| Balance Sheet
As of December 2010, cash and cash equivalents, including short-term investments, were $5.37 billion compared with $6.65 billion at the end of September 2010. The company paid its long-term convertible debt at the end of 4Q10.
Cash Flow
Cash flow from operations increased to $1.51 billion in 4Q10 from $962.4 million at the end of 3Q10. Free cash flow increased to $1.22 billion from $634.9 million in 3Q10. Quarterly operating cash flow and free cash flow grew 50.0% and 54.0% y/y, respectively.
Management expects free cash flow to continue to show healthy growth going forward.
Share Repurchases
EMC bought back 8.9 million shares for $200 million during 4Q10 and $1.0 billion for FY10. EMC expects to repurchase up to $1.5 billion of common stock in FY11.
EMC repurchased $110 million worth of VMware stock in 4Q10 and a total of $399.0 million of VMware stock in FY10 to maintain its 80% ownership. Management believes that maintaining its ownership level in VMware is a strong investment on the foundation that VMware will emerge as the cloud data center operating system over the long term.
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