Segment Information

In the quarter ended June 30, 2013, we began managing the Company as three federated businesses: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. EMC Information Infrastructure operates in three segments: Information Storage, Information Intelligence Group and RSA Information Security while Pivotal and VMware Virtual Infrastructure each operate as single segments.

On April 1, 2013, EMC and VMware formed Pivotal to build a new platform comprising next-generation data fabrics, application fabrics and a cloud-independent PaaS. EMC contributed substantially all assets and liabilities, including intellectual property and employees, related to its Greenplum and Pivotal Labs businesses. VMware contributed substantially all assets and liabilities, including intellectual property and employees, related to certain of its Cloud Application Platform products and services, including Cloud Foundry, Spring, Cetas, GemFire and other products from the VMware vFabric Suite. These contributions were recorded at the April 1, 2013 carrying value as this was a transaction with entities under common control.

On May 8, 2013, General Electric Company ("GE") purchased 10% of Pivotal's outstanding equity for approximately $105 million. At June 30, 2013, EMC consolidated held approximately 84% of the economic interest in Pivotal. GE's interest in Pivotal is in the form of a preferred equity instrument. Consequently, there is no net income attributable to non-controlling interest related to Pivotal on the consolidated income statements.

Beginning in the second quarter of 2013, EMC began presenting Pivotal as a separate reportable segment. We recast the segment disclosures for the prior financial reporting periods to separately present the operations of the Pivotal segment which has resulted in the transfer of revenue, gross profit, operating expenses and operating income from the Information Storage and VMware Virtual Infrastructure segments to Pivotal. These changes had no impact on the previously reported financial results for the Information Intelligence Group or RSA Information Security segments. In addition, none of these changes impacted our previously reported consolidated financial statements.

Our management measures are designed to assess performance of these reporting 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. Research and development expenses, selling, general and administrative expenses and restructuring and acquisition-related charges 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 EMC Information Infrastructure business level. EMC Information Infrastructure and Pivotal have not been allocated non-operating income (expense), net and income tax expense as these costs are managed centrally at the EMC Corporate level. Accordingly, for the three segments within the EMC Information Infrastructure business, gross profit is the segment operating performance measure, while for Pivotal, operating income is the operating performance measure. The VMware Virtual Infrastructure amounts represent the revenues and expenses of VMware as reflected within EMC’s consolidated financial statements.

Our segment information for the three and six months ended June 30, 2013 and 2012 is as follows (tables in millions, except percentages):



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Three Months Ended:
June 30, 2013
Revenues:
Product revenues	$	2,568		$	39		$	98		$	2,705		$	24		$	2,729
Services revenues	1,358			113			130			1,601			46			1,647
Total consolidated revenues	3,926			152			228			4,306			70			4,376

Gross profit	$	2,230		$	96		$	148		$	2,474		$	26		$	2,500
Gross profit percentage	56.8		%	63.1		%	65.1		%	57.5		%	37.1		%	57.1		%

Research and development										375			28			403
Selling, general and administrative										1,117			37			1,154
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,492			65			1,557

Operating income										$	982		$	(39	)	$	943



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
June 30, 2013
Revenues:
Product revenues	$	2,729		$	529		$	—		$	3,258
Services revenues	1,647			709			—			2,356
Total consolidated revenues	4,376			1,238			—			5,614

Gross profit	$	2,500		$	1,109		$	(100	)	$	3,509
Gross profit percentage	57.1		%	89.6		%	—			62.5		%

Research and development	403			207			85			695
Selling, general and administrative	1,154			489			142			1,785
Restructuring and acquisition-related charges	—			—			7			7
Total costs and expenses	1,557			696			234			2,487

Operating income	943			413			(334		)	1,022

Non-operating income (expense), net	(77		)	3			18			(56		)
Income tax provision	214			93			(91		)	216
Net income	652			323			(225		)	750
Net income attributable to the non-controlling interest in VMware, Inc.	—			(68		)	19			(49		)
Net income attributable to EMC Corporation	$	652		$	255		$	(206	)	$	701



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Three Months Ended:
June 30, 2012
Revenues:
Product revenues	$	2,500		$	45		$	103		$	2,648		$	23		$	2,671
Services revenues	1,287			108			117			1,512			40			1,552
Total consolidated revenues	3,787			153			220			4,160			63			4,223

Gross profit	$	2,164		$	102		$	179		$	2,445		$	33		$	2,478
Gross profit percentage	57.1		%	67.0		%	81.1		%	58.8		%	53.2		%	58.7		%

Research and development										363			33			396
Selling, general and administrative										1,114			36			1,150
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,477			69			1,546

Operating income										$	968		$	(36	)	$	932



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended:
June 30, 2012
Revenues:
Product revenues	$	2,671		$	508		$	—		$	3,179
Services revenues	1,552			580			—			2,132
Total consolidated revenues	4,223			1,088			—			5,311

Gross profit	$	2,478		$	964		$	(95	)	$	3,347
Gross profit percentage	58.7		%	88.5		%	—			63.0		%

Research and development	396			178			81			655
Selling, general and administrative	1,150			418			149			1,717
Restructuring and acquisition-related charges	—			—			28			28
Total costs and expenses	1,546			596			258			2,400

Operating income	932			368			(353		)	947

Non-operating income (expense), net	(40		)	5			(8		)	(43		)
Income tax provision	265			52			(103		)	214
Net income	627			321			(258		)	690
Net income attributable to the non-controlling interest in VMware, Inc.	—			(63		)	23			(40		)
Net income attributable to EMC Corporation	$	627		$	258		$	(235	)	$	650



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Six Months Ended:
June 30, 2013
Revenues:
Product revenues	$	5,028		$	82		$	198		$	5,308		$	48		$	5,356
Services revenues	2,662			226			262			3,150			91			3,241
Total consolidated revenues	7,690			308			460			8,458			139			8,597

Gross profit	$	4,309		$	195		$	301		$	4,805		$	52		$	4,857
Gross profit percentage	56.0		%	63.4		%	65.2		%	56.8		%	37.7		%	56.5		%

Research and development										739			56			795
Selling, general and administrative										2,193			75			2,268
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,932			131			3,063

Operating income										$	1,873		$	(79	)	$	1,794



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Six Months Ended:
June 30, 2013
Revenues:
Product revenues	$	5,356		$	1,013		$	—		$	6,369
Services revenues	3,241			1,391			—			4,632
Total consolidated revenues	8,597			2,404			—			11,001

Gross profit	$	4,857		$	2,150		$	(200	)	$	6,807
Gross profit percentage	56.5		%	89.4		%	—			61.9		%

Research and development	795			397			178			1,370
Selling, general and administrative	2,268			939			292			3,499
Restructuring and acquisition-related charges	—			—			155			155
Total costs and expenses	3,063			1,336			625			5,024

Operating income	1,794			814			(825		)	1,783

Non-operating income (expense), net	(150		)	7			17			(126		)
Income tax provision	402			176			(286		)	292
Net income	1,242			645			(522		)	1,365
Net income attributable to the non-controlling interest in VMware, Inc.	—			(130		)	46			(84		)
Net income attributable to EMC Corporation	$	1,242		$	515		$	(476	)	$	1,281



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Six Months Ended:
June 30, 2012
Revenues:
Product revenues	$	4,937		$	82		$	199		$	5,218		$	44		$	5,262
Services revenues	2,513			217			228			2,958			63			3,021
Total consolidated revenues	7,450			299			427			8,176			107			8,283

Gross profit	$	4,210		$	192		$	312		$	4,714		$	53		$	4,767
Gross profit percentage	56.5		%	64.3		%	73.1		%	57.7		%	49.5		%	57.6		%

Research and development										691			61			752
Selling, general and administrative										2,191			75			2,266
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,882			136			3,018

Operating income										$	1,832		$	(83	)	$	1,749



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Six Months Ended:
June 30, 2012
Revenues:
Product revenues	$	5,262		$	986		$	—		$	6,248
Services revenues	3,021			1,137			—			4,158
Total consolidated revenues	8,283			2,123			—			10,406

Gross profit	$	4,767		$	1,882		$	(188	)	$	6,461
Gross profit percentage	57.6		%	88.6		%	—			62.1		%

Research and development	752			339			153			1,244
Selling, general and administrative	2,266			809			292			3,367
Restructuring and acquisition-related charges	—			—			53			53
Total costs and expenses	3,018			1,148			498			4,664

Operating income	1,749			734			(686		)	1,797

Non-operating income (expense), net	(78		)	12			(11		)	(77		)
Income tax provision	474			118			(187		)	405
Net income	1,197			628			(510		)	1,315
Net income attributable to the non-controlling interest in VMware, Inc.	—			(122		)	43			(79		)
Net income attributable to EMC Corporation	$	1,197		$	506		$	(467	)	$	1,236

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 millions):



	For the Three Months Ended				For the Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
United States	$	2,963	$	2,857	$	5,795	$	5,490
Europe, Middle East and Africa	1,486		1,400		2,963		2,865
Asia Pacific and Japan	835		748		1,573		1,459
Latin America, Mexico and Canada	330		306		670		592
Total	$	5,614	$	5,311	$	11,001	$	10,406

No country other than the United States accounted for 10% or more of revenues during the three and six months ended June 30, 2013 or 2012.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,166 million at June 30, 2013 and $3,994 million at December 31, 2012. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $802 million at June 30, 2013 and $698 million at December 31, 2012. 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 June 30, 2013 or December 31, 2012.