Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2014

All 2013 Acquisitions

Business Acquisition [Line Items]

Fair Value of Stock Options for Acquisitions, Weighted-Average Assumptions

The fair value of our stock options for all of the aforementioned acquisitions in 2013 was estimated using the following weighted-average assumptions:

Expected term (in years)	1.8
Expected volatility	26.4	%
Risk-free interest rate	0.3	%
Dividend yield	1.5	%

Allocation of Purchase Price to Intangible Assets

The following represents the aggregate allocation of the purchase price for all of the aforementioned acquisitions to intangible assets (table in millions):

Developed technology (weighted-average useful life of 5 years)	$	138
Customer relationships (weighted-average useful life of 4 years)	34
In-process research and development	10
Total intangible assets	$	182

2012 Acquisitions, excluding Nicira

Business Acquisition [Line Items]

Fair Value of Stock Options for Acquisitions, Weighted-Average Assumptions

The fair value of our stock options for all of the aforementioned acquisitions, excluding Nicira, in 2012 was estimated assuming no expected dividends and the following weighted-average assumptions:

Expected term (in years)	1.9
Expected volatility	31.6	%
Risk-free interest rate	0.3	%

Allocation of Purchase Price to Intangible Assets

The following represents the aggregate allocation of the purchase price for all of the aforementioned acquisitions, excluding Nicira, to intangible assets (table in millions):

Developed technology (weighted-average useful life of 5 years)	$	255
Customer relationships (weighted-average useful life of 6 years)	54
Trademarks and tradenames (weighted-average useful life of 3 years)	2
Total intangible assets	$	311

All 2014 Acquisitions, excluding Airwatch

Business Acquisition [Line Items]

Fair Value of Stock Options for Acquisitions, Weighted-Average Assumptions

The fair value of our stock options for all of the aforementioned acquisitions, excluding AirWatch, in 2014 was estimated using the following weighted-average assumptions:

Expected term (in years)	2.6
Expected volatility	27.3	%
Risk-free interest rate	0.7	%
Dividend yield	1.7	%

Allocation of Purchase Price to Intangible Assets

The following represents the aggregate allocation of the purchase price for all of the aforementioned acquisitions, excluding AirWatch, to intangible assets (table in millions):

Purchased technology (weighted-average useful life of 6 years)	$	460
Customer relationships (weighted-average useful life of 5 years)	10
Trademarks and tradenames (weighted-average useful life of 4 years)	14
Total intangible assets	$	484

VMware | AirWatch

Business Acquisition [Line Items]

Allocation of Purchase Price

The following table summarizes the allocation of the consideration to the fair value of the assets acquired and net liabilities assumed, net of cash acquired (table in millions):

Other current assets	$	61
Intangible assets:
Purchased technology (weighted-average useful life of 6 years)	118
Customer relationships and customer lists (weighted-average useful life of 8 years)	78
Trademarks and tradenames (weighted-average useful life of 8 years)	40
Other (weighted-average useful life of 3 years)	14
Total intangible assets, net, excluding goodwill	250
Goodwill	868
Other assets	30
Total assets acquired	1,209
Unearned revenue	(45		)
Other assumed liabilities, net of acquired assets	(72		)
Total net liabilities assumed	(117		)
Fair value of assets acquired and net liabilities assumed	$	1,092

VMware | Nicira

Business Acquisition [Line Items]

Fair Value of Stock Options for Acquisitions, Weighted-Average Assumptions

The fair value of VMware’s stock options for the acquisition of Nicira was estimated using the following weighted-average assumptions:

Expected term (in years)	2.7
Expected volatility	35.7	%
Risk-free interest rate	0.3	%

Allocation of Purchase Price

The following table summarizes the allocation of the Nicira purchase price (table in millions):

Intangible assets:
Purchased technology (weighted-average useful life of 7 years)	$	266
Trademarks and tradenames (weighted-average useful life of 10 years)	20
In-process research and development	49
Total intangible assets	335
Goodwill	893
Deferred tax liabilities, net	(77		)
Income tax payable	(50		)
Other assumed liabilities, net of acquired assets	(1		)
Total purchase price	$	1,100