Segment Information

12 Months Ended

Dec. 31, 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 and acquisition-related intangible asset amortization expense. 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 years ended 2012, 2011 and 2010 are 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
2012
Revenues:
Product revenues	$	10,362,787		$	200,830		$	412,279		$	10,975,896		$	2,084,627		$	—		$	13,060,523
Services revenues	5,226,588			439,351			476,466			6,142,405			2,510,974			—			8,653,379
Total consolidated revenues	15,589,375			640,181			888,745			17,118,301			4,595,601			—			21,713,902
Cost of sales	6,650,070			208,226			284,462			7,142,758			542,943			389,838			8,075,539
Gross profit	$	8,939,305		$	431,955		$	604,283		9,975,543			4,052,658			(389,838		)	13,638,363
Gross profit percentage	57.3		%	67.5		%	68.0		%	58.3		%	88.2		%	—			62.8		%
Research and development										1,445,379			776,347			337,886			2,559,612
Selling, general and administrative										4,564,470			1,799,370			640,447			7,004,287
Restructuring and acquisition-related charges										—			—			110,590			110,590
Total costs and expenses										6,009,849			2,575,717			1,088,923			9,674,489
Operating income										3,965,694			1,476,941			(1,478,761		)	3,963,874
Other income (expense), net										(131,373		)	27,580			(56,466		)	(160,259		)
Income before provision for income taxes										3,834,321			1,504,521			(1,535,227		)	3,803,615
Income tax provision										1,003,338			260,365			(346,105		)	917,598
Net income										2,830,983			1,244,156			(1,189,122		)	2,886,017
Net income attributable to the non-controlling interest in VMware, Inc.										—			(254,858		)	101,454			(153,404		)
Net income attributable to EMC Corporation										$	2,830,983		$	989,298		$	(1,087,668	)	$	2,732,613

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2011
Revenues:
Product revenues	$	10,100,473		$	209,337		$	440,790		$	10,750,600		$	1,840,142		$	—		$	12,590,742
Services revenues	4,654,706			452,015			387,413			5,494,134			1,922,712			—			7,416,846
Total consolidated revenues	14,755,179			661,352			828,203			16,244,734			3,762,854			—			20,007,588
Cost of sales	6,428,687			236,613			357,669			7,022,969			533,329			282,348			7,838,646
Gross profit	$	8,326,492		$	424,739		$	470,534		9,221,765			3,229,525			(282,348		)	12,168,942
Gross profit percentage	56.4		%	64.2		%	56.8		%	56.8		%	85.8		%	—			60.8		%
Research and development										1,239,333			587,902			322,552			2,149,787
Selling, general and administrative										4,392,205			1,480,792			606,385			6,479,382
Restructuring and acquisition-related charges										—			—			97,334			97,334
Total costs and expenses										5,631,538			2,068,694			1,026,271			8,726,503
Operating income										3,590,227			1,160,831			(1,308,619		)	3,442,439
Other income (expense), net										(148,924		)	6,734			(50,979		)	(193,169		)
Income before provision for income taxes										3,441,303			1,167,565			(1,359,598		)	3,249,270
Income tax provision										860,713			128,634			(348,962		)	640,385
Net income										2,580,590			1,038,931			(1,010,636		)	2,608,885
Net income attributable to the non-controlling interest in VMware, Inc.										—			(208,894		)	61,346			(147,548		)
Net income attributable to EMC Corporation										$	2,580,590		$	830,037		$	(949,290	)	$	2,461,337

	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2010
Revenues:
Product revenues	$	8,838,038		$	255,387		$	400,151		$	9,493,576		$	1,399,281		$	—		$	10,892,857
Services revenues	3,904,072			437,512			329,233			4,670,817			1,451,452			—			6,122,269
Total consolidated revenues	12,742,110			692,899			729,384			14,164,393			2,850,733			—			17,015,126
Cost of sales	5,851,395			243,226			221,579			6,316,200			425,257			242,688			6,984,145
Gross profit	$	6,890,715		$	449,673		$	507,805		7,848,193			2,425,476			(242,688		)	10,030,981
Gross profit percentage	54.1		%	64.9		%	69.6		%	55.4		%	85.1		%	—			59.0		%
Research and development										1,122,835			477,799			287,381			1,888,015
Selling, general and administrative										3,737,081			1,160,768			477,456			5,375,305
Restructuring and acquisition-related charges										—			—			84,375			84,375
Total costs and expenses										4,859,916			1,638,567			849,212			7,347,695
Operating income										2,988,277			786,909			(1,091,900		)	2,683,286
Other income (expense), net										48,214			(16,458		)	(107,059		)	(75,303		)
Income before provision for income taxes										3,036,491			770,451			(1,198,959		)	2,607,983
Income tax provision										742,736			128,233			(232,672		)	638,297
Net income										2,293,755			642,218			(966,287		)	1,969,686
Net income attributable to the non-controlling interest in VMware, Inc.										—			(124,728		)	55,037			(69,691		)
Net income attributable to EMC Corporation										$	2,293,755		$	517,490		$	(911,250	)	$	1,899,995

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):

	2012		2011		2010
United States	$	11,510,216	$	10,549,594	$	9,152,363
Europe, Middle East and Africa	5,908,204		5,667,610		4,942,104
Asia Pacific and Japan	3,016,451		2,639,397		1,965,154
Latin America, Mexico and Canada	1,279,031		1,150,987		955,505
Total	$	21,713,902	$	20,007,588	$	17,015,126

No country other than the United States accounted for 10% or more of revenues in 2012, 2011 or 2010.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $3,993.6 million at December 31, 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 $697.9 million at December 31, 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 December 31, 2012 or 2011.