EX-12 5 vmw-222018x10kex12.htm COMPUTATION OF RATIO OF EARNINGS (LOSSES) TO FIXED CHARGES Exhibit

Exhibit 12

VMware, Inc.
COMPUTATION OF RATIO OF EARNINGS (LOSSES) TO FIXED CHARGES
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
Transition Period
 
For the Year Ended
 
January 1 to
 
February 2,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
February 3,
 
2018
 
2016
 
2015
 
2014
 
2013
 
2017
Fixed Charges(1)
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
76

 
$
29

 
$
28

 
$
26

 
$
6

 
$
3

Assumed interest element in rent
39

 
37

 
35

 
28

 
23

 
3

Total fixed charges
$
115

 
$
66

 
$
63

 
$
54

 
$
29

 
$
6

 
 
 
 
 
 
 
 
 
 
 
 
Earnings (losses)
 
 
 
 
 
 
 
 
 
 
 
Earnings (losses) before taxes
$
1,801

 
$
1,473

 
$
1,213

 
$
1,048

 
$
1,147

 
$
(35
)
Fixed charges
115

 
66

 
63

 
54

 
29


6

Total earnings (losses)
$
1,916

 
$
1,539

 
$
1,276

 
$
1,102

 
$
1,176

 
$
(29
)
 
 
 
 
 
 
 
 
 
 
 
 
Ratios of earnings (losses) to fixed charges
16.7
x
 
23.2
x
 
20.2
x
 
20.2
x
 
41.7
x
 
(5.1
)x
(1) Fixed charges include (i) interest expense on borrowings and on our leased space for a Washington data center facility, for which VMware is considered to be the owner for accounting purposes and (ii) a reasonable approximation of the interest factor deemed to be included in rent expense. VMware includes interest expense recognized on uncertain tax positions in income tax provision; therefore, such interest expense is not included in the ratios of earnings to fixed charges.