, January 31, 2017 2016 Total revenue $ 496 $ 470 Operating income (loss) (41 ) 22 Income tax provision (benefit) (26 ) 4 Net income (loss) (8 ) 22 Net income (loss) per weighted-average share, basic for Class A and Class B $ (0.02 ) $ 0.05 Net income (loss) per weighted-average share, diluted for Class A and Class B $ (0.02 ) $ 0.05 Weighted-average shares, basic for Class A and Class B 408,625 422,067 Weighted-average shares, diluted for Class A and Class B (1) 408,625 423,092 (1) During the Transition Period, VMware incurred a net loss. As a result, all potentially dilutive securities were anti-dilutive and excluded from the computation of diluted net loss per share. |
Overview and Basis of Present33
Overview and Basis of Presentation (Basis of Presentation) (Details) - VMware - Dell shares in Millions | Aug. 04, 2017shares |
Related Party Transaction [Line Items] | |
Outstanding ownership percentage of VMware controlled by Dell | 81.40% |
Combined voting power of outstanding stock | 97.50% |
Class A Common Stock | |
Related Party Transaction [Line Items] | |
VMware's outstanding common stock controlled by Dell (shares) | 33 |
Overview and Basis of Present34
Overview and Basis of Presentation (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 04, 2017 | Aug. 04, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net excess benefits recognized | $ 13 | $ 44 |
Related Parties (Schedule of Re
Related Parties (Schedule of Related Party Transactions) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||||
Unearned Revenue | $ 5,340 | $ 5,504 | $ 5,504 | $ 5,624 | ||
Dell | Reseller revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue and Receipts | 44 | 282 | $ 85 | 505 | $ 163 | |
Unearned Revenue | 616 | 806 | 806 | 637 | ||
Dell | Internal-use revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue and Receipts | 7 | 4 | 14 | 9 | 19 | |
Unearned Revenue | 18 | 9 | 9 | 15 | ||
Dell | Professional services revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue and Receipts | 3 | 26 | 26 | 55 | 51 | |
Unearned Revenue | 0 | 0 | 0 | 0 | ||
Dell | Agency fee revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue and Receipts | 0 | 0 | 1 | 1 | 2 | |
Unearned Revenue | 0 | 0 | 0 | $ 0 | ||
Dell | Reimbursement for services to Pivotal | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue and Receipts | 0 | 0 | 0 | 0 | 1 | |
Dell | Purchases and leases of products and purchases of services | ||||||
Related Party Transaction [Line Items] | ||||||
Related party costs | 14 | 32 | 17 | 68 | 34 | |
Dell | Dell subsidiary support and administrative costs | ||||||
Related Party Transaction [Line Items] | ||||||
Related party costs | $ 13 | 33 | $ 21 | $ 62 | $ 44 | |
Series of Individually Immaterial Business Acquisitions | Dell | Acquisition of Related Party Ownership Interest | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to Dell for equity interest held | $ 20 |
Related Parties (Dell Financial
Related Parties (Dell Financial Services) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 04, 2017 | Aug. 04, 2017 | |
Dell | Financial Services | ||
Related Party Transaction [Line Items] | ||
Financing fees | $ 7 | $ 9 |
Related Parties (Tax Sharing Ag
Related Parties (Tax Sharing Agreement with Dell) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | |||||
Payments from VMware to Dell | $ 3 | $ 63 | $ 135 | ||
Dell | Tax sharing agreement | |||||
Related Party Transaction [Line Items] | |||||
Payments from VMware to Dell | $ 0 | $ 12 | $ 54 | $ 12 | 95 |
Increase (decrease) to stockholders' equity from tax sharing agreement | $ 14 | $ 15 |
Related Parties (Due To_From Re
Related Parties (Due To/From Related Parties, Net) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Feb. 03, 2017 | Aug. 04, 2017 | Aug. 04, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Due from related parties, net cash settlement period | 60 days | |||
Dell | ||||
Related Party Transaction [Line Items] | ||||
Due (to) related parties | $ (85) | $ (67) | $ (67) | $ (71) |
Due from related parties | 178 | 274 | 274 | 203 |
Due from related parties, net | 93 | 207 | 207 | 132 |
Income tax related asset, net | 0 | $ 0 | 0 | 181 |
Income tax due (to) related parties | $ (21) | $ (14) | $ 0 |
Related Parties (Stock Purchase
Related Parties (Stock Purchase Agreement with Dell) (Details) - Class A Common Stock - USD ($) | May 10, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Feb. 15, 2017 | Aug. 04, 2017 | May 05, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 23, 2017 | Mar. 29, 2017 | Dec. 15, 2016 |
Related Party Transaction [Line Items] | ||||||||||||
Stock purchased and retired during period, value | $ 60,000,000 | $ 425,000,000 | ||||||||||
Stock purchased and retired during period (shares) | 0 | 666,000 | 0 | 4,827,000 | 0 | |||||||
Stock Repurchase Agreement March 2017 | Dell | Stock purchase agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Authorized purchase amount under stock purchase program | $ 300,000,000 | |||||||||||
Stock purchased and retired during period, value | $ 300,000,000 | |||||||||||
Stock purchased and retired during period (shares) | 700,000 | 700,000 | 2,700,000 | 3,400,000 | ||||||||
Stock repurchased and retired during period, expected percentage of shares | 80.00% | |||||||||||
Stock Repurchase Agreement December 2016 | Dell | Stock purchase agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Authorized purchase amount under stock purchase program | $ 500,000,000 | |||||||||||
Stock purchased and retired during period, value | $ 375,000,000 | $ 500,000,000 | ||||||||||
Stock purchased and retired during period (shares) | 4,800,000 | 6,200,000 | 1,400,000 | |||||||||
Stock Repurchase Agreement August 2017 | Dell | Stock purchase agreement | Subsequent event | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Authorized purchase amount under stock purchase program | $ 300,000,000 |
Related Parties (Note Payable t
Related Parties (Note Payable to Dell) (Details) - USD ($) | Aug. 21, 2017 | Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jan. 21, 2014 |
Related Party Transaction [Line Items] | ||||||||
Note payable to Dell | $ 0 | $ 680,000,000 | $ 680,000,000 | $ 0 | ||||
Interest expense with Dell | $ 2,000,000 | $ 7,000,000 | $ 7,000,000 | $ 13,000,000 | $ 13,000,000 | |||
Dell Notes Due May 2018, May 2020, and December 2022 | Notes payable | Dell | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount | $ 1,500,000,000 | |||||||
Interest rate | 1.75% | |||||||
Note, May 2018 | Notes payable | Dell | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount | $ 680,000,000 | |||||||
Note, May 2020 | Notes payable | Dell | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount | 550,000,000 | |||||||
Note, December 2022 | Notes payable | Dell | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount | $ 270,000,000 | |||||||
Subsequent event | Dell Notes Due May 2018 And May 2020 | Notes payable | Dell | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repayment of related party notes payable | $ 1,230,000,000 |
Business Combinations, Defini41
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill (Business Combinations) (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 04, 2017USD ($) | Aug. 04, 2017USD ($) | |
Business Acquisition [Line Items] | ||
Goodwill related to business combinations | $ 238 | |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Business combinations, net of cash acquired | $ 238 | |
Cash acquired | 35 | |
Intangible assets acquired in business combination | 36 | 36 |
Goodwill related to business combinations | 238 | |
Gain on remeasurement of ownership interest | 34 | |
Fair value of ownership interest | 49 | |
Tax benefit not expected to be taxable as a result of the gain on acquisition | 13 | |
Acquisition of Related Party Ownership Interest | Dell | Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Payments to Dell for equity interest held | 20 | |
Equity Attributed to Post Combination Services | Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Unvested equity to be expensed over the remaining requisite service periods | $ 37 | $ 37 |
Purchased technology | Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets estimated useful life | 5 years |
Business Combinations, Defini42
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill (Intangible Assets Detail) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | $ 987 | $ 1,015 | $ 1,015 | $ 987 | ||
Accumulated Amortization | (480) | (539) | (539) | (470) | ||
Net Book Value | 507 | 476 | 476 | 517 | ||
Amortization expense | 10 | 34 | $ 32 | 66 | $ 65 | |
Purchased technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 641 | 663 | 663 | 641 | ||
Accumulated Amortization | (366) | (412) | (412) | (358) | ||
Net Book Value | 275 | 251 | 251 | 283 | ||
Leasehold interest | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 149 | 149 | 149 | 149 | ||
Accumulated Amortization | (24) | (26) | (26) | (24) | ||
Net Book Value | 125 | 123 | 123 | 125 | ||
Customer relationships and customer lists | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 132 | 135 | 135 | 132 | ||
Accumulated Amortization | (64) | (71) | (71) | (62) | ||
Net Book Value | 68 | 64 | 64 | 70 | ||
Trademarks and tradenames | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 61 | 63 | 63 | 61 | ||
Accumulated Amortization | (23) | (27) | (27) | (23) | ||
Net Book Value | 38 | 36 | 36 | 38 | ||
Other | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | 4 | 5 | 5 | 4 | ||
Accumulated Amortization | (3) | (3) | (3) | (3) | ||
Net Book Value | $ 1 | $ 2 | $ 2 | $ 1 | ||
Weighted Average | Purchased technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Useful Lives (in years) | 6 years 6 months | 6 years 6 months | 6 years 7 months 6 days | |||
Weighted Average | Leasehold interest | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Useful Lives (in years) | 34 years 10 months 24 days | 34 years 11 months | 34 years 10 months 24 days | |||
Weighted Average | Customer relationships and customer lists | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Useful Lives (in years) | 8 years 3 months 18 days | 8 years 2 months 12 days | 8 years 3 months 18 days | |||
Weighted Average | Trademarks and tradenames | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Useful Lives (in years) | 8 years 8 months 12 days | 8 years 6 months | 8 years 8 months 12 days | |||
Weighted Average | Other | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Useful Lives (in years) | 5 years 8 months 12 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Business Combinations, Defini43
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill (Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Business Combinations [Abstract] | |||
Remainder of 2018 | $ 67 | ||
2,019 | 124 | ||
2,020 | 100 | ||
2,021 | 46 | ||
2,022 | 31 | ||
Thereafter | 108 | ||
Net Book Value | $ 476 | $ 507 | $ 517 |
Business Combinations, Defini44
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill (Goodwill) (Details) $ in Millions | 6 Months Ended |
Aug. 04, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning of period | $ 4,032 |
Increase in goodwill related to business combinations | 238 |
End of period | $ 4,270 |
Realignment and Loss on Dispo45
Realignment and Loss on Disposition (Disposition of VMware vCloud Air Business) (Details) - VMware vCloud Air - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 04, 2017USD ($) | Aug. 04, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on disposition | $ 36 | $ 86 |
Transaction services period | 18 months | |
Tax benefit as a result of loss on disposition | $ 12 | |
Fair value of liabilities sold, unearned revenue | 35 | 35 |
Unearned license revenue | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Fair value of liabilities sold, unearned revenue | $ 18 | $ 18 |
Realignment and Loss on Dispo46
Realignment and Loss on Disposition (Realignment) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)position | |
Restructuring Cost and Reserve [Line Items] | |
Number of positions eliminated | position | 800 |
Realignment | $ 52 |
Severance-related costs | |
Restructuring Cost and Reserve [Line Items] | |
Realignment | 49 |
Costs to exit facilities | |
Restructuring Cost and Reserve [Line Items] | |
Realignment | $ 3 |
Realignment and Loss on Dispo47
Realignment and Loss on Disposition (Schedule of Restructuring Reserve) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning of Period | $ 3 |
Realignment | 52 |
Utilization | (50) |
Restructuring Reserve, End of Period | 5 |
Severance-related costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning of Period | 3 |
Realignment | 49 |
Utilization | (50) |
Restructuring Reserve, End of Period | 2 |
Costs to exit facilities | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning of Period | 0 |
Realignment | 3 |
Utilization | 0 |
Restructuring Reserve, End of Period | $ 3 |
Net Income (Loss) per Share (Co
Net Income (Loss) per Share (Computations Of Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017 | Jan. 31, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ (8) | $ 22 | $ 334 | $ 265 | $ 566 | $ 426 |
Weighted-average shares, basic for Class A and Class B (shares) | 408,625 | 422,067 | 408,399 | 425,107 | 408,415 | 424,169 |
Effect of dilutive securities (shares) | 0 | 4,369 | 1,995 | 5,505 | 1,560 | |
Weighted-average shares, diluted for Class A and Class B (shares) | 408,625 | 423,092 | 412,768 | 427,102 | 413,920 | 425,729 |
Net income (loss) per weighted-average share, basic for Class A and Class B (USD per share) | $ (0.02) | $ 0.05 | $ 0.82 | $ 0.62 | $ 1.39 | $ 1 |
Net income (loss) per weighted-average share, diluted for Class A and Class B (USD per share) | $ (0.02) | $ 0.05 | $ 0.81 | $ 0.62 | $ 1.37 | $ 1 |
Net Income (Loss) per Share (An
Net Income (Loss) per Share (Anti-Dilutive Shares Excluded From Net Income) (Details) - Class A Common Stock - shares shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities, amount (shares) | 5,612 | 1,344 | 5,380 | 1,120 | 11,719 |
Employee stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities, amount (shares) | 2,353 | 845 | 2,065 | 870 | 2,207 |
Restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities, amount (shares) | 3,259 | 499 | 3,315 | 250 | 9,512 |
Cash, Cash Equivalents and In50
Cash, Cash Equivalents and Investments (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | $ 3,552 | $ 3,220 | $ 2,790 | $ 2,991 | $ 2,493 |
Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 5,333 | 5,191 | 5,216 | ||
Short-term investments and other assets, unrealized gains | 25 | 3 | 2 | ||
Short-term investments and other assets, unrealized losses | (8) | (21) | (23) | ||
Short-term investments and other assets, aggregate fair value | 5,350 | 5,173 | 5,195 | ||
U.S. Government and agency obligations | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 940 | 733 | 734 | ||
Short-term investments and other assets, unrealized gains | 0 | 0 | 0 | ||
Short-term investments and other assets, unrealized losses | (2) | (3) | (3) | ||
Short-term investments and other assets, aggregate fair value | 938 | 730 | 731 | ||
U.S. and foreign corporate debt securities | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 4,170 | 3,884 | 3,885 | ||
Short-term investments and other assets, unrealized gains | 8 | 3 | 2 | ||
Short-term investments and other assets, unrealized losses | (5) | (16) | (18) | ||
Short-term investments and other assets, aggregate fair value | 4,173 | 3,871 | 3,869 | ||
Foreign governments and multi-national agency obligations | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 74 | 32 | 32 | ||
Short-term investments and other assets, unrealized gains | 0 | 0 | 0 | ||
Short-term investments and other assets, unrealized losses | 0 | 0 | 0 | ||
Short-term investments and other assets, aggregate fair value | 74 | 32 | 32 | ||
Municipal obligations | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 350 | 365 | |||
Short-term investments and other assets, unrealized gains | 0 | 0 | |||
Short-term investments and other assets, unrealized losses | 0 | 0 | |||
Short-term investments and other assets, aggregate fair value | 350 | 365 | |||
Asset-backed securities | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 4 | 4 | |||
Short-term investments and other assets, unrealized gains | 0 | 0 | |||
Short-term investments and other assets, unrealized losses | 0 | 0 | |||
Short-term investments and other assets, aggregate fair value | 4 | 4 | |||
Mortgage-backed securities | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 134 | 188 | 196 | ||
Short-term investments and other assets, unrealized gains | 0 | 0 | 0 | ||
Short-term investments and other assets, unrealized losses | (1) | (2) | (2) | ||
Short-term investments and other assets, aggregate fair value | 133 | 186 | 194 | ||
Marketable available-for-sale equity securities | Short Term Investments | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 15 | ||||
Short-term investments and other assets, unrealized gains | 17 | ||||
Short-term investments and other assets, unrealized losses | 0 | ||||
Short-term investments and other assets, aggregate fair value | 32 | ||||
Marketable available-for-sale equity securities | Other Assets | |||||
Schedule of Investments [Line Items] | |||||
Short-term investments and other assets, cost or amortized cost | 15 | 15 | |||
Short-term investments and other assets, unrealized gains | 7 | 7 | |||
Short-term investments and other assets, unrealized losses | 0 | 0 | |||
Short-term investments and other assets, aggregate fair value | 22 | 22 | |||
Cash | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 473 | 720 | 512 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | 473 | 720 | 512 | ||
Total cash equivalents | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 3,079 | 2,500 | 2,278 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | 3,079 | 2,500 | 2,278 | ||
Money-market funds | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 2,848 | 2,471 | 2,235 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | 2,848 | 2,471 | 2,235 | ||
U.S. Government and agency obligations | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 45 | ||||
Cash and cash equivalents, unrealized gains | 0 | ||||
Cash and cash equivalents, unrealized losses | 0 | ||||
Cash and cash equivalents, aggregate fair value | 45 | ||||
U.S. and foreign corporate debt securities | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 183 | ||||
Cash and cash equivalents, unrealized gains | 0 | ||||
Cash and cash equivalents, unrealized losses | 0 | ||||
Cash and cash equivalents, aggregate fair value | 183 | ||||
Foreign governments and multi-national agency obligations | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 3 | ||||
Cash and cash equivalents, unrealized gains | 0 | ||||
Cash and cash equivalents, unrealized losses | 0 | ||||
Cash and cash equivalents, aggregate fair value | $ 3 | ||||
Time deposits | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 26 | 26 | |||
Cash and cash equivalents, unrealized gains | 0 | 0 | |||
Cash and cash equivalents, unrealized losses | 0 | 0 | |||
Cash and cash equivalents, aggregate fair value | 26 | 26 | |||
Municipal obligations | Cash and Cash Equivalents | |||||
Schedule of Investments [Line Items] | |||||
Cash and cash equivalents, cost or amortized cost | 3 | 17 | |||
Cash and cash equivalents, unrealized gains | 0 | 0 | |||
Cash and cash equivalents, unrealized losses | 0 | 0 | |||
Cash and cash equivalents, aggregate fair value | $ 3 | $ 17 |
Cash, Cash Equivalents and In51
Cash, Cash Equivalents and Investments (Unrealized Losses On Cash Equivalents and Investments) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | |||
Fair Value | $ 2,409 | $ 2,965 | $ 3,367 |
Unrealized Losses | (8) | (21) | (23) |
U.S. Government and agency obligations | |||
Schedule of Investments [Line Items] | |||
Fair Value | 720 | 527 | 608 |
Unrealized Losses | (2) | (3) | (3) |
U.S. and foreign corporate debt securities | |||
Schedule of Investments [Line Items] | |||
Fair Value | 1,587 | 2,287 | 2,595 |
Unrealized Losses | (5) | (16) | (18) |
Mortgage-backed securities | |||
Schedule of Investments [Line Items] | |||
Fair Value | 102 | 151 | 164 |
Unrealized Losses | $ (1) | $ (2) | $ (2) |
Cash, Cash Equivalents and In52
Cash, Cash Equivalents and Investments (Contractual Maturities) (Details) $ in Millions | Aug. 04, 2017USD ($) |
Amortized Cost Basis | |
Due within one year | $ 1,990 |
Due after 1 year through 5 years | 3,138 |
Due after 5 years through 10 years | 95 |
Due after 10 years | 95 |
Total fixed income securities, amortized cost basis | 5,318 |
Aggregate Fair Value | |
Due within one year | 1,989 |
Due after 1 year through 5 years | 3,140 |
Due after 5 years through 10 years | 95 |
Due after 10 years | 94 |
Total fixed income securities, aggregate fair value | $ 5,318 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Deferred compensation plan assets | $ 48 | $ 36 | $ 35 |
Deferred compensation plan liabilities | 48 | 36 | 35 |
Level 2 | Notes payable | Dell | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of notes payable | 1,477 | 1,492 | 1,489 |
Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 5,350 | 5,173 | 5,195 |
U.S. Government and agency obligations | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 938 | 730 | 731 |
U.S. and foreign corporate debt securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4,173 | 3,871 | 3,869 |
Foreign governments and multi-national agency obligations | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 74 | 32 | 32 |
Municipal obligations | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 350 | 365 | |
Asset-backed securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4 | 4 | |
Mortgage-backed securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 133 | 186 | 194 |
Marketable available-for-sale equity securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 32 | ||
Marketable available-for-sale equity securities | Other Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 22 | 22 | |
Total cash equivalents | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 3,079 | 2,500 | 2,278 |
Money-market funds | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 2,848 | 2,471 | 2,235 |
U.S. Government and agency obligations | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 45 | ||
U.S. and foreign corporate debt securities | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 183 | ||
Foreign governments and multi-national agency obligations | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 3 | ||
Time deposits | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 26 | 26 | |
Municipal obligations | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 3 | 17 | |
Fair Value, Measurements, Recurring | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 5,350 | 5,173 | 5,195 |
Fair Value, Measurements, Recurring | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 691 | 445 | 441 |
Fair Value, Measurements, Recurring | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4,659 | 4,728 | 4,754 |
Fair Value, Measurements, Recurring | Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative due to stock purchase with Dell | 9 | 8 | |
Forward contracts | 10 | ||
Fair Value, Measurements, Recurring | Other Current Assets | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative due to stock purchase with Dell | 0 | 0 | |
Forward contracts | 0 | ||
Fair Value, Measurements, Recurring | Other Current Assets | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative due to stock purchase with Dell | 9 | 8 | |
Forward contracts | 10 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 938 | 730 | 731 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 659 | 445 | 441 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 279 | 285 | 290 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4,173 | 3,871 | 3,869 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4,173 | 3,871 | 3,869 |
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 74 | 32 | 32 |
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 74 | 32 | 32 |
Fair Value, Measurements, Recurring | Municipal obligations | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 350 | 365 | |
Fair Value, Measurements, Recurring | Municipal obligations | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Municipal obligations | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 350 | 365 | |
Fair Value, Measurements, Recurring | Asset-backed securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4 | 4 | |
Fair Value, Measurements, Recurring | Asset-backed securities | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Asset-backed securities | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 4 | 4 | |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 133 | 186 | 194 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 133 | 186 | 194 |
Fair Value, Measurements, Recurring | Marketable available-for-sale equity securities | Short Term Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 32 | ||
Fair Value, Measurements, Recurring | Marketable available-for-sale equity securities | Short Term Investments | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 32 | ||
Fair Value, Measurements, Recurring | Marketable available-for-sale equity securities | Short Term Investments | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | ||
Fair Value, Measurements, Recurring | Marketable available-for-sale equity securities | Other Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 22 | 22 | |
Fair Value, Measurements, Recurring | Marketable available-for-sale equity securities | Other Assets | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 22 | 22 | |
Fair Value, Measurements, Recurring | Marketable available-for-sale equity securities | Other Assets | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments and other assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Total cash equivalents | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 3,079 | 2,500 | 2,278 |
Fair Value, Measurements, Recurring | Total cash equivalents | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 2,848 | 2,471 | 2,235 |
Fair Value, Measurements, Recurring | Total cash equivalents | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 231 | 29 | 43 |
Fair Value, Measurements, Recurring | Money-market funds | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 2,848 | 2,471 | 2,235 |
Fair Value, Measurements, Recurring | Money-market funds | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 2,848 | 2,471 | 2,235 |
Fair Value, Measurements, Recurring | Money-market funds | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 45 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 45 | ||
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 183 | ||
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 183 | ||
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 3 | ||
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | $ 3 | ||
Fair Value, Measurements, Recurring | Time deposits | Cash and Cash Equivalents | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 26 | 26 | |
Fair Value, Measurements, Recurring | Time deposits | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | 0 | |
Fair Value, Measurements, Recurring | Time deposits | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 26 | 26 | |
Fair Value, Measurements, Recurring | Municipal obligations | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 3 | 17 | |
Fair Value, Measurements, Recurring | Municipal obligations | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 0 | 0 | |
Fair Value, Measurements, Recurring | Municipal obligations | Cash and Cash Equivalents | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | $ 3 | $ 17 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured and Recorded at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Fair Value, Measurements, Nonrecurring | Other Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Strategic investments | $ 151 | $ 139 | $ 139 |
Derivatives and Hedging Activ55
Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | ||||||
Net gain (loss) on forward contracts and underlying foreign currency denominated assets and liabilities | $ 10 | $ 13 | ||||
Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on forward contracts not designated as hedging instruments | $ (18) | (27) | $ 11 | $ (35) | $ (12) | |
Foreign Exchange Forward | Not Designated As Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Forward contract maturity | 1 month | |||||
Notional amount | 834 | 854 | $ 854 | $ 875 | ||
Cash Flow Hedging | Foreign Exchange Forward | Designated As Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 250 | $ 134 | $ 134 | $ 22 | ||
Maximum | Cash Flow Hedging | Foreign Exchange Forward | Designated As Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Forward contract maturity | 12 months |
Unearned Revenue (Summary of Un
Unearned Revenue (Summary of Unearned Revenue) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Unearned Revenue Arrangement [Line Items] | |||
Unearned revenue | $ 5,504 | $ 5,340 | $ 5,624 |
Unearned license revenue | |||
Unearned Revenue Arrangement [Line Items] | |||
Unearned revenue | 519 | 484 | 503 |
Unearned software maintenance revenue | |||
Unearned Revenue Arrangement [Line Items] | |||
Unearned revenue | 4,522 | 4,405 | 4,628 |
Unearned professional services revenue | |||
Unearned Revenue Arrangement [Line Items] | |||
Unearned revenue | $ 463 | $ 451 | $ 493 |
Unearned Revenue (Narrative) (D
Unearned Revenue (Narrative) (Details) $ in Millions | 3 Months Ended |
Aug. 04, 2017USD ($) | |
VMware vCloud Air | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Fair value of liabilities sold, unearned revenue | $ 35 |
Unearned license revenue | VMware vCloud Air | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Fair value of liabilities sold, unearned revenue | $ 18 |
Weighted Average | Unearned software maintenance revenue | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Unearned revenue recognition period | 2 years |
Stockholders' Equity (Stock Rep
Stockholders' Equity (Stock Repurchase Program) (Details) - Class A Common Stock - USD ($) | May 10, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Feb. 15, 2017 | Aug. 04, 2017 | May 05, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 31, 2017 | Mar. 29, 2017 | Jan. 31, 2017 | Dec. 15, 2016 |
Class of Stock [Line Items] | |||||||||||||
Aggregate purchase price | $ 60,000,000 | $ 425,000,000 | |||||||||||
Stock repurchased and retired during period (shares) | 0 | 666,000 | 0 | 4,827,000 | 0 | ||||||||
Weighted-average price per share (USD per share) | $ 90.04 | $ 88.05 | |||||||||||
January 2017 Stock Repurchase Program | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount under stock repurchase program | $ 1,200,000,000 | ||||||||||||
Authorized shares available for repurchase | $ 900,000,000 | $ 900,000,000 | |||||||||||
Subsequent event | August 2017 Stock Repurchase Program | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount under stock repurchase program | $ 1,000,000,000 | ||||||||||||
Dell | Stock purchase agreement | Stock Repurchase Agreement December 2016 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount under stock repurchase program | $ 500,000,000 | ||||||||||||
Aggregate purchase price | $ 375,000,000 | $ 500,000,000 | |||||||||||
Stock repurchased and retired during period (shares) | 4,800,000 | 6,200,000 | 1,400,000 | ||||||||||
Dell | Stock purchase agreement | Stock Repurchase Agreement March 2017 | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount under stock repurchase program | $ 300,000,000 | ||||||||||||
Aggregate purchase price | $ 300,000,000 | ||||||||||||
Stock repurchased and retired during period (shares) | 700,000 | 700,000 | 2,700,000 | 3,400,000 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Restricted Stock Activity) (Details) - Class A Common Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended |
Feb. 03, 2017 | Aug. 04, 2017 | |
Restricted Stock | ||
Number of Units | ||
Outstanding beginning of period (shares) | 20,866 | 20,451 |
Granted (shares) | 6,474 | |
Vested (shares) | (256) | (5,191) |
Forfeited (shares) | (159) | (1,056) |
Outstanding end of period (shares) | 20,451 | 20,678 |
Weighted-Average Grant Date Fair Value | ||
Outstanding beginning of period, weighted-average grant date fair value (USD per share) | $ 67.54 | $ 67.41 |
Granted, weighted-average grant date fair value (USD per share) | 89.15 | |
Vested, weighted-average grant date fair value (USD per share) | 77.07 | 66.16 |
Forfeited, weighted-average grant date fair value (USD per share) | 68.11 | 71 |
Outstanding end of period, weighted-average grant date fair value (USD per share) | $ 67.41 | $ 74.43 |
Fair value of restricted stock-based awards, vested | $ 21 | $ 488 |
Aggregate intrinsic value, nonvested | $ 1,925 | |
Minimum | Performance Stock Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options award annual vesting percentage | 50.00% | |
Maximum | Performance Stock Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options award annual vesting percentage | 200.00% |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 03, 2017 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll forward] | |||||
Other comprehensive income, net | $ 5 | $ 5 | $ 8 | $ 20 | $ 28 |
Unrealized Gain (Loss) on Available-for-Sale Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Roll forward] | |||||
Balance | (8) | (6) | (7) | ||
Unrealized gains, net of tax provision | 2 | 15 | 24 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision | 2 | 3 | |||
Other comprehensive income, net | 17 | ||||
Balance | (6) | 11 | 20 | 11 | 20 |
Tax provision (benefit) on unrealized gains (losses) before reclassifications | 1 | 9 | 15 | ||
Tax provision on unrealized gains (losses) reclassified from accumulated other comprehensive income (loss) | 1 | 2 | |||
Unrealized Gain (Loss) on Forward Contracts | |||||
Accumulated Other Comprehensive Income (Loss) [Roll forward] | |||||
Balance | (1) | 2 | (1) | ||
Unrealized gains, net of tax provision | 3 | 1 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision | 2 | 1 | |||
Other comprehensive income, net | 3 | ||||
Balance | 2 | 5 | 0 | 5 | 0 |
Tax provision (benefit) on unrealized gains (losses) before reclassifications | 0 | 3 | 0 | ||
Tax provision on unrealized gains (losses) reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Roll forward] | |||||
Balance | (9) | (4) | (8) | ||
Unrealized gains, net of tax provision | 5 | 16 | 24 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statements of income, net of tax provision | 4 | 4 | |||
Other comprehensive income, net | 20 | ||||
Balance | (4) | $ 16 | $ 20 | 16 | 20 |
Tax provision (benefit) on unrealized gains (losses) before reclassifications | $ 1 | 12 | 15 | ||
Tax provision on unrealized gains (losses) reclassified from accumulated other comprehensive income (loss) | $ 1 | $ 2 |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue By Geographic Area) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017USD ($) | Jan. 31, 2016USD ($) | Aug. 04, 2017USD ($) | Jun. 30, 2016USD ($) | Aug. 04, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Revenues From External Customers And Long-Lived Assets [Line Items] | ||||||
Number of reportable segments | segment | 1 | |||||
Revenue | $ 496 | $ 470 | $ 1,900 | $ 1,693 | $ 3,636 | $ 3,282 |
United States | ||||||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||||||
Revenue | 248 | 963 | 870 | 1,823 | 1,671 | |
International | ||||||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||||||
Revenue | $ 248 | $ 937 | $ 823 | $ 1,813 | $ 1,611 |
Segment Information (Schedule62
Segment Information (Schedule Of Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Revenues From External Customers And Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic area | $ 850 | $ 908 | $ 916 |
United States | |||
Revenues From External Customers And Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic area | 727 | 777 | 784 |
International | |||
Revenues From External Customers And Long-Lived Assets [Line Items] | |||
Long-lived assets by geographic area | $ 123 | $ 131 | $ 132 |
Transition Period (Comparable F
Transition Period (Comparable Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017 | Jan. 31, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | Aug. 04, 2017 | Jun. 30, 2016 | |
Transition Period Comparable Data [Abstract] | ||||||
Fiscal period duration | 34 days | 31 days | ||||
Revenue | $ 496 | $ 470 | $ 1,900 | $ 1,693 | $ 3,636 | $ 3,282 |
Operating income (loss) | (41) | 22 | 338 | 323 | 576 | 515 |
Income tax provision (benefit) | (26) | 4 | 73 | 72 | 99 | 111 |
Net income (loss) | $ (8) | $ 22 | $ 334 | $ 265 | $ 566 | $ 426 |
Net income (loss) per weighted-average share, basic for Class A and Class B (USD per share) | $ (0.02) | $ 0.05 | $ 0.82 | $ 0.62 | $ 1.39 | $ 1 |
Net income (loss) per weighted-average share, diluted for Class A and Class B (USD per share) | $ (0.02) | $ 0.05 | $ 0.81 | $ 0.62 | $ 1.37 | $ 1 |
Weighted-average shares, basic for Class A and Class B (shares) | 408,625 | 422,067 | 408,399 | 425,107 | 408,415 | 424,169 |
Weighted-average shares, diluted for Class A and Class B (shares) | 408,625 | 423,092 | 412,768 | 427,102 | 413,920 | 425,729 |
Transition Period (Income Taxes
Transition Period (Income Taxes) (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Dec. 31, 2016 |
Transition Period Comparable Data [Abstract] | |||
Deferred tax assets, net | $ 691 | $ 716 | $ 462 |
Unearned revenue | $ 566 | $ 324 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent event - USD ($) | Aug. 21, 2017 | Aug. 31, 2017 |
Unsecured Senior Notes | Notes Due August 2020, August 2022 and August 2027 | ||
Subsequent Event [Line Items] | ||
Principal amount | $ 4,000,000,000 | |
Unsecured Senior Notes | Notes Due August 2020 | ||
Subsequent Event [Line Items] | ||
Principal amount | $ 1,250,000,000 | |
Interest rate | 2.30% | |
Unsecured Senior Notes | Notes Due August 2022 | ||
Subsequent Event [Line Items] | ||
Principal amount | $ 1,500,000,000 | |
Interest rate | 2.95% | |
Unsecured Senior Notes | Notes Due August 2027 | ||
Subsequent Event [Line Items] | ||
Principal amount | $ 1,250,000,000 | |
Interest rate | 3.90% | |
Dell | Notes payable | Dell Notes Due May 2018 And May 2020 | ||
Subsequent Event [Line Items] | ||
Repayment of related party notes payable | $ 1,230,000,000 | |
Class A Common Stock | August 2017 Stock Repurchase Program | ||
Subsequent Event [Line Items] | ||
Authorized purchase amount under stock purchase program | $ 1,000,000,000 |