10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to

Commission File Number 1-9853

EMC CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	04-2680009
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
176 South Street Hopkinton, Massachusetts (Address of principal executive offices)	01748 (Zip Code)

(508) 435-1000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x	Accelerated filer  o
Non-accelerated filer  o (Do not check if a smaller reporting company)	Smaller reporting company  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

The number of shares of common stock, par value $.01 per share, of the registrant outstanding as of September 30, 2012 was 2,106,655,190.

EMC CORPORATION

	Page No.
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets at September 30, 2012 and December 31, 2011	3
Consolidated Income Statements for the Three and Nine Months Ended September 30, 2012 and 2011	4
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2012 and 2011	5
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2012 and 2011	6
Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2012 and 2011	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	43
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	44
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3. Defaults Upon Senior Securities	54
Item 4. Mine Safety Disclosures	54
Item 5. Other Information	54
Item 6. Exhibits	54
SIGNATURES	55
EXHIBIT INDEX	56

FACTORS THAT MAY AFFECT FUTURE RESULTS

This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of the Federal securities laws, about our business and prospects. The forward-looking statements do not include the potential impact of any mergers, acquisitions, divestitures, securities offerings or business combinations that may be announced or closed after the date hereof. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “plans,” “intends,” “expects,” “goals” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Our future results may differ materially from our past results and from those projected in the forward-looking statements due to various uncertainties and risks, including those described in Item 1A of Part II (Risk Factors). The forward-looking statements speak only as of the date of this Quarterly Report and undue reliance should not be placed on these statements. We disclaim any obligation to update any forward-looking statements contained herein after the date of this Quarterly Report.

2

PART I

FINANCIAL INFORMATION

Item 1.     FINANCIAL STATEMENTS

EMC CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

	September 30, 2012			December 31, 2011
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,160,817		$	4,531,036
Short-term investments	1,284,855			1,786,987
Accounts and notes receivable, less allowance for doubtful accounts of $63,117 and $61,804	3,164,005			2,937,499
Inventories	1,158,262			1,009,968
Deferred income taxes	802,215			733,308
Other current assets	541,263			583,885
Total current assets	11,111,417			11,582,683
Long-term investments	5,134,328			4,525,106
Property, plant and equipment, net	2,983,446			2,833,149
Intangible assets, net	2,053,360			1,766,115
Goodwill	13,728,256			12,154,970
Other assets, net	1,494,911			1,406,156
Total assets	$	36,505,718		$	34,268,179
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,074,079		$	1,101,659
Accrued expenses	2,317,568			2,354,979
Notes converted and payable (See Note 4)	—			1,699,832
Income taxes payable	286,696			155,909
Convertible debt (See Note 4)	1,636,907			1,605,142
Deferred revenue	4,353,490			3,458,689
Total current liabilities	9,668,740			10,376,210
Income taxes payable	332,289			238,851
Deferred revenue	2,884,240			2,715,361
Deferred income taxes	384,444			250,817
Other liabilities	307,455			287,912
Total liabilities	13,577,168			13,869,151
Convertible debt (See Note 4)	73,280			119,325
Commitments and contingencies (See Note 14)
Shareholders’ equity:
Preferred stock, par value $0.01; authorized 25,000 shares; none outstanding	—			—
Common stock, par value $0.01; authorized 6,000,000 shares; issued and outstanding 2,106,655 and 2,048,890 shares	21,067			20,489
Additional paid-in capital	3,854,545			3,405,513
Retained earnings	17,983,315			16,120,621
Accumulated other comprehensive loss, net	(155,303		)	(235,009		)
Total EMC Corporation’s shareholders’ equity	21,703,624			19,311,614
Non-controlling interest in VMware, Inc.	1,151,646			968,089
Total shareholders’ equity	22,855,270			20,279,703
Total liabilities and shareholders’ equity	$	36,505,718		$	34,268,179

The accompanying notes are an integral part of the consolidated financial statements.

3

EMC CORPORATION

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share amounts)

(unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Revenues:
Product sales	$	3,084,441		$	3,074,367		$	9,332,035		$	9,049,610
Services	2,193,735			1,905,834			6,351,912			5,383,547
	5,278,176			4,980,201			15,683,947			14,433,157
Costs and expenses:
Cost of product sales	1,292,756			1,269,323			3,848,634			3,917,028
Cost of services	697,881			644,613			2,087,164			1,870,526
Research and development	652,898			548,021			1,896,656			1,589,020
Selling, general and administrative	1,708,794			1,612,914			5,075,641			4,684,534
Restructuring and acquisition-related charges	27,064			20,302			80,560			68,411
Operating income	898,783			885,028			2,695,292			2,303,638
Non-operating income (expense):
Investment income	29,850			32,293			85,280			106,506
Interest expense	(21,480		)	(44,322		)	(58,207		)	(135,777		)
Other income (expense), net	(63,055		)	(59,799		)	(157,704		)	(72,616		)
Total non-operating income (expense)	(54,685		)	(71,828		)	(130,631		)	(101,887		)
Income before provision for income taxes	844,098			813,200			2,564,661			2,201,751
Income tax provision	185,434			171,086			590,600			465,456
Net income	658,664			642,114			1,974,061			1,736,295
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(32,326		)	(36,465		)	(111,367		)	(107,004		)
Net income attributable to EMC Corporation	$	626,338		$	605,649		$	1,862,694		$	1,629,291
Net income per weighted average share, basic attributable to EMC Corporation common shareholders	$	0.30		$	0.29		$	0.89		$	0.79
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders	$	0.28		$	0.27		$	0.84		$	0.72
Weighted average shares, basic	2,104,205			2,054,007			2,089,516			2,060,242
Weighted average shares, diluted	2,210,421			2,207,099			2,206,805			2,244,508

The accompanying notes are an integral part of the consolidated financial statements.

4

EMC CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Net income	$	658,664		$	642,114		$	1,974,061		$	1,736,295
Other comprehensive income (loss), net of taxes (benefits):
Foreign currency translation adjustments	15,553			(31,074		)	7,856			(5,317		)
Changes in market value of investments:
Changes in unrealized gains (losses), net of taxes (benefits) of $24,514, $(14,461), $52,834 and $(21,429)	43,663			(29,497		)	86,424			(32,020		)
Less: reclassification adjustment for net losses (gains) realized in net income, net of benefits (taxes) of $(1,499), $(1,795), $(3,852) and $(4,104)	(3,225		)	(1,698		)	(2,332		)	(12,424		)
Net change in market value of investments	40,438			(31,195		)	84,092			(44,444		)
Changes in market value of derivatives:
Changes in market value of derivatives, net of taxes (benefits) of $(6,035), $(39,938), $(21,081) and $(51,921)	(14,198		)	(53,857		)	(37,294		)	(81,486		)
Less: reclassification adjustment for net losses (gains) included in net income, net of benefits (taxes) of $1,006, $(1,556), $15,284 and $(31)	7,042			(10,891		)	26,505			(217		)
Net change in the market value of derivatives	(7,156		)	(64,748		)	(10,789		)	(81,703		)
Other comprehensive income (loss)	48,835			(127,017		)	81,159			(131,464		)
Comprehensive income	707,499			515,097			2,055,220			1,604,831
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(32,326		)	(36,465		)	(111,367		)	(107,004		)
Less: Other comprehensive income (loss) attributable to the non-controlling interest in VMware, Inc.	(1,032		)	312			(1,453		)	3,779
Comprehensive income attributable to EMC Corporation	$	674,141		$	478,944		$	1,942,400		$	1,501,606

The accompanying notes are an integral part of the consolidated financial statements.

5

EMC CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	For the Nine Months Ended
	September 30, 2012			September 30, 2011
Cash flows from operating activities:
Cash received from customers	$	16,556,689		$	15,434,151
Cash paid to suppliers and employees	(11,950,620		)	(11,577,038		)
Dividends and interest received	64,780			77,706
Interest paid	(16,880		)	(54,683		)
Income taxes paid	(290,888		)	(395,539		)
Net cash provided by operating activities	4,363,081			3,484,597
Cash flows from investing activities:
Additions to property, plant and equipment	(523,459		)	(601,177		)
Capitalized software development costs	(315,798		)	(342,091		)
Purchases of short- and long-term available-for-sale securities	(5,011,791		)	(5,589,382		)
Sales of short- and long-term available-for-sale securities	4,153,617			3,945,683
Maturities of short- and long-term available-for-sale securities	844,287			877,510
Business acquisitions, net of cash acquired	(1,878,051		)	(536,624		)
Decrease (increase) in strategic and other related investments, net	18,648			(268,087		)
Joint venture funding	(217,881		)	(191,624		)
Purchase of leasehold interest	—			(151,083		)
Net cash used in investing activities	(2,930,428		)	(2,856,875		)
Cash flows from financing activities:
Issuance of EMC’s common stock from the exercise of stock options	387,782			501,627
Issuance of VMware’s common stock from the exercise of stock options	214,223			285,286
EMC repurchase of EMC’s common stock	(379,997		)	(1,899,208		)
EMC purchase of VMware’s common stock	(131,917		)	(342,201		)
VMware repurchase of VMware’s common stock	(307,012		)	(490,916		)
Excess tax benefits from stock-based compensation	212,280			318,717
Payment of long-term and short-term obligations	(14,677		)	(1,263		)
Proceeds from long-term and short-term obligations	4,279			1,253
Payment of convertible debt	(1,699,816		)	—
Interest rate contract settlement	(69,905		)	—
Net cash used in financing activities	(1,784,760		)	(1,626,705		)
Effect of exchange rate changes on cash and cash equivalents	(18,112		)	5,455
Net decrease in cash and cash equivalents	(370,219		)	(993,528		)
Cash and cash equivalents at beginning of period	4,531,036			4,119,138
Cash and cash equivalents at end of period	$	4,160,817		$	3,125,610
Reconciliation of net income to net cash provided by operating activities:
Net income	$	1,974,061		$	1,736,295
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,127,881			1,048,151
Non-cash interest expense on convertible debt	33,871			76,398
Non-cash restructuring and other special charges	8,990			(2,325		)
Stock-based compensation expense	658,455			613,233
Provision for doubtful accounts	21,339			8,525
Deferred income taxes, net	(72,657		)	83,657
Excess tax benefits from stock-based compensation	(212,280		)	(318,717		)
Other, net	(19,555		)	(28,740		)
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable	(207,395		)	(56,076		)
Inventories	(336,748		)	(416,898		)
Other assets	62,820			(157,024		)
Accounts payable	118,950			(75,263		)
Accrued expenses	(225,725		)	51,747
Income taxes payable	372,369			(13,740		)
Deferred revenue	1,058,798			1,048,545
Other liabilities	(93		)	(113,171		)
Net cash provided by operating activities	$	4,363,081		$	3,484,597

The accompanying notes are an integral part of the consolidated financial statements.

6

EMC CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands)

(unaudited)

For the nine months endedSeptember 30, 2012:

	Common Stock					Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Loss			Non-controlling Interest in VMware			Shareholders’ Equity
	Shares		Par Value
Balance, January 1, 2012	2,048,890		$	20,489		$	3,405,513		$	16,120,621	$	(235,009	)	$	968,089		$	20,279,703
Stock issued through stock option and stock purchase plans	30,336		303			387,479			—		—			—			387,782
Tax benefit from stock options exercised	—		—			257,052			—		—			—			257,052
Restricted stock grants, cancellations and withholdings, net	10,427		105			(120,434		)	—		—			—			(120,329		)
Repurchase of common stock	(15,343	)	(153		)	(409,844		)	—		—			—			(409,997		)
EMC purchase of VMware stock	—		—			(114,033		)	—		—			(17,884		)	(131,917		)
Stock options issued in business acquisitions	—		—			17,994			—		—			—			17,994
Stock-based compensation	—		—			660,462			—		—			—			660,462
Impact from equity transactions of VMware, Inc.	—		—			(274,662		)	—		—			88,621			(186,041		)
Change in market value of investments	—		—			—			—		82,905			1,187			84,092
Change in market value of derivatives	—		—			—			—		(11,055		)	266			(10,789		)
Translation adjustment	—		—			—			—		7,856			—			7,856
Convertible debt conversions and warrant settlement	32,345		323			(1,027		)	—		—			—			(704		)
Reclassification of convertible debt (to)/from mezzanine (Note 4)	—		—			46,045			—		—			—			46,045
Net income	—		—			—			1,862,694		—			111,367			1,974,061
Balance, September 30, 2012	2,106,655		$	21,067		$	3,854,545		$	17,983,315	$	(155,303	)	$	1,151,646		$	22,855,270

For the nine months endedSeptember 30, 2011:

	Common Stock					Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Loss			Non-controlling Interest in VMware			Shareholders’ Equity
	Shares		Par Value
Balance, January 1, 2011	2,069,246		$	20,692		$	4,283,830		$	13,659,284	$	(92,617	)	$	762,736		$	18,633,925
Stock issued through stock option and stock purchase plans	39,010		391			501,236			—		—			—			501,627
Tax benefit from stock options exercised	—		—			362,495			—		—			—			362,495
Restricted stock grants, cancellations and withholdings, net	8,894		89			(110,247		)	—		—			—			(110,158		)
Repurchase of common stock	(77,193	)	(772		)	(1,898,436		)	—		—			—			(1,899,208		)
EMC purchase of VMware stock	—		—			(304,022		)	—		—			(38,179		)	(342,201		)
Stock options issued in business acquisitions	—		—			3,224			—		—			—			3,224
Stock-based compensation	—		—			629,301			—		—			—			629,301
Impact from equity transactions of VMware, Inc.	—		—			(380,821		)	—		—			70,203			(310,618		)
Change in market value of investments	—		—			—			—		(40,665		)	(3,779		)	(44,444		)
Change in market value of derivatives	—		—			—			—		(81,703		)	—			(81,703		)
Translation adjustment	—		—			—			—		(5,317		)	—			(5,317		)
Reclassification of convertible debt (to)/from mezzanine (Note 4)	—		—			90,367			—		—			—			90,367
Net income	—		—			—			1,629,291		—			107,004			1,736,295
Balance, September 30, 2011	2,039,957		$	20,400		$	3,176,927		$	15,288,575	$	(220,302	)	$	897,985		$	19,163,585

The accompanying notes are an integral part of the consolidated financial statements.

7

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  Basis of Presentation

Company

EMC Corporation (“EMC”) and its subsidiaries develop, deliver and support the Information Technology (“IT”) industry’s broadest range of information infrastructure and virtual infrastructure technologies, solutions and services.

EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure their vast and ever-increasing quantities of information, improve business agility, lower cost of ownership and enhance their competitive advantage within traditional data centers, virtual data centers and cloud-based IT infrastructures. EMC’s Information Infrastructure business comprises three segments – Information Storage, RSA Information Security and Information Intelligence Group.

EMC’s VMware Virtual Infrastructure business, which is represented by EMC’s majority equity stake in VMware, Inc. (“VMware”), is the leader in virtualization and virtualization-based cloud infrastructure solutions utilized by businesses to help them transform the way they build, deliver and consume IT resources in a manner that is evolutionary and based on their specific needs. VMware’s virtualization infrastructure software solutions run on industry-standard desktop computers and servers and support a wide range of operating system and application environments, as well as networking and storage infrastructures.

General

The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These consolidated financial statements include the accounts of EMC, its wholly owned subsidiaries and VMware, a company majority-owned by EMC. All intercompany transactions have been eliminated.

Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2011 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2012.

The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for any future period or the entire fiscal year. The interim consolidated financial statements, in the opinion of management, reflect all adjustments necessary to fairly state the results as of and for the three- and nine-month periods ended September 30, 2012 and 2011.

Net Income Per Share

Basic net income per weighted average share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per weighted average share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of stock options, restricted stock and restricted stock units, our $1.725 billion1.75% convertible senior notes due 2013 and associated warrants. Additionally, for purposes of calculating diluted net income per weighted average share, net income is adjusted for the difference between VMware’s reported diluted and basic net income per weighted average share, if any, multiplied by the number of shares of VMware held by EMC.

Adjustments for Immaterial Prior Period Accounting Error

During the second quarter of 2012, we determined that since VMware’s public offering in 2007, we have incorrectly recorded deferred tax liabilities on the gains and losses associated with changes in the non-controlling interest. These deferred tax liabilities were recorded as a reduction to additional paid-in capital and therefore had no impact on our previously reported consolidated income statements. The error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $352.6 million in our December 31, 2011 consolidated balance sheet and an understatement of additional paid-in capital of $357.2 million in our statement of shareholders’ equity for the nine months ended September 30, 2011.  These corrections are reflected in the consolidated balance sheets as of December 31, 2011 and in the statement of shareholders’ equity for the nine months ended September 30, 2011 and are not material to the consolidated balance sheets or statements of shareholders’ equity for the years ended December 31, 2011, 2010, 2009, 2008 or 2007 or any related interim

8

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

periods. In addition, the error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $467.1 million in our December 31, 2010 consolidated balance sheet and statement of shareholders’ equity and an understatement of additional paid-in capital of $499.6 million in our statement of shareholders’ equity at December 31, 2009. These adjusted prior-period balances will be reflected in our future filings.

Recent Accounting Pronouncements

In July 2012, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to simplify the impairment testing of indefinite-lived intangible assets other than goodwill. Under this guidance, an entity is allowed to perform a qualitative assessment about the likelihood of impairment of an indefinite-lived intangible asset to determine whether further impairment testing is necessary, similar in approach to the goodwill impairment test. This new guidance is effective for fiscal years beginning after September 15, 2012. We do not believe the adoption of the new guidance will have an impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued new guidance to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased disclosures regarding valuation inputs and investment categorization. The adoption of this new accounting guidance in 2012 did not have a material impact on our consolidated financial position, results of operations or cash flows.

2.  Non-controlling Interest in VMware, Inc.

The non-controlling interests’ share of equity in VMware is reflected as Non-controlling interest in VMware, Inc. in the accompanying consolidated balance sheets and was $1,151.6 million and $968.1 million as of September 30, 2012 and December 31, 2011, respectively. At September 30, 2012, EMC held approximately 97% of the combined voting power of VMware’s outstanding common stock and approximately 79% of the economic interest in VMware.

The effect of changes in our ownership interest in VMware on our equity was as follows (table in thousands):

	For the Nine Months Ended
	September 30, 2012			September 30, 2011
Net income attributable to EMC Corporation	$	1,862,694		$	1,629,291
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances	117,635			160,908
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity	(392,297		)	(541,729		)
Net transfers (to) from non-controlling interest	(274,662		)	(380,821		)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.	$	1,588,032		$	1,248,470

3.   Business Combinations, Intangibles and Goodwill

During the nine months ended September 30, 2012, we acquired seven companies. We acquired all of the outstanding capital stock of Pivotal Labs, a provider of services and technology to build Big Data applications; Likewise Software, a provider of technology for managing cross-platform access to data files and software for managing unstructured data; XtremIO, a provider of Flash enterprise storage systems; Watch4Net, a provider of enterprise and carrier-class performance management software; and Tiburon Technologies, a provider of support and modernization services for legacy database management systems. These acquisitions complement and expand our Information Storage segment. We also acquired all of the outstanding capital stock of Syncplicity, a provider of cloud-based synch and share file management which complements and expands our Information Intelligence Group segment, and Silicium Security, a provider of enterprise malware detection solutions which complements and expands our RSA Information Security segment. In connection with our acquisitions, we had adjustments to the fair value of previously held interests in XtremIO which resulted in a gain of $31.6 million which was recognized in other income (expense) in the second quarter of 2012. Additionally, during the nine months ended September 30, 2012, VMware acquired six companies, including the acquisition of Nicira, Inc. (“Nicira”), which is discussed further below.

The aggregate consideration for these thirteen acquisitions was $1,899.2 million which consisted of $1,878.1 million of cash consideration, net of cash acquired and $21.1 million for the fair value of our stock options granted in exchange for the acquirees’ stock options. The consideration paid was allocated to the fair value of the assets acquired and liabilities assumed based on estimated fair values as of the respective acquisition dates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The aggregate allocation to goodwill, intangibles and net liabilities was approximately $1,583.7 million, $553.0 million and $237.5 million, respectively. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. The results of these acquisitions have been included in the consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired companies were not material, individually or in the aggregate, to our consolidated results of operations for the three or nine months ended September 30, 2012 or 2011.

Acquisition of Nicira

On August 24, 2012, VMware acquired all of the outstanding capital stock of Nicira, a developer of software-defined networking solutions. This acquisition expands VMware’s product portfolio to provide a suite of software-defined networking capabilities.

The aggregate consideration paid for Nicira was $1,099.6 million, net of cash acquired, including cash of $1,083.0 million and the fair value of assumed equity attributed to pre-combination services of $16.6 million. Additionally, VMware assumed all of Nicira’s unvested stock options and restricted stock outstanding. These converted into 1.1 million stock options to purchase VMware Class A common stock. The assumed restricted stock converted into 0.6 million shares of restricted VMware Class A common stock.

The weighted-average acquisition-date fair value of the stock options was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: (i) market price of $92.21 per share, which was the closing price of VMware’s Class A common stock on the acquisition date; (ii) expected term of 2.7 years; (iii) risk-free interest rate of 0.3%; (iv) annualized volatility of 35.7%; and (v) no dividend yield. The assumed restricted stock converted into 0.6 million shares of restricted VMware Class A common stock. The fair value of the restricted stock was based on the acquisition-date closing price of $92.21 per share for VMware’s Class A common stock.

The purchase price has been allocated to the assets acquired and the liabilities assumed based on estimated fair values as of the acquisition date. The following table summarizes the allocation of the Nicira purchase price (table in thousands):

Intangible assets:
Purchased technology (weighted-average useful life of 7 years)	$	266,000
Trademarks and tradenames (weighted-average useful life of 10 years)	20,100
In-process research and development	48,500
Total intangible assets	334,600
Goodwill	947,956
Deferred tax liabilities, net	(78,247		)
Income tax payable	(103,822		)
Other current liabilities, net of current assets	(863		)
Total purchase price	$	1,099,624

In connection with the Nicira acquisition, we acquired one in-process research and development (“IPR&D”) project which is expected to be completed by the end of 2012. The value assigned to the IPR&D project was determined using a discounted cash flow model with a discount rate of 17.0%. Upon completion, the project will be amortized over its projected remaining useful life. The estimated costs to complete the project are not material.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Intangible Assets

Intangible assets, excluding goodwill, as of September 30, 2012 and December 31, 2011 consist of (tables in thousands):

	September 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,085,323	$	(1,153,712	)	$	931,611
Patents	225,146		(83,235		)	141,911
Software licenses	94,495		(87,456		)	7,039
Trademarks and tradenames	194,891		(107,397		)	87,494
Customer relationships and customer lists	1,372,665		(700,069		)	672,596
In-process research and development	71,700		—			71,700
Leasehold interest	146,757		(5,769		)	140,988
Other	25,822		(25,801		)	21
Total intangible assets, excluding goodwill	$	4,216,799	$	(2,163,439	)	$	2,053,360

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	1,620,977	$	(1,020,356	)	$	600,621
Patents	225,146		(72,078		)	153,068
Software licenses	90,093		(83,999		)	6,094
Trademarks and tradenames	172,851		(93,636		)	79,215
Customer relationships and customer lists	1,329,775		(597,117		)	732,658
In-process research and development	43,900		—			43,900
Leasehold interest	146,757		(2,524		)	144,233
Other	30,149		(23,823		)	6,326
Total intangible assets, excluding goodwill	$	3,659,648	$	(1,893,533	)	$	1,766,115

Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the nine months ended September 30, 2012 and the year ended December 31, 2011 consist of (tables in thousands):

	Nine Months Ended September 30, 2012
	Information Storage			Information Intelligence Group		RSA Information Security			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,033,965		$	1,469,216	$	1,849,116		$	1,802,673		$	12,154,970
Goodwill resulting from acquisitions	427,553			14,493		3,751			1,137,914			1,583,711
Tax deduction from exercise of stock options	(6		)	—		—			—			(6		)
Finalization of purchase price allocations	(659		)	—		(6,099		)	(3,661		)	(10,419		)
Balance, end of the period	$	7,460,853		$	1,483,709	$	1,846,768		$	2,936,926		$	13,728,256

	Year Ended December 31, 2011
	Information Storage			Information Intelligence Group			RSA Information Security			VMware Virtual Infrastructure		Total
Balance, beginning of the year	$	7,029,341		$	1,467,903		$	1,663,213		$	1,612,193	$	11,772,650
Goodwill resulting from acquisitions	—			—			187,445			188,395		375,840
Tax deduction from exercise of stock options	(73		)	(852		)	(95		)	—		(1,020		)
Finalization of purchase price allocations	4,697			2,165			(1,447		)	2,085		7,500
Balance, end of the year	$	7,033,965		$	1,469,216		$	1,849,116		$	1,802,673	$	12,154,970

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

4.  Convertible Debt

In November 2006, we issued our $1,725 million1.75% convertible senior notes due 2011 (the “2011 Notes”) and our $1,725 million1.75% convertible senior notes due 2013 (the “2013 Notes”) for total gross proceeds of $3.45 billion. The 2011 Notes and 2013 Notes are senior unsecured obligations and rank equally with all other existing and future senior unsecured debt.

The 2011 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2011 Notes at the end of 2011. Pursuant to the settlement terms, the majority of the converted 2011 Notes were not settled until January 9, 2012. At that time, we paid the noteholders $1,699.8 million in cash for the outstanding principal and 29.5 million shares for the $661.4 million in excess of the conversion value over the principal amount, as prescribed by the terms of the 2011 Notes.

The holders of the 2013 Notes may convert their 2013 Notes at their option on any day prior to the close of business on the scheduled trading day immediately preceding September 1, 2013 only under the following circumstances: (1) during the five business-day period after any five consecutive trading-day period (the “measurement period”) in which the price per 2013 Note for each day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such day; (2) during any calendar quarter, if the last reported sale price of our common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; or (3) upon the occurrence of certain events specified in the 2013 Notes. Additionally, the 2013 Notes will become convertible during the last three months prior to their maturity.

Upon conversion, we will pay cash up to the principal amount of the debt converted. With respect to any conversion value in excess of the principal amount of the 2013 Notes converted, we have the option to settle the excess with cash, shares of our common stock, or a combination of cash and shares of our common stock based on a daily conversion value, determined in accordance with the indenture, calculated on a proportionate basis for each day of the relevant 20-day observation period. The initial conversion rate for the 2013 Notes will be 62.1978 shares of our common stock per one thousand dollars of principal amount of 2013 Notes, which represents a 27.5% conversion premium from the date the 2013 Notes were issued and is equivalent to a conversion price of approximately $16.08 per share of our common stock. The conversion price is subject to adjustment in some events as set forth in the indenture. In addition, if a “fundamental change” (as defined in the indenture) occurs prior to the maturity date, we will in some cases increase the conversion rate for a holder of 2013 Notes that elects to convert its 2013 Notes in connection with such fundamental change.

At September 30, 2012, the contingent conversion thresholds on the 2013 Notes were exceeded. As a result, the 2013 Notes became convertible at the option of the holder through December 31, 2012. Accordingly, since the terms of the 2013 Notes require the principal to be settled in cash, we reclassified from shareholders’ equity the portion of the 2013 Notes attributable to the conversion feature which had not yet been accreted to its face value, and the 2013 Notes were classified as a current liability. Contingencies continue to exist regarding the holders’ ability to convert the 2013 Notes in future quarters. The determination of whether the 2013 Notes are convertible will be performed on a quarterly basis. Consequently, the 2013 Notes might not be convertible in future quarters and may be reclassified as long-term debt if the contingent conversion thresholds are not met. Approximately $14.8 million of the 2013 Notes have been converted as of September 30, 2012.

The carrying amount of the 2013 Notes reported in the consolidated balance sheets as of September 30, 2012 was $1,636.9 million and the fair value was $2,938.1 million. The carrying amount of the equity component of the 2013 Notes was $309.5 million at September 30, 2012. As of September 30, 2012, the unamortized discount on the 2013 Notes consists of $73.3 million, which will be fully amortized by December 1, 2013.

The 2013 Notes pay interest in cash at a rate of 1.75%semi-annually in arrears on December 1 and June 1 of each year. The effective interest rate on the 2011 Notes and 2013 Notes was 5.6% for both the three months ended September 30, 2012 and 2011.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following tables represent the key components of our interest expense on convertible debt (table in thousands):

	For the Three Months Ended
	September 30, 2012		September 30, 2011
Contractual interest expense on the coupon	$	7,482	$	15,078
Amortization of the discount component recognized as interest expense	15,405		30,852
Total interest expense on the convertible debt	$	22,887	$	45,930

	For the Nine Months Ended
	September 30, 2012		September 30, 2011
Contractual interest expense on the coupon	$	22,427	$	45,266
Amortization of the discount component recognized as interest expense	45,059		90,174
Total interest expense on the convertible debt	$	67,486	$	135,440

In connection with the issuance of the 2011 Notes and 2013 Notes, we entered into separate convertible note hedge transactions with respect to our common stock (the “Purchased Options”). The Purchased Options allow us to receive shares of our common stock and/or cash related to the excess conversion value that we would pay to the holders of the 2011 Notes and 2013 Notes upon conversion. The Purchased Options will cover, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669.1 million of the proceeds from the sale of the 2011 Notes and 2013 Notes for the Purchased Options that was recorded as additional paid-in-capital in shareholders’ equity. In the fourth quarter of 2011, we exercised 107.5 million of the Purchased Options in conjunction with the planned settlements of the 2011 Notes, and we received 29.5 million shares of net settlement on January 9, 2012, representing the excess conversion value of the options. The remaining 107.5 million of the Purchased Options expire on December 1, 2013.

We also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. We received aggregate proceeds of $391.1 million from the sale of the associated warrants. Upon exercise, the value of the warrants is required to be settled in shares. Half of the associated warrants were exercised between February 15, 2012 and March 14, 2012 and the remaining half of the associated warrants have expiration dates between February 18, 2014 and March 18, 2014. During the first quarter of 2012, the exercised warrants were settled with 32.3 million shares of our common stock.

The Purchased Options and associated warrants will generally have the effect of increasing the conversion price of the 2013 Notes to approximately $19.55 per share of our common stock, representing an approximate 55% conversion premium based on the closing price of $12.61 per share of our common stock on November 13, 2006, which was the issuance date of the 2013 Notes.

In 2010, EMC entered into interest rate swap contracts with an aggregate notional amount of approximately $900 million. These swaps were designated as cash flow hedges of the semi-annual interest payments of the forecasted issuance of debt in 2011 when our 2011 Notes were scheduled to become due. As such, the unrealized loss on these hedges was recognized in other comprehensive loss. In November 2011, we settled the swaps and replaced them with new interest rate swap contracts for the forecasted issuance of debt in 2012. In April 2012, we settled the swaps and replaced them with new interest rate swap contracts for the forecasted issuance of debt in 2012. Each of these new swaps was deemed as an effective hedge as the notional amounts and other terms matched the underlying hedged item. Losses on the interest rate swap contracts at the time of settlement of $141.0 million in November 2011 and $23.0 million in April 2012 were deferred as they were expected to be realized over the life of the new debt issued under the related interest rate swap contracts and recognized as a component of interest expense in the consolidated income statements.

In June 2012, management changed its forecast date for the issuance of debt from 2012 to the first quarter of 2014. Consequently, hedge accounting effectively ceased as the terms of the swaps no longer matched the terms of the underlying hedged item resulting in changes in the fair value of the swaps being recorded in the consolidated income statement. The swaps were subsequently re-designated as cash flow hedges and achieved hedge accounting. The change in the forecasted timeframe for the issuance of debt resulted in certain previously-anticipated hedge interest payments no longer being expected to occur within the window covered by the hedge designation. As a result, $39.5 million of accumulated realized losses in other

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

comprehensive income related to these previously-anticipated interest payments was reclassified from other comprehensive income and recognized in the consolidated income statements for the nine months ended September 30, 2012.

In July 2012, we settled the interest rate swap contracts and did not replace them. Losses on the interest rate swap contracts at the time of settlement of $45.5 million were deferred as they are expected to be realized over the life of the new debt issued under the related interest rate swap contracts and recognized as a component of interest expense in the consolidated income statements.

5.  Fair Value of Financial Assets and Liabilities

Our fixed income and equity investments are classified as available for sale and recorded at their fair market values. We determine 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 not 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.

Most of our fixed income securities are classified as Level 2, with the exception of some of our U.S. government and agency obligations and our investments in publicly traded equity securities, which are classified as Level 1, and all of our auction rate securities, which are classified as Level 3. In addition, our strategic investments held at cost are classified as Level 3. At September 30, 2012, the vast majority of our Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. In the event observable inputs are not available, we assess other factors to determine the security’s market value, including broker quotes or model valuations. Each month, we perform independent price verifications of all of our fixed income holdings. In the event a price fails a pre-established tolerance check, it is researched so that we can assess the cause of the variance to determine what we believe is the appropriate fair market value.

In general, investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. Our publicly traded equity securities are classified as long-term investments and our strategic investments held at cost are classified as other assets. As a result of the lack of liquidity for auction rate securities, we have classified these as long-term investments as of September 30, 2012 and December 31, 2011. At September 30, 2012 and December 31, 2011, all of our short- and long-term investments, excluding auction rate securities, were recognized at fair value, which was determined based upon observable inputs from our pricing vendors for identical or similar assets. At September 30, 2012 and December 31, 2011, auction rate securities were valued using a discounted cash flow model.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following tables summarize the composition of our short- and long-term investments at September 30, 2012 and December 31, 2011 (tables in thousands):

	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,033,500	$	11,321	$	(1,005	)	$	2,043,816
U.S. corporate debt securities	1,360,511		12,772		(97		)	1,373,186
High yield corporate debt securities	468,285		31,408		(1,076		)	498,617
Asset-backed securities	3,227		8		—			3,235
Municipal obligations	1,023,504		4,379		(366		)	1,027,517
Auction rate securities	80,706		—		(5,860		)	74,846
Foreign debt securities	1,243,175		10,013		(198		)	1,252,990
Total fixed income securities	6,212,908		69,901		(8,602		)	6,274,207
Publicly traded equity securities	47,786		97,815		(625		)	144,976
Total	$	6,260,694	$	167,716	$	(9,227	)	$	6,419,183

We held approximately $1.3 billion in foreign debt securities at September 30, 2012. These securities have an average credit rating of A+, and approximately 5% of these securities are deemed sovereign debt with an average credit rating of AA. None of the securities deemed sovereign debt are from Greece, Italy, Ireland, Portugal or Spain. Additionally, we have an immaterial amount of exposure to French agencies and financial institutions.

	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,474,029	$	12,420	$	(1,488	)	$	2,484,961
U.S. corporate debt securities	1,400,373		9,953		(2,573		)	1,407,753
High yield corporate debt securities	442,723		12,498		(7,742		)	447,479
Asset-backed securities	29,101		72		(25		)	29,148
Municipal obligations	814,657		2,021		(597		)	816,081
Auction rate securities	82,900		—		(8,304		)	74,596
Foreign debt securities	984,696		5,185		(2,807		)	987,074
Total fixed income securities	6,228,479		42,149		(23,536		)	6,247,092
Publicly traded equity securities	58,199		6,802		—			65,001
Total	$	6,286,678	$	48,951	$	(23,536	)	$	6,312,093

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table represents our fair value hierarchy for our financial assets and liabilities measured at fair value as of September 30, 2012 (in thousands):

	Level 1		Level 2			Level 3		Total
Cash	$	1,441,347	$	—		$	—	$	1,441,347
Cash equivalents	2,715,470		4,000			—		2,719,470
U.S. government and agency obligations	1,128,224		915,592			—		2,043,816
U.S. corporate debt securities	—		1,373,186			—		1,373,186
High yield corporate debt securities	—		498,617			—		498,617
Asset-backed securities	—		3,235			—		3,235
Municipal obligations	—		1,027,517			—		1,027,517
Auction rate securities	—		—			74,846		74,846
Foreign debt securities	—		1,252,990			—		1,252,990
Publicly traded equity securities	144,976		—			—		144,976
Total cash and investments	$	5,430,017	$	5,075,137		$	74,846	$	10,580,000
Other items:
Strategic investments held at cost	$	—	$	—		$	254,338	$	254,338
Convertible debt	—		(2,938,101		)	—		(2,938,101		)
Foreign exchange derivative assets	—		47,311			—		47,311
Foreign exchange derivative liabilities	—		(23,426		)	—		(23,426		)
Commodity derivative liabilities	—		(1,502		)	—		(1,502		)

Our auction rate securities are predominantly rated investment grade and are primarily collateralized by student loans. The underlying loans of all but two of our auction rate securities, with a market value of $16.6 million, have partial guarantees by the U.S. government as part of the Federal Family Education Loan Program (“FFELP”) through the U.S. Department of Education. FFELP guarantees at least 95% of the loans which collateralize the auction rate securities. We believe the quality of the collateral underlying most of our auction rate securities will enable us to recover our principal balance.

To determine the estimated fair value of our investment in auction rate securities, we used a discounted cash flow model using a five year time horizon. As of September 30, 2012, the coupon rates used ranged from 0% to 4% and the discount rate was 1%, which rate represents the rate at which similar FFELP backed securities with a five year time horizon outside of the auction rate securities market were trading at September 30, 2012. The assumptions used in preparing the discounted cash flow model include an incremental discount rate for the lack of liquidity in the market (“liquidity discount margin”) for an estimated period of time. The discount rate we selected was based on AA-rated banks as the majority of our portfolio is invested in student loans where EMC acts as a financier to these lenders. The liquidity discount margin represents an estimate of the additional return an investor would require for the lack of liquidity of these securities over an estimated five-year holding period. The rate used for the discount margin was 1% at September 30, 2012 compared to 2% at December 31, 2011 due to the narrowing of credit spreads on AA-rated banks during 2012.

The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and nine months ended September 30, 2012 (table in thousands):

	For the Three Months Ended					For the Nine Months Ended
	September 30, 2012		September 30, 2011			September 30, 2012			September 30, 2011
Balance, beginning of the period	$	73,896	$	99,154		$	74,596		$	146,044
Calls at par value	—		(13,100		)	(225		)	(64,600		)
Other-than-temporary impairment loss	—		—			(1,969		)	—
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	950		(4,963		)	2,444			(353		)
Balance, end of the period	$	74,846	$	81,091		$	74,846		$	81,091

Significant changes in the unobservable inputs discussed above could result in a significantly lower or higher fair value measurement. Generally, an increase in the discount rate, liquidity discount margin or coupon rate results in a decrease in our

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fair value measurement and a decrease in the discount rate, liquidity discount margin or coupon rate results in an increase in our fair value measurement.

We perform a fair value calculation of our strategic investments held at cost on a quarterly basis using the most currently available information. To determine the estimated fair value of private strategic investments held at cost we use a combination of several valuation techniques including discounted cash flow models, acquisition comparables and trading comparables. In addition, we evaluate the impact of pre- and post-money valuations of recent financing events and the impact of those on our fully diluted ownership percentages, and we consider any available information regarding the issuer’s historical and forecasted performance as well as market comparables and conditions. The fair value of these investments is considered in our review for impairment if any events and changes in circumstances occur that might have a significant adverse effect on their value.

Investment Losses

Unrealized losses on investments at September 30, 2012 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. government and agency obligations	$	247,834	$	(906	)	$	9,186	$	(99	)	$	257,020	$	(1,005	)
U.S. corporate debt securities	96,205		(91		)	2,234		(6		)	98,439		(97		)
High yield corporate debt securities	30,208		(697		)	1,354		(379		)	31,562		(1,076		)
Municipal obligations	192,338		(362		)	2,614		(4		)	194,952		(366		)
Auction rate securities	—		—			74,846		(5,860		)	74,846		(5,860		)
Foreign debt securities	98,849		(198		)	—		—			98,849		(198		)
Publicly traded equity securities	1,097		(625		)	—		—			1,097		(625		)
Total	$	666,531	$	(2,879	)	$	90,234	$	(6,348	)	$	756,765	$	(9,227	)

For all of our securities for which the amortized cost basis was greater than the fair value at September 30, 2012, we have concluded that currently we neither plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating, the underlying value and performance of the collateral, third party guarantees and the time to maturity.

Contractual Maturities

The contractual maturities of fixed income securities held at September 30, 2012 are as follows (table in thousands):

	September 30, 2012
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,271,478	$	1,275,151
Due after 1 year through 5 years	4,083,712		4,118,038
Due after 5 years through 10 years	463,518		488,630
Due after 10 years	394,200		392,388
Total	$	6,212,908	$	6,274,207

Short-term investments on the consolidated balance sheet include a $9.7 million variable rate note which has a contractual maturity in 2014, and is not classified within investments due within one year above.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

6.  Inventories

Inventories consist of (table in thousands):

	September 30, 2012		December 31, 2011
Work-in-process	$	595,380	$	492,064
Finished goods	562,882		517,904
	$	1,158,262	$	1,009,968

7.  Accounts and Notes Receivable and Allowance for Credit Losses

Our accounts and notes receivable are recorded at cost. The portion of our notes receivable due in one year or less are included in accounts and notes receivable and the long-term portion is included in other assets, net. Lease receivables arise from sales-type leases of products. We typically sell, without recourse, the contractual right to the lease payment stream and assets under lease to third parties. For certain customers, we retain the lease.

The contractual amounts due under the leases we retained as of September 30, 2012 were as follows (table in thousands):

Year	Contractual Amounts Due Under Leases
Due within one year	$	154,858
Due within two years	98,920
Due within three years	88,997
Thereafter	1,524
Total	344,299
Less amounts representing interest	(9,049		)
Present value	335,250
Current portion (included in accounts and notes receivable)	153,013
Long-term portion (included in other assets, net)	$	182,237

Subsequent to September 30, 2012, we sold $54.8 million of these notes to third parties without recourse.

We maintain an allowance for credit losses on our accounts and notes receivable. The allowance is based on the credit worthiness of our customers, including an assessment of the customer’s financial position, operating performance and their ability to meet their contractual obligation. We assess the credit scores for our customers each quarter. In addition, we consider our historical experience, the age of the receivable and current market and economic conditions. Uncollectible amounts are charged against the allowance account.

In the event we determine that a lease may not be paid, we include in our allowance an amount for the outstanding balance related to the lease receivable. As of September 30, 2012, amounts from lease receivables past due for more than 90 days were not significant.

The following table presents the activity of our allowance for credit losses related to lease receivables for the nine months ended September 30, 2012 and 2011 (table in thousands):

	September 30, 2012			September 30, 2011
Balance, beginning of the period	$	24,247		$	44,661
Recoveries	(15,923		)	(27,539		)
Provisions	8,634			10,066
Balance, end of the period	$	16,958		$	27,188

Gross lease receivables totaled $344.3 million and $335.5 million as of September 30, 2012 and December 31, 2011, respectively, before the allowance. The components of these balances were individually evaluated for impairment.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

8.  Property, Plant and Equipment

Property, plant and equipment consist of (table in thousands):

	September 30, 2012			December 31, 2011
Furniture and fixtures	$	185,933		$	180,800
Equipment and software	5,129,879			4,680,118
Buildings and improvements	1,806,957			1,748,214
Land	123,334			117,513
Building construction in progress	190,934			146,650
	7,437,037			6,873,295
Accumulated depreciation	(4,453,591		)	(4,040,146		)
	$	2,983,446		$	2,833,149

Building construction in progress at September 30, 2012 includes $66.5 million for facilities not yet placed in service that we are holding for future use.

9.  Joint Ventures

VCE Company LLC

In 2009, Cisco and EMC formed VCE Company LLC (“VCE”), with investments from VMware and Intel. VCE, through Vblock infrastructure platforms, delivers an integrated IT offering that combines network, computing, storage, management, security and virtualization technologies for converged infrastructures and cloud based computing models. As of September 30, 2012, we have contributed $667.2 million in funding and $13.2 million in stock-based compensation to VCE since inception and own approximately 58% of VCE’s outstanding equity.

We consider VCE a variable interest entity. Authoritative guidance related to variable interest entities states that the primary beneficiary of a variable interest entity must have both of the following characteristics: (a) the power to direct the activities of a variable interest entity that most significantly will impact the entity’s economic performance; and (b) the obligation to absorb losses that could be potentially significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Since the power to direct the activities of VCE which most significantly impact its economic performance are determined by its board of directors, which is comprised of equal representation of EMC and Cisco, and all significant decisions require the approval of the minority shareholders, we have determined we are not the primary beneficiary, and as such we account for the investment under the equity method.

Our portion of VCE’s gains and losses is recognized in other income (expense), net, in the consolidated income statements. Our consolidated share of VCE’s losses, based upon our portion of the overall funding, was approximately 63.2% for the three and nine months ended September 30, 2012 and 2011. As of September 30, 2012, we have recorded net accumulated losses from VCE of $430.2 million since inception, of which $61.9 million and $176.9 million were recorded in the three and nine months ended September 30, 2012, respectively, and $50.2 million and $138.7 million were recorded in the three and nine months ended September 30, 2011, respectively.

We recognized $65.3 million and $41.9 million in revenue from sales of product and services to VCE during the three months ended September 30, 2012 and 2011, respectively, and $210.8 million and $86.4 million for the nine months ended September 30, 2012 and 2011, respectively. We perform certain administrative services, pursuant to an administrative services agreement, on behalf of VCE and we pay certain operating expenses on behalf of VCE. Accordingly, we have a receivable from VCE related to the administrative services agreement of $28.8 million and $27.0 million as of September 30, 2012 and December 31, 2011, respectively, which is included in other current assets in the consolidated balance sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

10.  Accrued Expenses

Accrued expenses consist of (table in thousands):

	September 30, 2012		December 31, 2011
Salaries and benefits	$	938,841	$	961,587
Product warranties	264,817		254,554
Partner rebates	153,552		167,813
Restructuring, current (See Note 13)	69,578		61,541
Derivatives	29,589		50,963
Other	861,191		858,521
	$	2,317,568	$	2,354,979

Product Warranties

Systems sales include a standard product warranty. At the time of the sale, we accrue for systems’ warranty costs. The initial systems’ warranty accrual is based upon our historical experience, expected future costs and specific identification of systems’ requirements. Upon sale or expiration of the initial warranty, we may sell additional maintenance contracts to our customers. Revenue from these additional maintenance contracts is included in deferred revenue and recognized ratably over the service period. The following represents the activity in our warranty accrual for the three and nine months ended September 30, 2012 and 2011 (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Balance, beginning of the period	$	262,059		$	248,395		$	254,554		$	236,131
Provision	41,303			42,535			129,358			130,775
Amounts charged to the accrual	(38,545		)	(41,955		)	(119,095		)	(117,931		)
Balance, end of the period	$	264,817		$	248,975		$	264,817		$	248,975

The provision includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods. It is not practicable to determine the amounts applicable to each of the components.

11.  Income Taxes

Our effective income tax rates were 22.0% and 23.0% for the three and nine months ended September 30, 2012, respectively. Our effective income tax rates were 21.0% and 21.1% for the three and nine months ended September 30, 2011, respectively. Our effective income tax rate is based upon estimated income before tax for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax audits or other tax contingencies. For the three and nine months ended September 30, 2012 and 2011, the effective income tax rate varied from the statutory income tax rate principally as a result of the mix of income attributable to foreign versus domestic jurisdictions. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States; substantially all of our income before provision for income taxes from foreign operations has been earned by our Irish subsidiaries. We do not believe that any recent or currently expected developments in non-U.S. tax jurisdictions are reasonably likely to have a material impact on our effective income rate.

Our effective income tax rate increased in the three and nine months ended September 30, 2012 from the three and nine months ended September 30, 2011 due primarily to the expiration of the U.S. federal research and development tax credit for 2012 partially offset by a difference in composition of income before tax in different countries. The U.S. federal research and development tax credit reduced our effective income tax rate by approximately 2.2% for the three and nine months ended September 30, 2011. There were also differences in change in tax contingency reserves and discrete items, the net impact of which is immaterial.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During the second quarter of 2012, we determined that since VMware’s public offering in 2007, we have incorrectly recorded deferred tax liabilities on the gains and losses associated with changes in the non-controlling interest. These deferred tax liabilities were recorded as a reduction to additional paid-in capital and therefore had no impact on our previously reported consolidated income statements. The error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $352.6 million in our December 31, 2011 consolidated balance sheet and an understatement of additional paid-in capital of $357.2 million in our statement of shareholders’ equity for the nine months ended September 30, 2011. These corrections, which have been recorded herein, did not impact our income tax provision in any current or prior period. See Note 1.

We are routinely under audit by the Internal Revenue Service (the “IRS”). We have concluded all U.S. federal income tax matters for years through 2008. The IRS commenced a federal income tax audit for the tax years of 2009 and 2010 in the third quarter of 2012. We also have income tax audits in process in numerous state, local and international jurisdictions.

As of September 30, 2012, we had gross unrecognized tax benefits totaling $314.6 million. We recorded a net increase in gross unrecognized tax benefits of $112.6 million in the quarter ended September 30, 2012. If recognized, approximately $308.9 million of our gross unrecognized tax benefits, not including interest, would affect income tax expense and lower our effective tax rate in the period or periods recognized. Our net unrecognized tax benefits and related accrued interest were classified as non-current liabilities on the consolidated balance sheet. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions and/or the timing and result of ruling requests from taxing authorities, it is reasonably possible that the related unrecognized tax benefits could change from those recorded in our statement of financial position. We anticipate that several of these audits may be finalized within the next 12 months. Based on the status of these examinations, and the protocol of finalizing such audits, it is not possible to estimate the impact of the amount of such changes, if any, to our previously recorded uncertain tax positions.

12.  Stockholders’ Equity

The reconciliation from basic to diluted earnings per share for both the numerators and denominators is as follows (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Numerator:
Net income attributable to EMC Corporation	$	626,338		$	605,649		$	1,862,694		$	1,629,291
Incremental dilution from VMware	(1,766		)	(3,233		)	(7,425		)	(11,178		)
Net income – dilution attributable to EMC Corporation	$	624,572		$	602,416		$	1,855,269		$	1,618,113
Denominator:
Weighted average shares, basic	2,104,205			2,054,007			2,089,516			2,060,242
Weighted common stock equivalents	38,043			46,629			41,974			55,418
Assumed conversion of the 2013 Notes and associated warrants	68,173			106,463			75,315			128,848
Weighted average shares, diluted	2,210,421			2,207,099			2,206,805			2,244,508

Due to the cash settlement feature of the principal amount of the 2013 Notes, we only include the impact of the premium feature in our diluted earnings per share calculation when the 2013 Notes are convertible due to maturity or when the average stock price exceeds the conversion price of the 2013 Notes.

Concurrent with the issuance of the 2011 Notes and 2013 Notes, we also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. Half of the associated warrants were exercised during the nine months ended September 30, 2012. We include the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation when the average stock price exceeds the exercise price.

Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 5.2 million and 4.3 millionfor the three and nine months ended September 30, 2012, respectively, and 17.6 million and 15.4 million for the three and nine months ended September 30, 2011, respectively, were excluded from the calculation of diluted earnings per share because they were antidilutive. The incremental dilution from VMware represents the impact of VMware’s

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

dilutive securities on EMC’s consolidated diluted net income per share and is calculated by multiplying the difference between VMware’s basic and diluted earnings per share by the number of VMware shares owned by EMC.

Repurchases of Common Stock

We utilize both authorized and unissued shares (including repurchased shares) for all issuances under our equity plans. In 2008, our Board of Directors authorized the repurchase of 250.0 million shares of our common stock. For the nine months ended September 30, 2012, we spent $410.0 million to repurchase 15.3 million shares of our common stock. Of the 250.0 million shares authorized for repurchase, we have repurchased 211.2 million shares at a total cost of $4.1 billion, leaving a remaining balance of 38.8 million shares authorized for future repurchases. We plan to spend up to $700.0 million in 2012 on common stock repurchases.

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, which is presented net of tax, consists of the following (table in thousands):

	September 30, 2012			December 31, 2011
Foreign currency translation adjustments	$	(2,924	)	$	(10,780	)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(3,128) and $(8,492)	(6,099		)	(15,044		)
Unrealized gains on investments, net of taxes of $61,961 and $18,343	105,755			30,608
Unrealized losses on derivatives, net of tax benefits of $(68,007) and $(62,210)	(111,235		)	(100,446		)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(81,798) and $(81,798)	(139,108		)	(139,108		)
	(153,611		)	(234,770		)
Less: accumulated other comprehensive income attributable to the non-controlling interest in VMware, Inc.	(1,692		)	(239		)
	$	(155,303	)	$	(235,009	)

13.  Restructuring and Acquisition-Related Charges

For the three and nine months ended September 30, 2012, we incurred restructuring and acquisition-related charges of $27.1 million and $80.6 million, respectively. For the three and nine months ended September 30, 2011, we incurred restructuring and acquisition-related charges of $20.3 million and $68.4 million, respectively. For the three and nine months ended September 30, 2012, we incurred $22.3 million and $70.1 million, respectively, of restructuring charges, primarily related to our current year restructuring programs and $4.8 million and $10.5 million, respectively, of charges in connection with acquisitions for financial advisory, legal and accounting services. For the three and nine months ended September 30, 2011, we incurred $16.9 million and $58.1 million, respectively, of restructuring charges, primarily related to our 2011 restructuring programs and $3.4 million and $10.3 million, respectively, of costs in connection with acquisitions for financial advisory, legal and accounting services.

In the first, second and third quarters of 2012, we implemented separate restructuring programs to create further operational efficiencies which will result in a workforce reduction of 298, 279 and 292 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions are expected to be completed within a year of the start of each program.

During 2011, we implemented separate restructuring programs to create further operational efficiencies which will result in a workforce reduction of 787 positions, of which 208 positions were identified in the three months ended September 30, 2011. The actions will impact positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions are expected to be completed by the end of 2012.

For the three and nine months ended September 30, 2012, we recognized $6.6 million and $14.9 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs and for costs associated with terminating other contractual obligations. For the three and nine months ended September 30, 2011, we recognized $1.9 million and $24.3 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs. These costs are expected to be utilized by the end of 2015.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The activity for the restructuring programs is presented below (tables in thousands):

Three Months Ended September 30, 2012:

2012 Programs
Category	Balance as of June 30, 2012		2012 Charges		Utilization			Balance as of September 30, 2012
Workforce reductions	$	33,908	$	16,888	$	(10,993	)	$	39,803
Consolidation of excess facilities and other contractual obligations	2,926		8,317		(3,400		)	7,843
Total	$	36,834	$	25,205	$	(14,393	)	$	47,646

Other Programs
Category	Balance as of June 30, 2012		Adjustments to the Provision			Utilization			Balance as of September 30, 2012
Workforce reductions	$	20,151	$	(1,156	)	$	(4,675	)	$	14,320
Consolidation of excess facilities and other contractual obligations	25,624		(1,763		)	(2,267		)	21,594
Total	$	45,775	$	(2,919	)	$	(6,942	)	$	35,914

Nine Months Ended September 30, 2012:

2012 Programs
Category	Balance as of December 31, 2011		2012 Charges		Utilization			Balance as of September 30, 2012
Workforce reductions	$	—	$	62,624	$	(22,821	)	$	39,803
Consolidation of excess facilities and other contractual obligations	—		13,879		(6,036		)	7,843
Total	$	—	$	76,503	$	(28,857	)	$	47,646

Other Programs
Category	Balance as of December 31, 2011		Adjustments to the Provision			Utilization			Balance as of September 30, 2012
Workforce reductions	$	49,863	$	(7,396	)	$	(28,147	)	$	14,320
Consolidation of excess facilities and other contractual obligations	30,112		1,000			(9,518		)	21,594
Total	$	79,975	$	(6,396	)	$	(37,665	)	$	35,914

Three Months Ended September 30, 2011:

Category	Balance as of June 30, 2011		2011 Charges		Utilization			Balance as of September 30, 2011
Workforce reductions	$	36,562	$	14,977	$	(13,732	)	$	37,807
Consolidation of excess facilities and other contractual obligations	35,386		1,904		(4,123		)	33,167
Total	$	71,948	$	16,881	$	(17,855	)	$	70,974

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EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Nine Months Ended September 30, 2011:

Category	Balance as of December 31, 2010		2011 Charges		Utilization			Balance as of September 30, 2011
Workforce reductions	$	53,946	$	33,752	$	(49,891	)	$	37,807
Consolidation of excess facilities and other contractual obligations	27,818		24,326		(18,977		)	33,167
Total	$	81,764	$	58,078	$	(68,868	)	$	70,974

14.  Commitments and Contingencies

Line of Credit

We have available for use a credit line of $50.0 million in the United States. As of September 30, 2012, we had no borrowings outstanding on the line of credit. The credit line bears interest at the bank’s base rate and requires us, upon utilization of the credit line, to meet certain financial covenants with respect to limitations on losses. In the event the covenants are not met, the lender may require us to provide collateral to secure the outstanding balance. At September 30, 2012, we were in compliance with the covenants.

RSA Special Charge

In March 2011, RSA was the target of a sophisticated cyber attack which resulted in information related to RSA’s SecurID products being compromised. In the first quarter of 2011, we incurred and accrued costs associated with investigating the attack, hardening our systems and working with our customers to implement remediation programs. In the second quarter of 2011, we recorded a $66.3 million charge in cost of sales related to the expansion of the customer remediation programs. We expanded our customer remediation programs in June 2011 to respond to heightened customer concerns resulting from press coverage relating to an unsuccessful cyber attack on one of our defense sector customers, as well as broad media coverage of cyber attacks on other high profile organizations. As of June 30, 2012, we had substantially completed the remediation efforts and concluded that no additional material losses related to the remediation efforts were reasonably possible. Accordingly, we released the excess reserve against cost of sales during the second quarter of 2012.

Litigation

We are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including actions with respect to contracts, intellectual property, product liability, employment, benefits and securities matters. As required by authoritative guidance, we have estimated the amount of probable losses that may result from all currently pending matters, and such amounts are reflected in our consolidated financial statements. These recorded amounts are not material to our consolidated financial position or results of operations and no additional material losses related to these pending matters are reasonably possible. While it is not possible to predict the outcome of these matters with certainty, we do not expect the results of any of these actions to have a material adverse effect on our business, results of operations or financial condition. Because litigation is inherently unpredictable, however, the actual amounts of loss may prove to be larger or smaller than the amounts reflected in our consolidated financial statements, and we could incur judgments or enter into settlements of claims that could adversely affect our operating results or cash flows in a particular period.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

15.  Segment Information

We manage our business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure. EMC Information Infrastructure operates in three segments: Information Storage, Information Intelligence Group and RSA Information Security, while VMware Virtual Infrastructure operates in a single segment. Our management measures are designed to assess performance of these operating segments excluding certain items. As a result, the corporate reconciling items are used to capture the items excluded from the segment operating performance measures, including stock-based compensation expense, acquisition-related intangible asset amortization expense and transition costs. Additionally, in certain instances, infrequently occurring gains or losses are also excluded from the measures used by management in assessing segment performance. The VMware Virtual Infrastructure amounts represent the revenues and expenses of VMware as reflected within EMC’s consolidated financial statements. Research and development expenses, selling, general and administrative, and other income associated with the EMC Information Infrastructure business are not allocated to the segments within the EMC Information Infrastructure business, as they are managed centrally at the corporate level. For the three segments within the EMC Information Infrastructure business, gross profit is the segment operating performance measure.

Our segment information for the three and nine months ended September 30, 2012 and 2011 is as follows (tables in thousands, except percentages):

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
September 30, 2012
Revenues:
Product revenues	$	2,438,665		$	49,881		$	106,020		$	2,594,566		$	489,875		$	—		$	3,084,441
Services revenues	1,324,110			108,117			120,918			1,553,145			640,590			—			2,193,735
Total consolidated revenues	3,762,775			157,998			226,938			4,147,711			1,130,465			—			5,278,176
Cost of sales	1,625,910			50,471			81,330			1,757,711			135,588			97,338			1,990,637
Gross profit	$	2,136,865		$	107,527		$	145,608		2,390,000			994,877			(97,338		)	3,287,539
Gross profit percentage	56.8		%	68.1		%	64.2		%	57.6		%	88.0		%	—			62.3		%
Research and development										367,792			196,888			88,218			652,898
Selling, general and administrative										1,102,888			435,454			170,452			1,708,794
Restructuring and acquisition-related charges										—			—			27,064			27,064
Total costs and expenses										1,470,680			632,342			285,734			2,388,756
Operating income										919,320			362,535			(383,072		)	898,783
Other income (expense), net										(49,863		)	8,498			(13,320		)	(54,685		)
Income before provision for income taxes										869,457			371,033			(396,392		)	844,098
Income tax provision										210,517			82,920			(108,003		)	185,434
Net income										658,940			288,113			(288,389		)	658,664
Net income attributable to the non-controlling interest in VMware, Inc.										—			(57,912		)	25,586			(32,326		)
Net income attributable to EMC Corporation										$	658,940		$	230,201		$	(262,803	)	$	626,338

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
September 30, 2011
Revenues:
Product revenues	$	2,465,339		$	50,439		$	115,685		$	2,631,463		$	442,904		$	—		$	3,074,367
Services revenues	1,197,581			111,157			99,215			1,407,953			497,881			—			1,905,834
Total consolidated revenues	3,662,920			161,596			214,900			4,039,416			940,785			—			4,980,201
Cost of sales	1,583,727			59,436			69,664			1,712,827			130,683			70,426			1,913,936
Gross profit	$	2,079,193		$	102,160		$	145,236		2,326,589			810,102			(70,426		)	3,066,265
Gross profit percentage	56.8		%	63.2		%	67.6		%	57.6		%	86.1		%	—			61.6		%
Research and development										316,380			148,576			83,065			548,021
Selling, general and administrative										1,099,329			368,187			145,398			1,612,914
Restructuring and acquisition-related charges										—			—			20,302			20,302
Total costs and expenses										1,415,709			516,763			248,765			2,181,237
Operating income										910,880			293,339			(319,191		)	885,028
Other income (expense), net										(43,223		)	197			(28,802		)	(71,828		)
Income before provision for income taxes										867,657			293,536			(347,993		)	813,200
Income tax provision										237,936			22,949			(89,799		)	171,086
Net income										629,721			270,587			(258,194		)	642,114
Net income attributable to the non-controlling interest in VMware, Inc.										—			(54,622		)	18,157			(36,465		)
Net income attributable to EMC Corporation										$	629,721		$	215,965		$	(240,037	)	$	605,649

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2012
Revenues:
Product revenues	$	7,406,314		$	131,440		$	305,967		$	7,843,721		$	1,488,314		$	—		$	9,332,035
Services revenues	3,862,593			324,884			348,258			4,535,735			1,816,177			—			6,351,912
Total consolidated revenues	11,268,907			456,324			654,225			12,379,456			3,304,491			—			15,683,947
Cost of sales	4,893,097			156,839			196,104			5,246,040			400,327			289,431			5,935,798
Gross profit	$	6,375,810		$	299,485		$	458,121		7,133,416			2,904,164			(289,431		)	9,748,149
Gross profit percentage	56.6		%	65.6		%	70.0		%	57.6		%	87.9		%	—			62.2		%
Research and development										1,077,907			574,282			244,467			1,896,656
Selling, general and administrative										3,325,212			1,273,696			476,733			5,075,641
Restructuring and acquisition-related charges										—			—			80,560			80,560
Total costs and expenses										4,403,119			1,847,978			801,760			7,052,857
Operating income										2,730,297			1,056,186			(1,091,191		)	2,695,292
Other income (expense), net										(107,276		)	20,337			(43,692		)	(130,631		)
Income before provision for income taxes										2,623,021			1,076,523			(1,134,883		)	2,564,661
Income tax provision										706,003			194,699			(310,102		)	590,600
Net income										1,917,018			881,824			(824,781		)	1,974,061
Net income attributable to the non-controlling interest in VMware, Inc.										—			(179,699		)	68,332			(111,367		)
Net income attributable to EMC Corporation										$	1,917,018		$	702,125		$	(756,449	)	$	1,862,694

27

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2011
Revenues:
Product revenues	$	7,282,052		$	135,797		$	305,138		$	7,722,987		$	1,326,623		$	—		$	9,049,610
Services revenues	3,388,839			336,846			280,150			4,005,835			1,377,712			—			5,383,547
Total consolidated revenues	10,670,891			472,643			585,288			11,728,822			2,704,335			—			14,433,157
Cost of sales	4,733,529			176,361			277,817			5,187,707			390,438			209,409			5,787,554
Gross profit	$	5,937,362		$	296,282		$	307,471		6,541,115			2,313,897			(209,409		)	8,645,603
Gross profit percentage	55.6		%	62.7		%	52.5		%	55.8		%	85.6		%	—			59.9		%
Research and development										932,581			412,575			243,864			1,589,020
Selling, general and administrative										3,179,639			1,057,615			447,280			4,684,534
Restructuring and acquisition-related charges										—			—			68,411			68,411
Total costs and expenses										4,112,220			1,470,190			759,555			6,341,965
Operating income										2,428,895			843,707			(968,964		)	2,303,638
Other income (expense), net										(76,169		)	4,466			(30,184		)	(101,887		)
Income before provision for income taxes										2,352,726			848,173			(999,148		)	2,201,751
Income tax provision										620,453			103,711			(258,708		)	465,456
Net income										1,732,273			744,462			(740,440		)	1,736,295
Net income attributable to the non-controlling interest in VMware, Inc.										—			(151,612		)	44,608			(107,004		)
Net income attributable to EMC Corporation										$	1,732,273		$	592,850		$	(695,832	)	$	1,629,291

Our revenues are attributed to the geographic areas according to the location of the customers. Revenues by geographic area are included in the following table (table in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
United States	$	2,885,968	$	2,674,626	$	8,376,276	$	7,552,800
Europe, Middle East and Africa	1,351,753		1,355,474		4,216,384		4,149,828
Asia Pacific and Japan	733,157		695,443		2,192,411		1,944,808
Latin America, Mexico and Canada	307,298		254,658		898,876		785,721
Total	$	5,278,176	$	4,980,201	$	15,683,947	$	14,433,157

No country other than the United States accounted for 10% or more of revenues during the three and nine months ended September 30, 2012 or 2011.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $3,851.6 million at September 30, 2012 and $3,622.8 million at December 31, 2011. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $626.8 million at September 30, 2012 and $616.5 million at December 31, 2011. No country other than the United States accounted for 10% or more of total long-lived assets, excluding financial instruments and deferred tax assets, at September 30, 2012 or December 31, 2011.

28

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis (“MD&A”) of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and notes thereto which appear elsewhere in this Quarterly Report on Form 10-Q. The following discussion contains forward-looking statements and should also be read in conjunction with the risk factors set forth in Item 1A of Part II. The forward-looking statements do not include the potential impact of any mergers, acquisitions, divestitures, securities offerings or business combinations that may be announced or closed after the date hereof.

All dollar amounts expressed numerically in this MD&A are in millions.

Certain tables may not add due to rounding.

INTRODUCTION

We manage our business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure.

EMC Information Infrastructure

Our EMC Information Infrastructure business consists of three segments: Information Storage, Information Intelligence and RSA Information Security. The objective for our EMC Information Infrastructure business is to simultaneously increase our market share, invest in the business and improve our financial returns. During the remainder of 2012, we will continue to innovate and invest in expanding our total addressable market through internal research and development (“R&D”) and through acquisitions to capitalize on the continued expansion of enterprise data. We have developed a product portfolio with customers’ current and future needs in mind; these needs will continue to evolve as the largest transformation in information technology (“IT”) history creates enormous opportunities in three secular trends: Cloud Computing, Big Data and Trust.

Cloud Computing leverages an on-demand, self-managed, virtualized infrastructure to deliver IT-as-a-Service in a more efficient, flexible and cost-effective manner. While the fundamental transition to Cloud Computing architectures is gaining traction, customers are increasingly recognizing that their ability to compete is tied to the efficiency, flexibility and agility of their IT operations and that transitioning to a cloud-based architecture will be a key component to their success. We believe our offerings are well-suited to capitalize on this trend as it unfolds over the next several years. Big Data, which is a primary contributor to the pace of overall data growth, refers to the large repositories of corporate and external data, including unstructured information created by new applications (e.g. medical, entertainment, energy and geophysical), social media and other web repositories. With the continued growth of the investments we are making in Big Data, we believe we are well-positioned in this market to continue assisting our customers in storing, managing and unlocking the value contained within this information. The successful transition to a model that leverages Cloud Computing and Big Data is dependent upon both the right infrastructure and the ability to build Trust into that infrastructure. Having a holistic and data-centric approach to security threats is key to building Trust, and we have been at the forefront of this security trend. The new threat environment is transforming the way customers think about Trust, and we continue to build our data-centric approach to security to enable our customers to take full advantage of the benefits afforded by Cloud Computing and Big Data.

Our go to market model, where we continue to leverage our direct sales force and services organization, as well as our channel and services partners and service providers, positions us well to help customers transition to Cloud Computing and benefit from Big Data. We offer three alternatives to help our customers transition to Cloud architectures and leverage Big Data: our best of breed infrastructure components, proven infrastructure through VSPEX and converged infrastructure with Vblock from VCE Company LLC, our joint venture with Cisco, and other investors VMware and Intel. Our service provider program is another important part of our strategy to get our customers to the Public Cloud.

VMware Virtual Infrastructure

VMware’s financial focus is on long-term revenue growth to generate cash flows to fund its expansion of industry segment share and evolve its virtualization-based products for data centers, end-user devices and cloud computing through a combination of internal development and acquisitions. VMware expects to grow its business by broadening its virtualization infrastructure software solutions technology and product portfolio, increasing product awareness, promoting the adoption of virtualization and building long-term relationships with its customers through the adoption of enterprise license agreements (“ELAs”). Since the introduction of VMware vSphere in 2009, VMware has introduced more products that build on the vSphere foundation including VMware vSphere 5 and a comprehensive suite of cloud infrastructure technologies, as well as VMware View 5. Additionally, in the third quarter of 2012, VMware released VMware vCloud Suite 5.1, which integrates its virtualization, cloud infrastructure and management portfolio into a comprehensive solution consisting of cloud infrastructure

29

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

and management products, expertise and ecosystem support. VMware vCloud Suite 5.1 is its first solution to deliver a software-defined data center (“SDDC”). The SDDC architecture abstracts all hardware resources and pools them into aggregate capacity, enabling automation to safely and efficiently parcel it out as needed for applications. VMware plans to continue to introduce additional products in the future that expand and promote the use of the vSphere foundation and the SDDC. In addition, VMware has made, and expects to continue to make, acquisitions that strengthen its product offerings or extend its strategy to deliver broader virtualized solutions.

We believe that on a consolidated basis, our comprehensive portfolio of best-of-breed highly integrated solutions, wealth of experience and proven track record will allow us to leverage our strengths and position us to capitalize on the evolving trends of Cloud Computing, Big Data and Trust, even if the economic landscape remains cautious. Going forward, we believe we will grow faster than our addressable markets and take share while simultaneously investing in the business and growing earnings per share at a rate faster than the rate at which we will grow our revenue.

RESULTS OF OPERATIONS

Revenues

The following tables present revenue by our segments:

	For the Three Months Ended
	September 30, 2012		September 30, 2011		$ Change			% Change
Information Storage	$	3,762.8	$	3,662.9	$	99.9		2.7	%
Information Intelligence Group	158.0		161.6		(3.6		)	(2.2	)
RSA Information Security	226.9		214.9		12.0			5.6
VMware Virtual Infrastructure	1,130.5		940.8		189.7			20.2
Total revenues	$	5,278.2	$	4,980.2	$	298.0		6.0	%

	For the Nine Months Ended
	September 30, 2012		September 30, 2011		$ Change			% Change
Information Storage	$	11,268.9	$	10,670.9	$	598.0		5.6	%
Information Intelligence Group	456.3		472.6		(16.3		)	(3.4	)
RSA Information Security	654.2		585.3		68.9			11.8
VMware Virtual Infrastructure	3,304.5		2,704.3		600.2			22.2
Total revenues	$	15,683.9	$	14,433.2	$	1,250.7		8.7	%

Consolidated product revenues increased0.3% and 3.1% to $3,084.4 and $9,332.0for the three and nine months ended September 30, 2012, respectively. Consolidated product revenues increased slightly during the three month period due to increases in VMware Virtual Infrastructure product revenues, somewhat offset by decreases in Information Storage product revenues resulting from macro economic uncertainty leading to more deal scrutiny, which caused customers to delay procurement decisions and to channel orders coming in too late in the quarter to allow for third quarter shipments. The consolidated product revenues increase for the nine month period was primarily driven by the Information Storage and VMware Virtual Infrastructure segments’ product revenues due to continued higher demand for our portfolio of offerings to address the storage, data analysis and virtualization needs for continued information growth, particularly as customers continue to build out their own data centers to develop and support their private or public cloud infrastructures and analyze and protect the data within their data centers.

The Information Storage segment’s product revenues decreased1.1% and increased1.7% to $2,438.7 and $7,406.3for the three and nine months ended September 30, 2012, respectively. Within the networked storage platforms portfolio, which includes our high-end and mid-tier storage platform products, product revenues increased1.7% and 5.7% for the three and nine months ended September 30, 2012, respectively. Within the high-end of the Information Storage segment, product revenues increased 4.6% and decreased 1.1% for the three and nine months ended September 30, 2012, respectively. The increase in revenues for the three months ended September 30, 2012 was largely due to demand for our Symmetrix scale-out block solutions that had their first full quarter of availability for the refreshed family of VMAX systems. The decrease in revenues for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011, was primarily driven by the strong growth in the nine months ended September 30, 2011 associated with the introduction of FAST VP in conjunction with VMAX in the first quarter of 2011. Within the mid-tier of the Information Storage segment, which includes the VNX

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

family, Backup and Recovery Systems, EMC Isilon and EMC Atmos, product revenues decreased 0.2% and increased 10.9% for the three and nine months ended September 30, 2012, respectively. Demand for our VNX family continued despite a difficult market environment which led to later-than-expected timing of some channel orders which we could not fulfill in the third quarter resulting in an overall decrease in revenue. Our Data Domain and Avamar product revenue grew, however revenue from our purpose-built backup appliances in the third quarter of 2012 was negatively impacted by delayed procurement decisions by customers which delayed some deals beyond our third quarter. The scale-out file offering from EMC Isilon continues to deliver strong revenue growth in its traditional areas of strength and it expands its presence in enterprise environments. Finally, our EMC Greenplum Big Data analytics solutions portfolio continues to grow at strong double-digit rates resulting from demand from new customers as well as repeat customers adding on to their existing analytics implementations.

The VMware Virtual Infrastructure segment’s product revenues increased10.6% and 12.2% to $489.9 and $1,488.3for the three and nine months ended September 30, 2012, respectively. VMware’s license revenues increased primarily due to demand for product offerings. During the three months ended September 30, 2012 and 2011, respectively, ELAs comprised 24% and 22% of total sales and during the nine months ended September 30, 2012 and 2011, respectively, ELAs comprised 25% and 24% of total sales.

The RSA Information Security segment’s product revenues decreased8.4% and increased0.3% to $106.0 and $306.0for the three and nine months ended September 30, 2012, respectively. The decrease in product revenues during the three month period was primarily due to the slowdown of hiring and employment, especially in Europe and Asia, which negatively impacted our Identity and Data Protection business as well as the prior year remediation of tokens which disrupted the normal renewal cycles. The slight increase in product revenues during the nine month period was primarily attributable to increased demand for our Security Management and Compliance products.

The Information Intelligence Group segment’s product revenues decreased1.1% and 3.2% to $49.9 and $131.4for the three and nine months ended September 30, 2012, respectively. The decrease in product revenues was largely due to changing customer demand, primarily in the first quarter of 2012. The Information Intelligence Group segment continues to innovate, creating solutions that we believe will be easier to deploy, easier to use and more aligned with customer needs.

Consolidated services revenues increased15.1% and 18.0% to $2,193.7 and $6,351.9for the three and nine months ended September 30, 2012, respectively. The consolidated services revenues increase was primarily driven by the Information Storage and VMware Virtual Infrastructure segments’ services revenues resulting from increased demand for maintenance-related services. In addition, we continue to provide expertise to customers on effective ways to enable Cloud Computing and to leverage their Big Data assets.

The Information Storage segment’s services revenues increased10.6% and 14.0% to $1,324.1 and $3,862.6for the three and nine months ended September 30, 2012, respectively. The increase in services revenues was primarily attributable to higher demand for maintenance-related services associated with a larger installed base as well as increased maintenance renewals. In addition, a growing demand for professional services as we assist with customers’ transitions to cloud architectures, transforming IT infrastructures and virtualizing mission-critical applications also contributed to the increase in services revenues. The increase in services revenue growth for the three months ended September 30, 2012 was lower than the increase in growth in the nine month period due to macro economic conditions in the third quarter resulting in customers deferring some discretionary consulting projects and in fewer implementation services caused by lighter storage product revenue.

The VMware Virtual Infrastructure segment’s services revenues increased28.7% and 31.8% to $640.6 and $1,816.2for the three and nine months ended September 30, 2012, respectively. The increase in services revenues was primarily attributable to growth in VMware’s software maintenance revenues. Software maintenance revenues benefited from strong renewals, multi-year software maintenance contracts sold in previous periods and additional maintenance contracts sold in conjunction with new software license sales. Additionally, VMware experienced increased demand in their professional services, driven by the growth in their license sales and installed base.

The RSA Information Security segment’s services revenues increased21.9% and 24.3% to $120.9 and $348.3for the three and nine months ended September 30, 2012, respectively. Services revenues increased due to an increase in maintenance revenues and professional services resulting from continued demand for support from our installed base. The Information Intelligence Group segment’s services revenues decreased2.7% and 3.6% to $108.1 and $324.9for the three and nine months ended September 30, 2012, respectively.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

Consolidated revenues by geography were as follows:

	For the Three Months Ended
	September 30, 2012		September 30, 2011		% Change
United States	$	2,886.0	$	2,674.6	7.9	%
Europe, Middle East and Africa	1,351.8		1,355.5		(0.3	)
Asia Pacific and Japan	733.2		695.4		5.4
Latin America, Mexico and Canada	307.3		254.7		20.7
Total revenues	$	5,278.2	$	4,980.2	6.0	%

	For the Nine Months Ended
	September 30, 2012		September 30, 2011		% Change
United States	$	8,376.3	$	7,552.8	10.9	%
Europe, Middle East and Africa	4,216.4		4,149.8		1.6
Asia Pacific and Japan	2,192.4		1,944.8		12.7
Latin America, Mexico and Canada	898.9		785.7		14.4
Total revenues	$	15,683.9	$	14,433.2	8.7	%

Revenues increased for the three and nine months ended September 30, 2012 compared to the same periods in 2011 in all of our geographic markets, excluding Europe, Middle East and Africa.

Changes in exchange rates negatively impacted revenue growth by 1.5% and 1.4%for the three and nine months ended September 30, 2012, respectively. The impact of the change in rates was most significant in the Euro zone for the three and nine months ended September 30, 2012.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

Costs and Expenses

The following tables present our costs and expenses, other income and net income attributable to EMC Corporation:

	For the Three Months Ended
	September 30, 2012			September 30, 2011			$ Change			% Change
Cost of revenue:
Information Storage	$	1,625.9		$	1,583.7		$	42.2		2.7	%
Information Intelligence Group	50.5			59.4			(8.9		)	(15.0	)
RSA Information Security	81.3			69.7			11.6			16.6
VMware Virtual Infrastructure	135.6			130.7			4.9			3.7
Corporate reconciling items	97.3			70.4			26.9			38.2
Total cost of revenue	1,990.6			1,913.9			76.7			4.0
Gross margins:
Information Storage	2,136.9			2,079.2			57.7			2.8
Information Intelligence Group	107.5			102.2			5.3			5.2
RSA Information Security	145.6			145.2			0.4			0.3
VMware Virtual Infrastructure	994.9			810.1			184.8			22.8
Corporate reconciling items	(97.3		)	(70.4		)	(26.9		)	38.2
Total gross margin	3,287.5			3,066.3			221.2			7.2
Operating expenses:
Research and development(1)	652.9			548.0			104.9			19.1
Selling, general and administrative(2)	1,708.8			1,612.9			95.9			5.9
Restructuring and acquisition-related charges	27.1			20.3			6.8			33.5
Total operating expenses	2,388.8			2,181.2			207.6			9.5
Operating income	898.8			885.0			13.8			1.6
Investment income, interest expense and other expenses, net	(54.7		)	(71.8		)	17.1			(23.8	)
Income before income taxes	844.1			813.2			30.9			3.8
Income tax provision	185.4			171.1			14.3			8.4
Net income	658.7			642.1			16.6			2.6
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(32.3		)	(36.5		)	4.2			(11.5	)
Net income attributable to EMC Corporation	$	626.3		$	605.6		$	20.7		3.4	%

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

	For the Nine Months Ended
	September 30, 2012			September 30, 2011			$ Change			% Change
Cost of revenue:
Information Storage	$	4,893.1		$	4,733.5		$	159.6		3.4	%
Information Intelligence Group	156.8			176.4			(19.6		)	(11.1	)
RSA Information Security	196.1			277.8			(81.7		)	(29.4	)
VMware Virtual Infrastructure	400.3			390.4			9.9			2.5
Corporate reconciling items	289.4			209.4			80.0			38.2
Total cost of revenue	5,935.8			5,787.6			148.2			2.6
Gross margins:
Information Storage	6,375.8			5,937.4			438.4			7.4
Information Intelligence Group	299.5			296.3			3.2			1.1
RSA Information Security	458.1			307.5			150.6			49.0
VMware Virtual Infrastructure	2,904.2			2,313.9			590.3			25.5
Corporate reconciling items	(289.4		)	(209.4		)	(80.0		)	38.2
Total gross margin	9,748.1			8,645.6			1,102.5			12.8
Operating expenses:
Research and development(3)	1,896.7			1,589.0			307.7			19.4
Selling, general and administrative(4)	5,075.6			4,684.5			391.1			8.3
Restructuring and acquisition-related charges	80.6			68.4			12.2			17.8
Total operating expenses	7,052.9			6,342.0			710.9			11.2
Operating income	2,695.3			2,303.6			391.7			17.0
Investment income, interest expense and other expenses, net	(130.6		)	(101.9		)	(28.7		)	28.2
Income before income taxes	2,564.7			2,201.8			362.9			16.5
Income tax provision	590.6			465.5			125.1			26.9
Net income	1,974.1			1,736.3			237.8			13.7
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(111.4		)	(107.0		)	(4.4		)	4.1
Net income attributable to EMC Corporation	$	1,862.7		$	1,629.3		$	233.4		14.3	%

 ___________

(1) Amount includes corporate reconciling items of $88.2 and $83.1 for the three months ended September 30, 2012 and 2011, respectively.

(2) Amount includes corporate reconciling items of $170.5 and $145.4 for the three months ended September 30, 2012 and 2011, respectively.

(3) Amount includes corporate reconciling items of $244.5 and $243.9 for the nine months ended September 30, 2012 and 2011, respectively.

(4) Amount includes corporate reconciling items of $476.7 and $447.3 for the nine months ended September 30, 2012 and 2011, respectively.

Gross Margins

Overall our gross margin percentages were 62.3% and 61.6% for the three months ended September 30, 2012 and 2011, respectively. The increase in the gross margin percentage in the third quarter of 2012 compared to 2011 was attributable to the VMware Virtual Infrastructure segment, which increased overall gross margins by 132 basis points and the Information Intelligence Group segment, which increased overall gross margins by 15 basis points, partially offset by the RSA Information Security segment, which decreased overall gross margins by 14 basis points, and the Information Storage segment, which decreased overall gross margins by 8 basis points. The increase in corporate reconciling items, consisting of stock-based compensation, restructuring and acquisition-related charges, acquisition-related intangible asset amortization, amortization of VMware’s capitalized software from prior periods and transition costs, decreased the consolidated gross margin percentage by 53 basis points. Transition costs represent the incremental costs incurred to streamline our current cost structure.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

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Our gross margin percentages were 62.2% and 59.9% for the nine months ended September 30, 2012 and 2011, respectively. The increase in the gross margin percentage for the nine months ended September 30, 2012 compared to 2011 was attributable to the VMware Virtual Infrastructure segment, which increased overall gross margins by 150 basis points, the RSA Information Security segment, which increased overall gross margins by 73 basis points, the Information Storage segment, which increased overall gross margins by 47 basis points and the Information Intelligence Group segment, which increased overall gross margins by 9 basis points. Additionally, the increase in corporate reconciling items decreased the consolidated gross margin percentage by 54 basis points.

For segment reporting purposes, stock-based compensation, restructuring and acquisition-related charges, acquisition-related intangible asset amortization, amortization of VMware’s capitalized software from prior periods and transition costs are recognized as corporate expenses and are not allocated among our various operating segments. The increase of $26.9 in the corporate reconciling items for the three months ended September 30, 2012 compared to the same period in 2011 was attributable to a $12.7increase in amortization of VMware’s capitalized software from prior periods, a $10.7increase in acquisition-related intangible asset amortization expense and a $4.3increase in stock-based compensation expense, partially offset by a $0.8decrease in transition costs. The increase of $80.0 in the corporate reconciling items for the nine months ended September 30, 2012 compared to the same period in 2011 was attributable to a $49.0increase in amortization of VMware’s capitalized software from prior periods, a $2.7increase in transition costs, a $2.7increase in stock-based compensation expense and a $25.6increase in acquisition-related intangible asset amortization expense.

The gross margin percentages for the Information Storage segment were 56.8% for both the three months ended September 30, 2012 and 2011, and were 56.6% and 55.6% for the nine months ended September 30, 2012 and 2011, respectively. The increase in gross margin percentage for the nine months ended September 30, 2012 compared to the same period in 2011 was attributable to improved product and service gross margins, driven by a shift in mix towards higher margin products and services, higher sales volume and an improved cost structure.

The gross margin percentages for the VMware Virtual Infrastructure segment were 88.0% and 86.1% for the three months ended September 30, 2012 and 2011, respectively, and were 87.9% and 85.6% for the nine months ended September 30, 2012 and 2011, respectively. The increase in gross margin percentage for both the three and nine months ended September 30, 2012 compared to the same periods in 2011 was primarily attributable to improvements in services gross margins due to growth in maintenance revenue.

The gross margin percentages for the RSA Information Security segment were 64.2% and 67.6% for the three months ended September 30, 2012 and 2011, respectively, and were 70.0% and 52.5% for the nine months ended September 30, 2012 and 2011, respectively. The decrease in gross margin percentage for the three months ended September 30, 2012 compared to the same period in 2011 was due to a decrease in product margins resulting from slower than expected sales, somewhat offset by increases in services margins. The increase in gross margin percentage for the nine months ended September 30, 2012 compared to the same period in 2011 was due to an increase in product margins. The increase in product margins was primarily due to the one-time impact of RSA remediation associated with working with our customers to implement remediation programs which negatively impacted gross margin in the first quarter of 2011 as well as a release of the excess reserve, which positively impacted gross margin in the second quarter of 2012.

The gross margin percentages for the Information Intelligence Group segment were 68.1% and 63.2% for three months ended September 30, 2012 and 2011, respectively, and were 65.6% and 62.7% for the nine months ended September 30, 2012 and 2011, respectively. The increase in gross margin percentage for both the three and nine months ended September 30, 2012 compared to the same periods in 2011 was attributable to a reduction in fixed costs in the second and third quarters of 2012 and services margin improvement.

Research and Development

As a percentage of revenues, R&D expenses were 12.4% and 11.0% for the three months ended September 30, 2012 and 2011, respectively, and were 12.1% and 11.0% for the nine months ended September 30, 2012 and 2011, respectively. R&D expenses increased$104.9 and $307.6 for the three and nine months ended September 30, 2012, respectively, compared to the same periods in 2011 primarily due to an increase in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring and business acquisitions, infrastructure costs and depreciation expense. Personnel-related costs increased by $93.9 and $252.8, infrastructure costs increased by $3.1 and $14.3 and depreciation expense increased by $2.7 and $8.8 for the three and nine months ended September 30, 2012, respectively, when compared to the same periods in 2011. Also increasing these costs was a decrease in capitalized software development costs of $3.8 and $27.7 for the three and nine months ended September 30, 2012, respectively.

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Corporate reconciling items within R&D, which consist of stock-based compensation, intangible asset amortization and transition costs, increased$5.2 and $0.6 for the three and nine months ended September 30, 2012, respectively, when compared to the same periods in 2011. Stock-based compensation expense increased$9.4 and $5.7, intangible asset amortization decreased$1.7 and $4.8 and transition costs decreased$2.5 and $0.2 for the three and nine months ended September 30, 2012, respectively, when compared to the same periods in 2011.

R&D expenses within EMC’s Information Infrastructure business, as a percentage of EMC’s Information Infrastructure business revenues, were 8.9% and 7.8% for the three months ended September 30, 2012 and 2011, respectively, and were 8.7% and 8.0% for the nine months ended September 30, 2012 and 2011, respectively. R&D expenses increased$51.4 and $145.3 for the three and nine months ended September 30, 2012, respectively, primarily due to increases in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring and business acquisitions and depreciation expense, partially offset by capitalized software development costs. Personnel-related costs increased by $58.9 and $162.4 and depreciation expense increased by $4.3 and $12.6 for the three and nine months ended September 30, 2012, respectively. Partially offsetting these increased costs was an increase in capitalized software development costs of $17.3 and $46.3 for the three and nine months ended September 30, 2012, respectively. The increase in capitalized software development costs is primarily due to the timing of products reaching technological feasibility.

R&D expenses within the VMware Virtual Infrastructure business, as a percentage of VMware’s revenues, were 17.4% and 15.8% for the three months ended September 30, 2012 and 2011, respectively, and were 17.4% and 15.3% for the nine months ended September 30, 2012 and 2011, respectively. R&D expenses increased$48.3 and $161.7 for the three and nine months ended September 30, 2012, respectively, compared to the same periods in 2011 largely due to increases in personnel-related costs of $28.0 and $85.0 driven by incremental headcount from strategic hiring and business acquisitions and a decrease in capitalized software development costs of $21.1 and $74.0 as VMware ceased capitalization of software development costs. Following the release of vSphere 5 and the comprehensive suite of cloud infrastructure technologies in the third quarter of 2011, VMware determined that its go-to-market strategy had changed from single solutions to product suite solutions. As a result of this change in strategy, and the related increased importance of interoperability between VMware’s products, the length of time between achieving technological feasibility and general release to customers significantly decreased. VMware expects its products to be available for general release soon after technological feasibility has been established.

Selling, General and Administrative

As a percentage of revenues, selling, general and administrative (“SG&A”) expenses were 32.4% for both the three months ended September 30, 2012 and 2011 and were 32.4% and 32.5% for the nine months ended September 30, 2012 and 2011, respectively. SG&A expenses increased by $95.9 and $391.1 for the three and nine months ended September 30, 2012, respectively, compared to the same periods in 2011 primarily due to increases in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring and business acquisitions, commissions, business development, infrastructure and depreciation expense. Personnel-related costs increased by $34.8 and $99.8, commissions increased by $14.0 and $76.6, business development costs increased by $16.3 and $50.6, infrastructure costs increased by $10.5 and $30.5 and depreciation expense increased by $3.8 and $16.0 for the three and nine months ended September 30, 2012, respectively.

Corporate reconciling items within SG&A, which consist of stock-based compensation, intangible asset amortization and transition costs, increased$25.0 and $29.4 for the three and nine months ended September 30, 2012, respectively, when compared to the same periods in 2011. Stock-based compensation expense increased$36.0 and $42.8, intangible asset amortization decreased$4.1 and $9.9 and transition costs decreased$6.9 and $3.5 for the three and nine months ended September 30, 2012, respectively. The increase in stock-based compensation expense was primarily due to strategic hiring and business acquisitions.

SG&A expenses within EMC’s Information Infrastructure business, as a percentage of EMC’s Information Infrastructure business revenues, were 26.6% and 27.2% for the three months ended September 30, 2012 and 2011, respectively, and were 26.9% and 27.1% for the nine months ended September 30, 2012 and 2011, respectively. SG&A expenses increased$3.6 and $145.6 for the three and nine months ended September 30, 2012, respectively, when compared to the same periods in 2011 primarily due to decreases in personnel-related costs, offset by increases in commissions, business development, infrastructure and depreciation expense. Personnel-related costs decreased due to careful discretionary spending exceeding increases in salary resulting from strategic hiring and business acquisitions. Personnel-related costs decreased by $44.5 and $101.0, commissions increased by $13.7 and $68.6, business development costs increased $10.5 and $20.5, infrastructure costs increased $5.6 and $16.0 and depreciation expense increased by $8.6 and $25.1 for the three and nine months ended September 30, 2012, respectively.

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SG&A expenses within the VMware Virtual Infrastructure business, as a percentage of VMware’s revenues, were 38.5% and 39.1% for the three months ended September 30, 2012 and 2011, respectively, and were 38.5% and 39.1% for the nine months ended September 30, 2012 and 2011, respectively. SG&A expenses increased $67.3 and $216.1 for the three and nine months ended September 30, 2012, respectively, when compared to the same periods in 2011 primarily due to growth in personnel-related expenses driven by incremental headcount as well as an increase in the costs of marketing programs.

Restructuring and Acquisition-Related Charges

For the three months ended September 30, 2012 and 2011, we incurred restructuring and acquisition-related charges of $27.1 and $20.3, respectively. For the nine months ended September 30, 2012 and 2011, we incurred restructuring and acquisition-related charges of $80.6 and $68.4, respectively. For the three and nine months ended September 30, 2012, we incurred $22.3 and $70.1, respectively, of restructuring charges, primarily related to our current year restructuring programs and $4.8 and $10.5, respectively, of charges in connection with acquisitions for financial advisory, legal and accounting services. For the three and nine months ended September 30, 2011, we incurred $16.9 and $58.1, respectively, of restructuring charges, primarily related to our 2011 restructuring programs and $3.4 and $10.3, respectively, of charges in connection with acquisitions for financial advisory, legal and accounting services.

Investment Income

Investment income was $29.9 and $32.3 for the three months ended September 30, 2012 and 2011, respectively, and was $85.3 and $106.5 for the nine months ended September 30, 2012 and 2011, respectively. Investment income decreased for the three and nine months ended September 30, 2012 when compared to the same periods in 2011 primarily due to lower interest income. For the three months ended September 30, 2012, interest income was $25.0 and net realized gains were $4.8. For the nine months ended September 30, 2012, interest income was $77.4 and net realized gains were $6.3. Additionally, interest income was $28.1 and $88.1 and net realized gains were $3.5 and $16.5 for the three and nine months ended September 30, 2011, respectively.

Interest Expense

Interest expense was $21.5 and $44.3 for the three months ended September 30, 2012 and 2011, respectively, and was $58.2 and $135.8 for the nine months ended September 30, 2012 and 2011, respectively. Interest expense consists primarily of interest on the 2011 Notes and 2013 Notes. Included in interest expense are non-cash interest charges related to amortization of the debt discount attributable to the conversion feature of $15.4 and $30.9 for the three months ended September 30, 2012 and 2011, respectively, and $45.1 and $90.2 for the nine months ended September 30, 2012 and 2011, respectively, as we are accreting the 2011 Notes and 2013 Notes to their stated values over their term. See Note 4 to the consolidated financial statements. The decrease in interest expense was driven by the settlement of the 2011 Notes at the end of 2011.

Other Income (Expense), Net

Other expense, net was $63.1 and $59.8 for the three months ended September 30, 2012 and 2011, respectively, and was $157.7 and $72.6 for the nine months ended September 30, 2012 and 2011, respectively. Other expense in 2012 primarily consists of our consolidated share of the losses from our converged infrastructure joint venture, VCE Company LLC, and losses on interest rate swaps, partially offset by our net gains from the sale of strategic investments held at cost, which includes the gain on our investment in XtremIO of $31.6 in the second quarter of 2012. Our consolidated share of the losses from VCE was $61.9 and $50.2 for the three months ended September 30, 2012 and 2011, respectively, and was $176.9 and $138.7 for the nine months ended September 30, 2012 and 2011, respectively. This joint venture is accounted for under the equity method. See Note 9 to the consolidated financial statements. Losses on interest rate swaps were $39.5 for the three and nine months ended September 30, 2012. See Note 4 to the consolidated financial statements. Net gains from the sale of strategic investments were $3.3 and $0.1 for the three months ended September 30, 2012 and 2011, respectively, and were $70.9 and $65.2 for the nine months ended September 30, 2012 and 2011, respectively.

Provision for Income Taxes

Our effective income tax rates were 22.0% and 23.0% for the three and nine months ended September 30, 2012, respectively. Our effective income tax rates were 21.0% and 21.1% for the three and nine months ended September 30, 2011, respectively. Our effective income tax rate is based upon estimated income before tax for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax audits or other tax contingencies. For the three and nine months ended September 30, 2012 and 2011, the effective income tax rate varied from the statutory income tax rate principally as a result of the mix of income attributable to foreign versus domestic jurisdictions. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in

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the United States; substantially all of our income before provision for income taxes from foreign operations has been earned by our Irish subsidiaries. We do not believe that any recent or currently expected developments in non-U.S. tax jurisdictions are reasonably likely to have a material impact on our effective income tax rate.

Our effective income tax rate increased in the three and nine months ended September 30, 2012 from the three and nine months ended September 30, 2011 due primarily to the expiration of the U.S. federal research and development tax credit for 2012 partially offset by a difference in composition of income before tax in different countries. The U.S. federal research and development tax credit reduced our effective income tax rate by approximately 2.2% for the three and nine months ended September 30, 2011. There were also differences in change in tax contingency reserves and discrete items, the net impact of which is immaterial.

During the second quarter of 2012, we determined that since VMware’s public offering in 2007, we have incorrectly recorded deferred tax liabilities on the gains and losses associated with changes in the non-controlling interest. These deferred tax liabilities were recorded as a reduction to additional paid-in capital and therefore had no impact on our previously reported consolidated income statements. The error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $352.6 in our December 31, 2011 consolidated balance sheet and an understatement of additional paid-in capital of $357.2 in our statement of shareholders’ equity for the nine months ended September 30, 2011.  See Note 1 to the consolidated financial statements.

We are routinely under audit by the Internal Revenue Service (the “IRS”). We have concluded all U.S. federal income tax matters for years through 2008. The IRS commenced a federal income tax audit for the tax years of 2009 and 2010 in Q3 2012. We also have income tax audits in process in numerous state, local and international jurisdictions. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions and/or the timing and result of ruling requests from taxing authorities, it is reasonably possible that the related unrecognized tax benefits could change from those recorded in our statement of financial position. We anticipate that several of these audits may be finalized within the next 12 months. Based on the status of these examinations, and the protocol of finalizing such audits, it is not possible to estimate the impact of the amount of such changes, if any, to our previously recorded uncertain tax positions.

Our effective income tax rate for the remainder of 2012 may be affected by such factors as changes in tax laws, regulations or income tax rates, changing interpretation of existing laws or regulations, the impact of accounting for stock-based compensation, the impact of accounting for business combinations, changes in our international organization, and changes in overall levels of income before tax. Our effective income tax rate may also be adversely affected by earnings being lower than anticipated in countries where we have lower statutory income tax rates and higher than anticipated in countries where we have higher statutory income tax rates.

Non-controlling Interest in VMware, Inc.

The net income attributable to the non-controlling interest in VMware was $32.3 and $36.5 for the three months ended September 30, 2012 and 2011, respectively, and was $111.4 and $107.0 for the nine months ended September 30, 2012 and 2011, respectively. The decrease in the three months ended September 30, 2012 compared to the same period in 2011 was due to a decrease in VMware’s net income. The increase in the nine months ended September 30, 2012 compared to the same period in 2011 was due to increases in VMware’s net income and increases in the weighted average percentage ownership by the non-controlling interest in VMware. VMware’s net income was $156.8 and $177.5 for the three months ended September 30, 2012 and 2011, respectively, and was $539.9 and $523.5 for the nine months ended September 30, 2012 and 2011, respectively. The weighted average non-controlling interest in VMware was approximately 21% for both the three months ended September 30, 2012 and 2011 and was approximately 21% and 20% for the nine months ended September 30, 2012 and 2011, respectively. In the first quarter of 2010, we announced a stock purchase program of VMware’s Class A common stock to maintain an approximately 80% majority ownership in VMware over the long term. During the nine months ended September 30, 2012, EMC purchased approximately 1.5 million VMware shares for approximately $131.9.

Financial Condition

Cash provided by operating activities was $4,363.1 and $3,484.6 for the nine months ended September 30, 2012 and 2011, respectively. Cash received from customers was $16,556.7 and $15,434.2 for the nine months ended September 30, 2012 and 2011, respectively. The increase in cash received from customers was attributable to a general increase in sales volume. Cash paid to suppliers and employees was $11,950.6 and $11,577.0 for the nine months ended September 30, 2012 and 2011, respectively. The increase was primarily attributable to a general growth in the business to support the increased revenue base. For the nine months ended September 30, 2012 and 2011, we paid $290.9 and $395.5, respectively, in income taxes. These

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payments are comprised of estimated taxes for the current year, extension payments for the prior year and refunds or payments associated with income tax filings and tax audits.

Cash used in investing activities was $2,930.4 and $2,856.9 for the nine months ended September 30, 2012 and 2011, respectively. Cash used for business acquisitions, strategic and other investments was $1,859.4 and $804.7 for the nine months ended September 30, 2012 and 2011, respectively. The increase was due to an increase in acquisition activity with EMC and VMware collectively acquiring thirteen companies in the nine months ended September 30, 2012, including the acquisition of Nicira for $1,099.6, compared to the acquisition of seven businesses during the nine months ended September 30, 2011. Additionally, VMware purchased a leasehold interest for $151.1 in the nine months ended September 30, 2011. In the nine months ended September 30, 2012 and 2011, we also provided funding of $217.9 and $191.6, respectively, to our joint ventures, VCE Company LLC, and Canopy, our joint venture with Atos. Capital additions were $523.5 and $601.2 for the nine months ended September 30, 2012 and 2011, respectively. The lower level of capital additions in 2012 was primarily attributable to increased spending in 2011 on facility expansion and information technology infrastructure. Capitalized software development costs were $315.8 and $342.1 for the nine months ended September 30, 2012 and 2011, respectively. The decrease was primarily attributable to VMware’s change in its go-to-market strategy, somewhat offset by EMC Information Infrastructure’s efforts on its software development activities. Net purchases of investments were $13.9 and $766.2 for the nine months ended September 30, 2012 and 2011, respectively. This activity varies from period to period based upon our cash collections, cash requirements and maturity dates of our investments.

Cash used in financing activities was $1,784.8 and $1,626.7 for the nine months ended September 30, 2012 and 2011, respectively. We spent $1,699.8 for payment of our convertible debt in the nine months ended September 30, 2012. We spent $380.0 and $1,899.2 to repurchase 15.3 million and 77.2 million shares of our common stock for the nine months ended September 30, 2012 and 2011, respectively. We also spent $131.9 and $342.2 to purchase 1.5 million and 4.0 million shares of VMware’s common stock in the nine months ended September 30, 2012 and 2011, respectively. Additionally, in the nine months ended September 30, 2012 and 2011, respectively, VMware spent $307.0 and $490.9 to repurchase 3.3 million and 5.5 million shares of its common stock. We generated $602.0 and $786.9 during the nine months ended September 30, 2012 and 2011, respectively, from the exercise of stock options. We generated $212.3 and $318.7 during the nine months ended September 30, 2012 and 2011, respectively, of excess tax benefits from stock-based compensation. We spent $69.9 in the settlement of interest rate contracts during the nine months ended September 30, 2012.

We expect to continue to generate positive cash flows from operations for the remainder of 2012 and to use cash generated by operations as our primary source of liquidity. We believe that existing cash and cash equivalents, together with any cash generated from operations, will be sufficient to meet normal operating requirements for the next twelve months.

The 2011 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2011 Notes at the end of 2011. Pursuant to the settlement terms, the majority of the converted 2011 Notes were not settled until January 9, 2012. At that time, we paid the noteholders $1,699.8 in cash for the outstanding principal and 29.5 million shares for the $661.4 excess of the conversion value over the principal amount, as prescribed by the terms of the 2011 Notes.

The remaining $1,710.2 of the 2013 Notes is due in November 2013. Based upon the closing price of our common stock for the prescribed measurement period during the three months ended September 30, 2012, the contingent conversion thresholds on the 2013 Notes were exceeded. As a result, the 2013 Notes are convertible at the option of the holder through December 31, 2012. Upon conversion, we are obligated to pay cash up to the principal amount of the debt converted. We have the option to settle any conversion value in excess of the principal amount with cash, shares of our common stock, or a combination thereof. Approximately $14.8 of the 2013 Notes have been converted as of September 30, 2012.

In connection with the issuance of the 2011 Notes and 2013 Notes, we entered into separate convertible note hedge transactions with respect to our common stock (the “Purchased Options”). The Purchased Options allow us to receive shares of our common stock and/or cash related to the excess conversion value that we would pay to the holders of the 2011 Notes and 2013 Notes upon conversion. The Purchased Options will cover, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669.1 of the proceeds from the sale of the 2011 Notes and 2013 Notes for the Purchased Options that was recorded as additional paid-in-capital in shareholders’ equity. In the fourth quarter of 2011, we exercised 107.5 million of the Purchased Options in conjunction with the planned settlements of the 2011 Notes, and we received 29.5 million shares of net settlement on January 9, 2012, representing the excess conversion value of the options. The remaining 107.5 million of the Purchased Options expire on December 1, 2013.

We also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of

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our common stock. We received aggregate proceeds of $391.1 from the sale of the associated warrants. Upon exercise, the value of the warrants is required to be settled in shares. Half of the associated warrants were exercised between February 15, 2012 and March 14, 2012 and the remaining half of the associated warrants have expiration dates between February 18, 2014 and March 18, 2014. During the first quarter of 2012, the exercised warrants were settled with 32.3 million shares of our common stock.

We have available for use a credit line of $50.0 in the United States. As of September 30, 2012, we had no borrowings outstanding on the line of credit. The credit line bears interest at the bank’s base rate and requires us, upon utilization of the credit line, to meet certain financial covenants with respect to limitations on losses. In the event the covenants are not met, the lender may require us to provide collateral to secure the outstanding balance. At September 30, 2012, we were in compliance with the covenants. As of September 30, 2012, the aggregate amount of liabilities of our subsidiaries was approximately $6,452.5.

At September 30, 2012, our total cash, cash equivalents, and short-term and long-term investments were $10,580.0. This balance includes approximately $4,394.6 held by VMware, of which $2,920.0 is held overseas, and $2,212.0 held by EMC in overseas entities. If these overseas funds are needed for our operations in the U.S., we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

Use of Non-GAAP Financial Measures and Reconciliations to GAAP Results

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). EMC used certain non-GAAP financial measures in the three months ended September 30, 2012 which exclude stock-based compensation, amortization of intangible assets, restructuring and acquisition-related charges, amortization of VMware’s capitalized software from prior periods, and infrequently occurring gains, losses and charges to measure its gross margin, operating margin, non-operating income (expense), net income and diluted earnings per share for purposes of managing our business. EMC also assesses its financial performance by measuring its free cash flow which is also a non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities, less additions to capital expenditures and capitalized software development costs. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of EMC’s financial performance or liquidity prepared in accordance with GAAP. EMC’s non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar terms used by other companies, and accordingly, care should be exercised in understanding how EMC defines its non-GAAP financial measures.

EMC’s management uses the non-GAAP financial measures to gain an understanding of EMC’s comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects and excludes these items from its internal financial statements for purposes of its internal budgets and each reporting segment’s financial goals. These non-GAAP financial measures are used by EMC’s management in their financial and operating decision-making because management believes they reflect EMC’s ongoing business in a manner that allows meaningful period-to-period comparisons. EMC’s management believes that these non-GAAP financial measures provide useful information to investors and others (a) in understanding and evaluating EMC’s current operating performance and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner EMC’s current financial results with EMC’s past financial results.

Our non-GAAP operating results for the three months ended September 30, 2012 and 2011 were as follows:

	For the Three Months Ended
	September 30, 2012			September 30, 2011
Gross margin	$	3,384.9		$	3,136.0
Gross margin percentage	64.1		%	63.0		%
Operating income	1,281.9			1,194.2
Operating income percentage	24.3		%	24.0		%
Non-operating income (expense)	(54.2		)	(70.5		)
Income tax provision	288.5			247.2
Net income attributable to EMC	881.3			821.8
Diluted earnings per share attributable to EMC	$	0.40		$	0.37

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The improvements in the non-GAAP gross margin and non-GAAP gross margin percentage were attributable to higher sales volume, a change in mix attributable to higher margin products and improved cost control. The improvements in the non-GAAP operating income and non-GAAP operating income percentage were attributable to an improved gross margin percentage.

The reconciliation of the above financial measures from GAAP to non-GAAP is as follows:

	For the Three Months Ended September 30, 2012
	GAAP			Stock-based compensation		Intangible asset amortization		Restructuring and acquisition- related charges		Amortization of VMware's capitalized software from prior periods		Non-GAAP
Gross margin	$	3,287.5		$	33.0	$	51.7	$	—	$	12.7	$	3,384.9
Operating income	898.8			249.9		93.4		27.1		12.7		1,281.9
Non-operating income (expense)	(54.7		)	0.5		—		—		—		(54.2		)
Income tax provision	185.4			66.7		29.5		2.5		4.3		288.5
Net income attributable to EMC	626.3			164.0		60.1		24.2		6.7		881.3
Diluted earnings per share attributable to EMC	$	0.28		$	0.07	$	0.03	$	0.01	$	—	$	0.40

	For the Three Months Ended September 30, 2011
	GAAP			Stock-based compensation		Intangible asset amortization		Restructuring and acquisition- related charges		Non-GAAP
Gross margin	$	3,066.3		$	28.7	$	41.0	$	—	$	3,136.0
Operating income	885.0			200.2		88.6		20.3		1,194.2
Non-operating income (expense)	(71.8		)	1.3		—		—		(70.5		)
Income tax provision	171.1			45.0		28.4		2.7		247.2
Net income attributable to EMC	605.6			141.3		57.5		17.4		821.8
Diluted earnings per share attributable to EMC	$	0.27		$	0.06	$	0.03	$	0.01	$	0.37

We also monitor our ability to generate free cash flow in relationship to our non-GAAP net income attributable to EMC over comparable periods. For the nine months ended September 30, 2012, our free cash flow was 3,523.8, an increase of 38.7% compared to the free cash flow generated for the nine months ended September 30, 2011. The free cash flow for the nine months ended September 30, 2012 exceeded our same period non-GAAP net income attributable to EMC by $957.9. EMC uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures and capitalized software development costs. Management believes that information regarding free cash flow provides investors with an important perspective on the cash available to make strategic acquisitions and investments, repurchase shares, service debt and fund ongoing operations. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statements of cash flows.

The reconciliation of the above free cash flow from GAAP to non-GAAP is as follows:

	For the Nine Months Ended
	September 30, 2012			September 30, 2011
Cash Flow from Operations	$	4,363.1		$	3,484.6
Capital Expenditures	(523.5		)	(601.2		)
Capitalized Software Development Costs	(315.8		)	(342.1		)
Free Cash Flow	$	3,523.8		$	2,541.3

Free cash flow represents a non-GAAP measure related to operating cash flows. In contrast, our GAAP measure of cash flow consists of three components. These are cash flows provided by operating activities of $4,363.1 and $3,484.6 for the nine

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

months ended September 30, 2012 and 2011, respectively, cash used in investing activities of $2,930.4 and $2,856.9 for the nine months ended September 30, 2012 and 2011, respectively, and net cash used in financing activities of $1,784.8 and $1,626.7 for the nine months ended September 30, 2012 and 2011, respectively.

All of the foregoing non-GAAP financial measures have limitations. Specifically, the non-GAAP financial measures that exclude the items noted above do not include all items of income and expense that affect EMC’s operations or cash flows. Further, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and do not reflect any benefit that such items may confer on EMC. Management compensates for these limitations by also considering EMC’s financial results as determined in accordance with GAAP.

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Item 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For quantitative and qualitative disclosures about market risk affecting us, see Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K filed with the SEC on February 24, 2012. Our exposure to market risks has not changed materially from that set forth in our Annual Report.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our principal executive officer and principal financial officer have concluded that as of such date, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting.

During the third quarter of 2012, we implemented an upgraded enterprise resource planning, or ERP, computer system.  This upgraded system is a systems improvement initiative and is not in response to any identified deficiency or weakness in the Company’s internal control over financial reporting.  The system implementation is designed to provide more effective management of our business operations as we continue to grow in size and scale.

There was no other change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II

OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

We are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including actions with respect to contracts, intellectual property, product liability, employment, benefits and securities matters. As required by authoritative guidance, we have estimated the amount of probable losses that may result from all currently pending matters, and such amounts are reflected in our consolidated financial statements. These recorded amounts are not material to our consolidated financial position or results of operations and no additional material losses related to these pending matters are reasonably possible. While it is not possible to predict the outcome of these matters with certainty, we do not expect the results of any of these actions to have a material adverse effect on our business, results of operations or financial condition. Because litigation is inherently unpredictable, however, the actual amounts of loss may prove to be larger or smaller than the amounts reflected in our consolidated financial statements, and we could incur judgments or enter into settlements of claims that could adversely affect our operating results or cash flows in a particular period.

Item 1A. RISK FACTORS

The risk factors that appear below could materially affect our business, financial condition and results of operations. This description includes any material changes to and supersedes the description of the risk factors associated with our business previously disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The risks and uncertainties described below are not the only risks and uncertainties facing us. Our business is also subject to general risks and uncertainties that affect many other companies.

Our business could be materially adversely affected as a result of general economic and market conditions.

We are subject to the effects of general global economic and market conditions. If these conditions remain challenging or deteriorate, our business, results of operations or financial condition could be materially adversely affected. Possible consequences from uncertainty or further deterioration due to the recent global macroeconomic downturn on our business, including insolvency of key suppliers resulting in product delays, inability of customers to obtain credit to finance purchases of our products, customer insolvencies, increased risk that customers may delay payments, fail to pay or default on credit extended to them, and counterparty failures negatively impacting our treasury operations, could have a material adverse effect on our results of operations or financial condition.

Our business could be materially adversely affected as a result of a lessening demand in the information technology market.

Our revenue and profitability depend on the overall demand for our products and services. Delays or reductions in IT spending, domestically or internationally, could materially adversely affect demand for our products and services which could result in decreased revenues or earnings.

Our customers operate in a variety of markets. Any adverse effects to such markets could materially adversely affect demand for our products and services which could result in decreased revenues or earnings.

Competitive pricing, sales volume, mix and component costs could materially adversely affect our revenues, gross margins and earnings.

Our gross margins are impacted by a variety of factors, including competitive pricing, component and product design costs as well as the volume and relative mixture of product and services revenues. Increased component costs, increased pricing pressures, the relative and varying rates of increases or decreases in component costs and product price, changes in product and services revenue mixture or decreased volume could have a material adverse effect on our revenues, gross margins or earnings.

The costs of third-party components comprise a significant portion of our product costs. While we generally have been able to manage our component and product design costs, we may have difficulty managing such costs if supplies of certain components become limited or component prices increase. Any such limitation could result in an increase in our component costs. An increase in component or design costs relative to our product prices could have a material adverse effect on our gross

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margins and earnings. Moreover, certain competitors may have advantages due to vertical integration of their supply chain, which may include disk drives, microprocessors, memory components and servers.

The markets in which we do business are highly competitive, and we may encounter aggressive price competition for all of our products and services from numerous companies globally. There also has been and may continue to be a willingness on the part of certain competitors to reduce prices or provide information infrastructure and virtual infrastructure products or services, together with other IT products or services, at minimal or no additional cost in order to preserve or gain market share. Such price competition may result in pressure on our product and service prices, and reductions in product and service prices may have a material adverse effect on our revenues, gross margins and earnings.

If our suppliers are not able to meet our requirements, we could have decreased revenues and earnings.

We purchase or license many sophisticated components and products from one or a limited number of qualified suppliers, including some of our competitors. These components and products include disk drives, high density memory components, power supplies and software developed and maintained by third parties. We have experienced delivery delays from time to time because of high industry demand or the inability of some vendors to consistently meet our quality or delivery requirements. Natural disasters, such as the flooding in Thailand affecting our disk drive component suppliers, have also in the past and may continue to impact our ability to procure certain components in a timely fashion. Current or future social and environmental regulations or critical issues, such as those relating to the sourcing of conflict minerals from the Democratic Republic of the Congo or the need to eliminate environmentally sensitive materials from our products, could restrict the supply of resources used in production or increase our costs. If any of our suppliers were to cancel or materially change contracts or commitments with us or fail to meet the quality or delivery requirements needed to satisfy customer orders for our products, we could lose time-sensitive customer orders, be unable to develop or sell certain products cost-effectively or on a timely basis, if at all, and have significantly decreased quarterly revenues and earnings, which would have a material adverse effect on our business, results of operations and financial condition. Additionally, we periodically transition our product line to incorporate new technologies. The importance of transitioning our customers smoothly to new technologies, along with our historically uneven pattern of quarterly sales, intensifies the risk that the failure of a supplier to meet our quality or delivery requirements will have a material adverse impact on our revenues and earnings. An economic crisis may also negatively affect our suppliers’ solvency, which could, in turn, result in product delays or otherwise materially adversely affect our business, results of operations or financial condition.

Our financial performance may be impacted by the financial performance of VMware.

Because we consolidate VMware’s financial results in our results of operations, our financial performance will be impacted by the financial performance of VMware. VMware’s financial performance may be affected by a number of factors, including, but not limited to:

• general economic conditions in their domestic and international markets and the effect that these conditions have on VMware’s customers’ capital budgets and the availability of funding for software purchases;

• fluctuations in demand, adoption rates, sales cycles and pricing levels for VMware’s products and services;

• fluctuations in foreign currency exchange rates;

• changes in customers’ budgets for information technology purchases and in the timing of their purchasing decisions;

• VMware’s ability to compete with existing or increased competition;

• the timing of recognizing revenues in any given quarter, which, as a result of software revenue recognition policies, can be affected by a number of factors, including product announcements, beta programs and product promotions that can cause revenue recognition of certain orders to be deferred until future products to which customers are entitled become available;

• the sale of VMware’s products in the timeframes anticipated, including the number and size of orders in each quarter;

• VMware’s ability to develop, introduce and ship in a timely manner new products and product enhancements that meet customer demand, certification requirements and technical requirements;

• the introduction of new pricing and packaging models for VMware’s product offerings;

• the timing of the announcement or release of upgrades or new products by VMware or by its competitors;

• VMware’s ability to maintain scalable internal systems for reporting, order processing, license fulfillment, product delivery, purchasing, billing and general accounting, among other functions;

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• VMware’s ability to control costs, including its operating expenses;

• changes to VMware’s effective tax rate;

• the increasing scale of VMware’s business and its effect on VMware’s ability to maintain historical rates of growth;

• VMware’s ability to attract and retain highly skilled employees, particularly those with relevant experience in software development and sales;

• VMware’s ability to conform to emerging industry standards and to technological developments by its competitors and customers;

• renewal rates for enterprise license agreements, or ELA’s, as original ELA terms expire;

• the timing and amount of software development costs that are capitalized beginning when technological feasibility has been established and ending when the product is available for general release;

• unplanned events that could affect market perception of the quality or cost-effectiveness of VMware’s products and solutions; and

• the recoverability of benefits from goodwill and intangible assets and the potential impairment of these assets.

Our stock price is volatile and may be affected by the trading price of VMware Class A common stock and/or speculation about the possibility of future actions we might take in connection with our VMware stock ownership.

Our stock price, like that of other technology companies, is subject to significant volatility because of factors such as:

• the announcement of acquisitions, new products, services or technological innovations by us or our competitors;

• quarterly variations in our operating results;

• changes in revenue or earnings estimates by the investment community; and

• speculation in the press or investment community.

The trading price of our common stock has been and likely will continue to be affected by various factors related to VMware, including:

• the trading price for VMware Class A common stock;

• actions taken or statements made by us, VMware, or others concerning the potential separation of VMware from us, including by spin-off, split-off or sale; and

• factors impacting the financial performance of VMware, including those discussed in the prior risk factor.

In addition, although we own a majority of VMware and consolidate their results, our stock price may not reflect our pro rata ownership interest of VMware.

We may be unable to keep pace with rapid industry, technological and market changes.

The markets in which we compete are characterized by rapid technological change, frequent new product introductions, evolving industry standards and changing needs of customers. There can be no assurance that our existing products will be properly positioned in the market or that we will be able to introduce new or enhanced products into the market on a timely basis, or at all. We spend a considerable amount of money on research and development and introduce new products from time to time. There can be no assurance that enhancements to existing products and solutions or new products and solutions will receive customer acceptance. As competition in the IT industry increases, it may become increasingly difficult for us to maintain a technological advantage and to leverage that advantage toward increased revenues and profits. In addition, there can be no assurance that our vision of enabling Hybrid Cloud Computing through infrastructure and application transformation will be accepted or validated in the marketplace.

Risks associated with the development and introduction of new products include delays in development and changes in data storage, networking virtualization, infrastructure management, information security and operating system technologies which could require us to modify existing products. Risks inherent in the transition to new products include:

• the difficulty in forecasting customer preferences or demand accurately;

• the inability to expand production capacity to meet demand for new products;

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• the impact of customers’ demand for new products on the products being replaced, thereby causing a decline in sales of existing products and an excessive, obsolete supply of inventory; and

• delays in initial shipments of new products.

Further risks inherent in new product introductions include the uncertainty of price-performance relative to products of competitors, competitors’ responses to the introductions and the desire by customers to evaluate new products for extended periods of time. Our failure to introduce new or enhanced products on a timely basis, keep pace with rapid industry, technological or market changes or effectively manage the transitions to new products or new technologies could have a material adverse effect on our business, results of operations or financial condition.

The markets we serve are highly competitive, and we may be unable to compete effectively.

We compete with many companies in the markets we serve, certain of which offer a broad spectrum of IT products and services and others which offer specific information storage, protection, security, management, virtualization and intelligence products or services. Some of these companies (whether independently or by establishing alliances) may have substantially greater financial, marketing and technological resources, larger distribution capabilities, earlier access to customers and greater opportunity to address customers’ various IT requirements than us. In addition, as the IT industry consolidates, companies may improve their competitive position and ability to compete against us. We compete on the basis of our products’ features, performance and price as well as our services. Our failure to compete on any of these bases could affect demand for our products or services, which could have a material adverse effect on our business, results of operations or financial condition.

Companies may develop new technologies or products in advance of us or establish business models or technologies disruptive to us. Our business may be materially adversely affected by the announcement or introduction of new products, including hardware and software products and services by our competitors, and the implementation of effective marketing or sales strategies by our competitors. The material adverse effect to our business could include a decrease in demand for our products and services and an increase in the length of our sales cycle due to customers taking longer to compare products and services and to complete their purchases.

We may have difficulty managing operations.

Our future operating results will depend on our overall ability to manage operations, which includes, among other things:

• retaining and hiring, as required, the appropriate number of qualified employees;

• managing, protecting and enhancing, as appropriate, our infrastructure, including but not limited to, our information systems (and such systems’ ability to protect confidential information residing on the systems) and internal controls;

• accurately forecasting revenues;

• training our sales force to sell more software and services;

• successfully integrating new acquisitions;

• managing inventory levels, including minimizing excess and obsolete inventory, while maintaining sufficient inventory to meet customer demands;

• controlling expenses;

• managing our manufacturing capacity, real estate facilities and other assets;

• meeting our sustainability goals; and

• executing on our plans.

An unexpected decline in revenues without a corresponding and timely reduction in expenses or a failure to manage other aspects of our operations could have a material adverse effect on our business, results of operations or financial condition.

Our investment portfolio could experience a decline in market value which could adversely affect our financial results.

We held $6.4 billion in short- and long-term investments as of September 30, 2012. The investments are invested primarily in investment grade debt securities, and we limit the amount of investment with any one issuer. A further deterioration in the economy, including a tightening of credit markets, increased defaults by issuers, or significant volatility in interest rates, including the downgrade of U.S. government debt, could cause the investments to decline in value or could impact the liquidity

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of the portfolio. If market conditions deteriorate significantly, our results of operations or financial condition could be materially adversely affected.

Our business may suffer if we are unable to retain or attract key personnel.

Our business depends to a significant extent on the continued service of senior management and other key employees, the development of additional management personnel and the hiring of new qualified employees. There can be no assurance that we will be successful in retaining existing personnel or recruiting new personnel. The loss of one or more key or other employees, our inability to attract additional qualified employees or the delay in hiring key personnel could have a material adverse effect on our business, results of operations or financial condition.

Our quarterly revenues and earnings could be materially adversely affected by uneven sales patterns and changing purchasing behaviors.

Our quarterly sales have historically reflected an uneven pattern in which a disproportionate percentage of a quarter’s total sales occur in the last month and weeks and days of each quarter. This pattern makes prediction of revenues, earnings and working capital for each financial period especially difficult and uncertain and increases the risk of unanticipated variations in quarterly results and financial condition. We believe this uneven sales pattern is a result of many factors including:

• the relative dollar amount of our product and services offerings in relation to many of our customers’ budgets, resulting in long lead times for customers’ budgetary approval, which tends to be given late in a quarter;

• the tendency of customers to wait until late in a quarter to commit to purchase in the hope of obtaining more favorable pricing from one or more competitors seeking their business;

• the fourth quarter influence of customers’ spending their remaining capital budget authorization prior to new budget constraints in the first nine months of the following year; and

• seasonal influences.

Our uneven sales pattern also makes it extremely difficult to predict near-term demand and adjust manufacturing capacity or our supply chain accordingly. If predicted demand is substantially greater than orders, there will be excess inventory. Alternatively, if orders substantially exceed predicted demand, the ability to assemble, test and ship orders received in the last weeks and days of each quarter may be limited, which could materially adversely affect quarterly revenues and earnings.

In addition, our revenues in any quarter are substantially dependent on orders booked and shipped in that quarter and our backlog at any particular time is not necessarily indicative of future sales levels. This is because:

• we assemble our products on the basis of our forecast of near-term demand and maintain inventory in advance of receipt of firm orders from customers;

• we generally ship products shortly after receipt of the order; and

• customers may generally reschedule or cancel orders with little or no penalty.

Loss of infrastructure, due to factors such as an information systems failure, loss of public utilities, natural disasters or extreme weather conditions, could impact our ability to ship products in a timely manner. Delays in product shipping or an unexpected decline in revenues without a corresponding and timely slowdown in expenses, could intensify the impact of these factors on our business, results of operations and financial condition.

In addition, unanticipated changes in our customers’ purchasing behaviors such as customers taking longer to negotiate and complete their purchases or making smaller, incremental purchases based on their current needs, also make the prediction of revenues, earnings and working capital for each financial period difficult and uncertain and increase the risk of unanticipated variations in our quarterly results and financial condition.

Risks associated with our distribution channels may materially adversely affect our financial results.

In addition to our direct sales force, we have agreements in place with many distributors, systems integrators, resellers and original equipment manufacturers to market and sell our products and services. We may, from time to time, derive a significant percentage of our revenues from such distribution channels. Our financial results could be materially adversely affected if our contracts with channel partners were terminated, if our relationship with channel partners were to deteriorate, if

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the financial condition of our channel partners were to weaken, if our channel partners were not able to timely and effectively implement their planned actions or if the level of demand for our channel partners’ products and services were to decrease. In addition, as our market opportunities change, we may have an increased reliance on channel partners, which may negatively impact our gross margins. There can be no assurance that we will be successful in maintaining or expanding these channels. If we are not successful, we may lose sales opportunities, customers and market share. Furthermore, the partial reliance on channel partners may materially reduce the visibility to our management of potential customers and demand for products and services, thereby making it more difficult to accurately forecast such demand. In addition, there can be no assurance that our channel partners will not develop, market or sell products or services or acquire other companies that develop, market or sell products or services in competition with us in the future.

In addition, as we focus on new market opportunities and additional customers through our various distribution channels, including small-to-medium sized businesses, we may be required to provide different levels of service and support than we typically provided in the past. We may have difficulty managing directly or indirectly through our channels these different service and support requirements and may be required to incur substantial costs to provide such services which may adversely affect our business, results of operations or financial condition.

Due to the global nature of our business, political, economic or regulatory changes or other factors in a specific country or region could impair our international operations, future revenue or financial condition.

A substantial portion of our revenues is derived from sales outside the United States including, increasingly, in rapid growth markets such as Brazil, Russia, India and China. In addition, a substantial portion of our products is manufactured outside of the United States. Accordingly, our future results could be materially adversely affected by a variety of factors relating to our operations outside the United States, including, among others, the following:

• changes in foreign currency exchange rates;

• changes in a specific country’s or region’s economic conditions;

• political or social unrest;

• trade restrictions;

• import or export licensing requirements;

• the overlap of different tax structures or changes in international tax laws;

• changes in regulatory requirements;

• difficulties in staffing and managing international operations;

• stringent privacy policies in some foreign countries;

• compliance with a variety of foreign laws and regulations; and

• longer payment cycles in certain countries.

Foreign operations, particularly in those countries with developing economies, are also subject to risks of violations of laws prohibiting improper payments and bribery, including the U.S. Foreign Corrupt Practices Act and similar regulations in foreign jurisdictions. Although we implement policies and procedures designed to ensure compliance with these laws, our employees, contractors and agents may take actions in violation of our policies. Any such violations, even if prohibited by our policies, could subject us to civil or criminal penalties or otherwise have an adverse effect on our business and reputation.

In addition, we hold a significant portion of our cash and investments in our international subsidiaries. Potential regulations could impact our ability to transfer the cash and investments to the United States. Should we desire to repatriate cash, we may incur a significant tax obligation.

We operate a Venezuelan sales subsidiary in which the Bolivar is the functional currency. Due to limitations in accessing the dollar at the official exchange rate, we have utilized an implied currency rate derived from actively traded bonds in order to translate the foreign currency denominated balance sheet. This rate is analogous to the “System for Transactions in Foreign Currency Securities” or SITME rate. Our operations in Venezuela include U.S. dollar-denominated assets and liabilities which we remeasure to Bolivars. The remeasurement may result in transaction gains or losses. We have used either the official exchange rate or implied exchange rate to remeasure these balances based upon the expected rate at which we believe the items will be settled. As a result of continued hyper-inflation in Venezuela, effective in 2010, we modified the functional currency to be the U.S. dollar. As a result of this change, Bolivar-denominated transactions will be subject to exchange gains and losses that

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may impact our earnings. While we do not believe this change will have a material impact on our financial position, results of operations or cash flows, these items could be adversely affected if there is a significant change in exchange rates.

Cybersecurity breaches could expose us to liability, damage our reputation, compromise our ability to conduct business, require us to incur significant costs or otherwise adversely affect our financial results.

We retain sensitive data, including intellectual property, proprietary business information and personally identifiable information, in our secure data centers and on our networks. We face a number of threats to our data centers and networks of unauthorized access, security breaches and other system disruptions. It is critical to our business strategy that our infrastructure remains secure and is perceived by customers and partners to be secure. Despite our security measures, our infrastructure may be vulnerable to attacks by hackers or other disruptive problems, such as the sophisticated cyber attack on our RSA division that we disclosed in March 2011. Any such security breach may compromise information stored on our networks and may result in significant data losses or theft of our, our customers’, our business partners’ or our employees’ intellectual property, proprietary business information or personally identifiable information. In addition, we have outsourced a number of our business functions to third party contractors, and any breach of their security systems could adversely affect us.

A cybersecurity breach could negatively affect our reputation as a trusted provider of information infrastructure by adversely affecting the market’s perception of the security or reliability of our products or services. In addition, a cyber attack could result in other negative consequences, including remediation costs, disruption of internal operations, increased cybersecurity protection costs, lost revenues or litigation.

Undetected problems in our products could directly impair our financial results.

If flaws in design, production, assembly or testing of our products (by us or our suppliers) were to occur, we could experience a rate of failure in our products that would result in substantial repair, replacement or service costs and potential damage to our reputation. Continued improvement in manufacturing capabilities, control of material and manufacturing quality and costs and product testing are critical factors in our future growth. There can be no assurance that our efforts to monitor, develop, modify and implement appropriate test and manufacturing processes for our products will be sufficient to permit us to avoid a rate of failure in our products that results in substantial delays in shipment, significant repair or replacement costs or potential damage to our reputation, any of which could have a material adverse effect on our business, results of operations or financial condition.

Our business could be materially adversely affected as a result of the risks associated with alliances.

We have alliances with leading information technology companies, and we plan to continue our strategy of developing key alliances in order to expand our reach into markets. There can be no assurance that we will be successful in our ongoing strategic alliances or that we will be able to find further suitable business relationships as we develop new products and strategies. Any failure to continue or expand such relationships could have a material adverse effect on our business, results of operations or financial condition.

There can be no assurance that companies with which we have strategic alliances, certain of which have substantially greater financial, marketing or technological resources than us, will not develop or market products in competition with us in the future, discontinue their alliances with us or form alliances with our competitors.

Our business may suffer if we cannot protect our intellectual property.

We generally rely upon patent, copyright, trademark and trade secret laws and contract rights in the United States and in other countries to establish and maintain our proprietary rights in our technology and products. However, there can be no assurance that any of our proprietary rights will not be challenged, invalidated or circumvented. In addition, the laws of certain countries do not protect our proprietary rights to the same extent as do the laws of the United States. Therefore, there can be no assurance that we will be able to adequately protect our proprietary technology against unauthorized third-party copying or use, which could adversely affect our competitive position. Further, there can be no assurance that we will be able to obtain licenses to any technology that we may require to conduct our business or that, if obtainable, such technology can be licensed at a reasonable cost.

From time to time, we receive notices from third parties claiming infringement by our products of third-party patent or other intellectual property rights. Responding to any such claim, regardless of its merit, could be time-consuming, result in costly litigation, divert management’s attention and resources and cause us to incur significant expenses. In the event there is a

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temporary or permanent injunction entered prohibiting us from marketing or selling certain of our products or a successful claim of infringement against us requiring us to pay royalties to a third party, and we fail to develop or license a substitute technology, our business, results of operations or financial condition could be materially adversely affected.

In addition, although we believe we have adequate security measures, if our intellectual property or other sensitive data is misappropriated, we could suffer monetary and other losses and reputational harm, which could materially adversely affect our business, results of operations or financial condition. On April 23, 2012, VMware became aware of the public posting by a hacker of a single file from the VMware ESX source code. The hacker has publicly indicated that additional portions of the VMware source code and EMC source code will be posted in the future. The posted VMware code and associated commentary is from the 2004 timeframe.

We may become involved in litigation that may materially adversely affect us.

From time to time, we may become involved in various legal proceedings relating to matters incidental to the ordinary course of our business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, and governmental and other regulatory investigations and proceedings. Such matters can be time-consuming, divert management’s attention and resources and cause us to incur significant expenses. Furthermore, because litigation is inherently unpredictable, there can be no assurance that the results of any of these actions will not have a material adverse effect on our business, results of operations or financial condition.

Issues arising during the upgrade of our enterprise resource planning system could affect our operating results and ability to manage our business effectively.

We are in the process of upgrading our enterprise resource planning, or ERP, computer system to enhance operating efficiencies and provide more effective management of our business operations. The upgrade could cause substantial business interruption that could adversely impact our operating results. We are investing significant financial and personnel resources into this project. However, there is no assurance that the design will meet our current and future business needs or that it will operate as designed. We are heavily dependent on such computer systems, and any significant failure or delay in the system upgrade, if encountered, could cause a substantial interruption to our business and additional expense which could result in an adverse impact on our operating results, cash flows and financial condition.

We may have exposure to additional income tax liabilities.

As a multinational corporation, we are subject to income taxes in both the United States and various foreign jurisdictions. Our domestic and international tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and the timing of recognizing revenues and expenses. Additionally, the amount of income taxes paid is subject to our interpretation of applicable tax laws in the jurisdictions in which we file and changes to tax laws. From time to time, we are subject to income tax audits. While we believe we have complied with all applicable income tax laws, there can be no assurance that a governing tax authority will not have a different interpretation of the law and assess us with additional taxes. Should we be assessed with additional taxes, there could be a material adverse effect on our results of operations or financial condition.

In February 2010, President Obama, as part of the Administration’s FY 2011 budget, proposed changing certain of the U.S. tax rules for U.S. corporations doing business outside the United States. The proposed changes include limiting the ability of U.S. corporations to deduct certain expenses attributable to offshore earnings, modifying the foreign tax credit rules and taxing currently certain transfers of intangibles offshore. In August 2010, President Obama signed into law H.R. 1586 (commonly known as the Education Jobs and Medicaid Assistance Act), which included several international tax provisions with minimal impact on the Company’s effective tax rate. As part of its FY 2012 budget, the Administration has re-proposed, with certain modifications, a number of tax provisions that were not adopted during the previous Congress. Although the scope of future changes remains unclear, revisions to the taxation of international income continue to be a topic of conversation for the Obama Administration and the U.S. Congress. As the enactment of some or all of these proposals could increase the Company’s effective tax rate and adversely affect our profitability, we will continue to monitor them.

During 2010, the IRS announced and finalized Schedule UTP, Uncertain Tax Positions Statement. This schedule is an annual disclosure of certain federal UTPs, ranked in order of magnitude. According to the IRS, the disclosure is to include “a concise description of the tax position, including a description of the relevant facts affecting the tax treatment of the position and information that reasonably can be expected to apprise the Service of the identity of the tax position.” As a result of this disclosure, the amount of taxes we would have to pay in the future could increase.

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In December 2010, the President signed into law H.R. 4853, Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which included an extension of a number of expired tax provisions retroactively to 2010 and prospectively through 2011. Among the extended tax provisions was the research and development tax credit, which provides a significant reduction in our effective tax rate. The renewal of this credit beyond 2011 is uncertain.

Changes in regulations could materially adversely affect us.

Our business, results of operations or financial condition could be materially adversely affected if laws, regulations or standards relating to us or our products are newly implemented or changed. In addition, our compliance with existing regulations may have a material adverse impact on us. Under applicable federal securities laws, including the Sarbanes-Oxley Act of 2002, we are required to evaluate and determine the effectiveness of our internal control structure and procedures for financial reporting. Should we or our independent auditors determine that we have material weaknesses in our internal controls, our results of operations or financial condition may be materially adversely affected or our stock price may decline. In March 2010, President Obama signed into law a comprehensive health care reform package. We cannot currently determine the impact that such legislation could have on our business, results of operations or financial condition.

Changes in generally accepted accounting principles may materially adversely affect us.

From time to time, the Financial Accounting Standards Board (“FASB”) promulgates new accounting principles that could have a material adverse impact on our results of operations or financial condition. The FASB is currently contemplating a number of new accounting pronouncements which, if approved, could materially change our reported results. Such changes could have a material adverse impact on our results of operations and financial position.

Our business could be materially adversely affected as a result of the risks associated with acquisitions and investments.

As part of our business strategy, we seek to acquire businesses that offer complementary products, services or technologies. These acquisitions are accompanied by the risks commonly encountered in an acquisition of a business, which may include, among other things:

• the effect of the acquisition on our financial and strategic position and reputation;

• the failure of an acquired business to further our strategies;

• the failure of the acquisition to result in expected benefits, which may include benefits relating to enhanced revenues, technology, human resources, cost savings, operating efficiencies and other synergies;

• the difficulty and cost of integrating the acquired business, including costs and delays in implementing common systems and procedures and costs and delays caused by communication difficulties or geographic distances between the two companies’ sites;

• the assumption of known or unknown liabilities of the acquired business, including litigation-related liability;

• the potential impairment of acquired assets;

• the lack of experience in new markets, products or technologies or the initial dependence on unfamiliar supply or distribution partners;

• the diversion of our management’s attention from other business concerns;

• the impairment of relationships with customers or suppliers of the acquired business or our customers or suppliers;

• the recoverability of benefits from goodwill and intangible assets and the potential impairment of these assets;

• the potential loss of key employees of the acquired company; and

• the potential incompatibility of business cultures.

These factors could have a material adverse effect on our business, results of operations or financial condition. To the extent that we issue shares of our common stock or other rights to purchase our common stock in connection with any future acquisition, existing shareholders may experience dilution. Additionally, regardless of the form of consideration issued, acquisitions could negatively impact our net income and our earnings per share.

In addition to the risks commonly encountered in the acquisition of a business as described above, we may also experience risks relating to the challenges and costs of closing a transaction. Further, the risks described above may be exacerbated as a result of managing multiple acquisitions at the same time.

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We also seek to invest in businesses that offer complementary products, services or technologies. These investments are accompanied by risks similar to those encountered in an acquisition of a business.

Our pension plan assets are subject to market volatility.

We have a noncontributory defined benefit pension plan assumed as part of our Data General acquisition. The plan’s assets are invested in common stocks, bonds and cash. The expected long-term rate of return on the plan’s assets was 6.75%. This rate represents the average of the expected long-term rates of return weighted by the plan’s assets as of December 31, 2011. We continue to gradually shift the asset allocation to lower the percentage of investment in equity securities and increase the percentage of investments in long-duration fixed-income securities. The effect of such change could result in a reduction in the long-term rate on plan assets and an increase in future pension expense. As of December 31, 2011, the ten-year historical rate of return on plan assets was 5.5%, and the inception to date return on plan assets was 9.8%. In 2011, we experienced an 8.9% gain on plan assets. Should we not achieve the expected rate of return on the plan’s assets or if the plan experiences a decline in the fair value of its assets, we may be required to contribute assets to the plan which could materially adversely affect our results of operations or financial condition.

Our business could be materially adversely affected by changes in regulations or standards regarding energy use of our products.

We continually seek ways to increase the energy efficiency of our products. Recent analyses have estimated the amount of global carbon emissions that are due to information technology products. As a result, governmental and non-governmental organizations have turned their attention to development of regulations and standards to drive technological improvements and reduce such amount of carbon emissions. There is a risk that the development of these standards will not fully address the complexity of the technology developed by the IT industry or will favor certain technological approaches. Depending on the regulations or standards that are ultimately adopted, compliance could materially adversely affect our business, results of operations or financial condition.

Our business could be materially adversely affected as a result of war, acts of terrorism, natural disasters or climate change.

Terrorist acts, acts of war, natural disasters, or the direct and indirect effects of climate change (such as sea level rise, increased storm severity, drought, flooding, wildfires, pandemics, and social unrest from resource depletion and rising food prices) may cause damage or disruption to our employees, facilities, customers, partners, suppliers, distributors and resellers, which could have a material adverse effect on our business, results of operations or financial condition. Such events may also cause damage or disruption to transportation and communication systems and to our ability to manage logistics in such an environment, including receipt of components and distribution of products.

Item 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ISSUER PURCHASES OF EQUITY SECURITIES IN THE THIRD QUARTER OF 2012

Period	Total Number of Shares Purchased(1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2012 – July 31, 2012	29,108		$	26.21	—	44,273,109
August 1, 2012 – August 31, 2012	1,975,079		26.73		—	44,273,109
September 1, 2012 – September 30, 2012	5,444,118		27.55		5,443,970	38,829,139
Total	7,448,305	(2)	$	27.33	5,443,970	38,829,139

(1) Except as noted in note (2), all shares were purchased in open-market transactions pursuant to our previously announced authorization by our Board of Directors in April 2008 to repurchase 250.0 million shares of our common stock. This repurchase authorization does not have a fixed termination date.

(2) Includes an aggregate of 2,004,335 shares withheld from employees for the payment of taxes.

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Item 3.    DEFAULTS UPON SENIOR SECURITIES

None.

Item 4.    MINE SAFETY DISCLOSURES

Not applicable.

Item 5.    OTHER INFORMATION

None.

Item 6.    EXHIBITS

(a) Exhibits

See index to Exhibits on page 56 of this report.

54

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 2, 2012	EMC CORPORATION
	By:	/s/ David I. Goulden
		David I. Goulden
		President and Chief Operating Officer
		(Principal Financial Officer)

55

EXHIBIT INDEX

3.1	Restated Articles of Organization of EMC Corporation. (1)
3.2	Amended and Restated Bylaws of EMC Corporation. (2)
4.1	Form of Stock Certificate. (3)
4.2	Indenture with Wells Fargo Bank, N.A., as trustee, dated as of November 17, 2006. (4)
4.3	Registration Rights Agreement with Goldman, Sachs & Co., Lehman Brothers Inc. and Citigroup Global Markets Inc., dated as of November 17, 2006. (4)
10.1*	Form of Change in Control Severance Agreement for Executive Officers. (filed herewith)
31.1	Certification of Principal Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (filed herewith)
31.2	Certification of Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (filed herewith)
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed herewith)
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed herewith)
101.INS**	XBRL Instance Document. (filed herewith)
101.SCH**	XBRL Taxonomy Extension Schema. (filed herewith)
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase. (filed herewith)
101.DEF**	XBRL Taxonomy Extension Definition Linkbase. (filed herewith)
101.LAB**	XBRL Taxonomy Extension Label Linkbase. (filed herewith)
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase. (filed herewith)

_________________

*

Identifies an exhibit that is a management contract or compensatory plan or arrangement.

**

Pursuant to Rule 406T of Regulation S-T, these interactive data files shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

(1) Incorporated by reference to EMC Corporation’s Annual Report on Form 10-K filed February 27, 2009 (No. 1-9853).

(2) Incorporated by reference to EMC Corporation’s Quarterly Report on Form 10-Q filed May 5, 2011 (No. 1-9853).

(3) Incorporated by reference to EMC Corporation’s Annual Report on Form 10-K filed February 29, 2008 (No. 1-9853).

(4) Incorporated by reference to EMC Corporation’s Current Report on Form 8-K filed November 17, 2006 (No. 1-9853).

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EX-10.1

Exhibit 10.1

CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS AGREEMENT, dated [DATE], is made by and between EMC Corporation (the “Company”), and [NAME] (the “Executive”) residing at [ADDRESS].

WHEREAS, the Company considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of the Company and its stockholders; and

WHEREAS, the Executive has made and is expected to make, due to the Executive's intimate knowledge of the business and affairs of the Company, its policies, methods, personnel and problems, a significant contribution to the profitability, growth and financial strength of the Company; and

WHEREAS, the Company, as a publicly held corporation, recognizes that the possibility of a Change in Control may exist, and that such possibility and the uncertainty and questions which it may raise among management may result in the departure or distraction of the Executive in the performance of the Executive's duties, to the detriment of the Company and its stockholders; and

WHEREAS, it is in the best interests of the Company and its stockholders to reinforce and encourage the continued attention and dedication of management personnel, including the Executive, to their assigned duties without distraction and to ensure the continued availability to the Company of the Executive in the event of a Change in Control.

THEREFORE, in consideration of the foregoing and other respective covenants and agreements of the parties herein contained, the parties hereto agree as follows:

1. Defined Terms. The definitions of capitalized terms used in this Agreement are provided in Section 16.

2. Term of Agreement. The term of this Agreement (the “Term”) shall commence on [DATE] and shall continue in effect through January 1, 2013; provided, however, that commencing on January 1, 2013 and each January 1st thereafter, the Term shall automatically be extended for one additional year unless, not later than April 1 of the preceding year, the Company or the Executive shall have given notice not to extend the Term; and furtherprovided, however, that if a Change in Control shall have occurred during the Term, the Term shall expire on the last day of the twenty-fourth (24^th) month following the month in which such Change in Control occurred.

3. Company's Covenants Summarized. In order to induce the Executive to remain in the employ of the Company and in consideration of the Executive's covenants in Section 4, the Company, under the conditions described herein, shall pay the Executive the Severance Payments and the other payments and benefits described herein. No

Severance Payments shall be payable under this Agreement unless there shall have been (or, pursuant to the second sentence of Section 6.1, there shall be deemed to have been) a termination of the Executive's employment with the Company following a Change in Control and during the Term. This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and the Company, the Executive shall not have any right to be retained in the employ of the Company.

4. The Executive's Covenants. Subject to the terms and conditions of this Agreement, in the event of a Potential Change in Control, the Executive shall remain in the employ of the Company until the earliest of (i) the date which is six (6) months from the date of the first occurrence of a Potential Change in Control, (ii) the date of a Change in Control, (iii) the date of termination by the Executive of the Executive's employment for Good Reason or by reason of death, Disability or Retirement, or (iv) the termination by the Company of the Executive's employment for any reason.

5. Compensation Other Than Severance Payments; Equity Awards.

5.1If the Executive fails to perform the Executive's full‑time duties with the Company following a Change in Control as a result of incapacity due to physical or mental illness, during any period when the Executive so fails to perform the Company shall pay the Base Salary to the Executive, together with all compensation and benefits payable to the Executive under the terms of any compensation or benefit plan, program or arrangement (other than the Company's short- or long-term disability plan, as applicable, but including any bonus or incentive plan) maintained by the Company during such period, until the Executive resumes the full time performance of such duties or the Executive's employment is terminated by the Company for Disability.

5.2If the Executive's employment shall be terminated for any reason following a Change in Control, the Company shall pay the Base Salary to the Executive through the Date of Termination, together with all compensation and benefits payable to the Executive through the Date of Termination under the terms of the Company's compensation and benefit plans, programs or arrangements as in effect immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason.

5.3Except as expressly provided herein, if the Executive's employment shall be terminated for any reason following a Change in Control, the Company shall pay to the Executive the Executive's normal post‑termination compensation and benefits as such payments become due. Such post-termination compensation and benefits shall be determined under, and paid in accordance with, the Company's retirement, insurance and other compensation or benefit plans, programs and arrangements as in effect immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the occurrence of the first event or circumstance constituting Good Reason.

5.4Notwithstanding anything to the contrary contained in any equity plan or arrangement of the Company or any agreement between the Company and the Executive (but subject to the provisions of Section 14.3(D)), upon the occurrence of a Change in Control, any outstanding stock option, restricted stock or other equity or equity-based award granted to the Executive shall become immediately vested and exercisable if the Executive becomes entitled to the Severance Payments described in Section 6.1. From and after the occurrence of a Change in Control, the “detrimental activity” provisions in the Company's equity plans shall no longer apply to any award issued to the Executive under such plans.

6. Severance Payments.

6.1If the Executive's employment is terminated within twenty-four (24) months following a Change in Control, other than (a) by the Company for Cause, (b) by reason of death or Disability, or (c) by the Executive without Good Reason, then the Company shall, subject to Section 15 hereof, pay the Executive the amounts, and provide the Executive the benefits, described in this Section 6.1 (“Severance Payments”) and Section 6.2, in addition to any payments and benefits to which the Executive is entitled under Section 5. For purposes of this Agreement, the Executive's employment shall be deemed to have been terminated within twenty-four (24) months following a Change in Control and during the Term by the Company without Cause or by the Executive with Good Reason, if (i) the Executive's employment is terminated by the Company without Cause during a Potential Change in Control Period, or (ii) the Executive terminates Executive’s employment for Good Reason during a Potential Change in Control Period. In the event that the Executive's employment is terminated in the manner described in the preceding sentence during a Potential Change in Control Period, a Change in Control shall be deemed to have occurred immediately preceding such termination for purposes of Section 5.4 hereof, except with respect to equity awards held by the Executive which are intended to constitute qualified performance based compensation for purposes of Section 162(m) of the Code and regulations promulgated thereunder (other than stock options and stock appreciation rights). Except as described above, the Executive shall not be entitled to benefits pursuant to this Section 6.1 unless a Change in Control shall have occurred during the Term.

(A)The Company shall pay to the Executive a lump sum severance payment, in cash, equal to 2.99 times the sum of (a) the Base Salary, and (b) the sum of the target annual bonus available to the Executive pursuant to each of the Company's annual bonus plans or any successor plans (but excluding any special performance or incentive plan) in which the Executive participates in respect of the fiscal year in which the Date of Termination occurs (without giving effect to any event or circumstance constituting Good Reason), assuming for this purpose attainment of 100% of any applicable target; provided, however, that if the applicable target bonus would have been pro-rated for a partial fiscal year, such target bonus shall be recalculated for purposes of this Section 6.1(A) to equal the amount that for which the Executive would have been eligible for the entire fiscal year.

(B)For the thirty-six (36) month period immediately following the Date of Termination, the Company shall arrange to provide the Executive and the

Executive’s dependents life, disability, accident and health insurance benefits substantially similar to those provided to the Executive and the Executive’s dependents immediately prior to the Date of Termination or, if more favorable to the Executive, those provided to the Executive and the Executive’s dependents immediately prior to the first occurrence of an event or circumstance constituting Good Reason, at no greater after-tax cost to the Executive than the cost to the Executive immediately prior to such date or occurrence. If, at the end of the thirty-six (36) month period following the Date of Termination, the Executive has not previously become eligible to receive comparable benefits from a new employer or pursuant to a government-sponsored health insurance or health care program, then the Company shall arrange, at its sole cost and expense, to enable the Executive to convert coverage for the Executive and the Executive's dependents being provided hereunder to individual policies or programs, if applicable, upon the same terms as other former employees of the Company may apply for such conversion. The cost of providing the benefits set forth in this Section 6.1(B) shall be in addition to (and shall not reduce) the Severance Payments. Benefits otherwise receivable by the Executive pursuant to this Section 6.1(B) shall be reduced to the extent the Executive becomes eligible to receive comparable benefits from a new employer or pursuant to a government-sponsored health insurance or health care program. Unless the Executive agrees to another method, the coverage described in this Section 6.1(B) will be provided through a third party insurer.

(C)The Company shall pay to the Executive a prorated portion of the Executive's bonus compensation for the fiscal year in which the Date of Termination occurs (assuming that any applicable performance objectives were achieved at the target level of performance and without giving effect to any event or circumstance constituting Good Reason) calculated by multiplying (i) the target amount of such bonus compensation by (ii) a fraction, the numerator of which is the number of days in the applicable fiscal year through the Date of Termination and the denominator of which is 365. The foregoing payment shall be reduced by the sum of any quarterly, semi-annual and other partial year bonus payments previously paid to the Executive in respect of the fiscal year in which the Date of Termination occurs.

6.2(A)    Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a Change in Control or the termination of the Executive's employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, including the Severance Payments, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part) to the Excise Tax, then the Total Payments shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after

subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments). If a reduction in the Total Payments is required under this Section 6.2(A), the Total Payments shall be reduced by the Company in its reasonable discretion in the following order: (A) reduction of any cash payment (excluding any cash payment with respect to the acceleration of equity awards) that is otherwise payable to the Executive that is exempt from Section 409A of the Code; (B) reduction of any other payments or benefits otherwise payable to the Executive (other than those described in clause (C) below) on a pro-rata basis or such other manner that complies with Section 409A of the Code; and (C) reduction of any payment or benefit with respect to the acceleration of equity awards that is otherwise payable to the Executive (on a pro-rata basis as between equity awards that are covered by Section 409A of the Code and those that are not (or such other manner that complies with Section 409A of the Code)).

(B)    For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected by the accounting firm (the “Auditor”) which was, immediately prior to the Change in Control, the Company's independent auditor, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the Base Amount allocable to such reasonable compensation, and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

(C)    At the time that payments are made under this Agreement, the Company shall provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations including, without limitation, any opinions or other advice the Company has received from Tax Counsel, the Auditor or other advisors or consultants (and any such opinions or advice which are in writing shall be attached to the statement). If the Executive objects to the Company's calculations, the Company shall pay to the Executive such portion of the Severance Payments (up to 100% thereof) as the Executive determines is necessary to result in the proper application of subsection (A) of this Section 6.2.

6.3Subject to Section 14.3(A), the payments provided in subsection (A) and (C) of Section 6.1 shall be made on the eighth (8^th) day following the Release Deadline; provided, however, that if the amounts of such payments cannot be finally determined on or before such day, the Company shall pay to the Executive on such day an estimate, as determined in good faith by the Company, of the minimum amount of such payments to which the Executive is clearly entitled and shall pay the remainder of such payments (together with interest on the unpaid remainder (or on all such payments to the extent the Company fails to make such payments when due) at 120% of the rate provided in Section 1274(b)(2)(B) of the Code) on the thirtieth (30th) day after the Release Deadline (also subject to Section 14.3(A)). In the event that the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to the Executive, payable on the fifth (5th) business day after demand by the Company (together with interest at 120% of the rate provided in Section 1274(b)(2)(B) of the Code). At the time that payments are made under this Agreement, the Company shall provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations including, without limitation, any opinions or other advice the Company has received from Tax Counsel, the Auditor or other advisors or consultants (and any such opinions or advice which are in writing shall be attached to the statement).

6.4    The Company shall pay to the Executive all legal fees and expenses incurred by the Executive in disputing in good faith any issue hereunder relating to the termination of the Executive's employment, in seeking in good faith to obtain or enforce any benefit or right provided by this Agreement or in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the Code to any payment or benefit provided hereunder. Such payments shall be made within five (5) business days after delivery of the Executive's written requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require. The Executive's reimbursement rights described in this Section 6.4 shall remain in effect for the life of the Executive, provided, that, in order for the Executive to be entitled to reimbursement hereunder, the Executive must submit the written reimbursement request described above within 180 days following the date upon which the applicable fee or expense is incurred.

7. Termination Procedures and Compensation During Dispute.

7.1Notice of Termination. After a Change in Control, any purported termination of the Executive's employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with Section 10. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail any facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated. Further, a Notice of Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds (2/3) of the entire membership of the Board at a meeting of the Board which was called and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive, together with the

Executive's counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct set forth in clause (i), (ii) or (iii) of the definition of Cause herein, and specifying the particulars thereof in detail.

7.2Date of Termination. “Date of Termination,” with respect to any purported termination of the Executive's employment after a Change in Control, shall mean (i) if the Executive's employment is terminated for Disability, thirty (30) days after Notice of Termination is given (provided, that the Executive shall not have returned to the full-time performance of the Executive's duties during such thirty (30) day period), and (ii) if the Executive's employment is terminated for any other reason, the date specified in the Notice of Termination (which, in the case of a termination by the Company, shall not be less than ninety (90) days (except in the case of a termination for Cause) and, in the case of a termination by the Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively, from the date such Notice of Termination is given).

7.3Dispute Concerning Termination. If within ten (10) days after any Notice of Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this Section 7.3), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be extended until the earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally resolved, either by mutual written agreement of the parties or by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected); provided, however, that the Date of Termination shall be extended by a notice of dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence.

7.4Compensation During Dispute. If the Date of Termination is extended in accordance with Section 7.3, the Company shall continue to pay the Executive the full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, the Base Salary) and continue the Executive as a participant in all compensation, benefit and insurance plans in which the Executive was participating when the notice giving rise to the dispute was given, until the Date of Termination, as determined in accordance with Section 7.3. Amounts paid under this Section 7.4 are in addition to all other amounts due under this Agreement (other than those due under Section 5.2) and shall not be offset against or reduce any other amounts due under this Agreement.

8. No Mitigation. If the Executive's employment with the Company terminates following a Change in Control, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 6 or Section 7.4. Except as set forth in Section 6.1(B), the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company, or otherwise.

9. Successors; Binding Agreement.

9.1In addition to any obligations imposed by law upon any successor to the Company, the Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement.

9.2This Agreement shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive shall die while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive's estate.

10. Notices. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed to the last known residence address of the Executive or in the case of the Company, to its principal office to the attention of the Chief Executive Officer of the Company with a copy to its clerk or Secretary, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

11. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or of any lack of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes, effective as of [DATE], any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof which have been made by either party (including, without limitation, the Change in Control Severance Agreement by and between the Company and the Executive, dated [DATE]; provided, however, that this Agreement shall not supersede any agreement setting forth the terms and conditions of the Executive's employment with the Company or any subsidiary of the Company. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts. All references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law and any additional

withholding to which the Executive has agreed. The obligations of the Company under this Agreement which by their nature may require either partial or total performance after the expiration of the Term (including, without limitation, those under Sections 6 and 7) shall survive such expiration.

12. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

13. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

14. Settlement of Disputes; Arbitration; 409A Compliance.

14.1All claims by the Executive for benefits under this Agreement shall be directed to and determined by the Board and shall be in writing. Any denial by the Board of a claim for benefits under this Agreement shall be delivered to the Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon. The Board shall afford a reasonable opportunity to the Executive for a review of the decision denying a claim and shall further allow the Executive to appeal to the Board a decision of the Board within sixty (60) days after notification by the Board that the Executive's claim has been denied.

14.2Any further dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Boston, Massachusetts in accordance with the rules of the American Arbitration Association then in effect; provided, however, that the evidentiary standards set forth in this Agreement shall apply. Judgment may be entered on the arbitrator's award in any court having jurisdiction. Notwithstanding any provision of this Agreement to the contrary, the Executive shall be entitled to seek specific performance of the Executive's right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement.

14.3It is the intention of the Company and the Executive that this Agreement not result in taxation of the Executive under Section 409A of the Code and the regulations and guidance promulgated thereunder and that the Agreement shall be construed in accordance with such intention. Without limiting the generality of the foregoing, the Company and the Executive agree as follows:

(A)Notwithstanding anything to the contrary herein, if the Executive is a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code) with respect to the Company, any amounts (or benefits) otherwise payable to or in respect of the Executive under this Agreement pursuant to the Executive's termination of employment with the Company shall be delayed, to the extent required so that taxes are not imposed on the Executive pursuant to Section 409A of the Code, and shall be paid upon the earliest date permitted by Section 409A(a)(2) of the Code;

(B)For purposes of this Agreement, the Executive's employment with the Company will not be treated as terminated unless and until such termination of employment constitutes a “separation from service” for purposes of Section 409A of the Code;

(C)To the extent necessary to comply with the provisions of Section 409A of the Code and the guidance issued thereunder (1) reimbursements to the Executive as a result of the operation of Section 6.1(B), or Section 6.4 hereof shall be made not later than the end of the calendar year following the year in which the reimbursable expense is incurred and shall otherwise be made in a manner that complies with the requirements of Treasury Regulation Section 1.409A-3(i)(l)(iv), (2) if Executive is a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code), any reimbursements to the Executive as a result of the operation of such sections with respect to a reimbursable event within the first six months following the Date of Termination which are required to be delayed pursuant to Section 14.3(A) shall be made as soon as practicable following the date which is six months and one day following the Date of Termination (subject to clause (1) of this sentence); and

(D)    If the provisions of Section 5.4 are applicable to an equity or equity-based award subject to the provisions of Section 409A of the Code and the immediate payment of the award contemplated by Section 5.4 would result in taxation under Section 409A, payment of such awards shall be made upon the earliest date upon which such payment may be made without resulting in taxation under Section 409A of the Code. For the avoidance of doubt, with respect to any equity or equity-based awards which are subject to Section 409A of the Code and which comply with the permissible payment requirements of such section by providing for payments pursuant to a fixed schedule, the application of Section 5.4, as modified (to the extent required) by this Section 14.3(D), shall require that the payment of such awards continue upon such fixed schedule following the Date of Termination until the award is fully vested.

15. Release. Notwithstanding anything to the contrary herein, the payment to the Executive of the benefits provided in Section 6 upon the Executive’s termination of employment shall be subject to the execution and non-revocation by the Executive of the Company’s standard form of release in favor of the Company and its Affiliates, as in effect immediately prior to the Change in Control. Such release must be executed by the Executive within 45 days following the Date of Termination (the “Release Deadline”).

16. Definitions. For purposes of this Agreement, the following terms shall have the meanings indicated below:

16.1“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

16.2“Auditor” shall have the meaning set forth in Section 6.2.

16.3“Base Amount” shall have the meaning set forth in Section 280G(b)(3) of the Code.

16.4“Base Salary” shall mean the annual base salary in effect for the Executive immediately prior to a Change in Control, as such salary may be increased from time to time during the Term (in which case such increased amount shall be the Base Salary for purposes hereof), but without giving effect to any reduction thereto.

16.5“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

16.6“Board” shall mean the Board of Directors of the Company.

16.7“Cause” for termination by the Company of the Executive's employment shall mean (i) the willful and continued failure by the Executive (other than any such failure resulting from (A) the Executive's incapacity due to physical or mental illness, (B) any such actual or anticipated failure after the issuance of a Notice of Termination by the Executive for Good Reason or (C) the Company's active or passive obstruction of the performance of the Executive's duties and responsibilities) to perform substantially the duties and responsibilities of the Executive's position with the Company after a written demand for substantial performance is delivered to the Executive by the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed such duties or responsibilities; (ii) the conviction of the Executive by a court of competent jurisdiction for felony criminal conduct; or (iii) the willful engaging by the Executive in fraud or dishonesty which is demonstrably and materially injurious to the Company or its reputation, monetarily or otherwise. No act, or failure to act, on the Executive's part shall be deemed “willful” unless committed or omitted by the Executive in bad faith and without reasonable belief that the Executive's act or failure to act was in, or not opposed to, the best interest of the Company. It is also expressly understood that the Executive's attention to matters not directly related to the business of the Company shall not provide a basis for termination for Cause so long as the Board has approved the Executive's engagement in such activities.

16.8A “Change in Control” shall be deemed to have occurred if any of the events set forth in any one of the following paragraphs shall have occurred:

(A)any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in Section 16.8(C)(i);

(B)the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company)

whose appointment or election by the Board or nomination for election by the Company's stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended;

(C)there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 25% or more of the combined voting power of the Company's then outstanding securities; or

(D)the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets, other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

Notwithstanding anything in the foregoing to the contrary, no Change in Control shall be deemed to have occurred for purposes of this Agreement by virtue of any transaction which results in the Executive, or a group of Persons which includes the Executive, acquiring, directly or indirectly, 25% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding securities.

16.9“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

16.10“Company” shall mean EMC Corporation and, except in determining under Section 16.8 whether or not any Change in Control of the Company has occurred, shall include any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise.

16.11“Date of Termination” shall have the meaning set forth in Section 7.2.

16.12“Disability” shall be deemed the reason for the termination by the Company of the Executive's employment, if, as a result of the Executive's incapacity due to

physical or mental illness, the Executive shall have been absent from the full-time performance of the Executive's duties with the Company for a period of one hundred twenty (120) days, the Company shall have given the Executive a Notice of Termination for Disability, and, within thirty (30) days after such Notice of Termination is given, the Executive shall not have returned to the full-time performance of the Executive's duties. Any question as to the existence of the Executive's Disability upon which the Executive and the Company cannot agree shall be determined by a qualified independent physician selected by the Executive (or, if the Executive is unable to make such selection, it shall be made by any adult member of the Executive's immediate family), and approved by the Company. The determination of such physician made in writing to the Company and to the Executive shall be final and conclusive for all purposes of this Agreement, absent fraud.

16.13“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

16.14“Excise Tax” shall mean any excise tax imposed under Section 4999 of the Code.

16.15“Executive” shall mean the individual named in the first paragraph of this Agreement.

16.16“Good Reason” for termination by the Executive of the Executive's employment shall mean the occurrence (without the Executive's express written consent) after any Change in Control, or prior to a Change in Control under the circumstances described in the second sentence of Section 6.1 (treating all references in subsections (A) through (F) below (but not including subsection (G) below) to a “Change in Control” as references to a “Potential Change in Control”), of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in subsection (A), (B), (C), (D), (E) or (G) below, such act or failure to act is corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof:

(A)an adverse change in the Executive's role or position(s) as an officer of the Company as in effect immediately prior to the Change in Control, including, without limitation, any adverse change in the Executive's role or position as a result of a diminution of the Executive's duties or responsibilities (other than, if applicable, any such change directly and solely attributable to the fact that the Company is no longer publicly owned) or the assignment to the Executive of any duties or responsibilities which are inconsistent with such role or position(s), or any removal of the Executive from, or any failure to reappoint or reelect the Executive to, such position(s);

(B)a reduction in the Executive's Base Salary;

(C)the failure by the Company or any subsidiary of the Company to continue in effect any Plan in which the Executive is participating at the time of the Change in Control (or Plans providing the Executive with at least substantially similar benefits) other than as a result of the normal expiration of any such Plan in accordance

with its terms as in effect at the time of the Change in Control, or the taking of any action, or the failure to act, by the Company which would adversely affect the Executive's continued participation in any of such Plans on at least as favorable a basis to the Executive as is the case on the date of the Change in Control or which would materially reduce the Executive's benefits in the future under any of such Plans or deprive the Executive of any material benefit enjoyed by the Executive at the time of the Change in Control;

(D)the Company requiring the Executive to be based at an office that is greater than 50 miles from where the Executive's office is located immediately prior to the Change in Control except for required travel on the Company's business to an extent substantially consistent with the business travel obligations which the Executive undertook on behalf of the Company prior to the Change in Control;

(E)any unreasonable refusal by the Company to continue to allow the Executive to attend to matters or engage in activities not directly related to the business of the Company which, prior to the Change in Control, the Executive was permitted by the Board to attend to or engage in;

(F)any purported termination of the Executive's employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 7.1; for purposes of this Agreement, no such purported termination shall be effective; or

(G)a breach by the Company of its obligations under Section 9.1 hereof.

The Executive's right to terminate the Executive's employment for Good Reason shall not be affected by the Executive's incapacity due to physical or mental illness. In order for Good Reason to exist hereunder, the Executive must provide notice to the Company of the existence of the condition or circumstance described above within 90 days of the initial existence of the condition or circumstance (or, if later, within 90 days of the Executive's becoming aware of such condition or circumstance), and the Company must have failed to cure such condition within 30 days of the receipt of such notice. Subject to the preceding sentence, the Executive's continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.

For purposes of any determination regarding the existence of Good Reason, any good faith claim by the Executive that Good Reason exists shall be presumed to be correct unless the Company establishes to the Board by clear and convincing evidence that Good Reason does not exist.

16.17“Notice of Termination” shall have the meaning set forth in Section 7.1.

16.18“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not

include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

16.19“Plan” shall mean any compensation plan such as an incentive plan, or any employee benefit plan such as a thrift, pension, profit sharing, medical, disability, accident, life insurance plan or a relocation or vacation plan or policy or any other plan, program or policy of the Company or its subsidiaries intended to benefit employees, but excluding following a Change in Control (but not during a Potential Change in Control Period) any stock option, restricted stock or other stock-based plan or benefit except with respect to any awards outstanding under any such plan as of the date of the Change in Control.

16.20“Potential Change in Control” shall be deemed to have occurred if the event set forth in any one of the following subsections shall have occurred:

(A)the Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control;

(B)the Company or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control;

(C)any Person becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 15% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding securities; or

(D)the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred.

16.21“Potential Change in Control Period” shall commence upon the occurrence of a Potential Change in Control and shall lapse upon the occurrence of a Change in Control or, if earlier (i) with respect to a Potential Change in Control occurring pursuant to Section 16.20(A), immediately upon the abandonment or termination of the applicable agreement, (ii) with respect to a Potential Change in Control occurring pursuant to Section 16.20(B), immediately upon a public announcement by the applicable party that such party has abandoned its intention to take or consider taking actions which if consummated would result in a Change in Control, or (iii) with respect to a Potential Change in Control occurring pursuant to Section 16.20(C) or (D), upon the one year anniversary of the occurrence of a Potential Change in Control (or such earlier date as may be determined by the Board).

16.22“Release Deadline” shall have the meaning set forth in Section 15.

16.23“Retirement” shall be deemed the reason for the termination by the Executive of the Executive's employment if such employment is terminated in accordance with the Company's retirement policy, including early retirement, generally applicable to its salaried employees.

16.24“Severance Payments” shall have the meaning set forth in Section 6.1.

16.25“Tax Counsel” shall have the meaning set forth in Section 6.2.

16.26“Term” shall mean the period of time described in Section 2 (including any extension, continuation or termination described therein).

16.27“Total Payments” shall mean those payments so described in Section 6.2.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

EMC CORPORATION

By:___________________________________

Name:

Title:

___________________________________

[EXECUTIVE]

Schedule of Change in Control Severance Agreements

Name	Date of Agreement/ Commencement of Term
Burton, Jeremy	31-Dec-2011
Coviello, Arthur	31-Dec-2011
Dacier, Paul	31-Dec-2011
Elias, Howard	31-Dec-2011
Goulden, David	31-Dec-2011
Krakauer, Mary Louise	19-Apr-2012
Maritz, Paul	1-Sept-2012
Mollen, John T.	31-Dec-2011
Scannell, William F.	31-Dec-2011
Teuber, William J., Jr.	31-Dec-2011
Tucci, Joseph M.	31-Dec-2011
You, Harry	31-Dec-2011

EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

I, Joseph M. Tucci, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of EMC Corporation (“the Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: November 2, 2012 /s/ Joseph M. Tucci            

Joseph M. Tucci

Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

I, David I. Goulden, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of EMC Corporation (“the Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: November 2, 2012 /s/ David I. Goulden            

David I. Goulden

President, Chief Operating Officer and Chief

Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph M. Tucci, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Quarterly Report on Form 10-Q of EMC Corporation for the quarter ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of EMC Corporation.

/s/ Joseph M. Tucci            

Joseph M. Tucci

Chairman and Chief Executive Officer

November 2, 2012

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. This certification shall not be deemed incorporated by reference in any filing under the Securities Act or Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, David I. Goulden, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Quarterly Report on Form 10-Q of EMC Corporation for the quarter ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of EMC Corporation.

/s/ David I. Goulden            

David I. Goulden

President, Chief Operating Officer and Chief

Financial Officer

November 2, 2012

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. This certification shall not be deemed incorporated by reference in any filing under the Securities Act or Exchange Act, except to the extent that the Company specifically incorporates it by reference.

XML

Business Combinations, Intangibles and Goodwill - Additional Information (Details) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	9 Months Ended			9 Months Ended		3 Months Ended
	Sep. 30, 2012 Entity	Sep. 30, 2011	Jun. 30, 2012	Sep. 30, 2012 EMC Entity	Sep. 30, 2012 VMware Entity	Sep. 30, 2012 VMware Nicira	Aug. 24, 2012 VMware Nicira
Business Acquisition [Line Items]
Assumptions Used Calculating Research And Development In Process Discount Rate						17.00%
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net						$ 1,099,624,000
Businesses acquired (in number of entities)	13			7	6
Business acquisition, adjustment to fair value of previously held interests, recognized in other income			31,600,000
Business acquisition, aggregate consideration for businesses	1,899,200,000					1,099,600,000
Cash consideration for acquisition of businesses	1,878,051,000	536,624,000				1,083,000,000
Stock options issued in business acquisitions	21,100,000					16,600,000
Unvested Stock Options Issued During Period Shares Acquisitions						1.1
Stock Issued During Period, Shares, Acquisitions						0.6
Acquisition-date closing share price							$ 92.21
Consideration of acquisitions allocated to goodwill	1,583,700,000					947,956,000
Consideration of acquisitions allocated to intangibles	553,000,000					334,600,000
Consideration of acquisitions allocated to net liabilities	$ 237,500,000
Share-based Compensation Arrangement, Fair Value Assumptions, Expected Term						2 years 8 months 12 days
Share-based Compensation Arrangement, Fair Value Assumptions, Risk Free Interest Rate						0.30%
Share-based Compensation Arrangement, Fair Value Assumptions, Expected Volatility Rate						35.70%
Share-based Compensation Arrangement, Fair Value Assumptions, Expected Dividend Rate						0.00%

XML

Accounts and Notes Receivable and Allowance for Credit Losses - Additional Information (Detail) (USD $)			9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Future Period
Financing Receivable, Recorded Investment, Past Due [Line Items]
Gross lease receivables	$ 344,299,000	$ 335,500,000
Sales of leases to third parties without recourse			$ 54,800,000

XML

Changes In Fair Value of Level 3 Financial Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of the period	$ 73,896	$ 99,154	$ 74,596	$ 146,044
Calls at par value		(13,100)	(225)	(64,600)
Other than Temporary Impairment Losses, Investments	0	0	(1,969)	0
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	950	(4,963)	2,444	(353)
Balance, end of the period	$ 74,846	$ 81,091	$ 74,846	$ 81,091

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Components of Property, Plant and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Furniture and fixtures	$ 185,933	$ 180,800
Equipment and software	5,129,879	4,680,118
Buildings and improvements	1,806,957	1,748,214
Land	123,334	117,513
Building construction in progress	190,934	146,650
Property, Plant and Equipment, Gross, Total	7,437,037	6,873,295
Accumulated depreciation	(4,453,591)	(4,040,146)
Property, plant and equipment, net	2,983,446	2,833,149
Assets Held For Future Use [Member]
Property, Plant and Equipment [Line Items]
Building construction in progress	$ 66,500

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Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	$ 10,580,000
Convertible debt	(2,938,101)
Foreign exchange derivative assets	47,311
Foreign exchange derivative liabilities	(23,426)
Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,441,347
Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,719,470
US Government Agencies Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,043,816
US Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,373,186
High Yield Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	498,617
Asset-backed Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	3,235
Municipal Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,027,517
Auction Rate Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	74,846
Foreign Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,252,990
Publicly Traded Equity Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	144,976
Strategic Investments Held At Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	254,338
Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commodity derivative liabilities	(1,502)
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	5,430,017
Fair Value, Inputs, Level 1 | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,441,347
Fair Value, Inputs, Level 1 | Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,715,470
Fair Value, Inputs, Level 1 | US Government Agencies Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,128,224
Fair Value, Inputs, Level 1 | Publicly Traded Equity Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	144,976
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	5,075,137
Convertible debt	(2,938,101)
Foreign exchange derivative assets	47,311
Foreign exchange derivative liabilities	(23,426)
Fair Value, Inputs, Level 2 | Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	4,000
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	915,592
Fair Value, Inputs, Level 2 | US Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,373,186
Fair Value, Inputs, Level 2 | High Yield Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	498,617
Fair Value, Inputs, Level 2 | Asset-backed Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	3,235
Fair Value, Inputs, Level 2 | Municipal Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,027,517
Fair Value, Inputs, Level 2 | Foreign Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,252,990
Fair Value, Inputs, Level 2 | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commodity derivative liabilities	(1,502)
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	74,846
Fair Value, Inputs, Level 3 | Auction Rate Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	74,846
Fair Value, Inputs, Level 3 | Strategic Investments Held At Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	$ 254,338

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Reconciliation from Basic to Diluted Earnings Per Share

The reconciliation from basic to diluted earnings per share for both the numerators and denominators is as follows (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Numerator:
Net income attributable to EMC Corporation	$	626,338		$	605,649		$	1,862,694		$	1,629,291
Incremental dilution from VMware	(1,766		)	(3,233		)	(7,425		)	(11,178		)
Net income – dilution attributable to EMC Corporation	$	624,572		$	602,416		$	1,855,269		$	1,618,113
Denominator:
Weighted average shares, basic	2,104,205			2,054,007			2,089,516			2,060,242
Weighted common stock equivalents	38,043			46,629			41,974			55,418
Assumed conversion of the 2013 Notes and associated warrants	68,173			106,463			75,315			128,848
Weighted average shares, diluted	2,210,421			2,207,099			2,206,805			2,244,508

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, which is presented net of tax, consists of the following (table in thousands):

	September 30, 2012			December 31, 2011
Foreign currency translation adjustments	$	(2,924	)	$	(10,780	)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(3,128) and $(8,492)	(6,099		)	(15,044		)
Unrealized gains on investments, net of taxes of $61,961 and $18,343	105,755			30,608
Unrealized losses on derivatives, net of tax benefits of $(68,007) and $(62,210)	(111,235		)	(100,446		)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(81,798) and $(81,798)	(139,108		)	(139,108		)
	(153,611		)	(234,770		)
Less: accumulated other comprehensive income attributable to the non-controlling interest in VMware, Inc.	(1,692		)	(239		)
	$	(155,303	)	$	(235,009	)

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Components of Accrued Expenses (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Payables and Accruals [Abstract]
Salaries and benefits	$ 938,841		$ 961,587
Product warranties	264,817	262,059	254,554	248,975	248,395	236,131
Partner rebates	153,552		167,813
Restructuring, current (see Note 13)	69,578		61,541
Derivatives	29,589		50,963
Other	861,191		858,521
Accrued Liabilities, Current, Total	$ 2,317,568		$ 2,354,979

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Non-controlling Interest in VMware, Inc. (Tables)

9 Months Ended

Sep. 30, 2012

Noncontrolling Interest [Abstract]

Effect of Changes in Ownership Interest in VMware on Equity

The effect of changes in our ownership interest in VMware on our equity was as follows (table in thousands):

	For the Nine Months Ended
	September 30, 2012			September 30, 2011
Net income attributable to EMC Corporation	$	1,862,694		$	1,629,291
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances	117,635			160,908
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity	(392,297		)	(541,729		)
Net transfers (to) from non-controlling interest	(274,662		)	(380,821		)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.	$	1,588,032		$	1,248,470

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Fair Value of Financial Assets and Liabilities Contractual Maturities of Investments (Detail) (Debt Securities, USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Debt Securities
Amortized Cost Basis
Due within one year	$ 1,271,478
Due after 1 year through 5 years	4,083,712
Due after 5 years through 10 years	463,518
Due after 10 years	394,200
Available For Sale Securities Amortized Cost	6,212,908	6,228,479
Aggregate Fair Value
Due within one year	1,275,151
Due after 1 year through 5 years	4,118,038
Due after 5 years through 10 years	488,630
Due after 10 years	392,388
Available For Sale Securities Fair Value	$ 6,274,207	$ 6,247,092

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Business Combinations, Intangibles and Goodwill Allocation of Purchase Price (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012
Business Acquisition [Line Items]
Total intangible assets	553,000
Goodwill	1,583,700
VMware | Nicira
Business Acquisition [Line Items]
Purchased technology (weighted-average useful life of 7 years)	266,000
Trademarks and tradenames (weighted-average useful life of 10 years)	20,100
In process research and development	48,500
Total intangible assets	334,600
Goodwill	947,956
Deferred Income Tax Liabilities, net	(78,247)
Income tax payable	(103,822)
Other current liabilities, net of current assets	(863)
Total purchase price	1,099,624
Purchased Technology | VMware | Nicira
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
Trademarks And Tradenames | VMware | Nicira
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years

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Non-controlling Interest in VMware, Inc. - Additional Information (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Noncontrolling Interest [Abstract]
Non-controlling interest in VMware, Inc.	$ 1,151,646	$ 968,089
Voting power of VMware's outstanding common stock	97.00%
Percentage of ownership interest in VMware, Inc.	79.00%

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Contractual Amounts Due under Leases (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Receivables [Abstract]
Due within one year	$ 154,858
Due within two years	98,920
Due within three years	88,997
Thereafter	1,524
Total	344,299	335,500
Less amounts representing interest	(9,049)
Present value	335,250
Current portion (included in accounts and notes receivable)	153,013
Long-term portion (included in other assets, net)	$ 182,237

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Segment Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Product revenues	$ 3,084,441	$ 3,074,367	$ 9,332,035	$ 9,049,610
Services revenues	2,193,735	1,905,834	6,351,912	5,383,547
Total consolidated revenues	5,278,176	4,980,201	15,683,947	14,433,157
Cost of sales	1,990,637	1,913,936	5,935,798	5,787,554
Gross profit	3,287,539	3,066,265	9,748,149	8,645,603
Gross profit percentage	62.30%	61.60%	62.20%	59.90%
Research and development	652,898	548,021	1,896,656	1,589,020
Selling, general and administrative	1,708,794	1,612,914	5,075,641	4,684,534
Restructuring and acquisition-related charges	27,064	20,302	80,560	68,411
Total costs and expenses	2,388,756	2,181,237	7,052,857	6,341,965
Operating income	898,783	885,028	2,695,292	2,303,638
Other income (expense), net	(54,685)	(71,828)	(130,631)	(101,887)
Income before provision for income taxes	844,098	813,200	2,564,661	2,201,751
Income tax provision	185,434	171,086	590,600	465,456
Net income	658,664	642,114	1,974,061	1,736,295
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(32,326)	(36,465)	(111,367)	(107,004)
Net income attributable to EMC Corporation	626,338	605,649	1,862,694	1,629,291
Information Storage
Revenues:
Product revenues	2,438,665	2,465,339	7,406,314	7,282,052
Services revenues	1,324,110	1,197,581	3,862,593	3,388,839
Total consolidated revenues	3,762,775	3,662,920	11,268,907	10,670,891
Cost of sales	1,625,910	1,583,727	4,893,097	4,733,529
Gross profit	2,136,865	2,079,193	6,375,810	5,937,362
Gross profit percentage	56.80%	56.80%	56.60%	55.60%
Information Intelligence Group
Revenues:
Product revenues	49,881	50,439	131,440	135,797
Services revenues	108,117	111,157	324,884	336,846
Total consolidated revenues	157,998	161,596	456,324	472,643
Cost of sales	50,471	59,436	156,839	176,361
Gross profit	107,527	102,160	299,485	296,282
Gross profit percentage	68.10%	63.20%	65.60%	62.70%
RSA Information Security
Revenues:
Product revenues	106,020	115,685	305,967	305,138
Services revenues	120,918	99,215	348,258	280,150
Total consolidated revenues	226,938	214,900	654,225	585,288
Cost of sales	81,330	69,664	196,104	277,817
Gross profit	145,608	145,236	458,121	307,471
Gross profit percentage	64.20%	67.60%	70.00%	52.50%
EMC Information Infrastructure
Revenues:
Product revenues	2,594,566	2,631,463	7,843,721	7,722,987
Services revenues	1,553,145	1,407,953	4,535,735	4,005,835
Total consolidated revenues	4,147,711	4,039,416	12,379,456	11,728,822
Cost of sales	1,757,711	1,712,827	5,246,040	5,187,707
Gross profit	2,390,000	2,326,589	7,133,416	6,541,115
Gross profit percentage	57.60%	57.60%	57.60%	55.80%
Research and development	367,792	316,380	1,077,907	932,581
Selling, general and administrative	1,102,888	1,099,329	3,325,212	3,179,639
Restructuring and acquisition-related charges	0	0	0	0
Total costs and expenses	1,470,680	1,415,709	4,403,119	4,112,220
Operating income	919,320	910,880	2,730,297	2,428,895
Other income (expense), net	(49,863)	(43,223)	(107,276)	(76,169)
Income before provision for income taxes	869,457	867,657	2,623,021	2,352,726
Income tax provision	210,517	237,936	706,003	620,453
Net income	658,940	629,721	1,917,018	1,732,273
Less: Net income attributable to the non-controlling interest in VMware, Inc.	0	0	0	0
Net income attributable to EMC Corporation	658,940	629,721	1,917,018	1,732,273
VMware Virtual Infrastructure Within EMC
Revenues:
Product revenues	489,875	442,904	1,488,314	1,326,623
Services revenues	640,590	497,881	1,816,177	1,377,712
Total consolidated revenues	1,130,465	940,785	3,304,491	2,704,335
Cost of sales	135,588	130,683	400,327	390,438
Gross profit	994,877	810,102	2,904,164	2,313,897
Gross profit percentage	88.00%	86.10%	87.90%	85.60%
Research and development	196,888	148,576	574,282	412,575
Selling, general and administrative	435,454	368,187	1,273,696	1,057,615
Restructuring and acquisition-related charges	0	0	0	0
Total costs and expenses	632,342	516,763	1,847,978	1,470,190
Operating income	362,535	293,339	1,056,186	843,707
Other income (expense), net	8,498	197	20,337	4,466
Income before provision for income taxes	371,033	293,536	1,076,523	848,173
Income tax provision	82,920	22,949	194,699	103,711
Net income	288,113	270,587	881,824	744,462
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(57,912)	(54,622)	(179,699)	(151,612)
Net income attributable to EMC Corporation	230,201	215,965	702,125	592,850
Corp Reconciling Items
Revenues:
Product revenues	0	0	0	0
Services revenues	0	0	0	0
Total consolidated revenues	0	0	0	0
Cost of sales	97,338	70,426	289,431	209,409
Gross profit	(97,338)	(70,426)	(289,431)	(209,409)
Research and development	88,218	83,065	244,467	243,864
Selling, general and administrative	170,452	145,398	476,733	447,280
Restructuring and acquisition-related charges	27,064	20,302	80,560	68,411
Total costs and expenses	285,734	248,765	801,760	759,555
Operating income	(383,072)	(319,191)	(1,091,191)	(968,964)
Other income (expense), net	(13,320)	(28,802)	(43,692)	(30,184)
Income before provision for income taxes	(396,392)	(347,993)	(1,134,883)	(999,148)
Income tax provision	(108,003)	(89,799)	(310,102)	(258,708)
Net income	(288,389)	(258,194)	(824,781)	(740,440)
Less: Net income attributable to the non-controlling interest in VMware, Inc.	25,586	18,157	68,332	44,608
Net income attributable to EMC Corporation	$ (262,803)	$ (240,037)	$ (756,449)	$ (695,832)

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Stockholders' Equity - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		54 Months Ended			9 Months Ended	1 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Dec. 31, 2008	Nov. 30, 2006	Sep. 30, 2012 Scenario, Forecast [Member]	Nov. 30, 2006 Sold Warrants
Sold warrants to acquire shares of our common stock									215
Sold warrants to acquire shares of our common stock, exercise price per share							19.55
Common stock excluded from calculation of diluted earnings per share	5.2	17.6	4.3	15.4
Repurchases of Common Stock, shares authorized to repurchase						250.0
Total Repurchases of Common Stock, shares			15.3		211.2
Total Repurchases of Common Stock			$ 410.0		$ 4,100.0
Shares authorized for future repurchases	38.8		38.8		38.8
Plan to spend for the year on common stock repurchases								$ 700.0

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Fair Value of Financial Assets and Liabilities - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Holding Period	5 years
Auction rate securities that have partial guarantees by the U.S. government, market value	$ 16,600,000
Discount rate used to estimate fair value of investments	1.00%
The rate used for the discount margin to determine the estimated fair value of investment in auction rate securities	1.00%	2.00%
Percentage of Loans Guaranteed	95.00%
Short term investment	1,284,855,000	1,786,987,000
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Coupon rate used to estimate fair value of invesments - Start Range	0.00%
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Coupon rate used to estimate fair value of invesments - End Range	4.00%
US Government Agencies Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	2,043,816,000	2,484,961,000
US Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	1,373,186,000	1,407,753,000
High Yield Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	498,617,000	447,479,000
Municipal Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	1,027,517,000	816,081,000
Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	6,274,207,000	6,247,092,000
Foreign Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	1,252,990,000	987,074,000
Average credit rating	A+
Foreign Sovereign Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Average credit rating	AA
Percentage of Available For Sale Securities Debt Securities	5.00%
Auction Rate Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	74,846,000	74,596,000
Average credit rating	AA
Variable Rate Demand Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short term investment	$ 9,700,000
Contractual maturity period	2014

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Basis of Presentation

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Company

EMC Corporation (“EMC”) and its subsidiaries develop, deliver and support the Information Technology (“IT”) industry’s broadest range of information infrastructure and virtual infrastructure technologies, solutions and services.

EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure their vast and ever-increasing quantities of information, improve business agility, lower cost of ownership and enhance their competitive advantage within traditional data centers, virtual data centers and cloud-based IT infrastructures. EMC’s Information Infrastructure business comprises three segments – Information Storage, RSA Information Security and Information Intelligence Group.

EMC’s VMware Virtual Infrastructure business, which is represented by EMC’s majority equity stake in VMware, Inc. (“VMware”), is the leader in virtualization and virtualization-based cloud infrastructure solutions utilized by businesses to help them transform the way they build, deliver and consume IT resources in a manner that is evolutionary and based on their specific needs. VMware’s virtualization infrastructure software solutions run on industry-standard desktop computers and servers and support a wide range of operating system and application environments, as well as networking and storage infrastructures.

General

The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These consolidated financial statements include the accounts of EMC, its wholly owned subsidiaries and VMware, a company majority-owned by EMC. All intercompany transactions have been eliminated.

Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2011 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2012.

The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for any future period or the entire fiscal year. The interim consolidated financial statements, in the opinion of management, reflect all adjustments necessary to fairly state the results as of and for the three- and nine-month periods ended September 30, 2012 and 2011.

Net Income Per Share

Basic net income per weighted average share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per weighted average share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of stock options, restricted stock and restricted stock units, our $1.725 billion1.75% convertible senior notes due 2013 and associated warrants. Additionally, for purposes of calculating diluted net income per weighted average share, net income is adjusted for the difference between VMware’s reported diluted and basic net income per weighted average share, if any, multiplied by the number of shares of VMware held by EMC.

Adjustments for Immaterial Prior Period Accounting Error

During the second quarter of 2012, we determined that since VMware’s public offering in 2007, we have incorrectly recorded deferred tax liabilities on the gains and losses associated with changes in the non-controlling interest. These deferred tax liabilities were recorded as a reduction to additional paid-in capital and therefore had no impact on our previously reported consolidated income statements. The error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $352.6 million in our December 31, 2011 consolidated balance sheet and an understatement of additional paid-in capital of $357.2 million in our statement of shareholders’ equity for the nine months ended September 30, 2011.  These corrections are reflected in the consolidated balance sheets as of December 31, 2011 and in the statement of shareholders’ equity for the nine months ended September 30, 2011 and are not material to the consolidated balance sheets or statements of shareholders’ equity for the years ended December 31, 2011, 2010, 2009, 2008 or 2007 or any related interim periods. In addition, the error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $467.1 million in our December 31, 2010 consolidated balance sheet and statement of shareholders’ equity and an understatement of additional paid-in capital of $499.6 million in our statement of shareholders’ equity at December 31, 2009. These adjusted prior-period balances will be reflected in our future filings.

Recent Accounting Pronouncements

In July 2012, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to simplify the impairment testing of indefinite-lived intangible assets other than goodwill. Under this guidance, an entity is allowed to perform a qualitative assessment about the likelihood of impairment of an indefinite-lived intangible asset to determine whether further impairment testing is necessary, similar in approach to the goodwill impairment test. This new guidance is effective for fiscal years beginning after September 15, 2012. We do not believe the adoption of the new guidance will have an impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued new guidance to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased disclosures regarding valuation inputs and investment categorization. The adoption of this new accounting guidance in 2012 did not have a material impact on our consolidated financial position, results of operations or cash flows.

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Accumulated Other Comprehensive Loss, Net of Tax (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Stockholders' Equity Note [Abstract]
Foreign currency translation adjustments	$ (2,924)	$ (10,780)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(4,771) and $(8,492)	(6,099)	(15,044)
Unrealized gains on investments, net of taxes of $40,589 and $18,343	105,755	30,608
Unrealized losses on derivatives, net of tax benefits of $(62,978) and $(62,210)	(111,235)	(100,446)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(81,798) and $(81,798)	(139,108)	(139,108)
Accumulated Other Comprehensive Income Including Portion Attributable To Noncontrolling Interest, Total	(153,611)	(234,770)
Less: Accumulated other comprehensive income attributable to the non-controlling interest in VMware, Inc.	(1,692)	(239)
Accumulated other comprehensive loss, net	(155,303)	(235,009)
Unrealized losses on temporarily impaired investments, tax benefits	(3,128)	(8,492)
Unrealized gains on investments, taxes	61,961	18,343
Unrealized gains (losses) on derivatives, taxes (benefits)	(68,007)	(62,210)
Recognition of actuarial net loss from pension and other postretirement plans, tax benefits	$ (81,798)	$ (81,798)

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Key Components of Convertible Debt (Detail) (Convertible Senior Notes 2011 and 2013, USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Convertible Senior Notes 2011 and 2013
Debt Instrument [Line Items]
Contractual interest expense on the coupon	$ 7,482	$ 15,078	$ 22,427	$ 45,266
Amortization of the discount component recognized as interest expense	15,405	30,852	45,059	90,174
Total interest expense on the convertible debt	$ 22,887	$ 45,930	$ 67,486	$ 135,440

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Inventories (Tables)

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Components of Inventories

Inventories consist of (table in thousands):

	September 30, 2012		December 31, 2011
Work-in-process	$	595,380	$	492,064
Finished goods	562,882		517,904
	$	1,158,262	$	1,009,968

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Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Composition of Investments

The following tables summarize the composition of our short- and long-term investments at September 30, 2012 and December 31, 2011 (tables in thousands):

	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,033,500	$	11,321	$	(1,005	)	$	2,043,816
U.S. corporate debt securities	1,360,511		12,772		(97		)	1,373,186
High yield corporate debt securities	468,285		31,408		(1,076		)	498,617
Asset-backed securities	3,227		8		—			3,235
Municipal obligations	1,023,504		4,379		(366		)	1,027,517
Auction rate securities	80,706		—		(5,860		)	74,846
Foreign debt securities	1,243,175		10,013		(198		)	1,252,990
Total fixed income securities	6,212,908		69,901		(8,602		)	6,274,207
Publicly traded equity securities	47,786		97,815		(625		)	144,976
Total	$	6,260,694	$	167,716	$	(9,227	)	$	6,419,183

	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,474,029	$	12,420	$	(1,488	)	$	2,484,961
U.S. corporate debt securities	1,400,373		9,953		(2,573		)	1,407,753
High yield corporate debt securities	442,723		12,498		(7,742		)	447,479
Asset-backed securities	29,101		72		(25		)	29,148
Municipal obligations	814,657		2,021		(597		)	816,081
Auction rate securities	82,900		—		(8,304		)	74,596
Foreign debt securities	984,696		5,185		(2,807		)	987,074
Total fixed income securities	6,228,479		42,149		(23,536		)	6,247,092
Publicly traded equity securities	58,199		6,802		—			65,001
Total	$	6,286,678	$	48,951	$	(23,536	)	$	6,312,093

Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value

The following table represents our fair value hierarchy for our financial assets and liabilities measured at fair value as of September 30, 2012 (in thousands):

	Level 1		Level 2			Level 3		Total
Cash	$	1,441,347	$	—		$	—	$	1,441,347
Cash equivalents	2,715,470		4,000			—		2,719,470
U.S. government and agency obligations	1,128,224		915,592			—		2,043,816
U.S. corporate debt securities	—		1,373,186			—		1,373,186
High yield corporate debt securities	—		498,617			—		498,617
Asset-backed securities	—		3,235			—		3,235
Municipal obligations	—		1,027,517			—		1,027,517
Auction rate securities	—		—			74,846		74,846
Foreign debt securities	—		1,252,990			—		1,252,990
Publicly traded equity securities	144,976		—			—		144,976
Total cash and investments	$	5,430,017	$	5,075,137		$	74,846	$	10,580,000
Other items:
Strategic investments held at cost	$	—	$	—		$	254,338	$	254,338
Convertible debt	—		(2,938,101		)	—		(2,938,101		)
Foreign exchange derivative assets	—		47,311			—		47,311
Foreign exchange derivative liabilities	—		(23,426		)	—		(23,426		)
Commodity derivative liabilities	—		(1,502		)	—		(1,502		)

Changes in Fair Value of Level 3 Financial Assets

The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and nine months ended September 30, 2012 (table in thousands):

	For the Three Months Ended					For the Nine Months Ended
	September 30, 2012		September 30, 2011			September 30, 2012			September 30, 2011
Balance, beginning of the period	$	73,896	$	99,154		$	74,596		$	146,044
Calls at par value	—		(13,100		)	(225		)	(64,600		)
Other-than-temporary impairment loss	—		—			(1,969		)	—
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	950		(4,963		)	2,444			(353		)
Balance, end of the period	$	74,846	$	81,091		$	74,846		$	81,091

Unrealized Losses on Investments by Investment Category and Length of Time in Continuous Unrealized Loss Position

Unrealized losses on investments at September 30, 2012 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. government and agency obligations	$	247,834	$	(906	)	$	9,186	$	(99	)	$	257,020	$	(1,005	)
U.S. corporate debt securities	96,205		(91		)	2,234		(6		)	98,439		(97		)
High yield corporate debt securities	30,208		(697		)	1,354		(379		)	31,562		(1,076		)
Municipal obligations	192,338		(362		)	2,614		(4		)	194,952		(366		)
Auction rate securities	—		—			74,846		(5,860		)	74,846		(5,860		)
Foreign debt securities	98,849		(198		)	—		—			98,849		(198		)
Publicly traded equity securities	1,097		(625		)	—		—			1,097		(625		)
Total	$	666,531	$	(2,879	)	$	90,234	$	(6,348	)	$	756,765	$	(9,227	)

Contractual Maturities of Investments

The contractual maturities of fixed income securities held at September 30, 2012 are as follows (table in thousands):

	September 30, 2012
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,271,478	$	1,275,151
Due after 1 year through 5 years	4,083,712		4,118,038
Due after 5 years through 10 years	463,518		488,630
Due after 10 years	394,200		392,388
Total	$	6,212,908	$	6,274,207

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Joint Ventures (Detail) (USD $)	3 Months Ended		9 Months Ended		57 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Dec. 31, 2011
Schedule of Equity Method Investments [Line Items]
Accumulated stock-based compensation contributed to joint venture					$ 13,200,000
Consolidated ownership perentage of outstanding equity	58.00%		58.00%		58.00%
Capital contribution			217,881,000	191,624,000	667,200,000
Consolidated share of losses	63.20%	63.20%	63.20%	63.20%
Loss From VCE	61,900,000	50,200,000	176,900,000	138,700,000	430,200,000
Revenue recognized from sales to VCE	65,300,000	41,900,000	210,800,000	86,400,000
Receivable from joint venture	$ 28,800,000		$ 28,800,000		$ 28,800,000	$ 27,000,000

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Convertible Debt - Additional Information (Detail) (USD $)	1 Months Ended			3 Months Ended	9 Months Ended		0 Months Ended		9 Months Ended	1 Months Ended	3 Months Ended	0 Months Ended	1 Months Ended			3 Months Ended
	Jul. 31, 2012	Apr. 30, 2012	Nov. 30, 2011	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2011	Jan. 09, 2012 Convertible Senior Notes 2011	Nov. 13, 2006 Convertible Senior Notes 2011	Sep. 30, 2012 Convertible Senior Notes 2013	Nov. 30, 2006 Convertible Senior Notes 2011 and 2013	Sep. 30, 2012 Convertible Senior Notes 2011 and 2013	Jan. 09, 2012 Purchased Options	Nov. 30, 2006 Purchased Options	Nov. 30, 2006 Sold Warrants	Nov. 13, 2006 Sold Warrants	Mar. 31, 2012 Exercised Warrants	Dec. 31, 2011 Group 1 Purchased Options	Dec. 31, 2011 Group 2 Purchased Options	Sep. 30, 2011 Convertible Senior Notes 2011 Convertible Senior Notes 2013	Dec. 31, 2010 Interest Rate Swap
Issuance date					Nov. 13, 2006
Senior Notes								$ 1,725,000,000	$ 1,725,000,000
Proceeds from issuance of senior unsecured obligations										3,450,000,000
Cash payment to noteholders for outstanding principal of converted Notes					1,699,816,000	0	1,699,800,000
Shares issued to noteholders for the excess of the conversion value over the principal amount of converted Notes							29,500,000
Value of the conversion value over the principal amount of converted Notes							661,400,000
Business day period									5 days
Trading-day period									5 days
Product of last reported sale price and the conversion rate									98.00%
Number of trading days									20 days
Trading day period during quarter									30 days
Ratio of stock price to conversion price									130.00%
Observation period									20 days
Debt Instrument, Convertible, Conversion Ratio, Principal Amount Basis									1,000
Conversion rate for the 2013 Notes will be 62.1978 shares of our common stock per one thousand dollars of principal amount of 2013 Notes									62.1978
Conversion premium									27.50%
Conversion price									$ 16.08
Amount of converted Notes									14,800,000
Convertible debt, carrying amount									1,636,900,000
Convertible debt, fair value				2,938,101,000	2,938,101,000				2,938,100,000
Carrying amount of the equity component									309,500,000
Debt Instrument, unamortized discount									73,300,000
Semi-annual interest rate								1.75%	1.75%
Debt Instrument, frequency of periodic payment									semi-annually
Effective interest rate											5.60%								5.60%
Incremental common shares attributable to call options and warrants													215,000,000	215,000,000
Aggregate amount paid for purchased options					69,905,000	0							669,100,000
Purchased options exercised																	107,500,000	107,500,000
Purchased options shares received												29,500,000
Common stock at an exercise price														$ 19.55	$ 19.55
Proceeds from issuance of warrants														391,100,000
Shares issues for exercised warrants																32,300,000
Conversion premium based on the closing price														55.00%
Closing price per share															$ 12.61
Aggregate notional amount of interest rate swap contracts designated as cash flow hedges																				900,000,000
Realized loss on replaced interest rate swap contracts	45,500,000	23,000,000	141,000,000
Accumulated realized losses in other comprehensive income related to previously-anticipated interest payments reclassified from other comprehensive income and recognized in the consolidated income statements				$ 39,500,000

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Accounts and Notes Receivable and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Contractual Amounts Due Under Leases

The contractual amounts due under the leases we retained as of September 30, 2012 were as follows (table in thousands):

Year	Contractual Amounts Due Under Leases
Due within one year	$	154,858
Due within two years	98,920
Due within three years	88,997
Thereafter	1,524
Total	344,299
Less amounts representing interest	(9,049		)
Present value	335,250
Current portion (included in accounts and notes receivable)	153,013
Long-term portion (included in other assets, net)	$	182,237

Allowance for Credit Losses

The following table presents the activity of our allowance for credit losses related to lease receivables for the nine months ended September 30, 2012 and 2011 (table in thousands):

	September 30, 2012			September 30, 2011
Balance, beginning of the period	$	24,247		$	44,661
Recoveries	(15,923		)	(27,539		)
Provisions	8,634			10,066
Balance, end of the period	$	16,958		$	27,188

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Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Components of Property, Plant and Equipment

Property, plant and equipment consist of (table in thousands):

	September 30, 2012			December 31, 2011
Furniture and fixtures	$	185,933		$	180,800
Equipment and software	5,129,879			4,680,118
Buildings and improvements	1,806,957			1,748,214
Land	123,334			117,513
Building construction in progress	190,934			146,650
	7,437,037			6,873,295
Accumulated depreciation	(4,453,591		)	(4,040,146		)
	$	2,983,446		$	2,833,149

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non-controlling Interest in VMware
Beginning Balance at Dec. 31, 2010	$ 18,633,925	$ 20,692	$ 4,283,830	$ 13,659,284	$ (92,617)	$ 762,736
Beginning Balance (in shares) at Dec. 31, 2010		2,069,246
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock issued through stock option and stock purchase plans (in shares)		39,010
Stock issued through stock option and stock purchase plans	501,627	391	501,236
Tax benefit from stock options exercised	362,495		362,495
Restricted stock grants, cancellations and withholdings, net (in shares)		8,894
Restricted stock grants, cancellations and withholdings, net	(110,158)	89	(110,247)
Repurchase of common stock (in shares)		(77,193)
Repurchase of common stock	(1,899,208)	(772)	(1,898,436)
EMC purchase of VMware stock	(342,201)		(304,022)			(38,179)
Stock options issued in business acquisitions	3,224		3,224
Stock-based compensation	629,301		629,301
Impact from equity transactions of VMware, Inc.	(310,618)		(380,821)			70,203
Change in market value of investments	(44,444)				(40,665)	(3,779)
Changes in market value of derivatives	(81,703)				(81,703)
Translation adjustment	(5,317)				(5,317)
Reclassification of convertible debt (to)/from mezzanine (Note 4)	90,367		90,367
Net income	1,736,295			1,629,291		107,004
Ending Balance at Sep. 30, 2011	19,163,585	20,400	3,176,927	15,288,575	(220,302)	897,985
Ending Balance (in shares) at Sep. 30, 2011		2,039,957
Beginning Balance at Dec. 31, 2011	20,279,703	20,489	3,405,513	16,120,621	(235,009)	968,089
Beginning Balance (in shares) at Dec. 31, 2011	2,048,890	2,048,890
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock issued through stock option and stock purchase plans (in shares)		30,336
Stock issued through stock option and stock purchase plans	387,782	303	387,479
Tax benefit from stock options exercised	257,052		257,052
Restricted stock grants, cancellations and withholdings, net (in shares)		10,427
Restricted stock grants, cancellations and withholdings, net	(120,329)	105	(120,434)
Repurchase of common stock (in shares)		(15,343)
Repurchase of common stock	(409,997)	(153)	(409,844)
EMC purchase of VMware stock	(131,917)		(114,033)			(17,884)
Stock options issued in business acquisitions	17,994		17,994
Stock-based compensation	660,462		660,462
Impact from equity transactions of VMware, Inc.	(186,041)		(274,662)			88,621
Change in market value of investments	84,092				82,905	1,187
Changes in market value of derivatives	(10,789)				(11,055)	266
Translation adjustment	7,856				7,856
Convertible debt conversions and warrant settlement (in shares)		32,345
Convertible debt conversions and warrant settlement	(704)	323	(1,027)
Reclassification of convertible debt (to)/from mezzanine (Note 4)	46,045		46,045
Net income	1,974,061			1,862,694		111,367
Ending Balance at Sep. 30, 2012	$ 22,855,270	$ 21,067	$ 3,854,545	$ 17,983,315	$ (155,303)	$ 1,151,646
Ending Balance (in shares) at Sep. 30, 2012	2,106,655	2,106,655

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Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2012

Payables and Accruals [Abstract]

Components of Accrued Expenses

Accrued expenses consist of (table in thousands):

	September 30, 2012		December 31, 2011
Salaries and benefits	$	938,841	$	961,587
Product warranties	264,817		254,554
Partner rebates	153,552		167,813
Restructuring, current (See Note 13)	69,578		61,541
Derivatives	29,589		50,963
Other	861,191		858,521
	$	2,317,568	$	2,354,979

Activity in Warranty Accrual for Product Warranty

The following represents the activity in our warranty accrual for the three and nine months ended September 30, 2012 and 2011 (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Balance, beginning of the period	$	262,059		$	248,395		$	254,554		$	236,131
Provision	41,303			42,535			129,358			130,775
Amounts charged to the accrual	(38,545		)	(41,955		)	(119,095		)	(117,931		)
Balance, end of the period	$	264,817		$	248,975		$	264,817		$	248,975

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Business Combinations, Intangibles and Goodwill - Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	$ 4,216,799	$ 3,659,648
Accumulated Amortization	(2,163,439)	(1,893,533)
Net Book Value	2,053,360	1,766,115
Purchased Technology
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	2,085,323	1,620,977
Accumulated Amortization	(1,153,712)	(1,020,356)
Net Book Value	931,611	600,621
Patents
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	225,146	225,146
Accumulated Amortization	(83,235)	(72,078)
Net Book Value	141,911	153,068
Software Licenses
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	94,495	90,093
Accumulated Amortization	(87,456)	(83,999)
Net Book Value	7,039	6,094
Trademarks And Tradenames
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	194,891	172,851
Accumulated Amortization	(107,397)	(93,636)
Net Book Value	87,494	79,215
Customer Relationships And Customer Lists
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	1,372,665	1,329,775
Accumulated Amortization	(700,069)	(597,117)
Net Book Value	672,596	732,658
In Process Research And Development
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	71,700	43,900
Accumulated Amortization	0	0
Net Book Value	71,700	43,900
Leasehold Interest
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	146,757	146,757
Accumulated Amortization	(5,769)	(2,524)
Net Book Value	140,988	144,233
Other Intangible Assets
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	25,822	30,149
Accumulated Amortization	(25,801)	(23,823)
Net Book Value	$ 21	$ 6,326

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Allowance for Credit Losses (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of the period	$ 24,247	$ 44,661
Recoveries	(15,923)	(27,539)
Provisions	8,634	10,066
Balance, end of the period	$ 16,958	$ 27,188

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 4,160,817	$ 4,531,036
Short-term investments	1,284,855	1,786,987
Accounts and notes receivable, less allowance for doubtful accounts of $63,117 and $61,804	3,164,005	2,937,499
Inventories	1,158,262	1,009,968
Deferred income taxes	802,215	733,308
Other current assets	541,263	583,885
Total current assets	11,111,417	11,582,683
Long-term investments	5,134,328	4,525,106
Property, plant and equipment, net	2,983,446	2,833,149
Intangible assets, net	2,053,360	1,766,115
Goodwill	13,728,256	12,154,970
Other assets, net	1,494,911	1,406,156
Total assets	36,505,718	34,268,179
Current liabilities:
Accounts payable	1,074,079	1,101,659
Accrued expenses	2,317,568	2,354,979
Notes converted and payable (See Note 4)	0	1,699,832
Income taxes payable	286,696	155,909
Convertible debt (See Note 4)	1,636,907	1,605,142
Deferred revenue	4,353,490	3,458,689
Total current liabilities	9,668,740	10,376,210
Income taxes payable	332,289	238,851
Deferred revenue	2,884,240	2,715,361
Deferred income taxes	384,444	250,817
Other liabilities	307,455	287,912
Total liabilities	13,577,168	13,869,151
Convertible debt (See Note 4)	73,280	119,325
Commitments and contingencies (See Note 14)
Shareholders' equity:
Preferred stock, par value $0.01; authorized 25,000 shares; none outstanding	0	0
Common stock, par value $0.01; authorized 6,000,000 shares; issued and outstanding 2,106,655 and 2,048,890 shares	21,067	20,489
Additional paid-in capital	3,854,545	3,405,513
Retained earnings	17,983,315	16,120,621
Accumulated other comprehensive loss, net	(155,303)	(235,009)
Total EMC Corporation's shareholders' equity	21,703,624	19,311,614
Non-controlling interest in VMware, Inc.	1,151,646	968,089
Total shareholders' equity	22,855,270	20,279,703
Total liabilities and shareholders' equity	$ 36,505,718	$ 34,268,179

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Composition of Investments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Unrealized Losses	$ (9,227)
US Government Agencies Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	2,033,500	2,474,029
Available For Sale Securities Unrealized Gains	11,321	12,420
Available For Sale Securities Unrealized Losses	(1,005)	(1,488)
Available For Sale Securities Fair Value	2,043,816	2,484,961
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	6,212,908	6,228,479
Available For Sale Securities Unrealized Gains	69,901	42,149
Available For Sale Securities Unrealized Losses	(8,602)	(23,536)
Available For Sale Securities Fair Value	6,274,207	6,247,092
Public Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	47,786	58,199
Available For Sale Securities Unrealized Gains	97,815	6,802
Available For Sale Securities Unrealized Losses	(625)
Available For Sale Securities Fair Value	144,976	65,001
Debt and Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	6,260,694	6,286,678
Available For Sale Securities Unrealized Gains	167,716	48,951
Available For Sale Securities Unrealized Losses	(9,227)	(23,536)
Available For Sale Securities Fair Value	6,419,183	6,312,093
US Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	1,360,511	1,400,373
Available For Sale Securities Unrealized Gains	12,772	9,953
Available For Sale Securities Unrealized Losses	(97)	(2,573)
Available For Sale Securities Fair Value	1,373,186	1,407,753
High Yield Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	468,285	442,723
Available For Sale Securities Unrealized Gains	31,408	12,498
Available For Sale Securities Unrealized Losses	(1,076)	(7,742)
Available For Sale Securities Fair Value	498,617	447,479
Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	3,227	29,101
Available For Sale Securities Unrealized Gains	8	72
Available For Sale Securities Unrealized Losses	0	(25)
Available For Sale Securities Fair Value	3,235	29,148
Municipal Obligations
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	1,023,504	814,657
Available For Sale Securities Unrealized Gains	4,379	2,021
Available For Sale Securities Unrealized Losses	(366)	(597)
Available For Sale Securities Fair Value	1,027,517	816,081
Auction Rate Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	80,706	82,900
Available For Sale Securities Unrealized Losses	(5,860)	(8,304)
Available For Sale Securities Fair Value	74,846	74,596
Foreign Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	1,243,175	984,696
Available For Sale Securities Unrealized Gains	10,013	5,185
Available For Sale Securities Unrealized Losses	(198)	(2,807)
Available For Sale Securities Fair Value	$ 1,252,990	$ 987,074

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Changes in unrealized gains (losses) - taxes (benefits)	$ 24,514	$ (14,461)	$ 52,834	$ (21,429)
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes)	(1,499)	(1,795)	(3,852)	(4,104)
Changes in market value of derivatives - taxes (benefits)	(6,035)	(39,938)	(21,081)	(51,921)
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes)	$ 1,006	$ (1,556)	$ 15,284	$ (31)

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		27 Months Ended	39 Months Ended	48 Months Ended	51 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2009	Dec. 31, 2010	Sep. 30, 2011	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Effective income tax rates	22.00%	21.00%	23.00%	21.10%
Impact of the expiration of the U.S. federal research and development tax credit		2.20%		2.20%
Prior period reclassification adjustment to decrease deferred tax liability and increase additional paid-in capital					$ 499.6	$ 467.1	$ 357.2	$ 352.6
Unrecognized Tax Benefits	314.6		314.6
Unrecognized Tax Benefits, Period Increase (Decrease)	112.6
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 308.9		$ 308.9

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Our segment information for the three and nine months ended September 30, 2012 and 2011 is as follows (tables in thousands, except percentages):

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
September 30, 2012
Revenues:
Product revenues	$	2,438,665		$	49,881		$	106,020		$	2,594,566		$	489,875		$	—		$	3,084,441
Services revenues	1,324,110			108,117			120,918			1,553,145			640,590			—			2,193,735
Total consolidated revenues	3,762,775			157,998			226,938			4,147,711			1,130,465			—			5,278,176
Cost of sales	1,625,910			50,471			81,330			1,757,711			135,588			97,338			1,990,637
Gross profit	$	2,136,865		$	107,527		$	145,608		2,390,000			994,877			(97,338		)	3,287,539
Gross profit percentage	56.8		%	68.1		%	64.2		%	57.6		%	88.0		%	—			62.3		%
Research and development										367,792			196,888			88,218			652,898
Selling, general and administrative										1,102,888			435,454			170,452			1,708,794
Restructuring and acquisition-related charges										—			—			27,064			27,064
Total costs and expenses										1,470,680			632,342			285,734			2,388,756
Operating income										919,320			362,535			(383,072		)	898,783
Other income (expense), net										(49,863		)	8,498			(13,320		)	(54,685		)
Income before provision for income taxes										869,457			371,033			(396,392		)	844,098
Income tax provision										210,517			82,920			(108,003		)	185,434
Net income										658,940			288,113			(288,389		)	658,664
Net income attributable to the non-controlling interest in VMware, Inc.										—			(57,912		)	25,586			(32,326		)
Net income attributable to EMC Corporation										$	658,940		$	230,201		$	(262,803	)	$	626,338

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
September 30, 2011
Revenues:
Product revenues	$	2,465,339		$	50,439		$	115,685		$	2,631,463		$	442,904		$	—		$	3,074,367
Services revenues	1,197,581			111,157			99,215			1,407,953			497,881			—			1,905,834
Total consolidated revenues	3,662,920			161,596			214,900			4,039,416			940,785			—			4,980,201
Cost of sales	1,583,727			59,436			69,664			1,712,827			130,683			70,426			1,913,936
Gross profit	$	2,079,193		$	102,160		$	145,236		2,326,589			810,102			(70,426		)	3,066,265
Gross profit percentage	56.8		%	63.2		%	67.6		%	57.6		%	86.1		%	—			61.6		%
Research and development										316,380			148,576			83,065			548,021
Selling, general and administrative										1,099,329			368,187			145,398			1,612,914
Restructuring and acquisition-related charges										—			—			20,302			20,302
Total costs and expenses										1,415,709			516,763			248,765			2,181,237
Operating income										910,880			293,339			(319,191		)	885,028
Other income (expense), net										(43,223		)	197			(28,802		)	(71,828		)
Income before provision for income taxes										867,657			293,536			(347,993		)	813,200
Income tax provision										237,936			22,949			(89,799		)	171,086
Net income										629,721			270,587			(258,194		)	642,114
Net income attributable to the non-controlling interest in VMware, Inc.										—			(54,622		)	18,157			(36,465		)
Net income attributable to EMC Corporation										$	629,721		$	215,965		$	(240,037	)	$	605,649

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2012
Revenues:
Product revenues	$	7,406,314		$	131,440		$	305,967		$	7,843,721		$	1,488,314		$	—		$	9,332,035
Services revenues	3,862,593			324,884			348,258			4,535,735			1,816,177			—			6,351,912
Total consolidated revenues	11,268,907			456,324			654,225			12,379,456			3,304,491			—			15,683,947
Cost of sales	4,893,097			156,839			196,104			5,246,040			400,327			289,431			5,935,798
Gross profit	$	6,375,810		$	299,485		$	458,121		7,133,416			2,904,164			(289,431		)	9,748,149
Gross profit percentage	56.6		%	65.6		%	70.0		%	57.6		%	87.9		%	—			62.2		%
Research and development										1,077,907			574,282			244,467			1,896,656
Selling, general and administrative										3,325,212			1,273,696			476,733			5,075,641
Restructuring and acquisition-related charges										—			—			80,560			80,560
Total costs and expenses										4,403,119			1,847,978			801,760			7,052,857
Operating income										2,730,297			1,056,186			(1,091,191		)	2,695,292
Other income (expense), net										(107,276		)	20,337			(43,692		)	(130,631		)
Income before provision for income taxes										2,623,021			1,076,523			(1,134,883		)	2,564,661
Income tax provision										706,003			194,699			(310,102		)	590,600
Net income										1,917,018			881,824			(824,781		)	1,974,061
Net income attributable to the non-controlling interest in VMware, Inc.										—			(179,699		)	68,332			(111,367		)
Net income attributable to EMC Corporation										$	1,917,018		$	702,125		$	(756,449	)	$	1,862,694

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2011
Revenues:
Product revenues	$	7,282,052		$	135,797		$	305,138		$	7,722,987		$	1,326,623		$	—		$	9,049,610
Services revenues	3,388,839			336,846			280,150			4,005,835			1,377,712			—			5,383,547
Total consolidated revenues	10,670,891			472,643			585,288			11,728,822			2,704,335			—			14,433,157
Cost of sales	4,733,529			176,361			277,817			5,187,707			390,438			209,409			5,787,554
Gross profit	$	5,937,362		$	296,282		$	307,471		6,541,115			2,313,897			(209,409		)	8,645,603
Gross profit percentage	55.6		%	62.7		%	52.5		%	55.8		%	85.6		%	—			59.9		%
Research and development										932,581			412,575			243,864			1,589,020
Selling, general and administrative										3,179,639			1,057,615			447,280			4,684,534
Restructuring and acquisition-related charges										—			—			68,411			68,411
Total costs and expenses										4,112,220			1,470,190			759,555			6,341,965
Operating income										2,428,895			843,707			(968,964		)	2,303,638
Other income (expense), net										(76,169		)	4,466			(30,184		)	(101,887		)
Income before provision for income taxes										2,352,726			848,173			(999,148		)	2,201,751
Income tax provision										620,453			103,711			(258,708		)	465,456
Net income										1,732,273			744,462			(740,440		)	1,736,295
Net income attributable to the non-controlling interest in VMware, Inc.										—			(151,612		)	44,608			(107,004		)
Net income attributable to EMC Corporation										$	1,732,273		$	592,850		$	(695,832	)	$	1,629,291

Revenues By Geographic Area

Our revenues are attributed to the geographic areas according to the location of the customers. Revenues by geographic area are included in the following table (table in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
United States	$	2,885,968	$	2,674,626	$	8,376,276	$	7,552,800
Europe, Middle East and Africa	1,351,753		1,355,474		4,216,384		4,149,828
Asia Pacific and Japan	733,157		695,443		2,192,411		1,944,808
Latin America, Mexico and Canada	307,298		254,658		898,876		785,721
Total	$	5,278,176	$	4,980,201	$	15,683,947	$	14,433,157

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Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended
	Jun. 30, 2012	Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
Available for use credit line		$ 50,000,000
Borrowings outstanding on line of credit		0
Customer remediation period expense	$ 66,300,000

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Line of Credit

We have available for use a credit line of $50.0 million in the United States. As of September 30, 2012, we had no borrowings outstanding on the line of credit. The credit line bears interest at the bank’s base rate and requires us, upon utilization of the credit line, to meet certain financial covenants with respect to limitations on losses. In the event the covenants are not met, the lender may require us to provide collateral to secure the outstanding balance. At September 30, 2012, we were in compliance with the covenants.

RSA Special Charge

In March 2011, RSA was the target of a sophisticated cyber attack which resulted in information related to RSA’s SecurID products being compromised. In the first quarter of 2011, we incurred and accrued costs associated with investigating the attack, hardening our systems and working with our customers to implement remediation programs. In the second quarter of 2011, we recorded a $66.3 million charge in cost of sales related to the expansion of the customer remediation programs. We expanded our customer remediation programs in June 2011 to respond to heightened customer concerns resulting from press coverage relating to an unsuccessful cyber attack on one of our defense sector customers, as well as broad media coverage of cyber attacks on other high profile organizations. As of June 30, 2012, we had substantially completed the remediation efforts and concluded that no additional material losses related to the remediation efforts were reasonably possible. Accordingly, we released the excess reserve against cost of sales during the second quarter of 2012.

Litigation

We are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including actions with respect to contracts, intellectual property, product liability, employment, benefits and securities matters. As required by authoritative guidance, we have estimated the amount of probable losses that may result from all currently pending matters, and such amounts are reflected in our consolidated financial statements. These recorded amounts are not material to our consolidated financial position or results of operations and no additional material losses related to these pending matters are reasonably possible. While it is not possible to predict the outcome of these matters with certainty, we do not expect the results of any of these actions to have a material adverse effect on our business, results of operations or financial condition. Because litigation is inherently unpredictable, however, the actual amounts of loss may prove to be larger or smaller than the amounts reflected in our consolidated financial statements, and we could incur judgments or enter into settlements of claims that could adversely affect our operating results or cash flows in a particular period.

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Basis of Presentation - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	27 Months Ended	39 Months Ended	48 Months Ended	51 Months Ended
	Dec. 31, 2009	Dec. 31, 2010	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2012 Convertible Senior Notes 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prior period reclassification adjustment to decrease deferred tax liability and increase additional paid-in capital	$ 499.6	$ 467.1	$ 357.2	$ 352.6
Debt Instrument [Line Items]
Convertible senior notes included in calculation of net income per share					$ 1,725
Convertible senior notes interest rate					1.75%

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Basis of Presentation Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

General

General

The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These consolidated financial statements include the accounts of EMC, its wholly owned subsidiaries and VMware, a company majority-owned by EMC. All intercompany transactions have been eliminated.

Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2011 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2012.

The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for any future period or the entire fiscal year. The interim consolidated financial statements, in the opinion of management, reflect all adjustments necessary to fairly state the results as of and for the three- and nine-month periods ended September 30, 2012 and 2011.

Net Income Per Share

Net Income Per Share

Basic net income per weighted average share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per weighted average share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of stock options, restricted stock and restricted stock units, our $1.725 billion1.75% convertible senior notes due 2013 and associated warrants. Additionally, for purposes of calculating diluted net income per weighted average share, net income is adjusted for the difference between VMware’s reported diluted and basic net income per weighted average share, if any, multiplied by the number of shares of VMware held by EMC.

Adjustments for Immaterial Prior Period Accounting Error

Adjustments for Immaterial Prior Period Accounting Error

During the second quarter of 2012, we determined that since VMware’s public offering in 2007, we have incorrectly recorded deferred tax liabilities on the gains and losses associated with changes in the non-controlling interest. These deferred tax liabilities were recorded as a reduction to additional paid-in capital and therefore had no impact on our previously reported consolidated income statements. The error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $352.6 million in our December 31, 2011 consolidated balance sheet and an understatement of additional paid-in capital of $357.2 million in our statement of shareholders’ equity for the nine months ended September 30, 2011.  These corrections are reflected in the consolidated balance sheets as of December 31, 2011 and in the statement of shareholders’ equity for the nine months ended September 30, 2011 and are not material to the consolidated balance sheets or statements of shareholders’ equity for the years ended December 31, 2011, 2010, 2009, 2008 or 2007 or any related interim periods. In addition, the error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $467.1 million in our December 31, 2010 consolidated balance sheet and statement of shareholders’ equity and an understatement of additional paid-in capital of $499.6 million in our statement of shareholders’ equity at December 31, 2009. These adjusted prior-period balances will be reflected in our future filings.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In July 2012, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to simplify the impairment testing of indefinite-lived intangible assets other than goodwill. Under this guidance, an entity is allowed to perform a qualitative assessment about the likelihood of impairment of an indefinite-lived intangible asset to determine whether further impairment testing is necessary, similar in approach to the goodwill impairment test. This new guidance is effective for fiscal years beginning after September 15, 2012. We do not believe the adoption of the new guidance will have an impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued new guidance to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased disclosures regarding valuation inputs and investment categorization. The adoption of this new accounting guidance in 2012 did not have a material impact on our consolidated financial position, results of operations or cash flows.

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Revenues By Geographic Area (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Segment Reporting Information [Line Items]
Total consolidated revenues	$ 5,278,176	$ 4,980,201	$ 15,683,947	$ 14,433,157
United States
Segment Reporting Information [Line Items]
Total consolidated revenues	2,885,968	2,674,626	8,376,276	7,552,800
Europe, Middle East and Africa
Segment Reporting Information [Line Items]
Total consolidated revenues	1,351,753	1,355,474	4,216,384	4,149,828
Asia Pacific And Japan
Segment Reporting Information [Line Items]
Total consolidated revenues	733,157	695,443	2,192,411	1,944,808
Latin America, Mexico And Canada
Segment Reporting Information [Line Items]
Total consolidated revenues	$ 307,298	$ 254,658	$ 898,876	$ 785,721

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Cash received from customers	$ 16,556,689	$ 15,434,151
Cash paid to suppliers and employees	(11,950,620)	(11,577,038)
Dividends and interest received	64,780	77,706
Interest paid	(16,880)	(54,683)
Income taxes paid	(290,888)	(395,539)
Net cash provided by operating activities	4,363,081	3,484,597
Cash flows from investing activities:
Additions to property, plant and equipment	(523,459)	(601,177)
Capitalized software development costs	(315,798)	(342,091)
Purchases of short- and long-term available-for-sale securities	(5,011,791)	(5,589,382)
Sales of short- and long-term available-for-sale securities	4,153,617	3,945,683
Maturities of short- and long-term available-for-sale securities	844,287	877,510
Business acquisitions, net of cash acquired	(1,878,051)	(536,624)
Decrease (increase) in strategic and other related investments	18,648	(268,087)
Joint venture funding	(217,881)	(191,624)
Purchase of leasehold interest	0	(151,083)
Net cash used in investing activities	(2,930,428)	(2,856,875)
Cash flows from financing activities:
Issuance of EMC's common stock from the exercise of stock options	387,782	501,627
Issuance of VMware's common stock from the exercise of stock options	214,223	285,286
EMC purchase of VMware's common stock	(131,917)	(342,201)
Excess tax benefits from stock-based compensation	212,280	318,717
Payment of long-term and short-term obligations	(14,677)	(1,263)
Proceeds from long-term and short-term obligations	4,279	1,253
Payment of convertible debt	(1,699,816)	0
Interest rate contract settlement	(69,905)	0
Net cash used in financing activities	(1,784,760)	(1,626,705)
Effect of exchange rate changes on cash and cash equivalents	(18,112)	5,455
Net decrease in cash and cash equivalents	(370,219)	(993,528)
Cash and cash equivalents at beginning of period	4,531,036	4,119,138
Cash and cash equivalents at end of period	4,160,817	3,125,610
Reconciliation of net income to net cash provided by operating activities:
Net income	1,974,061	1,736,295
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,127,881	1,048,151
Non-cash interest expense on convertible debt	33,871	76,398
Non-cash restructuring and other special charges	8,990	(2,325)
Stock-based compensation expense	658,455	613,233
Provision for doubtful accounts	21,339	8,525
Deferred income taxes, net	(72,657)	83,657
Excess tax benefits from stock-based compensation	(212,280)	(318,717)
Other, net	(19,555)	(28,740)
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable	(207,395)	(56,076)
Inventories	(336,748)	(416,898)
Other assets	62,820	(157,024)
Accounts payable	118,950	(75,263)
Accrued expenses	(225,725)	51,747
Income taxes payable	372,369	(13,740)
Deferred revenue	1,058,798	1,048,545
Other liabilities	(93)	(113,171)
Net cash provided by operating activities	4,363,081	3,484,597
Parent
Cash flows from financing activities:
Repurchase of common stock	(379,997)	(1,899,208)
VMware
Cash flows from financing activities:
Repurchase of common stock	$ (307,012)	$ (490,916)

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Accounts and notes receivable, allowance for doubtful accounts	$ 63,117	$ 61,804
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	6,000,000,000	6,000,000,000
Common stock, issued (in shares)	2,106,655,000	2,048,890,000
Common stock, outstanding (in shares)	2,106,655,000	2,048,890,000

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Joint Ventures

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Joint Ventures

Joint Ventures

VCE Company LLC

In 2009, Cisco and EMC formed VCE Company LLC (“VCE”), with investments from VMware and Intel. VCE, through Vblock infrastructure platforms, delivers an integrated IT offering that combines network, computing, storage, management, security and virtualization technologies for converged infrastructures and cloud based computing models. As of September 30, 2012, we have contributed $667.2 million in funding and $13.2 million in stock-based compensation to VCE since inception and own approximately 58% of VCE’s outstanding equity.

We consider VCE a variable interest entity. Authoritative guidance related to variable interest entities states that the primary beneficiary of a variable interest entity must have both of the following characteristics: (a) the power to direct the activities of a variable interest entity that most significantly will impact the entity’s economic performance; and (b) the obligation to absorb losses that could be potentially significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Since the power to direct the activities of VCE which most significantly impact its economic performance are determined by its board of directors, which is comprised of equal representation of EMC and Cisco, and all significant decisions require the approval of the minority shareholders, we have determined we are not the primary beneficiary, and as such we account for the investment under the equity method.

Our portion of VCE’s gains and losses is recognized in other income (expense), net, in the consolidated income statements. Our consolidated share of VCE’s losses, based upon our portion of the overall funding, was approximately 63.2% for the three and nine months ended September 30, 2012 and 2011. As of September 30, 2012, we have recorded net accumulated losses from VCE of $430.2 million since inception, of which $61.9 million and $176.9 million were recorded in the three and nine months ended September 30, 2012, respectively, and $50.2 million and $138.7 million were recorded in the three and nine months ended September 30, 2011, respectively.

We recognized $65.3 million and $41.9 million in revenue from sales of product and services to VCE during the three months ended September 30, 2012 and 2011, respectively, and $210.8 million and $86.4 million for the nine months ended September 30, 2012 and 2011, respectively. We perform certain administrative services, pursuant to an administrative services agreement, on behalf of VCE and we pay certain operating expenses on behalf of VCE. Accordingly, we have a receivable from VCE related to the administrative services agreement of $28.8 million and $27.0 million as of September 30, 2012 and December 31, 2011, respectively, which is included in other current assets in the consolidated balance sheets.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Trading Symbol	EMC
Entity Registrant Name	EMC CORP
Entity Central Index Key	0000790070
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	2,106,655,190

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Accrued Expenses

9 Months Ended

Sep. 30, 2012

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of (table in thousands):

	September 30, 2012		December 31, 2011
Salaries and benefits	$	938,841	$	961,587
Product warranties	264,817		254,554
Partner rebates	153,552		167,813
Restructuring, current (See Note 13)	69,578		61,541
Derivatives	29,589		50,963
Other	861,191		858,521
	$	2,317,568	$	2,354,979

Product Warranties

Systems sales include a standard product warranty. At the time of the sale, we accrue for systems’ warranty costs. The initial systems’ warranty accrual is based upon our historical experience, expected future costs and specific identification of systems’ requirements. Upon sale or expiration of the initial warranty, we may sell additional maintenance contracts to our customers. Revenue from these additional maintenance contracts is included in deferred revenue and recognized ratably over the service period. The following represents the activity in our warranty accrual for the three and nine months ended September 30, 2012 and 2011 (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Balance, beginning of the period	$	262,059		$	248,395		$	254,554		$	236,131
Provision	41,303			42,535			129,358			130,775
Amounts charged to the accrual	(38,545		)	(41,955		)	(119,095		)	(117,931		)
Balance, end of the period	$	264,817		$	248,975		$	264,817		$	248,975

The provision includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods. It is not practicable to determine the amounts applicable to each of the components.

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CONSOLIDATED INCOME STATEMENTS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Product sales	$ 3,084,441	$ 3,074,367	$ 9,332,035	$ 9,049,610
Services	2,193,735	1,905,834	6,351,912	5,383,547
Total consolidated revenues	5,278,176	4,980,201	15,683,947	14,433,157
Costs and expenses:
Cost of product sales	1,292,756	1,269,323	3,848,634	3,917,028
Cost of services	697,881	644,613	2,087,164	1,870,526
Research and development	652,898	548,021	1,896,656	1,589,020
Selling, general and administrative	1,708,794	1,612,914	5,075,641	4,684,534
Restructuring and acquisition-related charges	27,064	20,302	80,560	68,411
Operating income	898,783	885,028	2,695,292	2,303,638
Non-operating income (expense):
Investment income	29,850	32,293	85,280	106,506
Interest expense	(21,480)	(44,322)	(58,207)	(135,777)
Other income (expense), net	(63,055)	(59,799)	(157,704)	(72,616)
Total non-operating income (expense)	(54,685)	(71,828)	(130,631)	(101,887)
Income before provision for income taxes	844,098	813,200	2,564,661	2,201,751
Income tax provision	185,434	171,086	590,600	465,456
Net income	658,664	642,114	1,974,061	1,736,295
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(32,326)	(36,465)	(111,367)	(107,004)
Net income attributable to EMC Corporation	$ 626,338	$ 605,649	$ 1,862,694	$ 1,629,291
Net income per weighted average share, basic attributable to EMC Corporation common shareholders	$ 0.30	$ 0.29	$ 0.89	$ 0.79
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders	$ 0.28	$ 0.27	$ 0.84	$ 0.72
Weighted average shares, basic	2,104,205	2,054,007	2,089,516	2,060,242
Weighted average shares, diluted	2,210,421	2,207,099	2,206,805	2,244,508

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Convertible Debt

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Convertible Debt

In November 2006, we issued our $1,725 million1.75% convertible senior notes due 2011 (the “2011 Notes”) and our $1,725 million1.75% convertible senior notes due 2013 (the “2013 Notes”) for total gross proceeds of $3.45 billion. The 2011 Notes and 2013 Notes are senior unsecured obligations and rank equally with all other existing and future senior unsecured debt.

The 2011 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2011 Notes at the end of 2011. Pursuant to the settlement terms, the majority of the converted 2011 Notes were not settled until January 9, 2012. At that time, we paid the noteholders $1,699.8 million in cash for the outstanding principal and 29.5 million shares for the $661.4 million in excess of the conversion value over the principal amount, as prescribed by the terms of the 2011 Notes.

The holders of the 2013 Notes may convert their 2013 Notes at their option on any day prior to the close of business on the scheduled trading day immediately preceding September 1, 2013 only under the following circumstances: (1) during the five business-day period after any five consecutive trading-day period (the “measurement period”) in which the price per 2013 Note for each day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such day; (2) during any calendar quarter, if the last reported sale price of our common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; or (3) upon the occurrence of certain events specified in the 2013 Notes. Additionally, the 2013 Notes will become convertible during the last three months prior to their maturity.

Upon conversion, we will pay cash up to the principal amount of the debt converted. With respect to any conversion value in excess of the principal amount of the 2013 Notes converted, we have the option to settle the excess with cash, shares of our common stock, or a combination of cash and shares of our common stock based on a daily conversion value, determined in accordance with the indenture, calculated on a proportionate basis for each day of the relevant 20-day observation period. The initial conversion rate for the 2013 Notes will be 62.1978 shares of our common stock per one thousand dollars of principal amount of 2013 Notes, which represents a 27.5% conversion premium from the date the 2013 Notes were issued and is equivalent to a conversion price of approximately $16.08 per share of our common stock. The conversion price is subject to adjustment in some events as set forth in the indenture. In addition, if a “fundamental change” (as defined in the indenture) occurs prior to the maturity date, we will in some cases increase the conversion rate for a holder of 2013 Notes that elects to convert its 2013 Notes in connection with such fundamental change.

At September 30, 2012, the contingent conversion thresholds on the 2013 Notes were exceeded. As a result, the 2013 Notes became convertible at the option of the holder through December 31, 2012. Accordingly, since the terms of the 2013 Notes require the principal to be settled in cash, we reclassified from shareholders’ equity the portion of the 2013 Notes attributable to the conversion feature which had not yet been accreted to its face value, and the 2013 Notes were classified as a current liability. Contingencies continue to exist regarding the holders’ ability to convert the 2013 Notes in future quarters. The determination of whether the 2013 Notes are convertible will be performed on a quarterly basis. Consequently, the 2013 Notes might not be convertible in future quarters and may be reclassified as long-term debt if the contingent conversion thresholds are not met. Approximately $14.8 million of the 2013 Notes have been converted as of September 30, 2012.

The carrying amount of the 2013 Notes reported in the consolidated balance sheets as of September 30, 2012 was $1,636.9 million and the fair value was $2,938.1 million. The carrying amount of the equity component of the 2013 Notes was $309.5 million at September 30, 2012. As of September 30, 2012, the unamortized discount on the 2013 Notes consists of $73.3 million, which will be fully amortized by December 1, 2013.

The 2013 Notes pay interest in cash at a rate of 1.75%semi-annually in arrears on December 1 and June 1 of each year. The effective interest rate on the 2011 Notes and 2013 Notes was 5.6% for both the three months ended September 30, 2012 and 2011.

The following tables represent the key components of our interest expense on convertible debt (table in thousands):

	For the Three Months Ended
	September 30, 2012		September 30, 2011
Contractual interest expense on the coupon	$	7,482	$	15,078
Amortization of the discount component recognized as interest expense	15,405		30,852
Total interest expense on the convertible debt	$	22,887	$	45,930

	For the Nine Months Ended
	September 30, 2012		September 30, 2011
Contractual interest expense on the coupon	$	22,427	$	45,266
Amortization of the discount component recognized as interest expense	45,059		90,174
Total interest expense on the convertible debt	$	67,486	$	135,440

In connection with the issuance of the 2011 Notes and 2013 Notes, we entered into separate convertible note hedge transactions with respect to our common stock (the “Purchased Options”). The Purchased Options allow us to receive shares of our common stock and/or cash related to the excess conversion value that we would pay to the holders of the 2011 Notes and 2013 Notes upon conversion. The Purchased Options will cover, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669.1 million of the proceeds from the sale of the 2011 Notes and 2013 Notes for the Purchased Options that was recorded as additional paid-in-capital in shareholders’ equity. In the fourth quarter of 2011, we exercised 107.5 million of the Purchased Options in conjunction with the planned settlements of the 2011 Notes, and we received 29.5 million shares of net settlement on January 9, 2012, representing the excess conversion value of the options. The remaining 107.5 million of the Purchased Options expire on December 1, 2013.

We also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. We received aggregate proceeds of $391.1 million from the sale of the associated warrants. Upon exercise, the value of the warrants is required to be settled in shares. Half of the associated warrants were exercised between February 15, 2012 and March 14, 2012 and the remaining half of the associated warrants have expiration dates between February 18, 2014 and March 18, 2014. During the first quarter of 2012, the exercised warrants were settled with 32.3 million shares of our common stock.

The Purchased Options and associated warrants will generally have the effect of increasing the conversion price of the 2013 Notes to approximately $19.55 per share of our common stock, representing an approximate 55% conversion premium based on the closing price of $12.61 per share of our common stock on November 13, 2006, which was the issuance date of the 2013 Notes.

In 2010, EMC entered into interest rate swap contracts with an aggregate notional amount of approximately $900 million. These swaps were designated as cash flow hedges of the semi-annual interest payments of the forecasted issuance of debt in 2011 when our 2011 Notes were scheduled to become due. As such, the unrealized loss on these hedges was recognized in other comprehensive loss. In November 2011, we settled the swaps and replaced them with new interest rate swap contracts for the forecasted issuance of debt in 2012. In April 2012, we settled the swaps and replaced them with new interest rate swap contracts for the forecasted issuance of debt in 2012. Each of these new swaps was deemed as an effective hedge as the notional amounts and other terms matched the underlying hedged item. Losses on the interest rate swap contracts at the time of settlement of $141.0 million in November 2011 and $23.0 million in April 2012 were deferred as they were expected to be realized over the life of the new debt issued under the related interest rate swap contracts and recognized as a component of interest expense in the consolidated income statements.

In June 2012, management changed its forecast date for the issuance of debt from 2012 to the first quarter of 2014. Consequently, hedge accounting effectively ceased as the terms of the swaps no longer matched the terms of the underlying hedged item resulting in changes in the fair value of the swaps being recorded in the consolidated income statement. The swaps were subsequently re-designated as cash flow hedges and achieved hedge accounting. The change in the forecasted timeframe for the issuance of debt resulted in certain previously-anticipated hedge interest payments no longer being expected to occur within the window covered by the hedge designation. As a result, $39.5 million of accumulated realized losses in other comprehensive income related to these previously-anticipated interest payments was reclassified from other comprehensive income and recognized in the consolidated income statements for the nine months ended September 30, 2012.

In July 2012, we settled the interest rate swap contracts and did not replace them. Losses on the interest rate swap contracts at the time of settlement of $45.5 million were deferred as they are expected to be realized over the life of the new debt issued under the related interest rate swap contracts and recognized as a component of interest expense in the consolidated income statements.

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Business Combinations, Intangibles and Goodwill

9 Months Ended

Sep. 30, 2012

Business Combination, Goodwill and Intangible Assets Disclosure [Abstract]

Business Combinations, Intangibles and Goodwill

Business Combinations, Intangibles and Goodwill

During the nine months ended September 30, 2012, we acquired seven companies. We acquired all of the outstanding capital stock of Pivotal Labs, a provider of services and technology to build Big Data applications; Likewise Software, a provider of technology for managing cross-platform access to data files and software for managing unstructured data; XtremIO, a provider of Flash enterprise storage systems; Watch4Net, a provider of enterprise and carrier-class performance management software; and Tiburon Technologies, a provider of support and modernization services for legacy database management systems. These acquisitions complement and expand our Information Storage segment. We also acquired all of the outstanding capital stock of Syncplicity, a provider of cloud-based synch and share file management which complements and expands our Information Intelligence Group segment, and Silicium Security, a provider of enterprise malware detection solutions which complements and expands our RSA Information Security segment. In connection with our acquisitions, we had adjustments to the fair value of previously held interests in XtremIO which resulted in a gain of $31.6 million which was recognized in other income (expense) in the second quarter of 2012. Additionally, during the nine months ended September 30, 2012, VMware acquired six companies, including the acquisition of Nicira, Inc. (“Nicira”), which is discussed further below.

The aggregate consideration for these thirteen acquisitions was $1,899.2 million which consisted of $1,878.1 million of cash consideration, net of cash acquired and $21.1 million for the fair value of our stock options granted in exchange for the acquirees’ stock options. The consideration paid was allocated to the fair value of the assets acquired and liabilities assumed based on estimated fair values as of the respective acquisition dates.

The aggregate allocation to goodwill, intangibles and net liabilities was approximately $1,583.7 million, $553.0 million and $237.5 million, respectively. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. The results of these acquisitions have been included in the consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired companies were not material, individually or in the aggregate, to our consolidated results of operations for the three or nine months ended September 30, 2012 or 2011.

Acquisition of Nicira

On August 24, 2012, VMware acquired all of the outstanding capital stock of Nicira, a developer of software-defined networking solutions. This acquisition expands VMware’s product portfolio to provide a suite of software-defined networking capabilities.

The aggregate consideration paid for Nicira was $1,099.6 million, net of cash acquired, including cash of $1,083.0 million and the fair value of assumed equity attributed to pre-combination services of $16.6 million. Additionally, VMware assumed all of Nicira’s unvested stock options and restricted stock outstanding. These converted into 1.1 million stock options to purchase VMware Class A common stock. The assumed restricted stock converted into 0.6 million shares of restricted VMware Class A common stock.

The weighted-average acquisition-date fair value of the stock options was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: (i) market price of $92.21 per share, which was the closing price of VMware’s Class A common stock on the acquisition date; (ii) expected term of 2.7 years; (iii) risk-free interest rate of 0.3%; (iv) annualized volatility of 35.7%; and (v) no dividend yield. The assumed restricted stock converted into 0.6 million shares of restricted VMware Class A common stock. The fair value of the restricted stock was based on the acquisition-date closing price of $92.21 per share for VMware’s Class A common stock.

The purchase price has been allocated to the assets acquired and the liabilities assumed based on estimated fair values as of the acquisition date. The following table summarizes the allocation of the Nicira purchase price (table in thousands):

Intangible assets:
Purchased technology (weighted-average useful life of 7 years)	$	266,000
Trademarks and tradenames (weighted-average useful life of 10 years)	20,100
In-process research and development	48,500
Total intangible assets	334,600
Goodwill	947,956
Deferred tax liabilities, net	(78,247		)
Income tax payable	(103,822		)
Other current liabilities, net of current assets	(863		)
Total purchase price	$	1,099,624

In connection with the Nicira acquisition, we acquired one in-process research and development (“IPR&D”) project which is expected to be completed by the end of 2012. The value assigned to the IPR&D project was determined using a discounted cash flow model with a discount rate of 17.0%. Upon completion, the project will be amortized over its projected remaining useful life. The estimated costs to complete the project are not material.

Intangible Assets

Intangible assets, excluding goodwill, as of September 30, 2012 and December 31, 2011 consist of (tables in thousands):

	September 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,085,323	$	(1,153,712	)	$	931,611
Patents	225,146		(83,235		)	141,911
Software licenses	94,495		(87,456		)	7,039
Trademarks and tradenames	194,891		(107,397		)	87,494
Customer relationships and customer lists	1,372,665		(700,069		)	672,596
In-process research and development	71,700		—			71,700
Leasehold interest	146,757		(5,769		)	140,988
Other	25,822		(25,801		)	21
Total intangible assets, excluding goodwill	$	4,216,799	$	(2,163,439	)	$	2,053,360

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	1,620,977	$	(1,020,356	)	$	600,621
Patents	225,146		(72,078		)	153,068
Software licenses	90,093		(83,999		)	6,094
Trademarks and tradenames	172,851		(93,636		)	79,215
Customer relationships and customer lists	1,329,775		(597,117		)	732,658
In-process research and development	43,900		—			43,900
Leasehold interest	146,757		(2,524		)	144,233
Other	30,149		(23,823		)	6,326
Total intangible assets, excluding goodwill	$	3,659,648	$	(1,893,533	)	$	1,766,115

Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the nine months ended September 30, 2012 and the year ended December 31, 2011 consist of (tables in thousands):

	Nine Months Ended September 30, 2012
	Information Storage			Information Intelligence Group		RSA Information Security			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,033,965		$	1,469,216	$	1,849,116		$	1,802,673		$	12,154,970
Goodwill resulting from acquisitions	427,553			14,493		3,751			1,137,914			1,583,711
Tax deduction from exercise of stock options	(6		)	—		—			—			(6		)
Finalization of purchase price allocations	(659		)	—		(6,099		)	(3,661		)	(10,419		)
Balance, end of the period	$	7,460,853		$	1,483,709	$	1,846,768		$	2,936,926		$	13,728,256

	Year Ended December 31, 2011
	Information Storage			Information Intelligence Group			RSA Information Security			VMware Virtual Infrastructure		Total
Balance, beginning of the year	$	7,029,341		$	1,467,903		$	1,663,213		$	1,612,193	$	11,772,650
Goodwill resulting from acquisitions	—			—			187,445			188,395		375,840
Tax deduction from exercise of stock options	(73		)	(852		)	(95		)	—		(1,020		)
Finalization of purchase price allocations	4,697			2,165			(1,447		)	2,085		7,500
Balance, end of the year	$	7,033,965		$	1,469,216		$	1,849,116		$	1,802,673	$	12,154,970

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Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

We manage our business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure. EMC Information Infrastructure operates in three segments: Information Storage, Information Intelligence Group and RSA Information Security, while VMware Virtual Infrastructure operates in a single segment. Our management measures are designed to assess performance of these operating segments excluding certain items. As a result, the corporate reconciling items are used to capture the items excluded from the segment operating performance measures, including stock-based compensation expense, acquisition-related intangible asset amortization expense and transition costs. Additionally, in certain instances, infrequently occurring gains or losses are also excluded from the measures used by management in assessing segment performance. The VMware Virtual Infrastructure amounts represent the revenues and expenses of VMware as reflected within EMC’s consolidated financial statements. Research and development expenses, selling, general and administrative, and other income associated with the EMC Information Infrastructure business are not allocated to the segments within the EMC Information Infrastructure business, as they are managed centrally at the corporate level. For the three segments within the EMC Information Infrastructure business, gross profit is the segment operating performance measure.

Our segment information for the three and nine months ended September 30, 2012 and 2011 is as follows (tables in thousands, except percentages):

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
September 30, 2012
Revenues:
Product revenues	$	2,438,665		$	49,881		$	106,020		$	2,594,566		$	489,875		$	—		$	3,084,441
Services revenues	1,324,110			108,117			120,918			1,553,145			640,590			—			2,193,735
Total consolidated revenues	3,762,775			157,998			226,938			4,147,711			1,130,465			—			5,278,176
Cost of sales	1,625,910			50,471			81,330			1,757,711			135,588			97,338			1,990,637
Gross profit	$	2,136,865		$	107,527		$	145,608		2,390,000			994,877			(97,338		)	3,287,539
Gross profit percentage	56.8		%	68.1		%	64.2		%	57.6		%	88.0		%	—			62.3		%
Research and development										367,792			196,888			88,218			652,898
Selling, general and administrative										1,102,888			435,454			170,452			1,708,794
Restructuring and acquisition-related charges										—			—			27,064			27,064
Total costs and expenses										1,470,680			632,342			285,734			2,388,756
Operating income										919,320			362,535			(383,072		)	898,783
Other income (expense), net										(49,863		)	8,498			(13,320		)	(54,685		)
Income before provision for income taxes										869,457			371,033			(396,392		)	844,098
Income tax provision										210,517			82,920			(108,003		)	185,434
Net income										658,940			288,113			(288,389		)	658,664
Net income attributable to the non-controlling interest in VMware, Inc.										—			(57,912		)	25,586			(32,326		)
Net income attributable to EMC Corporation										$	658,940		$	230,201		$	(262,803	)	$	626,338

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
September 30, 2011
Revenues:
Product revenues	$	2,465,339		$	50,439		$	115,685		$	2,631,463		$	442,904		$	—		$	3,074,367
Services revenues	1,197,581			111,157			99,215			1,407,953			497,881			—			1,905,834
Total consolidated revenues	3,662,920			161,596			214,900			4,039,416			940,785			—			4,980,201
Cost of sales	1,583,727			59,436			69,664			1,712,827			130,683			70,426			1,913,936
Gross profit	$	2,079,193		$	102,160		$	145,236		2,326,589			810,102			(70,426		)	3,066,265
Gross profit percentage	56.8		%	63.2		%	67.6		%	57.6		%	86.1		%	—			61.6		%
Research and development										316,380			148,576			83,065			548,021
Selling, general and administrative										1,099,329			368,187			145,398			1,612,914
Restructuring and acquisition-related charges										—			—			20,302			20,302
Total costs and expenses										1,415,709			516,763			248,765			2,181,237
Operating income										910,880			293,339			(319,191		)	885,028
Other income (expense), net										(43,223		)	197			(28,802		)	(71,828		)
Income before provision for income taxes										867,657			293,536			(347,993		)	813,200
Income tax provision										237,936			22,949			(89,799		)	171,086
Net income										629,721			270,587			(258,194		)	642,114
Net income attributable to the non-controlling interest in VMware, Inc.										—			(54,622		)	18,157			(36,465		)
Net income attributable to EMC Corporation										$	629,721		$	215,965		$	(240,037	)	$	605,649

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2012
Revenues:
Product revenues	$	7,406,314		$	131,440		$	305,967		$	7,843,721		$	1,488,314		$	—		$	9,332,035
Services revenues	3,862,593			324,884			348,258			4,535,735			1,816,177			—			6,351,912
Total consolidated revenues	11,268,907			456,324			654,225			12,379,456			3,304,491			—			15,683,947
Cost of sales	4,893,097			156,839			196,104			5,246,040			400,327			289,431			5,935,798
Gross profit	$	6,375,810		$	299,485		$	458,121		7,133,416			2,904,164			(289,431		)	9,748,149
Gross profit percentage	56.6		%	65.6		%	70.0		%	57.6		%	87.9		%	—			62.2		%
Research and development										1,077,907			574,282			244,467			1,896,656
Selling, general and administrative										3,325,212			1,273,696			476,733			5,075,641
Restructuring and acquisition-related charges										—			—			80,560			80,560
Total costs and expenses										4,403,119			1,847,978			801,760			7,052,857
Operating income										2,730,297			1,056,186			(1,091,191		)	2,695,292
Other income (expense), net										(107,276		)	20,337			(43,692		)	(130,631		)
Income before provision for income taxes										2,623,021			1,076,523			(1,134,883		)	2,564,661
Income tax provision										706,003			194,699			(310,102		)	590,600
Net income										1,917,018			881,824			(824,781		)	1,974,061
Net income attributable to the non-controlling interest in VMware, Inc.										—			(179,699		)	68,332			(111,367		)
Net income attributable to EMC Corporation										$	1,917,018		$	702,125		$	(756,449	)	$	1,862,694

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2011
Revenues:
Product revenues	$	7,282,052		$	135,797		$	305,138		$	7,722,987		$	1,326,623		$	—		$	9,049,610
Services revenues	3,388,839			336,846			280,150			4,005,835			1,377,712			—			5,383,547
Total consolidated revenues	10,670,891			472,643			585,288			11,728,822			2,704,335			—			14,433,157
Cost of sales	4,733,529			176,361			277,817			5,187,707			390,438			209,409			5,787,554
Gross profit	$	5,937,362		$	296,282		$	307,471		6,541,115			2,313,897			(209,409		)	8,645,603
Gross profit percentage	55.6		%	62.7		%	52.5		%	55.8		%	85.6		%	—			59.9		%
Research and development										932,581			412,575			243,864			1,589,020
Selling, general and administrative										3,179,639			1,057,615			447,280			4,684,534
Restructuring and acquisition-related charges										—			—			68,411			68,411
Total costs and expenses										4,112,220			1,470,190			759,555			6,341,965
Operating income										2,428,895			843,707			(968,964		)	2,303,638
Other income (expense), net										(76,169		)	4,466			(30,184		)	(101,887		)
Income before provision for income taxes										2,352,726			848,173			(999,148		)	2,201,751
Income tax provision										620,453			103,711			(258,708		)	465,456
Net income										1,732,273			744,462			(740,440		)	1,736,295
Net income attributable to the non-controlling interest in VMware, Inc.										—			(151,612		)	44,608			(107,004		)
Net income attributable to EMC Corporation										$	1,732,273		$	592,850		$	(695,832	)	$	1,629,291

Our revenues are attributed to the geographic areas according to the location of the customers. Revenues by geographic area are included in the following table (table in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
United States	$	2,885,968	$	2,674,626	$	8,376,276	$	7,552,800
Europe, Middle East and Africa	1,351,753		1,355,474		4,216,384		4,149,828
Asia Pacific and Japan	733,157		695,443		2,192,411		1,944,808
Latin America, Mexico and Canada	307,298		254,658		898,876		785,721
Total	$	5,278,176	$	4,980,201	$	15,683,947	$	14,433,157

No country other than the United States accounted for 10% or more of revenues during the three and nine months ended September 30, 2012 or 2011.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $3,851.6 million at September 30, 2012 and $3,622.8 million at December 31, 2011. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $626.8 million at September 30, 2012 and $616.5 million at December 31, 2011. No country other than the United States accounted for 10% or more of total long-lived assets, excluding financial instruments and deferred tax assets, at September 30, 2012 or December 31, 2011.

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Income Taxes

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective income tax rates were 22.0% and 23.0% for the three and nine months ended September 30, 2012, respectively. Our effective income tax rates were 21.0% and 21.1% for the three and nine months ended September 30, 2011, respectively. Our effective income tax rate is based upon estimated income before tax for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax audits or other tax contingencies. For the three and nine months ended September 30, 2012 and 2011, the effective income tax rate varied from the statutory income tax rate principally as a result of the mix of income attributable to foreign versus domestic jurisdictions. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States; substantially all of our income before provision for income taxes from foreign operations has been earned by our Irish subsidiaries. We do not believe that any recent or currently expected developments in non-U.S. tax jurisdictions are reasonably likely to have a material impact on our effective income rate.

Our effective income tax rate increased in the three and nine months ended September 30, 2012 from the three and nine months ended September 30, 2011 due primarily to the expiration of the U.S. federal research and development tax credit for 2012 partially offset by a difference in composition of income before tax in different countries. The U.S. federal research and development tax credit reduced our effective income tax rate by approximately 2.2% for the three and nine months ended September 30, 2011. There were also differences in change in tax contingency reserves and discrete items, the net impact of which is immaterial.

During the second quarter of 2012, we determined that since VMware’s public offering in 2007, we have incorrectly recorded deferred tax liabilities on the gains and losses associated with changes in the non-controlling interest. These deferred tax liabilities were recorded as a reduction to additional paid-in capital and therefore had no impact on our previously reported consolidated income statements. The error resulted in an overstatement of our deferred tax liability and an understatement of our additional paid-in capital of $352.6 million in our December 31, 2011 consolidated balance sheet and an understatement of additional paid-in capital of $357.2 million in our statement of shareholders’ equity for the nine months ended September 30, 2011. These corrections, which have been recorded herein, did not impact our income tax provision in any current or prior period. See Note 1.

We are routinely under audit by the Internal Revenue Service (the “IRS”). We have concluded all U.S. federal income tax matters for years through 2008. The IRS commenced a federal income tax audit for the tax years of 2009 and 2010 in the third quarter of 2012. We also have income tax audits in process in numerous state, local and international jurisdictions.

As of September 30, 2012, we had gross unrecognized tax benefits totaling $314.6 million. We recorded a net increase in gross unrecognized tax benefits of $112.6 million in the quarter ended September 30, 2012. If recognized, approximately $308.9 million of our gross unrecognized tax benefits, not including interest, would affect income tax expense and lower our effective tax rate in the period or periods recognized. Our net unrecognized tax benefits and related accrued interest were classified as non-current liabilities on the consolidated balance sheet. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions and/or the timing and result of ruling requests from taxing authorities, it is reasonably possible that the related unrecognized tax benefits could change from those recorded in our statement of financial position. We anticipate that several of these audits may be finalized within the next 12 months. Based on the status of these examinations, and the protocol of finalizing such audits, it is not possible to estimate the impact of the amount of such changes, if any, to our previously recorded uncertain tax positions.

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Accounts and Notes Receivable and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Accounts and Notes Receivable and Allowance for Credit Losses

Accounts and Notes Receivable and Allowance for Credit Losses

Our accounts and notes receivable are recorded at cost. The portion of our notes receivable due in one year or less are included in accounts and notes receivable and the long-term portion is included in other assets, net. Lease receivables arise from sales-type leases of products. We typically sell, without recourse, the contractual right to the lease payment stream and assets under lease to third parties. For certain customers, we retain the lease.

The contractual amounts due under the leases we retained as of September 30, 2012 were as follows (table in thousands):

Year	Contractual Amounts Due Under Leases
Due within one year	$	154,858
Due within two years	98,920
Due within three years	88,997
Thereafter	1,524
Total	344,299
Less amounts representing interest	(9,049		)
Present value	335,250
Current portion (included in accounts and notes receivable)	153,013
Long-term portion (included in other assets, net)	$	182,237

Subsequent to September 30, 2012, we sold $54.8 million of these notes to third parties without recourse.

We maintain an allowance for credit losses on our accounts and notes receivable. The allowance is based on the credit worthiness of our customers, including an assessment of the customer’s financial position, operating performance and their ability to meet their contractual obligation. We assess the credit scores for our customers each quarter. In addition, we consider our historical experience, the age of the receivable and current market and economic conditions. Uncollectible amounts are charged against the allowance account.

In the event we determine that a lease may not be paid, we include in our allowance an amount for the outstanding balance related to the lease receivable. As of September 30, 2012, amounts from lease receivables past due for more than 90 days were not significant.

The following table presents the activity of our allowance for credit losses related to lease receivables for the nine months ended September 30, 2012 and 2011 (table in thousands):

	September 30, 2012			September 30, 2011
Balance, beginning of the period	$	24,247		$	44,661
Recoveries	(15,923		)	(27,539		)
Provisions	8,634			10,066
Balance, end of the period	$	16,958		$	27,188

Gross lease receivables totaled $344.3 million and $335.5 million as of September 30, 2012 and December 31, 2011, respectively, before the allowance. The components of these balances were individually evaluated for impairment.

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Reconciliation from Basic To Diluted Earnings Per Share for both Numerators and Denominators (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Numerator:
Net income attributable to EMC Corporation	$ 626,338	$ 605,649	$ 1,862,694	$ 1,629,291
Incremental dilution from VMware	(1,766)	(3,233)	(7,425)	(11,178)
Net income - dilution attributable to EMC Corporation	$ 624,572	$ 602,416	$ 1,855,269	$ 1,618,113
Denominator:
Weighted average shares, basic	2,104,205	2,054,007	2,089,516	2,060,242
Weighted common stock equivalents	38,043	46,629	41,974	55,418
Assumed conversion of the 2013 Notes and associated warrants	68,173	106,463	75,315	128,848
Weighted average shares, diluted	2,210,421	2,207,099	2,206,805	2,244,508

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Fair Value of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

Our fixed income and equity investments are classified as available for sale and recorded at their fair market values. We determine 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 not 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.

Most of our fixed income securities are classified as Level 2, with the exception of some of our U.S. government and agency obligations and our investments in publicly traded equity securities, which are classified as Level 1, and all of our auction rate securities, which are classified as Level 3. In addition, our strategic investments held at cost are classified as Level 3. At September 30, 2012, the vast majority of our Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. In the event observable inputs are not available, we assess other factors to determine the security’s market value, including broker quotes or model valuations. Each month, we perform independent price verifications of all of our fixed income holdings. In the event a price fails a pre-established tolerance check, it is researched so that we can assess the cause of the variance to determine what we believe is the appropriate fair market value.

In general, investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. Our publicly traded equity securities are classified as long-term investments and our strategic investments held at cost are classified as other assets. As a result of the lack of liquidity for auction rate securities, we have classified these as long-term investments as of September 30, 2012 and December 31, 2011. At September 30, 2012 and December 31, 2011, all of our short- and long-term investments, excluding auction rate securities, were recognized at fair value, which was determined based upon observable inputs from our pricing vendors for identical or similar assets. At September 30, 2012 and December 31, 2011, auction rate securities were valued using a discounted cash flow model.

The following tables summarize the composition of our short- and long-term investments at September 30, 2012 and December 31, 2011 (tables in thousands):

	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,033,500	$	11,321	$	(1,005	)	$	2,043,816
U.S. corporate debt securities	1,360,511		12,772		(97		)	1,373,186
High yield corporate debt securities	468,285		31,408		(1,076		)	498,617
Asset-backed securities	3,227		8		—			3,235
Municipal obligations	1,023,504		4,379		(366		)	1,027,517
Auction rate securities	80,706		—		(5,860		)	74,846
Foreign debt securities	1,243,175		10,013		(198		)	1,252,990
Total fixed income securities	6,212,908		69,901		(8,602		)	6,274,207
Publicly traded equity securities	47,786		97,815		(625		)	144,976
Total	$	6,260,694	$	167,716	$	(9,227	)	$	6,419,183

We held approximately $1.3 billion in foreign debt securities at September 30, 2012. These securities have an average credit rating of A+, and approximately 5% of these securities are deemed sovereign debt with an average credit rating of AA. None of the securities deemed sovereign debt are from Greece, Italy, Ireland, Portugal or Spain. Additionally, we have an immaterial amount of exposure to French agencies and financial institutions.

	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,474,029	$	12,420	$	(1,488	)	$	2,484,961
U.S. corporate debt securities	1,400,373		9,953		(2,573		)	1,407,753
High yield corporate debt securities	442,723		12,498		(7,742		)	447,479
Asset-backed securities	29,101		72		(25		)	29,148
Municipal obligations	814,657		2,021		(597		)	816,081
Auction rate securities	82,900		—		(8,304		)	74,596
Foreign debt securities	984,696		5,185		(2,807		)	987,074
Total fixed income securities	6,228,479		42,149		(23,536		)	6,247,092
Publicly traded equity securities	58,199		6,802		—			65,001
Total	$	6,286,678	$	48,951	$	(23,536	)	$	6,312,093

The following table represents our fair value hierarchy for our financial assets and liabilities measured at fair value as of September 30, 2012 (in thousands):

	Level 1		Level 2			Level 3		Total
Cash	$	1,441,347	$	—		$	—	$	1,441,347
Cash equivalents	2,715,470		4,000			—		2,719,470
U.S. government and agency obligations	1,128,224		915,592			—		2,043,816
U.S. corporate debt securities	—		1,373,186			—		1,373,186
High yield corporate debt securities	—		498,617			—		498,617
Asset-backed securities	—		3,235			—		3,235
Municipal obligations	—		1,027,517			—		1,027,517
Auction rate securities	—		—			74,846		74,846
Foreign debt securities	—		1,252,990			—		1,252,990
Publicly traded equity securities	144,976		—			—		144,976
Total cash and investments	$	5,430,017	$	5,075,137		$	74,846	$	10,580,000
Other items:
Strategic investments held at cost	$	—	$	—		$	254,338	$	254,338
Convertible debt	—		(2,938,101		)	—		(2,938,101		)
Foreign exchange derivative assets	—		47,311			—		47,311
Foreign exchange derivative liabilities	—		(23,426		)	—		(23,426		)
Commodity derivative liabilities	—		(1,502		)	—		(1,502		)

Our auction rate securities are predominantly rated investment grade and are primarily collateralized by student loans. The underlying loans of all but two of our auction rate securities, with a market value of $16.6 million, have partial guarantees by the U.S. government as part of the Federal Family Education Loan Program (“FFELP”) through the U.S. Department of Education. FFELP guarantees at least 95% of the loans which collateralize the auction rate securities. We believe the quality of the collateral underlying most of our auction rate securities will enable us to recover our principal balance.

To determine the estimated fair value of our investment in auction rate securities, we used a discounted cash flow model using a five year time horizon. As of September 30, 2012, the coupon rates used ranged from 0% to 4% and the discount rate was 1%, which rate represents the rate at which similar FFELP backed securities with a five year time horizon outside of the auction rate securities market were trading at September 30, 2012. The assumptions used in preparing the discounted cash flow model include an incremental discount rate for the lack of liquidity in the market (“liquidity discount margin”) for an estimated period of time. The discount rate we selected was based on AA-rated banks as the majority of our portfolio is invested in student loans where EMC acts as a financier to these lenders. The liquidity discount margin represents an estimate of the additional return an investor would require for the lack of liquidity of these securities over an estimated five-year holding period. The rate used for the discount margin was 1% at September 30, 2012 compared to 2% at December 31, 2011 due to the narrowing of credit spreads on AA-rated banks during 2012.

The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and nine months ended September 30, 2012 (table in thousands):

	For the Three Months Ended					For the Nine Months Ended
	September 30, 2012		September 30, 2011			September 30, 2012			September 30, 2011
Balance, beginning of the period	$	73,896	$	99,154		$	74,596		$	146,044
Calls at par value	—		(13,100		)	(225		)	(64,600		)
Other-than-temporary impairment loss	—		—			(1,969		)	—
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	950		(4,963		)	2,444			(353		)
Balance, end of the period	$	74,846	$	81,091		$	74,846		$	81,091

Significant changes in the unobservable inputs discussed above could result in a significantly lower or higher fair value measurement. Generally, an increase in the discount rate, liquidity discount margin or coupon rate results in a decrease in our fair value measurement and a decrease in the discount rate, liquidity discount margin or coupon rate results in an increase in our fair value measurement.

We perform a fair value calculation of our strategic investments held at cost on a quarterly basis using the most currently available information. To determine the estimated fair value of private strategic investments held at cost we use a combination of several valuation techniques including discounted cash flow models, acquisition comparables and trading comparables. In addition, we evaluate the impact of pre- and post-money valuations of recent financing events and the impact of those on our fully diluted ownership percentages, and we consider any available information regarding the issuer’s historical and forecasted performance as well as market comparables and conditions. The fair value of these investments is considered in our review for impairment if any events and changes in circumstances occur that might have a significant adverse effect on their value.

Investment Losses

Unrealized losses on investments at September 30, 2012 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. government and agency obligations	$	247,834	$	(906	)	$	9,186	$	(99	)	$	257,020	$	(1,005	)
U.S. corporate debt securities	96,205		(91		)	2,234		(6		)	98,439		(97		)
High yield corporate debt securities	30,208		(697		)	1,354		(379		)	31,562		(1,076		)
Municipal obligations	192,338		(362		)	2,614		(4		)	194,952		(366		)
Auction rate securities	—		—			74,846		(5,860		)	74,846		(5,860		)
Foreign debt securities	98,849		(198		)	—		—			98,849		(198		)
Publicly traded equity securities	1,097		(625		)	—		—			1,097		(625		)
Total	$	666,531	$	(2,879	)	$	90,234	$	(6,348	)	$	756,765	$	(9,227	)

For all of our securities for which the amortized cost basis was greater than the fair value at September 30, 2012, we have concluded that currently we neither plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating, the underlying value and performance of the collateral, third party guarantees and the time to maturity.

Contractual Maturities

The contractual maturities of fixed income securities held at September 30, 2012 are as follows (table in thousands):

	September 30, 2012
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,271,478	$	1,275,151
Due after 1 year through 5 years	4,083,712		4,118,038
Due after 5 years through 10 years	463,518		488,630
Due after 10 years	394,200		392,388
Total	$	6,212,908	$	6,274,207

Short-term investments on the consolidated balance sheet include a $9.7 million variable rate note which has a contractual maturity in 2014, and is not classified within investments due within one year above.

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Inventories

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of (table in thousands):

	September 30, 2012		December 31, 2011
Work-in-process	$	595,380	$	492,064
Finished goods	562,882		517,904
	$	1,158,262	$	1,009,968

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment consist of (table in thousands):

	September 30, 2012			December 31, 2011
Furniture and fixtures	$	185,933		$	180,800
Equipment and software	5,129,879			4,680,118
Buildings and improvements	1,806,957			1,748,214
Land	123,334			117,513
Building construction in progress	190,934			146,650
	7,437,037			6,873,295
Accumulated depreciation	(4,453,591		)	(4,040,146		)
	$	2,983,446		$	2,833,149

Building construction in progress at September 30, 2012 includes $66.5 million for facilities not yet placed in service that we are holding for future use.

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Activity For Restructuring Program (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2011 Workforce reductions	Sep. 30, 2011 Workforce reductions	Jun. 30, 2012 Workforce reductions	Sep. 30, 2011 Consolidation of excess facilities and other contractual obligations	Sep. 30, 2011 Consolidation of excess facilities and other contractual obligations	Jun. 30, 2012 Consolidation of excess facilities and other contractual obligations	Sep. 30, 2012 Restructuring 2012 Programs	Sep. 30, 2012 Restructuring 2012 Programs	Sep. 30, 2012 Restructuring 2012 Programs Workforce reductions	Sep. 30, 2012 Restructuring 2012 Programs Workforce reductions	Sep. 30, 2012 Restructuring 2012 Programs Consolidation of excess facilities and other contractual obligations	Sep. 30, 2012 Restructuring 2012 Programs Consolidation of excess facilities and other contractual obligations	Sep. 30, 2012 Restructuring Other Programs	Sep. 30, 2012 Restructuring Other Programs	Sep. 30, 2012 Restructuring Other Programs Workforce reductions	Sep. 30, 2012 Restructuring Other Programs Workforce reductions	Sep. 30, 2012 Restructuring Other Programs Consolidation of excess facilities and other contractual obligations	Sep. 30, 2012 Restructuring Other Programs Consolidation of excess facilities and other contractual obligations
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 71,948			$ 81,764		$ 53,946	$ 36,562		$ 27,818	$ 35,386	$ 36,834	$ 0	$ 33,908	$ 0	$ 2,926	$ 0	$ 45,775	$ 79,975	$ 20,151	$ 49,863	$ 25,624	$ 30,112
Charges/ (Adjustments to the Provision)	22,300	16,881	70,100	58,078	14,977	33,752		1,904	24,326		25,205	76,503	16,888	62,624	8,317	13,879	(2,919)	(6,396)	(1,156)	(7,396)	(1,763)	1,000
Utilization		(17,855)		(68,868)	(13,732)	(49,891)		(4,123)	(18,977)		(14,393)	(28,857)	(10,993)	(22,821)	(3,400)	(6,036)	(6,942)	(37,665)	(4,675)	(28,147)	(2,267)	(9,518)
Ending Balance		$ 70,974		$ 70,974	$ 37,807	$ 37,807	$ 36,562	$ 33,167	$ 33,167	$ 35,386	$ 47,646	$ 47,646	$ 39,803	$ 39,803	$ 7,843	$ 7,843	$ 35,914	$ 35,914	$ 14,320	$ 14,320	$ 21,594	$ 21,594

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Segment Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012 segment	Sep. 30, 2011	Sep. 30, 2012 segment	Sep. 30, 2011	Dec. 31, 2011
Segment Reporting Information [Line Items]
Number of broad categories	2		2
Number of countries other than the US that accounted for 10% or more of total revenues	0	0	0	0
Number of countries other than the US that accounted for 10% or more of total assets			0		0
EMC Information Infrastructure
Segment Reporting Information [Line Items]
Number of operating segments			3
United States
Segment Reporting Information [Line Items]
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets	3,851.6		3,851.6		3,622.8
International
Segment Reporting Information [Line Items]
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets	626.8		626.8		616.5

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Restructuring and Acquisition-Related Charges - Additional information (Detail) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended	3 Months Ended			9 Months Ended	3 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2012	Sep. 30, 2012 Restructuring 2012 Programs Positions	Jun. 30, 2012 Restructuring 2012 Programs Positions	Mar. 31, 2012 Restructuring 2012 Programs Positions	Sep. 30, 2012 Restructuring 2012 Programs	Sep. 30, 2011 Restructuring 2011 Programs Positions	Dec. 31, 2011 Restructuring 2011 Programs Positions
Restructuring Cost and Reserve [Line Items]
Restructuring and acquisition-related charges	$ 27,064,000	$ 20,302,000	$ 80,560,000	$ 68,411,000
Restructuring charges	22,300,000	16,881,000	70,100,000	58,078,000		25,205,000			76,503,000
Acquisition-related charges	4,800,000	3,400,000	10,500,000	10,300,000
Elimination of positions						292	279	298		208	787
Lease termination costs for facilities	$ 6,600,000	$ 1,900,000	$ 14,900,000	$ 24,300,000
Date of completion of workforce reduction and/or consolidation of facilities					2015				within a year of the start of each program		2012

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Restructuring and Acquisition-Related Charges (Tables)

9 Months Ended

Sep. 30, 2012

Restructuring and Related Activities [Abstract]

Activity for the Restructuring Programs

The activity for the restructuring programs is presented below (tables in thousands):

Three Months Ended September 30, 2012:

2012 Programs
Category	Balance as of June 30, 2012		2012 Charges		Utilization			Balance as of September 30, 2012
Workforce reductions	$	33,908	$	16,888	$	(10,993	)	$	39,803
Consolidation of excess facilities and other contractual obligations	2,926		8,317		(3,400		)	7,843
Total	$	36,834	$	25,205	$	(14,393	)	$	47,646

Other Programs
Category	Balance as of June 30, 2012		Adjustments to the Provision			Utilization			Balance as of September 30, 2012
Workforce reductions	$	20,151	$	(1,156	)	$	(4,675	)	$	14,320
Consolidation of excess facilities and other contractual obligations	25,624		(1,763		)	(2,267		)	21,594
Total	$	45,775	$	(2,919	)	$	(6,942	)	$	35,914

Nine Months Ended September 30, 2012:

2012 Programs
Category	Balance as of December 31, 2011		2012 Charges		Utilization			Balance as of September 30, 2012
Workforce reductions	$	—	$	62,624	$	(22,821	)	$	39,803
Consolidation of excess facilities and other contractual obligations	—		13,879		(6,036		)	7,843
Total	$	—	$	76,503	$	(28,857	)	$	47,646

Other Programs
Category	Balance as of December 31, 2011		Adjustments to the Provision			Utilization			Balance as of September 30, 2012
Workforce reductions	$	49,863	$	(7,396	)	$	(28,147	)	$	14,320
Consolidation of excess facilities and other contractual obligations	30,112		1,000			(9,518		)	21,594
Total	$	79,975	$	(6,396	)	$	(37,665	)	$	35,914

Three Months Ended September 30, 2011:

Category	Balance as of June 30, 2011		2011 Charges		Utilization			Balance as of September 30, 2011
Workforce reductions	$	36,562	$	14,977	$	(13,732	)	$	37,807
Consolidation of excess facilities and other contractual obligations	35,386		1,904		(4,123		)	33,167
Total	$	71,948	$	16,881	$	(17,855	)	$	70,974

Nine Months Ended September 30, 2011:

Category	Balance as of December 31, 2010		2011 Charges		Utilization			Balance as of September 30, 2011
Workforce reductions	$	53,946	$	33,752	$	(49,891	)	$	37,807
Consolidation of excess facilities and other contractual obligations	27,818		24,326		(18,977		)	33,167
Total	$	81,764	$	58,078	$	(68,868	)	$	70,974

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Components of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Inventory Disclosure [Abstract]
Work-in-process	$ 595,380	$ 492,064
Finished goods	562,882	517,904
Inventory, Net, Total	$ 1,158,262	$ 1,009,968

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Restructuring and Acquisition-Related Charges

9 Months Ended

Sep. 30, 2012

Restructuring and Related Activities [Abstract]

Restructuring and Acquisition-Related Charges

Restructuring and Acquisition-Related Charges

For the three and nine months ended September 30, 2012, we incurred restructuring and acquisition-related charges of $27.1 million and $80.6 million, respectively. For the three and nine months ended September 30, 2011, we incurred restructuring and acquisition-related charges of $20.3 million and $68.4 million, respectively. For the three and nine months ended September 30, 2012, we incurred $22.3 million and $70.1 million, respectively, of restructuring charges, primarily related to our current year restructuring programs and $4.8 million and $10.5 million, respectively, of charges in connection with acquisitions for financial advisory, legal and accounting services. For the three and nine months ended September 30, 2011, we incurred $16.9 million and $58.1 million, respectively, of restructuring charges, primarily related to our 2011 restructuring programs and $3.4 million and $10.3 million, respectively, of costs in connection with acquisitions for financial advisory, legal and accounting services.

In the first, second and third quarters of 2012, we implemented separate restructuring programs to create further operational efficiencies which will result in a workforce reduction of 298, 279 and 292 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions are expected to be completed within a year of the start of each program.

During 2011, we implemented separate restructuring programs to create further operational efficiencies which will result in a workforce reduction of 787 positions, of which 208 positions were identified in the three months ended September 30, 2011. The actions will impact positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions are expected to be completed by the end of 2012.

For the three and nine months ended September 30, 2012, we recognized $6.6 million and $14.9 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs and for costs associated with terminating other contractual obligations. For the three and nine months ended September 30, 2011, we recognized $1.9 million and $24.3 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs. These costs are expected to be utilized by the end of 2015.

The activity for the restructuring programs is presented below (tables in thousands):

Three Months Ended September 30, 2012:

2012 Programs
Category	Balance as of June 30, 2012		2012 Charges		Utilization			Balance as of September 30, 2012
Workforce reductions	$	33,908	$	16,888	$	(10,993	)	$	39,803
Consolidation of excess facilities and other contractual obligations	2,926		8,317		(3,400		)	7,843
Total	$	36,834	$	25,205	$	(14,393	)	$	47,646

Other Programs
Category	Balance as of June 30, 2012		Adjustments to the Provision			Utilization			Balance as of September 30, 2012
Workforce reductions	$	20,151	$	(1,156	)	$	(4,675	)	$	14,320
Consolidation of excess facilities and other contractual obligations	25,624		(1,763		)	(2,267		)	21,594
Total	$	45,775	$	(2,919	)	$	(6,942	)	$	35,914

Nine Months Ended September 30, 2012:

2012 Programs
Category	Balance as of December 31, 2011		2012 Charges		Utilization			Balance as of September 30, 2012
Workforce reductions	$	—	$	62,624	$	(22,821	)	$	39,803
Consolidation of excess facilities and other contractual obligations	—		13,879		(6,036		)	7,843
Total	$	—	$	76,503	$	(28,857	)	$	47,646

Other Programs
Category	Balance as of December 31, 2011		Adjustments to the Provision			Utilization			Balance as of September 30, 2012
Workforce reductions	$	49,863	$	(7,396	)	$	(28,147	)	$	14,320
Consolidation of excess facilities and other contractual obligations	30,112		1,000			(9,518		)	21,594
Total	$	79,975	$	(6,396	)	$	(37,665	)	$	35,914

Three Months Ended September 30, 2011:

Category	Balance as of June 30, 2011		2011 Charges		Utilization			Balance as of September 30, 2011
Workforce reductions	$	36,562	$	14,977	$	(13,732	)	$	37,807
Consolidation of excess facilities and other contractual obligations	35,386		1,904		(4,123		)	33,167
Total	$	71,948	$	16,881	$	(17,855	)	$	70,974

Nine Months Ended September 30, 2011:

Category	Balance as of December 31, 2010		2011 Charges		Utilization			Balance as of September 30, 2011
Workforce reductions	$	53,946	$	33,752	$	(49,891	)	$	37,807
Consolidation of excess facilities and other contractual obligations	27,818		24,326		(18,977		)	33,167
Total	$	81,764	$	58,078	$	(68,868	)	$	70,974

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Business Combinations, Intangibles and Goodwill (Tables)

9 Months Ended

Sep. 30, 2012

Business Combination, Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Purchase Price Allocation

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

Intangible assets:
Purchased technology (weighted-average useful life of 7 years)	$	266,000
Trademarks and tradenames (weighted-average useful life of 10 years)	20,100
In-process research and development	48,500
Total intangible assets	334,600
Goodwill	947,956
Deferred tax liabilities, net	(78,247		)
Income tax payable	(103,822		)
Other current liabilities, net of current assets	(863		)
Total purchase price	$	1,099,624

Intangible Assets, Excluding Goodwill

Intangible assets, excluding goodwill, as of September 30, 2012 and December 31, 2011 consist of (tables in thousands):

	September 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,085,323	$	(1,153,712	)	$	931,611
Patents	225,146		(83,235		)	141,911
Software licenses	94,495		(87,456		)	7,039
Trademarks and tradenames	194,891		(107,397		)	87,494
Customer relationships and customer lists	1,372,665		(700,069		)	672,596
In-process research and development	71,700		—			71,700
Leasehold interest	146,757		(5,769		)	140,988
Other	25,822		(25,801		)	21
Total intangible assets, excluding goodwill	$	4,216,799	$	(2,163,439	)	$	2,053,360

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	1,620,977	$	(1,020,356	)	$	600,621
Patents	225,146		(72,078		)	153,068
Software licenses	90,093		(83,999		)	6,094
Trademarks and tradenames	172,851		(93,636		)	79,215
Customer relationships and customer lists	1,329,775		(597,117		)	732,658
In-process research and development	43,900		—			43,900
Leasehold interest	146,757		(2,524		)	144,233
Other	30,149		(23,823		)	6,326
Total intangible assets, excluding goodwill	$	3,659,648	$	(1,893,533	)	$	1,766,115

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the nine months ended September 30, 2012 and the year ended December 31, 2011 consist of (tables in thousands):

	Nine Months Ended September 30, 2012
	Information Storage			Information Intelligence Group		RSA Information Security			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,033,965		$	1,469,216	$	1,849,116		$	1,802,673		$	12,154,970
Goodwill resulting from acquisitions	427,553			14,493		3,751			1,137,914			1,583,711
Tax deduction from exercise of stock options	(6		)	—		—			—			(6		)
Finalization of purchase price allocations	(659		)	—		(6,099		)	(3,661		)	(10,419		)
Balance, end of the period	$	7,460,853		$	1,483,709	$	1,846,768		$	2,936,926		$	13,728,256

	Year Ended December 31, 2011
	Information Storage			Information Intelligence Group			RSA Information Security			VMware Virtual Infrastructure		Total
Balance, beginning of the year	$	7,029,341		$	1,467,903		$	1,663,213		$	1,612,193	$	11,772,650
Goodwill resulting from acquisitions	—			—			187,445			188,395		375,840
Tax deduction from exercise of stock options	(73		)	(852		)	(95		)	—		(1,020		)
Finalization of purchase price allocations	4,697			2,165			(1,447		)	2,085		7,500
Balance, end of the year	$	7,033,965		$	1,469,216		$	1,849,116		$	1,802,673	$	12,154,970

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Fair Value of Financial Assets and Liabilities Unrealized Losses on Investments by Investment Category and Length of Time in Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	$ 666,531
Less Than 12 Months Gross Unrealized Losses	(2,879)
12 Months or Greater Fair Value	90,234
12 Months or Greater Gross Unrealized Losses	(6,348)
Total Fair Value	756,765
Total Gross Unrealized Losses	(9,227)
US Government Agencies Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	247,834
Less Than 12 Months Gross Unrealized Losses	(906)
12 Months or Greater Fair Value	9,186
12 Months or Greater Gross Unrealized Losses	(99)
Total Fair Value	257,020
Total Gross Unrealized Losses	(1,005)	(1,488)
US Corporate Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	96,205
Less Than 12 Months Gross Unrealized Losses	(91)
12 Months or Greater Fair Value	2,234
12 Months or Greater Gross Unrealized Losses	(6)
Total Fair Value	98,439
Total Gross Unrealized Losses	(97)	(2,573)
High Yield Corporate Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	30,208
Less Than 12 Months Gross Unrealized Losses	(697)
12 Months or Greater Fair Value	1,354
12 Months or Greater Gross Unrealized Losses	(379)
Total Fair Value	31,562
Total Gross Unrealized Losses	(1,076)	(7,742)
Municipal Obligations
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	192,338
Less Than 12 Months Gross Unrealized Losses	(362)
12 Months or Greater Fair Value	2,614
12 Months or Greater Gross Unrealized Losses	(4)
Total Fair Value	194,952
Total Gross Unrealized Losses	(366)	(597)
Auction Rate Securities
Gain (Loss) on Investments [Line Items]
12 Months or Greater Fair Value	74,846
12 Months or Greater Gross Unrealized Losses	(5,860)
Total Fair Value	74,846
Total Gross Unrealized Losses	(5,860)	(8,304)
Foreign Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	98,849
Less Than 12 Months Gross Unrealized Losses	(198)
Total Fair Value	98,849
Total Gross Unrealized Losses	(198)	(2,807)
Public Equity Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	1,097
Less Than 12 Months Gross Unrealized Losses	(625)
Total Fair Value	1,097
Total Gross Unrealized Losses	$ (625)

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Business Combinations, Intangibles and Goodwill - Goodwill (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Goodwill [Roll Forward]
Balance, beginning of the year	$ 12,154,970	$ 11,772,650
Goodwill resulting from acquisitions	1,583,711	375,840
Tax deduction from exercise of stock options	(6)	(1,020)
Finalization of purchase price allocations	(10,419)	7,500
Balance, end of the period	13,728,256	12,154,970
Information Storage
Goodwill [Roll Forward]
Balance, beginning of the year	7,033,965	7,029,341
Goodwill resulting from acquisitions	427,553	0
Tax deduction from exercise of stock options	(6)	(73)
Finalization of purchase price allocations	(659)	4,697
Balance, end of the period	7,460,853	7,033,965
Information Intelligence Group
Goodwill [Roll Forward]
Balance, beginning of the year	1,469,216	1,467,903
Goodwill resulting from acquisitions	14,493	0
Tax deduction from exercise of stock options		(852)
Finalization of purchase price allocations	0	2,165
Balance, end of the period	1,483,709	1,469,216
RSA Information Security
Goodwill [Roll Forward]
Balance, beginning of the year	1,849,116	1,663,213
Goodwill resulting from acquisitions	3,751	187,445
Tax deduction from exercise of stock options		(95)
Finalization of purchase price allocations	(6,099)	(1,447)
Balance, end of the period	1,846,768	1,849,116
VMware Virtual Infrastructure Within EMC
Goodwill [Roll Forward]
Balance, beginning of the year	1,802,673	1,612,193
Goodwill resulting from acquisitions	1,137,914	188,395
Tax deduction from exercise of stock options		0
Finalization of purchase price allocations	(3,661)	2,085
Balance, end of the period	$ 2,936,926	$ 1,802,673

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income	$ 658,664	$ 642,114	$ 1,974,061	$ 1,736,295
Other comprehensive income (loss), net of taxes (benefits):
Foreign currency translation adjustments	15,553	(31,074)	7,856	(5,317)
Changes in market value of investments:
Changes in unrealized gains (losses), net of taxes (benefits) of $24,514, $(14,461), $52,834 and $(21,429)	43,663	(29,497)	86,424	(32,020)
Less: reclassification adjustment for net losses (gains) realized in net income, net of benefits (taxes) of $(1,499), $(1,795), $(3,852) and $(4,104)	(3,225)	(1,698)	(2,332)	(12,424)
Net change in market value of investments	40,438	(31,195)	84,092	(44,444)
Changes in market value of derivatives:
Changes in market value of derivatives, net of taxes (benefits) of $(6,035), $(39,938), $(21,081) and $(51,921)	(14,198)	(53,857)	(37,294)	(81,486)
Less: reclassification adjustment for net losses (gains) included in net income, net of benefits (taxes) of $1,006, $(1,556), $15,284 and $(31)	7,042	(10,891)	26,505	(217)
Net change in market value of derivatives	(7,156)	(64,748)	(10,789)	(81,703)
Other comprehensive income (loss)	48,835	(127,017)	81,159	(131,464)
Comprehensive income	707,499	515,097	2,055,220	1,604,831
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(32,326)	(36,465)	(111,367)	(107,004)
Less: Other comprehensive income (loss) attributable to the non-controlling interest in VMware, Inc.	(1,032)	312	(1,453)	3,779
Comprehensive income attributable to EMC Corporation	$ 674,141	$ 478,944	$ 1,942,400	$ 1,501,606

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Non-controlling Interest in VMware, Inc.

9 Months Ended

Sep. 30, 2012

Noncontrolling Interest [Abstract]

Non-controlling Interest in VMware, Inc.

Non-controlling Interest in VMware, Inc.

The non-controlling interests’ share of equity in VMware is reflected as Non-controlling interest in VMware, Inc. in the accompanying consolidated balance sheets and was $1,151.6 million and $968.1 million as of September 30, 2012 and December 31, 2011, respectively. At September 30, 2012, EMC held approximately 97% of the combined voting power of VMware’s outstanding common stock and approximately 79% of the economic interest in VMware.

The effect of changes in our ownership interest in VMware on our equity was as follows (table in thousands):

	For the Nine Months Ended
	September 30, 2012			September 30, 2011
Net income attributable to EMC Corporation	$	1,862,694		$	1,629,291
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances	117,635			160,908
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity	(392,297		)	(541,729		)
Net transfers (to) from non-controlling interest	(274,662		)	(380,821		)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.	$	1,588,032		$	1,248,470

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Activity in Warranty Accrual for Product Warranty (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of the period	$ 262,059	$ 248,395	$ 254,554	$ 236,131
Provision	41,303	42,535	129,358	130,775
Amounts charged to the accrual	(38,545)	(41,955)	(119,095)	(117,931)
Balance, end of the period	$ 264,817	$ 248,975	$ 264,817	$ 248,975

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Convertible Debt (Tables)

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Key Components of Convertible Debt

The following tables represent the key components of our interest expense on convertible debt (table in thousands):

	For the Three Months Ended
	September 30, 2012		September 30, 2011
Contractual interest expense on the coupon	$	7,482	$	15,078
Amortization of the discount component recognized as interest expense	15,405		30,852
Total interest expense on the convertible debt	$	22,887	$	45,930

	For the Nine Months Ended
	September 30, 2012		September 30, 2011
Contractual interest expense on the coupon	$	22,427	$	45,266
Amortization of the discount component recognized as interest expense	45,059		90,174
Total interest expense on the convertible debt	$	67,486	$	135,440

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Effect of Changes in Ownership Interest in VMware on Equity (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Noncontrolling Interest [Abstract]
Net income attributable to EMC Corporation	$ 626,338	$ 605,649	$ 1,862,694	$ 1,629,291
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances			117,635	160,908
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity			(392,297)	(541,729)
Net transfers (to) from non-controlling interest			(274,662)	(380,821)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.			$ 1,588,032	$ 1,248,470

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Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Stockholders’ Equity

The reconciliation from basic to diluted earnings per share for both the numerators and denominators is as follows (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Numerator:
Net income attributable to EMC Corporation	$	626,338		$	605,649		$	1,862,694		$	1,629,291
Incremental dilution from VMware	(1,766		)	(3,233		)	(7,425		)	(11,178		)
Net income – dilution attributable to EMC Corporation	$	624,572		$	602,416		$	1,855,269		$	1,618,113
Denominator:
Weighted average shares, basic	2,104,205			2,054,007			2,089,516			2,060,242
Weighted common stock equivalents	38,043			46,629			41,974			55,418
Assumed conversion of the 2013 Notes and associated warrants	68,173			106,463			75,315			128,848
Weighted average shares, diluted	2,210,421			2,207,099			2,206,805			2,244,508

Due to the cash settlement feature of the principal amount of the 2013 Notes, we only include the impact of the premium feature in our diluted earnings per share calculation when the 2013 Notes are convertible due to maturity or when the average stock price exceeds the conversion price of the 2013 Notes.

Concurrent with the issuance of the 2011 Notes and 2013 Notes, we also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. Half of the associated warrants were exercised during the nine months ended September 30, 2012. We include the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation when the average stock price exceeds the exercise price.

Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 5.2 million and 4.3 millionfor the three and nine months ended September 30, 2012, respectively, and 17.6 million and 15.4 million for the three and nine months ended September 30, 2011, respectively, were excluded from the calculation of diluted earnings per share because they were antidilutive. The incremental dilution from VMware represents the impact of VMware’s dilutive securities on EMC’s consolidated diluted net income per share and is calculated by multiplying the difference between VMware’s basic and diluted earnings per share by the number of VMware shares owned by EMC.

Repurchases of Common Stock

We utilize both authorized and unissued shares (including repurchased shares) for all issuances under our equity plans. In 2008, our Board of Directors authorized the repurchase of 250.0 million shares of our common stock. For the nine months ended September 30, 2012, we spent $410.0 million to repurchase 15.3 million shares of our common stock. Of the 250.0 million shares authorized for repurchase, we have repurchased 211.2 million shares at a total cost of $4.1 billion, leaving a remaining balance of 38.8 million shares authorized for future repurchases. We plan to spend up to $700.0 million in 2012 on common stock repurchases.

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, which is presented net of tax, consists of the following (table in thousands):

	September 30, 2012			December 31, 2011
Foreign currency translation adjustments	$	(2,924	)	$	(10,780	)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(3,128) and $(8,492)	(6,099		)	(15,044		)
Unrealized gains on investments, net of taxes of $61,961 and $18,343	105,755			30,608
Unrealized losses on derivatives, net of tax benefits of $(68,007) and $(62,210)	(111,235		)	(100,446		)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(81,798) and $(81,798)	(139,108		)	(139,108		)
	(153,611		)	(234,770		)
Less: accumulated other comprehensive income attributable to the non-controlling interest in VMware, Inc.	(1,692		)	(239		)
	$	(155,303	)	$	(235,009	)