Segment Information

We manage the Company as three federated businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal. EMC Information Infrastructure operates in three segments: Information Storage, Information Intelligence Group and RSA Information Security while VMware Virtual Infrastructure and Pivotal operate as single segments.

During the second quarter of 2013, EMC and VMware formed Pivotal to build a new platform comprising next-generation data fabrics, application fabrics and a cloud-independent platform-as-a-service ("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, GE purchased 10% of Pivotal's outstanding equity for approximately $105 million. At December 31, 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 years ended 2013, 2012 and 2011 are 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
2013
Revenues:
Product revenues	$	10,694		$	180		$	453		$	11,327		$	110		$	11,437
Services revenues	5,438			467			534			6,439			199			6,638
Total consolidated revenues	16,132			647			987			17,766			309			18,075

Gross profit	$	9,082		$	419		$	655		$	10,156		$	118		$	10,274
Gross profit percentage	56.3		%	64.8		%	66.4		%	57.2		%	38.0		%	56.8		%

Research and development										1,453			117			1,570
Selling, general and administrative										4,567			165			4,732
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										6,020			282			6,302

Operating income (loss)										$	4,136		$	(164	)	$	3,972



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2013
Revenues:
Product revenues	$	11,437		$	2,253		$	—		$	13,690
Services revenues	6,638			2,894			—			9,532
Total consolidated revenues	18,075			5,147			—			23,222

Gross profit	$	10,274		$	4,589		$	(390	)	$	14,473
Gross profit percentage	56.8		%	89.2		%	—			62.3		%

Research and development	1,570			826			365			2,761
Selling, general and administrative	4,732			2,003			603			7,338
Restructuring and acquisition-related charges	—			—			224			224
Total costs and expenses	6,302			2,829			1,192			10,323

Operating income	3,972			1,760			(1,582		)	4,150

Non-operating income (expense)	(336		)	22			29			(285		)
Income tax provision	911			317			(456		)	772
Net income	2,725			1,465			(1,097		)	3,093
Net income attributable to the non-controlling interest in VMware, Inc.	—			(297		)	93			(204		)
Net income attributable to EMC Corporation	$	2,725		$	1,168		$	(1,004	)	$	2,889



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
2012
Revenues:
Product revenues	$	10,283		$	200		$	414		$	10,897		$	106		$	11,003
Services revenues	5,157			440			475			6,072			164			6,236
Total consolidated revenues	15,440			640			889			16,969			270			17,239

Gross profit	$	8,860		$	432		$	604		$	9,896		$	153		$	10,049
Gross profit percentage	57.4		%	67.5		%	68.0		%	58.3		%	56.7		%	58.3		%

Research and development										1,402			124			1,526
Selling, general and administrative										4,484			155			4,639
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										5,886			279			6,165

Operating income (loss)										$	4,010		$	(126	)	$	3,884



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2012
Revenues:
Product revenues	$	11,003		$	2,058		$	—		$	13,061
Services revenues	6,236			2,417			—			8,653
Total consolidated revenues	17,239			4,475			—			21,714

Gross profit	$	10,049		$	3,976		$	(387	)	$	13,638
Gross profit percentage	58.3		%	88.9		%	—			62.8		%

Research and development	1,526			700			334			2,560
Selling, general and administrative	4,639			1,739			626			7,004
Restructuring and acquisition-related charges	—			—			110			110
Total costs and expenses	6,165			2,439			1,070			9,674

Operating income	3,884			1,537			(1,457		)	3,964

Non-operating income (expense)	(177		)	27			(10		)	(160		)
Income tax provision	968			271			(321		)	918
Net income	2,739			1,293			(1,146		)	2,886
Net income attributable to the non-controlling interest in VMware, Inc.	—			(255		)	102			(153		)
Net income attributable to EMC Corporation	$	2,739		$	1,038		$	(1,044	)	$	2,733



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
2011
Revenues:
Product revenues	$	10,042		$	209		$	441		$	10,692		$	76		$	10,768
Services revenues	4,642			452			387			5,481			54			5,535
Total consolidated revenues	14,684			661			828			16,173			130			16,303

Gross profit	$	8,291		$	425		$	470		$	9,186		$	76		$	9,262
Gross profit percentage	56.5		%	64.2		%	56.8		%	56.8		%	58.6		%	56.8		%

Research and development										1,216			70			1,286
Selling, general and administrative										4,348			120			4,468
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										5,564			190			5,754

Operating income (loss)										$	3,622		$	(114	)	$	3,508



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2011
Revenues:
Product revenues	$	10,768		$	1,823		$	—		$	12,591
Services revenues	5,535			1,882			—			7,417
Total consolidated revenues	16,303			3,705			—			20,008

Gross profit	$	9,262		$	3,189		$	(282	)	$	12,169
Gross profit percentage	56.8		%	86.1		%	—			60.8		%

Research and development	1,286			550			315			2,151
Selling, general and administrative	4,468			1,430			581			6,479
Restructuring and acquisition-related charges	—			—			97			97
Total costs and expenses	5,754			1,980			993			8,727

Operating income	3,508			1,209			(1,275		)	3,442

Non-operating income (expense)	(252		)	7			52			(193		)
Income tax provision	805			134			(299		)	640
Net income	2,451			1,082			(924		)	2,609
Net income attributable to the non-controlling interest in VMware, Inc.	—			(209		)	61			(148		)
Net income attributable to EMC Corporation	$	2,451		$	873		$	(863	)	$	2,461

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):



	2013		2012		2011
United States	$	12,230	$	11,510	$	10,550
Europe, Middle East and Africa	6,355		5,908		5,668
Asia Pacific and Japan	3,193		3,017		2,639
Latin America, Mexico and Canada	1,444		1,279		1,151
Total	$	23,222	$	21,714	$	20,008

No country other than the United States accounted for 10% or more of revenues in 2013, 2012 or 2011.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,433 million at December 31, 2013 and $3,994 million at December 31, 2012. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $877 million at December 31, 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 December 31, 2013 or 2012.