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 June 30, 2014

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 June 30, 2014 was 2,028,658,204.

EMC CORPORATION

	Page No.
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets at June 30, 2014 and December 31, 2013	3
Consolidated Income Statements for the Three and Six Months Ended June 30, 2014 and 2013	4
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2014 and 2013	5
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2014 and 2013	6
Consolidated Statements of Shareholders’ Equity for the Six Months Ended June 30, 2014 and 2013	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk	49
Item 4. Controls and Procedures	49
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	50
Item 1A. Risk Factors	50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3. Defaults Upon Senior Securities	60
Item 4. Mine Safety Disclosures	60
Item 5. Other Information	60
Item 6. Exhibits	60
SIGNATURES	61
EXHIBIT INDEX	62

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 millions, except per share amounts)

	June 30, 2014			December 31, 2013
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,687		$	7,891
Short-term investments	1,962			2,773
Accounts and notes receivable, less allowance for doubtful accounts of $65 and $62	3,344			3,861
Inventories	1,397			1,334
Deferred income taxes	969			912
Other current assets	586			507
Total current assets	13,945			17,278
Long-term investments	6,985			6,924
Property, plant and equipment, net	3,606			3,478
Intangible assets, net	2,147			1,780
Goodwill	15,802			14,424
Other assets, net	1,953			1,965
Total assets	$	44,438		$	45,849
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,186		$	1,434
Accrued expenses	2,750			2,783
Notes converted and payable (See Note 4)	—			1,665
Income taxes payable	261			639
Deferred revenue	5,693			5,278
Total current liabilities	9,890			11,799
Income taxes payable	298			296
Deferred revenue	4,032			3,701
Deferred income taxes	489			421
Long-term debt (See Note 4)	5,494			5,494
Other liabilities	379			352
Total liabilities	20,582			22,063
Commitments and contingencies (See Note 14)
Shareholders’ equity:
Preferred stock, par value $0.01; authorized 25 shares; none outstanding	—			—
Common stock, par value $0.01; authorized 6,000 shares; issued and outstanding 2,029 and 2,020 shares	20			20
Additional paid-in capital	818			1,406
Retained earnings	21,648			21,114
Accumulated other comprehensive loss, net	(165		)	(239		)
Total EMC Corporation’s shareholders’ equity	22,321			22,301
Non-controlling interests	1,535			1,485
Total shareholders’ equity	23,856			23,786
Total liabilities and shareholders’ equity	$	44,438		$	45,849

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

3

EMC CORPORATION

CONSOLIDATED INCOME STATEMENTS

(in millions, except per share amounts)

(unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Revenues:
Product sales	$	3,319		$	3,258		$	6,327		$	6,369
Services	2,561			2,356			5,032			4,632
	5,880			5,614			11,359			11,001
Costs and expenses:
Cost of product sales	1,372			1,340			2,668			2,696
Cost of services	854			765			1,690			1,498
Research and development	740			695			1,472			1,370
Selling, general and administrative	2,010			1,785			3,861			3,499
Restructuring and acquisition-related charges	30			7			149			155
Operating income	874			1,022			1,519			1,783
Non-operating income (expense):
Investment income	35			34			71			67
Interest expense	(34		)	(31		)	(68		)	(51		)
Other expense, net	(66		)	(59		)	(142		)	(142		)
Total non-operating income (expense)	(65		)	(56		)	(139		)	(126		)
Income before provision for income taxes	809			966			1,380			1,657
Income tax provision	187			216			326			292
Net income	622			750			1,054			1,365
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(33		)	(49		)	(74		)	(84		)
Net income attributable to EMC Corporation	$	589		$	701		$	980		$	1,281
Net income per weighted average share, basic attributable to EMC Corporation common shareholders	$	0.29		$	0.34		$	0.48		$	0.61
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders	$	0.28		$	0.32		$	0.47		$	0.59
Weighted average shares, basic	2,037			2,092			2,033			2,097
Weighted average shares, diluted	2,064			2,174			2,070			2,181
Cash dividends declared per common share	$	0.12		$	0.10		$	0.22		$	0.10

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

4

EMC CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Net income	$	622		$	750		$	1,054		$	1,365
Other comprehensive income (loss), net of taxes (benefits):
Foreign currency translation adjustments	9			(25		)	4			(56		)
Changes in market value of investments:
Changes in unrealized gains (losses), net of taxes (benefits) of $35, $(17), $49 and $(15)	59			(30		)	83			(29		)
Reclassification adjustment for net losses (gains) realized in net income, net of benefits (taxes) of $(3), $(2), $(6) and $(5)	(6		)	(4		)	(11		)	(8		)
Net change in market value of investments	53			(34		)	72			(37		)
Changes in market value of derivatives:
Changes in unrealized gains (losses), net of taxes (benefits) of $1, $1, $0 and $2	2			2			1			8
Reclassification adjustment for net losses (gains) included in net income, net of benefits (taxes) of $0, $0, $0 and $(1)	(1		)	(3		)	(3		)	(8		)
Net change in the market value of derivatives	1			(1		)	(2		)	—
Other comprehensive income (loss)	63			(60		)	74			(93		)
Comprehensive income	685			690			1,128			1,272
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(33		)	(49		)	(74		)	(84		)
Less: Other comprehensive income attributable to the non-controlling interest in VMware, Inc.	—			2			(1		)	2
Comprehensive income attributable to EMC Corporation	$	652		$	643		$	1,053		$	1,190

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

5

EMC CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited)
	For the Six Months Ended
	June 30, 2014			June 30, 2013
Cash flows from operating activities:
Cash received from customers	$	12,644		$	12,007
Cash paid to suppliers and employees	(9,320		)	(8,485		)
Dividends and interest received	97			79
Interest paid	—			(18		)
Income taxes paid	(829		)	(642		)
Net cash provided by operating activities	2,592			2,941
Cash flows from investing activities:
Additions to property, plant and equipment	(472		)	(437		)
Capitalized software development costs	(245		)	(219		)
Purchases of short- and long-term available-for-sale securities	(5,765		)	(6,456		)
Sales of short- and long-term available-for-sale securities	4,974			2,394
Maturities of short- and long-term available-for-sale securities	1,716			564
Business acquisitions, net of cash acquired	(1,694		)	(207		)
Purchases of strategic and other related investments	(83		)	(46		)
Sales of strategic and other related investments	10			—
Joint venture funding	(63		)	(158		)
Proceeds from divestiture of business	—			31
Increase in restricted cash	(76		)	—
Net cash used in investing activities	(1,698		)	(4,534		)
Cash flows from financing activities:
Proceeds from the issuance of EMC’s common stock	234			175
Proceeds from the issuance of VMware’s common stock	99			115
EMC repurchase of EMC’s common stock	(994		)	(991		)
EMC purchase of VMware’s common stock	—			(160		)
VMware repurchase of VMware’s common stock	(407		)	(302		)
Excess tax benefits from stock-based compensation	45			63
Payment of long- and short-term obligations	(1,665		)	(21		)
Proceeds from long- and short-term obligations	—			5,463
Third party contribution to Pivotal	—			105
Dividend payment	(407		)	—
Net cash (used in) provided by financing activities	(3,095		)	4,447
Effect of exchange rate changes on cash and cash equivalents	(3		)	(42		)
Net increase (decrease) in cash and cash equivalents	(2,204		)	2,812
Cash and cash equivalents at beginning of period	7,891			4,714
Cash and cash equivalents at end of period	$	5,687		$	7,526
Reconciliation of net income to net cash provided by operating activities:
Net income	$	1,054		$	1,365
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	903			803
Non-cash interest expense on debt	—			24
Non-cash restructuring and other special charges	9			7
Stock-based compensation expense	498			441
Provision for (recovery of) doubtful accounts	2			(3		)
Deferred income taxes, net	(168		)	(55		)
Excess tax benefits from stock-based compensation	(45		)	(63		)
Gain on previously held interests in strategic investments	(45		)	—
Impairment of strategic investment	33			—
Other, net	23			11
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable	549			243
Inventories	(183		)	(178		)
Other assets	96			119
Accounts payable	(241		)	(28		)
Accrued expenses	(279		)	(211		)
Income taxes payable	(336		)	(290		)
Deferred revenue	701			766
Other liabilities	21			(10		)
Net cash provided by operating activities	$	2,592		$	2,941

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

6

EMC CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions)

(unaudited)

For the six months endedJune 30, 2014:

	Common Stock				Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Non-controlling Interests			Shareholders’ Equity
	Shares		Par Value
Balance, January 1, 2014	2,020		$	20	$	1,406		$	21,114		$	(239	)	$	1,485		$	23,786
Stock issued through stock option and stock purchase plans	16		—		234			—			—			—			234
Tax benefit from stock options exercised	—		—		43			—			—			—			43
Restricted stock grants, cancellations and withholdings, net	3		—		(28		)	—			—			—			(28		)
Repurchase of common stock	(39	)	—		(1,000		)	—			—			—			(1,000		)
Stock options issued in business acquisitions	—		—		33			—			—			—			33
Stock-based compensation	—		—		506			—			—			—			506
Cash dividends declared	—		—		—			(446		)	—			—			(446		)
Impact from equity transactions of non-controlling interests	—		—		(376		)	—			—			(25		)	(401		)
Actuarial gain on pension plan	—		—		—			—			1			—			1
Change in market value of investments	—		—		—			—			71			1			72
Change in market value of derivatives	—		—		—			—			(2		)	—			(2		)
Translation adjustment	—		—		—			—			4			—			4
Convertible debt conversions and warrant settlement	29		—		—			—			—			—			—
Net income	—		—		—			980			—			74			1,054
Balance, June 30, 2014	2,029		$	20	$	818		$	21,648		$	(165	)	$	1,535		$	23,856

For the six months endedJune 30, 2013:

	Common Stock				Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Non-controlling Interests			Shareholders’ Equity
	Shares		Par Value
Balance, January 1, 2013	2,107		$	21	$	3,691		$	18,853		$	(208	)	$	1,167		$	23,524
Stock issued through stock option and stock purchase plans	11		—		175			—			—			—			175
Tax benefit from stock options exercised	—		—		46			—			—			—			46
Restricted stock grants, cancellations and withholdings, net	4		—		(51		)	—			—			—			(51		)
Repurchase of common stock	(42	)	—		(1,000		)	—			—			—			(1,000		)
EMC purchase of VMware stock	—		—		(124		)	—			—			(26		)	(150		)
Stock-based compensation	—		—		445			—			—			—			445
Cash dividends declared	—		—		—			(212		)	—			—			(212		)
Impact from equity transactions of non-controlling interests	—		—		(269		)	—			—			119			(150		)
Change in market value of investments	—		—		—			—			(35		)	(2		)	(37		)
Translation adjustment	—		—		—			—			(56		)	—			(56		)
Convertible debt conversions and warrant settlement	—		—		1			—			—			—			1
Reclassification of convertible debt (to)/from mezzanine (Note 4)	—		—		32			—			—			—			32
Net income	—		—		—			1,281			—			84			1,365
Balance, June 30, 2013	2,080		$	21	$	2,946		$	19,922		$	(299	)	$	1,342		$	23,932

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 manages the Company as part of a federation of three businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal.

EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost, and enhancing competitive advantage. These benefits are primarily achieved though virtualization. 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 infrastructure solutions utilized by organizations to help them transform the way they build, deliver and consume IT resources. VMware’s virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, 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.

EMC's Pivotal business ("Pivotal") was formed in the second quarter of 2013. Pivotal unites strategic technology, people and programs formerly within EMC and VMware, including Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products. Pivotal is building a new platform comprising next-generation data fabrics, application fabrics and a cloud independent platform-as-a-service ("PaaS").

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, as well as VMware and Pivotal, companies 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, 2013 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014.

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 six-month periods ended June 30, 2014 and 2013.

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, the shares issuable under our $1.725 billion1.75% convertible senior notes due 2013 (the "2013 Notes") and the 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.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year's presentation. During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The acquisition of these businesses was accounted for as a business combination between entities under common control. We reflected the impact of the transaction in our segment and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment for the three and six months ended June 30, 2014. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the

8

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

segment reclassifications impact EMC's previously reported consolidated financial statements. See Note 15 for further discussion of the segment reclassifications.

Recent Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (“FASB”) issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. 

In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective beginning January 1, 2017, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements.

In April 2014, the FASB issued new accounting guidance on reporting discontinued operations and disclosures of disposals of components of an entity which clarifies the scope of what should be reported as discontinued operations and expands required disclosures. This new guidance is effective beginning January 1, 2015, with early adoption permitted. The impact of this guidance will be dependent on the nature and significance of any transactions within the scope of this new guidance.

In July 2013, the FASB issued new accounting guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, with limited exceptions. The prospective adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

In March 2013, the FASB issued guidance that requires a parent company to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

2.  Non-controlling Interests

The non-controlling interests’ share of equity in VMware is reflected as non-controlling interests in the accompanying consolidated balance sheets and was $1,430 million and $1,380 million as of June 30, 2014 and December 31, 2013, respectively. At June 30, 2014, EMC held approximately 97% of the combined voting power of VMware’s outstanding common stock and approximately 80% of the economic interest in VMware.

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

	For the Six Months Ended
	June 30, 2014			June 30, 2013
Net income attributable to EMC Corporation	$	980		$	1,281
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances	51			52
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity	(427		)	(321		)
Net transfers (to) from non-controlling interest	(376		)	(269		)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.	$	604		$	1,012

9

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The non-controlling interests' share of equity in Pivotal is reflected as a component of the non-controlling interests in the accompanying consolidated balance sheets as $105 million at both June 30, 2014 and December 31, 2013. At June 30, 2014, EMC held approximately 84% of the economic interest in Pivotal. General Electric Company's ("GE") 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. Additionally, due to the terms of the preferred instrument, GE's non-controlling interest on the consolidated balance sheets is generally not impacted by Pivotal's equity related activity. The preferred equity instrument is convertible into common shares at GE’s election at any time.

3.  Business Combinations, Intangibles and Goodwill

Acquisition of AirWatch

On February 24, 2014, VMware acquired all of the outstanding capital stock of A.W.S. Holding, LLC ("AirWatch Holding"), the sole member and equity holder of AirWatch LLC ("AirWatch"). AirWatch is a leader in enterprise mobile management and security solutions. VMware acquired AirWatch to expand its solutions within the enterprise mobile and security space. The aggregate consideration paid for AirWatch was $1,092 million, net of cash acquired, including cash of $1,068 million and the fair value of assumed unvested equity attributed to pre-combination services totaling $24 million.

Merger consideration totaling $300 million was payable to certain employees of AirWatch subject to specified future employment conditions and will be recognized as expense over the requisite service period. Compensation expense totaling $60 million was recognized from the date of acquisition through June 30, 2014.

The following table summarizes the allocation of the consideration to the fair value of the assets acquired and net liabilities assumed, net of cash acquired (table in millions):

Other current assets	$	60
Intangible assets:
Purchased technology (weighted-average useful life of 6 years)	118
Customer relationships and customer lists (weighted-average useful life of 8 years)	78
Trademarks and tradenames (weighted-average useful life of 8 years)	40
Other (weighted-average useful life of 3 years)	14
Total intangible assets, net, excluding goodwill	250
Goodwill	879
Other assets	17
Total assets acquired	1,206
Unearned revenue	(45		)
Other assumed liabilities, net of acquired assets	(69		)
Total net liabilities assumed	(114		)
Fair value of assets acquired and net liabilities assumed	$	1,092

These VMware intangible assets are being amortized on a straight-line basis. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, recognized and primarily related to expected synergies from the transaction. The majority of the goodwill and identifiable intangible assets are expected to be deductible for U.S. federal income tax purposes. The results of this acquisition 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 company were not material to our consolidated results of operations for the three and six months ended June 30, 2014 or 2013.

Other Acquisitions

During the six months ended June 30, 2014, EMC acquired two companies. We acquired all of the outstanding capital stock of DSSD, Inc., a developer of an innovative new rack-scale flash storage architecture for I/O-intensive in-memory databases and Big Data workloads, which complements and expands our Information Storage segment. We also acquired Symplified Inc, a provider of a comprehensive cloud identity solution that helps service-oriented IT organizations simplify user access, regain

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

visibility and control over application usage and meet security and compliance requirements, which complements and expands our RSA Information Security segment.

The aggregate consideration for these two acquisitions was $721 million, which consisted of $657 million of cash consideration, net of cash acquired, $8 million for the fair value of assumed unvested equity attributed to pre-combination services and $11 million in contingent consideration attributed to pre-combination services which is included in accrued expenses on the consolidated balance sheets. In connection with these acquisitions, we had a $45 million gain on previously held interests in strategic investments which was recognized in other expense, net in the second quarter of 2014. The consideration 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 $509 million, $300 million and $88 million, respectively.

The intangible assets acquired were comprised of developed technology intangible assets which have a weighted-average amortization period of 7 years. These intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, recognized and primarily related to expected synergies from the transaction. The goodwill is not deductible for U.S. federal income tax purposes. 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 to our consolidated results of operations for the three and six months ended June 30, 2014 or 2013.

Intangible Assets

Intangible assets, excluding goodwill, as of June 30, 2014 and December 31, 2013 consist of (tables in millions):

	June 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,783	$	(1,546	)	$	1,237
Patents	225		(109		)	116
Software licenses	104		(92		)	12
Trademarks and tradenames	212		(127		)	85
Customer relationships and customer lists	1,463		(914		)	549
Leasehold interest	147		(13		)	134
Other	44		(30		)	14
Total intangible assets, excluding goodwill	$	4,978	$	(2,831	)	$	2,147

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,356	$	(1,429	)	$	927
Patents	225		(102		)	123
Software licenses	101		(90		)	11
Trademarks and tradenames	171		(118		)	53
Customer relationships and customer lists	1,386		(855		)	531
Leasehold interest	145		(11		)	134
Other	28		(27		)	1
Total intangible assets, excluding goodwill	$	4,412	$	(2,632	)	$	1,780

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Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the six months ended June 30, 2014 consist of (table in millions):

	Six Months Ended June 30, 2014
	Information Storage		Information Intelligence Group			RSA Information Security		Pivotal			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,486	$	1,487		$	2,203	$	177		$	3,071		$	14,424
Goodwill resulting from acquisitions	509		—			—		—			879			1,388
Finalization of purchase price allocations and other, net	—		(2		)	—		—			(8		)	(10		)
Goodwill transferred in acquisition of Pivotal businesses	6		—			—		(6		)	—			—
Balance, end of the period	$	8,001	$	1,485		$	2,203	$	171		$	3,942		$	15,802

During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The transfer of goodwill pursuant to this acquisition is shown above for the six months ended June 30, 2014. For both transactions, the amount of transferred goodwill was determined using the relative fair value method. See Note 15 for further discussion of the segment reclassifications.

4.  Debt

Long-Term Debt

In June 2013, we issued $5.5 billion aggregate principal amount of senior notes (collectively, the "Notes") which pay a fixed rate of interest semi-annually in arrears. The first interest payment occurred on December 2, 2013. The proceeds from the Notes have been used to satisfy the cash payment obligation of the converted 2013 Notes as well as for general corporate purposes including stock repurchases, dividend payments, business acquisitions, working capital needs and other business opportunities. The Notes of each series are senior, unsecured obligations of EMC and are not convertible or exchangeable. Unless previously purchased and canceled, we will repay the Notes of each series at 100% of the principal amount, together with accrued and unpaid interest thereon, at maturity. However, EMC has the right to redeem any or all of the Notes at specified redemption prices. As of June 30, 2014, we were in compliance with all debt covenants, which are customary in nature.

Our long-term debt as of June 30, 2014 was as follows (dollars in millions):

Senior Notes	Issued at Discount to Par		Carrying Value
$2.5 billion 1.875% Notes due 2018	99.943	%	$	2,499
$2.0 billion 2.650% Notes due 2020	99.760	%	1,996
$1.0 billion 3.375% Notes due 2023	99.925	%	999
			$	5,494

The unamortized discount on the Notes consists of $6 million, which will be fully amortized by June 1, 2023. The effective interest rate on the Notes was 2.54% for both the three and six months ended June 30, 2014.

Convertible Debt

In November 2006, we issued our $1.725 billion1.75% convertible senior notes due 2011 (the “2011 Notes”) and our 2013 Notes for total gross proceeds of $3.5 billion. The 2011 Notes matured and were settled in 2012.

The 2013 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2013 Notes as of December 31, 2013. Pursuant to the settlement terms, the majority of the converted 2013 Notes were settled on January 7, 2014. At that time, we paid the noteholders $1.7 billion in cash for the outstanding principal and 35 million shares for the $858 million in excess of the conversion value over the principal amount, as prescribed by the terms of the 2013 Notes.

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With respect to the conversion value in excess of the principal amount of the 2013 Notes converted, we elected to settle the excess with 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 actual conversion rate for the 2013 Notes was 62.6978 shares of our common stock per one thousand dollars of principal amount of 2013 Notes, which represents a 26.5% conversion premium from the date the 2013 Notes were issued and is equivalent to a conversion price of approximately $15.95 per share of our common stock.

The 2013 Notes paid 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 2013 Notes was 5.6% for both the three and six months ended June 30, 2013.

The following table represent the key components of our interest expense on convertible debt for the three and six months ended June 30, 2013 (table in millions):

	June 30, 2013
	Three Months Ended		Six Months Ended
Contractual interest expense on the coupon	$	7	$	15
Amortization of the discount component recognized as interest expense	16		31
Total interest expense on the convertible debt	$	23	$	46

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 allowed 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 covered, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669 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 2011, we exercised approximately half of the Purchased Options in connection with the planned settlements of the 2011 Notes. In the fourth quarter of 2013, we exercised the remaining 108 million of the Purchased Options in conjunction with the planned settlements of the 2013 Notes, and we received 35 million shares of net settlement on January 7, 2014, representing the excess conversion value of the options. 

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 million from the sale of the associated warrants. Upon exercise, the value of the warrants was required to be settled in shares. Approximately half of the associated warrants were exercised in 2012 and the remaining 109 million associated warrants were exercised between February 18, 2014 and March 17, 2014 and were settled with 29 million shares of our common stock.

The Purchased Options and associated warrants had the effect of increasing the conversion price of the 2013 Notes to approximately $19.31 per share of our common stock, representing an approximate 53% 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.

Interest Rate Swap Contracts

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 ten year 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.

During 2011 and 2012, we settled the swaps and replaced them with new interest rate swap contracts for revised forecasted debt issuance dates. Each of these new swaps was deemed as an effective hedge as the notional amounts and other terms matched the underlying hedged item and accordingly, losses on the interest rate swap contracts were deferred as they were expected to be realized over the life of the new debt issued under the related interest rate swap contracts. In the second half of 2012, we settled the interest rate swap contracts and did not replace them. Losses on the swaps at the time of settlement were deferred as they are expected to be realized over the life of the new debt issued under the related interest rate swap contracts.

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At June 30, 2014, we had $176 million of accumulated realized losses related to the settled swaps in accumulated other comprehensive income which will be realized over the remaining life of our ten year Notes. These losses will be reclassified from other comprehensive income and recognized on a straight-line basis in the consolidated income statements as interest expense beginning in the third quarter of 2014.

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 June 30, 2014, 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 June 30, 2014 and December 31, 2013. At June 30, 2014 and December 31, 2013, 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 June 30, 2014 and December 31, 2013, auction rate securities were valued using a discounted cash flow model.

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The following tables summarize the composition of our short- and long-term investments at June 30, 2014 and December 31, 2013 (tables in millions):

	June 30, 2014
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,201	$	4	$	(1	)	$	2,204
U.S. corporate debt securities	2,294		5		(1		)	2,298
High yield corporate debt securities	554		23		—			577
Asset-backed securities	25		—		—			25
Municipal obligations	965		3		—			968
Auction rate securities	63		—		(4		)	59
Foreign debt securities	2,515		7		(1		)	2,521
Total fixed income securities	8,617		42		(7		)	8,652
Publicly traded equity securities	166		133		(4		)	295
Total	$	8,783	$	175	$	(11	)	$	8,947

We held approximately $2,521 million in foreign debt securities at June 30, 2014. 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 Argentina, Greece, Italy, Ireland, Portugal, Spain or Cyprus.

	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	3,726	$	4	$	(3	)	$	3,727
U.S. corporate debt securities	2,260		8		(2		)	2,266
High yield corporate debt securities	515		19		(3		)	531
Municipal obligations	860		3		—			863
Auction rate securities	63		—		(3		)	60
Foreign debt securities	2,152		6		(3		)	2,155
Total fixed income securities	9,576		40		(14		)	9,602
Publicly traded equity securities	72		24		(1		)	95
Total	$	9,648	$	64	$	(15	)	$	9,697

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013 (tables in millions):

	June 30, 2014
	Level 1		Level 2			Level 3		Total
Cash	$	1,693	$	—		$	—	$	1,693
Cash equivalents	3,330		664			—		3,994
U.S. government and agency obligations	1,349		855			—		2,204
U.S. corporate debt securities	—		2,298			—		2,298
High yield corporate debt securities	—		577			—		577
Asset-backed securities	—		25			—		25
Municipal obligations	—		968			—		968
Auction rate securities	—		—			59		59
Foreign debt securities	—		2,521			—		2,521
Publicly traded equity securities	295		—			—		295
Total cash and investments	$	6,667	$	7,908		$	59	$	14,634
Other items:
Strategic investments held at cost	$	—	$	—		$	296	$	296
Investment in joint venture	—		—			36		36
Long-term debt carried at discounted cost	—		(5,513		)	—		(5,513		)
Foreign exchange derivative assets	—		20			—		20
Foreign exchange derivative liabilities	—		(20		)	—		(20		)
Commodity derivative assets	—		2			—		2

	December 31, 2013
	Level 1		Level 2			Level 3		Total
Cash	$	1,725	$	—		$	—	$	1,725
Cash equivalents	5,674		492			—		6,166
U.S. government and agency obligations	1,797		1,930			—		3,727
U.S. corporate debt securities	—		2,266			—		2,266
High yield corporate debt securities	—		531			—		531
Municipal obligations	—		863			—		863
Auction rate securities	—		—			60		60
Foreign debt securities	—		2,155			—		2,155
Publicly traded equity securities	95		—			—		95
Total cash and investments	$	9,291	$	8,237		$	60	$	17,588
Other items:
Strategic investments held at cost	$	—	$	—		$	379	$	379
Investment in joint venture	—		—			35		35
Convertible debt carried at discounted cost	—		(5,419		)	—		(5,419		)
Foreign exchange derivative assets	—		31			—		31
Foreign exchange derivative liabilities	—		(20		)	—		(20		)
Commodity derivative assets	—		4			—		4

Our auction rate securities are predominantly rated investment grade and are primarily collateralized by student loans. The underlying loans of all but one of our auction rate securities, with a market value of $7 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 June 30, 2014, the coupon rates used ranged from 0% to 3% 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 June 30, 2014. 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 June 30, 2014 and December 31, 2013 due to the narrowing of credit spreads on AA-rated banks during 2013 and into 2014.

The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended					For the Six Months Ended
	June 30, 2014			June 30, 2013		June 30, 2014			June 30, 2013
Balance, beginning of the period	$	60		$	68	$	60		$	70
Calls at par value	—			—		—			(1		)
Other-than-temporary impairment loss	—			—		—			(1		)
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	(1		)	—		(1		)	—
Balance, end of the period	$	59		$	68	$	59		$	68

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.

EMC has a 49% ownership percentage of LenovoEMC Limited, a joint venture with Lenovo that was formed in 2012. We account for our LenovoEMC joint venture using the fair value method of accounting. To determine the estimated fair value at inception of our investment, we use a discounted cash flow model using a three year time horizon, and utilized a discount rate of 6%, which represented the incremental borrowing rate for a market participant. The assumptions used in preparing the discounted cash flow model include an analysis of estimated Lenovo NAS revenue against a prescribed target as well as consideration of the purchase price put and call features included in the joint venture agreement. The put and call features create a floor and a cap on the fair value of the investment. As such, there is a limit to the impact on the fair value that would result from significant changes in the unobservable inputs. We had no changes to the assumptions utilized in the fair value calculation in the second quarter of 2014.

The following table provides a summary of changes in fair value of our LenovoEMC joint venture for the three and six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended				For the Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Balance, beginning of the period	$	35	$	33	$	35	$	33
Realized gain included in other expense, net	1		1		1		1
Balance, end of period	$	36	$	34	$	36	$	34

The carrying value of the strategic investments held at cost were accounted for under the cost method. As part of our quarterly impairment review, we perform a fair value calculation of our strategic investments held at cost 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 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Investment Losses

Unrealized losses on investments at June 30, 2014 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in millions):

	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	$	400	$	(1	)	$	—	$	—		$	400	$	(1	)
U.S. corporate debt securities	493		(1		)	—		—			493		(1		)
Auction rate securities	—		—			59		(4		)	59		(4		)
Foreign debt securities	521		(1		)	—		—			521		(1		)
Publicly traded equity securities	26		(3		)	—		(1		)	26		(4		)
Total	$	1,440	$	(6	)	$	59	$	(5	)	$	1,499	$	(11	)

For all of our securities for which the amortized cost basis was greater than the fair value at June 30, 2014, 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, third party guarantees and the time to maturity.

In the second quarter of 2014, an unrealized gain of $88 million was recorded in other comprehensive income related to a strategic investment which completed an initial public offering in June 2014. This investment was reclassified from our portfolio of strategic investments held at cost to publicly traded equity securities.

Contractual Maturities

The contractual maturities of fixed income securities held at June 30, 2014 are as follows (table in millions):

	June 30, 2014
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,926	$	1,928
Due after 1 year through 5 years	5,765		5,783
Due after 5 years through 10 years	544		563
Due after 10 years	382		378
Total	$	8,617	$	8,652

Short-term investments on the consolidated balance sheet include $34 million in variable rate notes which have contractual maturities in 2014, and are not classified within investments due within one year above.

6.  Inventories

Inventories consist of (table in millions):

	June 30, 2014		December 31, 2013
Work-in-process	$	721	$	696
Finished goods	676		638
	$	1,397	$	1,334

7.  Accounts and Notes Receivable and Allowance for Credit Losses

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 on the consolidated balance sheets. 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The contractual amounts due under the leases we retained as of June 30, 2014 were as follows (table in millions):

Year	Contractual Amounts Due Under Leases
Due within one year	$	87
Due within two years	69
Due within three years	61
Thereafter	3
Total	220
Less: Amounts representing interest	5
Present value	215
Current portion (included in accounts and notes receivable)	86
Long-term portion (included in other assets, net)	$	129

Subsequent to June 30, 2014, we sold $39 millionof 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 June 30, 2014, 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 six months ended June 30, 2014 and 2013 (table in millions):

	For the Six Months Ended
	June 30, 2014			June 30, 2013
Balance, beginning of the period	$	9		$	17
Recoveries	(5		)	(9		)
Provisions	6			3
Balance, end of the period	$	10		$	11

Gross lease receivables totaled $220 million and $252 million as of June 30, 2014 and December 31, 2013, respectively, before the allowance. The components of these balances were individually evaluated for impairment and included in our allowance determination as necessary.

8.  Property, Plant and Equipment

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

	June 30, 2014			December 31, 2013
Furniture and fixtures	$	239		$	229
Equipment and software	6,391			5,973
Buildings and improvements	2,284			2,089
Land	159			132
Building construction in progress	100			215
	9,173			8,638
Accumulated depreciation	(5,567		)	(5,160		)
	$	3,606		$	3,478

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Building construction in progress at June 30, 2014 includes $74 million for facilities not yet placed in service that we are holding for future use.

9.  Joint Ventures

We make investments in joint ventures. For each joint venture investment, we consider the facts and circumstances in order to determine whether it qualifies for cost accounting, equity accounting, fair value method accounting or whether it should be consolidated.

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 June 30, 2014, we have contributed $1,255 million in funding and $17 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 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% for the three and six months ended June 30, 2014 and 2013. As of June 30, 2014, we have recorded net accumulated losses from VCE of $956 million since inception, of which $85 million and $160 million were recorded in the three and six months ending June 30, 2014, respectively, and $71 million and $140 million were recorded in the three and six months ended June 30, 2013, respectively.

We recognized $172 million and $342 million in revenue from sales of product and services to VCE during the three and six months ended June 30, 2014, respectively, and $102 million and $176 million for the three and six months ended June 30, 2013, 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 had a receivable from VCE related to the administrative services agreement of $60 million and $52 million as of June 30, 2014 and December 31, 2013, respectively, included in other current assets in the consolidated balance sheets.

10.  Accrued Expenses

Accrued expenses consist of (table in millions):

	June 30, 2014		December 31, 2013
Salaries and benefits	$	989	$	1,078
Product warranties	255		289
Dividends payable (see Note 12)	240		205
Partner rebates	201		214
Restructuring, current (See Note 13)	128		84
Derivatives	23		23
Other	914		890
	$	2,750	$	2,783

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.

20

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Balance, beginning of the period	$	274		$	283		$	289		$	278
Provision	32			51			74			96
Amounts charged to the accrual	(51		)	(43		)	(108		)	(83		)
Balance, end of the period	$	255		$	291		$	255		$	291

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 23.1% and 23.6% for the three and six months ended June 30, 2014, respectively. Our effective income tax rates were 22.4% and 17.7% for the three and six months ended June 30, 2013, respectively. Our effective income tax rate is based upon estimated income before provision for income taxes 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 six months ended June 30, 2014, 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 and state taxes. 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. For the three and six months ended June 30, 2013, 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, state taxes and the U.S. federal tax credit for increasing research activities. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law. Some of the provisions were retroactive to January 1, 2012 including an extension of the U.S. federal tax credit for increasing research activities through December 31, 2013. Because the extension was enacted after December 31, 2012, our income tax provision for the six months ended June 30, 2013 included the estimated federal tax credit for increasing research activities for the full year 2012 as well as the six months ended June 30, 2013, which reduced our effective tax rate for the six month period.

Our effective income tax rate increased in the three and six months ended June 30, 2014 from the three and six months ended June 30, 2013 due primarily to the retroactive renewal of the U.S. federal tax credit for increasing research activities on January 2, 2013 as discussed above. The U.S. federal tax credit for increasing research activities reduced our effective income tax rate by approximately 1.0% and 5.1% for the three and six months ended June 30, 2013. Our effective income tax rate for the three and six months ended June 30, 2014 does not reflect any U.S. federal tax credit for increasing research activities because the credit expired on December 31, 2013. There were also differences in the mix of income attributable to foreign versus domestic jurisdictions, change in tax contingency reserves and discrete items, the net impact of which is immaterial.

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 2009 and 2010 in the third quarter of 2012. The current federal income tax audit is ongoing and it is not expected to be completed until 2015. We also have income tax audits in process in numerous state, local and international jurisdictions. In our international jurisdictions that comprise a significant portion of our operations, the years that may be examined vary, with the earliest year being 2004. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions 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 twelve months. While we expect the amount of unrecognized tax benefits to change in the next twelve months, we do not expect the change to have a significant impact on our results of operations or financial position.

21

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

12.  Shareholders’ Equity

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

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Numerator:
Net income attributable to EMC Corporation	$	589		$	701		$	980		$	1,281
Incremental dilution from VMware	(1		)	(2		)	(3		)	(3		)
Net income – dilution attributable to EMC Corporation	$	588		$	699		$	977		$	1,278
Denominator:
Weighted average shares, basic	2,037			2,092			2,033			2,097
Weighted common stock equivalents	27			29			27			30
Assumed conversion of the 2013 Notes and associated warrants	—			53			10			54
Weighted average shares, diluted	2,064			2,174			2,070			2,181

Due to the cash settlement feature of the principal amount of the 2013 Notes, we only included the impact of the premium feature in our diluted earnings per share calculation when the 2013 Notes were convertible due to maturity or when the average stock price exceeded 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. Approximately half of the associated warrants were exercised during the year ended December 31, 2012. The remaining 109 million warrants were exercised between February 18, 2014 and March 17, 2014. These warrants were settled with shares of our common stock. As such, we included the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation during the three and six months ended June 30, 2013 as the average stock price exceeded the exercise price, and during the six months ended June 30, 2014 for the period the warrants were outstanding.

Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 1 million and 4 million for the three and six months ended June 30, 2014, respectively, and 4 million for both the three and six months ended June 30, 2013, 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.

Repurchase of Common Stock

We utilize both authorized and unissued shares (including repurchased shares) for all issuances under our equity plans. Our Board of Directors authorized the repurchase of 250 million shares of our common stock in February 2013. For the six months ended June 30, 2014, we spent $1.0 billion to repurchase 39 million shares of our common stock. Of the 250 million shares authorized for repurchase, we have repurchased 133 million shares at a total cost of $3.4 billion, leaving a remaining balance of 117 million shares authorized for future repurchases.  We plan to spend up to $6.0 billion in the repurchase of shares during the two years ending December 31, 2014. This includes $3.0 billion spent during the year ended December 31, 2013 and $3.0 billion to be spent during the year ending December 31, 2014.

Cash Dividend on Common Stock

In May 2013, our Board of Directors approved the initiation of a quarterly cash dividend to EMC shareholders of $0.10 per share of common stock. On April 17, 2014, our Board of Directors approved an increase in the quarterly cash dividend paid to EMC shareholders to $0.115 per share of common stock.

22

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Our Board of Directors declared the following dividends during the periods presented:

Declaration Date	Dividend Per Share		Record Date	Total Amount (in millions)		Payment Date
Fiscal Year 2014:
February 6, 2014	$	0.10	April 1, 2014	$	209	April 23, 2014
April 17, 2014	$	0.115	July 1, 2014	$	237	July 23, 2014
July 30, 2014	$	0.115	October 1, 2014	N/A		October 23, 2014
Fiscal Year 2013:
May 30, 2013	$	0.10	July 1, 2013	$	212	July 23, 2013

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following (table in millions):

	Foreign Currency Translation Adjustments			Unrealized Net Gains on Investments			Unrealized Net Losses on Derivatives			Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans			Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc.			Total
Balance as of December, 31 2013(a)	$	(53	)	$	31		$	(106	)	$	(110	)	$	(1	)	$	(239	)
Other comprehensive income (loss) before reclassifications	4			83			1			—			(1		)	87
Net losses (gains) reclassified from accumulated other comprehensive income	—			(11		)	(3		)	1			—			(13		)
Net current period other comprehensive income (loss)	4			72			(2		)	1			(1		)	74
Balance as of June 30, 2014(b)	$	(49	)	$	103		$	(108	)	$	(109	)	$	(2	)	$	(165	)

__________________

(a) Net of taxes (benefits) of $18 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

(b) Net of taxes (benefits) of $61 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

23

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 are as follows (tables in millions):

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Three Months Ended June 30, 2014:
Net gain on investments:	$	9		Investment income
	(3		)	Provision for income tax
Net of tax	$	6
Net gain on derivatives:
Foreign exchange contracts	$	2		Product sales revenue
Foreign exchange contracts	(1		)	Cost of product sales
Total net gain on derivatives before tax	1
	—			Provision for income tax
Net of tax	$	1

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Six Months Ended June 30, 2014:
Net gain on investments:	$	17		Investment income
	(6		)	Provision for income tax
Net of tax	$	11
Net gain on derivatives:
Foreign exchange contracts	$	3		Product sales revenue
Foreign exchange contracts	—			Cost of product sales
Total net gain on derivatives before tax	3
	—			Provision for income tax
Net of tax	$	3

13.  Restructuring and Acquisition-Related Charges

For the three and six months ended June 30, 2014, we incurred restructuring and acquisition-related charges of $30 million and $149 million, respectively. For the three and six months ended June 30, 2013, we incurred restructuring and acquisition-related charges of $7 million and $155 million, respectively. For the three and six months ended June 30, 2014, EMC incurred $29 million and $144 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and during both the three and six months ended June 30, 2014, EMC incurred $2 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For each of the three and six months ended June 30, 2014, VMware recognized a recovery of $1 million related to its restructuring program. For the six months ended June 30, 2014, VMware incurred $4 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three and six months ended June 30, 2013, EMC incurred $4 million and $85 million, respectively, of restructuring charges, primarily related to our 2013 restructuring programs. For the three and six months ended June 30, 2013, VMware incurred $2 million and $56 million, respectively, of restructuring charges, primarily related to the 2013 restructuring program. For the six months ended June 30, 2013, EMC incurred $3 million and VMware incurred $1 million of costs for financial, advisory, legal and accounting services in connection with acquisitions. Additionally, during the three and six months ended June 30, 2013, VMware incurred $1 million and $10 million, respectively, of impairment charges related to its business realignment.

In the first and second quarters of 2014, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of approximately 1,326 and 210 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Information Intelligence Group and Pivotal segments. All of these actions are expected to be completed within a year of the start of the program.

24

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During 2013, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of 1,917 positions, of which 1,004 positions were identified in the first and second quarters of 2013. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions were completed within a year of the start of the program.

During 2013, VMware approved and initiated a business realignment plan to streamline its operations. The plan included the elimination of approximately 710 positions across all major functional groups and geographies. All of these actions were completed within a year of the start of the program.

For the three and six months ended June 30, 2014, we recognized $4 million and $8 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 six months ended June 30, 2013, we recognized $5 million and $12 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 millions):

Three Months Ended June 30, 2014:

2014 EMC Program
Category	Balance as of March 31, 2014		2014 Charges		Utilization			Balance as of June 30, 2014
Workforce reductions	$	102	$	32	$	(36	)	$	98
Consolidation of excess facilities and other contractual obligations	1		4		(2		)	3
Total	$	103	$	36	$	(38	)	$	101

Other EMC Programs
Category	Balance as of March 31, 2014		Adjustments to the Provision			Utilization			Balance as of June 30, 2014
Workforce reductions	$	37	$	(7	)	$	(13	)	$	17
Consolidation of excess facilities and other contractual obligations	20		—			(2		)	18
Total	$	57	$	(7	)	$	(15	)	$	35

Six Months Ended June 30, 2014:

2014 EMC Program
Category	Balance as of December 31, 2013		2014 Charges		Utilization			Balance as of June 30, 2014
Workforce reductions	$	—	$	149	$	(51	)	$	98
Consolidation of excess facilities and other contractual obligations	—		6		(3		)	3
Total	$	—	$	155	$	(54	)	$	101

Other EMC Programs
Category	Balance as of December 31, 2013		Adjustments to the Provision			Utilization			Balance as of June 30, 2014
Workforce reductions	$	66	$	(13	)	$	(36	)	$	17
Consolidation of excess facilities and other contractual obligations	24		2			(8		)	18
Total	$	90	$	(11	)	$	(44	)	$	35

25

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Three Months Ended June 30, 2013:

2013 EMC Programs
Category	Balance as of March 31, 2013		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	66	$	2	$	(23	)	$	45
Consolidation of excess facilities and other contractual obligations	—		3		(1		)	2
Total	$	66	$	5	$	(24	)	$	47

2013 VMware Programs
Category	Balance as of March 31, 2013		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	26	$	2	$	(26	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	26	$	2	$	(26	)	$	2

Other EMC Programs
Category	Balance as of March 31, 2013		Adjustments to the Provision			Utilization			Balance as of June 30, 2013
Workforce reductions	$	46	$	(3	)	$	(14	)	$	29
Consolidation of excess facilities and other contractual obligations	30		2			(5		)	27
Total	$	76	$	(1	)	$	(19	)	$	56

Six Months Ended June 30, 2013:

2013 EMC Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	—	$	81	$	(36	)	$	45
Consolidation of excess facilities and other contractual obligations	—		3		(1		)	2
Total	$	—	$	84	$	(37	)	$	47

2013 VMware Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	—	$	56	$	(54	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	—	$	56	$	(54	)	$	2

Other EMC Programs
Category	Balance as of December 31, 2012		Adjustments to the Provision			Utilization			Balance as of June 30, 2013
Workforce reductions	$	63	$	(8	)	$	(26	)	$	29
Consolidation of excess facilities and other contractual obligations	28		9			(10		)	27
Total	$	91	$	1		$	(36	)	$	56

26

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

14.  Commitments and Contingencies

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.

15.  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 each operate as single segments.

During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The acquisition of these businesses was accounted for as a business combination between entities under common control. We reflected the impact of the transaction on our segment for the first quarter of 2014 and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the segment reclassifications impact EMC's 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 and other 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 provision 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 within EMC amounts represent the revenues and expenses of VMware as reflected within EMC’s consolidated financial statements.

27

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Our segment information for the three and six months ended June 30, 2014 and 2013 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, 2014
Revenues:
Product revenues	$	2,551		$	37		$	104		$	2,692		$	15		$	2,707
Services revenues	1,425			121			139			1,685			39			1,724
Total consolidated revenues	3,976			158			243			4,377			54			4,431
Gross profit	$	2,192		$	100		$	162		$	2,454		$	26		$	2,480
Gross profit percentage	55.1		%	63.2		%	66.7		%	56.1		%	47.2		%	55.9		%
Research and development										358			33			391
Selling, general and administrative										1,140			46			1,186
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,498			79			1,577
Operating income (expense)										$	956		$	(53	)	$	903

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended
June 30, 2014
Revenues:
Product revenues	$	2,707		$	612		$	—		$	3,319
Services revenues	1,724			837			—			2,561
Total consolidated revenues	4,431			1,449			—			5,880
Gross profit	$	2,480		$	1,272		$	(98	)	$	3,654
Gross profit percentage	55.9		%	87.8		%	—		%	62.1		%
Research and development	391			246			103			740
Selling, general and administrative	1,186			602			222			2,010
Restructuring and acquisition-related charges	—			—			30			30
Total costs and expenses	1,577			848			355			2,780
Operating income (expense)	903			424			(453		)	874
Non-operating income (expense), net	(84		)	8			11			(65		)
Income tax provision (benefit)	209			91			(113		)	187
Net income	610			341			(329		)	622
Net income attributable to the non-controlling interest in VMware, Inc.	—			(69		)	36			(33		)
Net income attributable to EMC Corporation	$	610		$	272		$	(293	)	$	589

28

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	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	$	2,577		$	39		$	98		$	2,714		$	15		$	2,729
Services revenues	1,377			113			130			1,620			27			1,647
Total consolidated revenues	3,954			152			228			4,334			42			4,376
Gross profit	$	2,236		$	96		$	148		$	2,480		$	20		$	2,500
Gross profit percentage	56.5		%	63.1		%	65.1		%	57.2		%	48.1		%	57.1		%
Research and development										377			26			403
Selling, general and administrative										1,118			36			1,154
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,495			62			1,557
Operating income (expense)										$	985		$	(42	)	$	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 (expense)	943			413			(334		)	1,022
Non-operating income (expense), net	(78		)	3			19			(56		)
Income tax provision (benefit)	214			93			(91		)	216
Net income	651			323			(224		)	750
Net income attributable to the non-controlling interest in VMware, Inc.	—			(67		)	18			(49		)
Net income attributable to EMC Corporation	$	651		$	256		$	(206	)	$	701

29

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	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, 2014
Revenues:
Product revenues	$	4,853		$	72		$	208		$	5,133		$	26		$	5,159
Services revenues	2,803			240			278			3,321			78			3,399
Total consolidated revenues	7,656			312			486			8,454			104			8,558
Gross profit	$	4,168		$	199		$	323		$	4,690		$	45		$	4,735
Gross profit percentage	54.4		%	63.9		%	66.4		%	55.5		%	42.9		%	55.3		%
Research and development										736			66			802
Selling, general and administrative										2,241			87			2,328
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,977			153			3,130
Operating income (expense)										$	1,713		$	(108	)	$	1,605

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Six Months Ended:
June 30, 2014
Revenues:
Product revenues	$	5,159		$	1,168		$	—		$	6,327
Services revenues	3,399			1,633			—			5,032
Total consolidated revenues	8,558			2,801			—			11,359
Gross profit	$	4,735		$	2,457		$	(191	)	$	7,001
Gross profit percentage	55.3		%	87.7		%	—		%	61.6		%
Research and development	802			474			196			1,472
Selling, general and administrative	2,328			1,139			394			3,861
Restructuring and acquisition-related charges	—			—			149			149
Total costs and expenses	3,130			1,613			739			5,482
Operating income (expense)	1,605			844			(930		)	1,519
Non-operating income (expense), net	(164		)	15			10			(139		)
Income tax provision (benefit)	378			175			(227		)	326
Net income	1,063			684			(693		)	1,054
Net income attributable to the non-controlling interest in VMware, Inc.	—			(138		)	64			(74		)
Net income attributable to EMC Corporation	$	1,063		$	546		$	(629	)	$	980

30

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	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	$	5,048		$	82		$	198		$	5,328		$	28		$	5,356
Services revenues	2,704			226			262			3,192			49			3,241
Total consolidated revenues	7,752			308			460			8,520			77			8,597
Gross profit	$	4,324		$	195		$	301		$	4,820		$	37		$	4,857
Gross profit percentage	55.8		%	63.4		%	65.2		%	56.6		%	48.1		%	56.5		%
Research and development										743			52			795
Selling, general and administrative										2,195			73			2,268
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,938			125			3,063
Operating income (expense)										$	1,882		$	(88	)	$	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 (expense)	1,794			814			(825		)	1,783
Non-operating income (expense), net	(152		)	7			19			(126		)
Income tax provision (benefit)	401			176			(285		)	292
Net income	1,241			645			(521		)	1,365
Net income attributable to the non-controlling interest in VMware, Inc.	—			(129		)	45			(84		)
Net income attributable to EMC Corporation	$	1,241		$	516		$	(476	)	$	1,281

31

EMC CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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, 2014		June 30, 2013		June 30, 2014		June 30, 2013
United States	$	3,056	$	2,963	$	5,890	$	5,795
Europe, Middle East and Africa	1,669		1,486		3,261		2,963
Asia Pacific and Japan	802		835		1,525		1,573
Latin America, Mexico and Canada	353		330		683		670
Total	$	5,880	$	5,614	$	11,359	$	11,001

No country other than the United States accounted for 10% or more of revenues during the three and six months ended June 30, 2014 or 2013.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,356 million at June 30, 2014 and $4,433 million at December 31, 2013. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $998 million at June 30, 2014 and $877 million at December 31, 2013. 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, 2014 or December 31, 2013.

32

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.

Certain tables may not add or recalculate due to rounding.

INTRODUCTION

We manage our business as three federated businesses, each of which plays a vital role in the delivery of IT-as-a-service ("ITaaS"): EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. This approach allows each of the three businesses to individually build best-of-breed products, go-to-market capabilities and ecosystems that they need to succeed in their respective markets while sharing the same ultimate goal of helping customers manage information which is becoming central to their operations as data centers move to an ITaaS model. In 2014, we will continue investing in the best technology and building the most complete portfolio to transition customers from the second platform of IT to the emerging and rapidly growing third platform of IT. We are a leader in the second platform of IT, which continues to support the vast majority of enterprise workloads and customers contained at these environments, and we believe we will continue to gain share in 2014. At the same time, we believe we have more offerings in the third platform of IT than anyone else and are better equipped to help customers bridge the gap as they transition from the second to third platform of IT. The third platform of IT includes cloud computing, Big Data, mobile, and social networking, which to operate successfully requires Trusted IT to establish security, privacy and trust in IT solutions. By segmenting our strategy and executional focus across these three businesses, we can focus on each of their respective missions and offer customers horizontal solutions and more choices than they get from our competitors to maximize control, efficiency and choice.  We believe this strategy provides us with the opportunity to take advantage of the solid growth opportunity of EMC Information Infrastructure and the faster growth opportunities of VMware Virtual Infrastructure and Pivotal.

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 through our strong and ever expanding portfolio of offerings while investing in the business. During 2014, we will continue to innovate and invest in expanding our total addressable market through increased internal research and development (“R&D”), with a focus on flash, Big Data storage, software-defined storage and converged infrastructure to facilitate the enablement of cloud infrastructures, both public and private. Our investment in new technologies and solutions is reflected in our roadmap for 2014, with numerous innovations, product refreshes and brand-new products as well as continued focus on business acquisitions. We have developed a product portfolio with customers' current and future needs in mind which will continue to evolve as the largest transformation in IT history is creating enormous opportunities in cloud computing, Big Data and Trusted IT.

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 enable customers to transition to cloud computing and benefit from Big Data in the most advantageous manner for their businesses. As IT headcount grows at a fraction of the pace of data and the demands from the data center escalate, customers continue to look for simple and scalable ways to build out their ITaaS function. We offer three alternatives to help our customers transition to cloud architectures, in private, hybrid and public clouds, and leverage Big Data to meet these needs: our best-of-breed infrastructure products, proven infrastructure through VSPEX and converged infrastructure with Vblock from VCE Company LLC, our joint venture with Cisco, and other investors VMware and Intel, which continues to gather momentum in one of the fastest growing areas in IT. Our service provider program continues to be an important part of our strategy to lead our customers to the public cloud.

Pivotal

In April 2013, we, along with VMware and an investment from General Electric Company (“GE”), formed Pivotal, which is focused on building a platform comprising the next generation of data fabrics, application fabrics and a cloud independent platform-as-a-service (“PaaS”) to support cloud computing and Big and Fast Data Applications. The first version of this integrated technology platform, Pivotal One, will continue to be a cornerstone offering in 2014 together with high-value strategic services. The foundation of Pivotal One, Cloud Foundry, continues to gain momentum as an open platform for developing and operating new cloud applications that can be run on multiple leading private and public clouds in addition to our own and not lock a customer into any one cloud in particular. On top of this platform, Pivotal will offer its own suite of big and fast data capabilities, featuring game

33

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

changing innovations that use Hadoop Distributed File System ("HDFS") and scalar processing technologies. Additionally, its development services business, Pivotal Labs, will help existing customers and digital era startups build industrial-strength applications with more agility, more speed, and better quality. With its renewed focus on driving a business model to support exclusively software and strategic services, we believe we are positioning the business for rapid growth in the future.

VMware Virtual Infrastructure

VMware is the leader in virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume IT resources. VMware develops and markets its product and service offerings within three main product groups, and it also seeks to leverage synergies across these three product areas: SDDC or Software-Defined Data Center, End-User Computing and Hybrid Cloud Computing.

VMware pioneered the development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The benefits to VMware's customers include lower IT costs and a more automated and resilient systems infrastructure capable of responding dynamically to variable business demands. VMware expects to grow its business by building long-term relationships with its customers which includes selling its solutions through enterprise license agreements (“ELAs”).

VMware has articulated a vision for the software-defined data center ("SDDC"), where increasingly infrastructure is virtualized and delivered as a service, enabling control of the data center to be entirely automated by software. The SDDC is designed to transform the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. SDDC promises to dramatically simplify data center operations and lower costs. The VMware vCloud Suite, which is its first integrated solution toward realizing the SDDC vision and is based upon its VMware vSphere virtualization platform, was initially introduced in late 2012.

On a consolidated basis, given our position and strength, we are working with a very large installed base of loyal customers with leading-edge technology for every layer of the IT stack, products and services for the infrastructure layer that include best-of-breed storage arrays, software defined storage, converged infrastructure and information security. Solutions for the virtualization layer that enable the software defined data center, hybrid cloud and end-user computing and a cloud agnostic PaaS offering have become the PaaS offerings of choice for enterprises looking to build out next-gen apps to harness the power of Big Data. This combination provides a strong portfolio of offerings and solutions in the second platform which will continue to support the majority of workloads for several years to come as the market transitions to the third platform with leading technologies and product as a services offerings and a powerful capability to bridge the gap between the two. Our vision, strategy, market leading assets within our portfolio which continues to be expanded with our recent and upcoming product releases, as well as our go-to market capabilities positions us to continue to anticipate and capitalize on the mega trends of cloud computing and Big Data, while addressing the mobile and social networking trends, with the necessary Trusted IT needs in 2014 and beyond. As a result, we believe on a consolidated basis we will continue to grow faster than the markets we serve in 2014, as we simultaneously invest in the business and grow earnings per share.

RESULTS OF OPERATIONS

Revenues

The following tables present total revenue by our segments (in millions):

	For the Three Months Ended
	June 30, 2014		June 30, 2013		$ Change		% Change
Information Storage	$	3,976	$	3,954	$	22	1	%
Information Intelligence Group	158		152		6		4	%
RSA Information Security	243		228		15		6	%
Pivotal	54		42		12		29	%
VMware Virtual Infrastructure	1,449		1,238		211		17	%
Total revenues	$	5,880	$	5,614	$	266	5	%

34

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

	For the Six Months Ended
	June 30, 2014		June 30, 2013		$ Change			% Change
Information Storage	$	7,656	$	7,752	$	(96	)	(1	)%
Information Intelligence Group	312		308		4			1	%
RSA Information Security	486		460		26			6	%
Pivotal	104		77		27			35	%
VMware Virtual Infrastructure	2,801		2,404		397			16	%
Total revenues	$	11,359	$	11,001	$	358		3	%

Consolidated product revenues increased2% to $3,319 million and decreased1% to $6,327 million for the three and six months ended June 30, 2014, respectively. The percentage increase for the three months ended June 30, 2104 was primarily driven by the VMware Virtual Infrastructure segment, partially offset by the Information Storage segment. The percentage decrease for the six months ended June 30, 2104 was primarily driven by the Information Storage segment, somewhat offset by the VMware Virtual Infrastructure segment.

The Information Storage segment’s product revenues decreased 1% and 4% to $2,551 million and $4,853 million for the three and six months ended June 30, 2014, respectively. Revenue from the high-end storage business decreased 14% for the three months ended June 30, 2014 primarily driven by a customer pause in purchasing in anticipation of our upcoming refresh of our high end offerings and higher than typical revenues in the three months ended June 30, 2013, which negatively impacted the growth rate for the period. Additionally, the planned change in our order fulfillment processes and higher than normal revenues in the six months ended June 30, 2013 also negatively impacted our high-end growth rate. Partially offsetting this decrease, revenue from the Emerging Storage business increased 52% and 65% for the three and six months ended June 30, 2014, respectively, primarily due to increased demand for our portfolio of best-of-breed products that are thriving with the shift to the third platform, including flash from XtremIO, software defined storage with ViPR, object-based cloud storage with Atmos and scale-out file storage from Isilon.Additionally, revenue from the Unified and Backup Recovery business increased 6% and 5% during the three and six months ended June 30, 2014, respectively, with growth generated from both our VNX and Data Domain offerings.

The Pivotal segment’s product revenues decreased1% and 5% to $15 million and $26 million for the three and six months ended June 30, 2014, respectively. The decrease is primarily attributable to an increase in license orders which have subscription-based, ratable revenue recognition. As a result, Pivotal's product revenue decline for the quarter does not reflect the growth in demand which grew compared to the comparable periods in the prior year. Pivotal continues to have significant customer wins with its newer offerings of Pivotal One and Pivotal CF, which is based on Cloud Foundry. Cloud Foundry, a cloud-independent PaaS, continues gaining momentum to become the standard for PaaS, as Pivotal adds numerous sponsors who will utilize the platform to build out the next-generation applications.

The VMware Virtual Infrastructure segment’s product revenues increased16% and 15% to $612 million and $1,168 million for the three and six months ended June 30, 2014, respectively. VMware’s license revenues increased during the three and six months ended June 30, 2014 primarily due to an increase in revenue from its integrated product suites, including VMware vCloud Suite. Its integrated product suites include various product offerings and are sold at a greater price than our products that are sold on an individual basis. ELAs comprised 37% of their overall sales during both the three months ended June 30, 2014 and 2013 and 32% and 33% of their overall sales during the six months ended June 30, 2014 and 2013, respectively, with the balance represented by non-ELA, or transactional business.

The RSA Information Security segment’s product revenues increased7% and 6% to $104 million and $208 million for the three and six months ended June 30, 2014, respectively. The increase in product revenue was driven by growth in both our Identity and Data Protection and Security Management and Compliance businesses. Security continues to become increasingly more important in IT decisions and RSA continues to benefit from this trend with its advanced, data driven security offerings.

The Information Intelligence Group segment’s product revenues decreased6% and 13% to $37 million and $72 million for the three and six months ended June 30, 2014, respectively. The year-over-year decrease in product revenues was primarily due to the timing of revenue recognition resulting from growth in the subscription business. This business continues to make progress as it continues to innovate to meet customers' demand for technologies that work seamlessly in mobile cloud environments, like xCP and Syncplicity.

35

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

Consolidated services revenues increased9% to $2,561 million and $5,032 million for both the three and six months ended June 30, 2014, respectively. The consolidated services revenues increase was primarily driven by the Information Storage and VMware Virtual Infrastructure segments’ services revenues resulting from increased revenue associated with maintenance services and increased demand for professional services as 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 increased3% and 4% to $1,425 million and $2,803 million for the three and six months ended June 30, 2014, respectively. The increase in services revenues was primarily attributable to higher revenue associated with maintenance services due to a larger installed base as well as increased professional services. We have experienced a growing demand for professional services as we assist with customers' transitions to cloud architectures, transforming IT infrastructures and virtualizing mission-critical applications.

The Pivotal segment’s services revenues increased 46% and 57% to $39 million and $78 million for the three and six months ended June 30, 2014, respectively. The increase in services revenues was primarily attributable to higher professional services in the three and six months ended June 30, 2014 as Pivotal transitions to enterprise customers, with their renewed focus on agile development and services surrounding their Pivotal One and Pivotal CF platforms.

The VMware Virtual Infrastructure segment’s services revenues increased18% and 17% to $837 million and $1,633 million for the three and six months ended June 30, 2014, respectively. The increase in services revenues was primarily attributable to growth in VMware’s software maintenance revenues which 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 increased6% to $139 million and $278 million for both the three and six months ended June 30, 2014, respectively. Services revenues increased due to an increase primarily in professional services, as well as an increase in maintenance revenues, resulting from continued demand for support from our installed base.

The Information Intelligence Group segment’s services revenues increased7% and 6% to $121 million and $240 million for the three and six months ended June 30, 2014, respectively. The increase in services revenues was due to increased customer demand for services related to new product offerings and strategic professional services.

Consolidated revenues by geography were as follows (in millions):

	For the Three Months Ended
	June 30, 2014		June 30, 2013		% Change
United States	$	3,056	$	2,963	3	%
Europe, Middle East and Africa	1,669		1,486		12	%
Asia Pacific and Japan	802		835		(4	)%
Latin America, Mexico and Canada	353		330		7	%
Total revenues	$	5,880	$	5,614	5	%

	For the Six Months Ended
	June 30, 2014		June 30, 2013		% Change
United States	$	5,890	$	5,795	2	%
Europe, Middle East and Africa	3,261		2,963		10	%
Asia Pacific and Japan	1,525		1,573		(3	)%
Latin America, Mexico and Canada	683		670		2	%
Total revenues	$	11,359	$	11,001	3	%

Revenues increased for the three and six months ended June 30, 2014 compared to the same periods in 2013 in the United States, Europe, Middle East and Africa and Latin America, Mexico and Canada. Revenues decreased in the three and six months ended June 30, 2014 in the Asia Pacific and Japan regions when compared to the same periods in 2013.

36

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

Changes in exchange rates positively impacted revenue growth by 0.5% for the three months ended June 30, 2014 and had no impact to revenue growth for the six months ended June 30, 2014. The positive impact of the change in rates was most significant in Euro region and the United Kingdom, somewhat offset by negative impacts from the Asia Pacific markets, primarily Australia and Japan.

Costs and Expenses

The following tables present our costs and expenses, operating income and net income attributable to EMC Corporation (in millions):

	For the Three Months Ended
	June 30, 2014			June 30, 2013			$ Change			% Change
Cost of revenue:
Information Storage	$	1,784		$	1,718		$	66		4	%
Information Intelligence Group	58			56			2			4	%
RSA Information Security	81			80			1			1	%
Pivotal	28			22			6			31	%
VMware Virtual Infrastructure	177			129			48			37	%
Corporate reconciling items	98			100			(2		)	(2	)%
Total cost of revenue	2,226			2,105			121			6	%
Gross margins:
Information Storage	2,192			2,236			(44		)	(2	)%
Information Intelligence Group	100			96			4			4	%
RSA Information Security	162			148			14			9	%
Pivotal	26			20			6			27	%
VMware Virtual Infrastructure	1,272			1,109			163			15	%
Corporate reconciling items	(98		)	(100		)	2			(2	)%
Total gross margin	3,654			3,509			145			4	%
Operating expenses:
Research and development(1)	740			695			45			7	%
Selling, general and administrative(2)	2,010			1,785			225			13	%
Restructuring and acquisition and other related charges	30			7			23			328	%
Total operating expenses	2,780			2,487			293			12	%
Operating income	874			1,022			(148		)	(14	)%
Investment income, interest expense and other expenses, net	(65		)	(56		)	(9		)	16	%
Income before income taxes	809			966			(157		)	(16	)%
Income tax provision	187			216			(29		)	(14	)%
Net income	622			750			(128		)	(17	)%
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(33		)	(49		)	16			(31	)%
Net income attributable to EMC Corporation	$	589		$	701		$	(112	)	(16	)%

37

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

	For the Six Months Ended
	June 30, 2014			June 30, 2013			$ Change			% Change
Cost of revenue:
Information Storage	$	3,488		$	3,428		$	60		2	%
Information Intelligence Group	113			113			—			—	%
RSA Information Security	163			159			4			2	%
Pivotal	59			40			19			49	%
VMware Virtual Infrastructure	344			254			90			36	%
Corporate reconciling items	191			200			(9		)	(5	)%
Total cost of revenue	4,358			4,194			164			4	%
Gross margins:
Information Storage	4,168			4,324			(156		)	(4	)%
Information Intelligence Group	199			195			4			2	%
RSA Information Security	323			301			22			8	%
Pivotal	45			37			8			20	%
VMware Virtual Infrastructure	2,457			2,150			307			14	%
Corporate reconciling items	(191		)	(200		)	9			(5	)%
Total gross margin	7,001			6,807			194			3	%
Operating expenses:
Research and development(3)	1,472			1,370			102			7	%
Selling, general and administrative(4)	3,861			3,499			362			10	%
Restructuring and acquisition and other related charges	149			155			(6		)	(4	)%
Total operating expenses	5,482			5,024			458			9	%
Operating income	1,519			1,783			(264		)	(15	)%
Investment income, interest expense and other expenses, net	(139		)	(126		)	(13		)	11	%
Income before income taxes	1,380			1,657			(277		)	(17	)%
Income tax provision	326			292			34			11	%
Net income	1,054			1,365			(311		)	(23	)%
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(74		)	(84		)	10			(11	)%
Net income attributable to EMC Corporation	$	980		$	1,281		$	(301	)	(23	)%

___________

(1) Amount includes corporate reconciling items of $103 million and $85 million for the three months ended June 30, 2014 and 2013, respectively.

(2) Amount includes corporate reconciling items of $222 million and $142 million for the three months ended June 30, 2014 and 2013, respectively.

(3) Amount includes corporate reconciling items of $196 million and $178 million for the six months ended June 30, 2014 and 2013, respectively.

(4) Amount includes corporate reconciling items of $394 million and $292 million for the six months ended June 30, 2014 and 2013, respectively.

Gross Margins

Overall our gross margin percentages were 62.1% and 62.5% for the three months ended June 30, 2014 and 2013, respectively. The decrease in the gross margin percentage in the second quarter of 2014 compared to 2013 was attributable to the Information Storage segment, which decreased overall gross margins by 100 basis points, and the Pivotal segment, which decreased overall gross margins by 4 basis points. These decreases were partially offset by the VMware Virtual Infrastructure segment, which increased overall gross margins by 56 basis points and the RSA Information Security segment, which increased overall gross margins by 8 basis points during the three months ended June 30, 2014. In addition, the decrease in corporate reconciling items, consisting of stock-based compensation, acquisition and other related intangible asset amortization and the amortization of VMware’s capitalized software from prior periods increased the consolidated gross margin percentage by 3 basis points.

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Overall our gross margin percentages were 61.6% and 61.9% for the six months ended June 30, 2014 and 2013, respectively. The decrease in the gross margin percentage in the second quarter of 2014 compared to 2013 was attributable to the Information Storage segment, which decreased overall gross margins by 87 basis points, and the Pivotal segment, which decreased overall gross margins by 8 basis points. These decreases were partially offset by the VMware Virtual Infrastructure segment, which increased overall gross margins by 55 basis points, the RSA Information Security segment, which increased overall gross margins by 7 basis points, and the Information Intelligence Group segment, which increased overall gross margins by 2 basis points. In addition, the decrease in corporate reconciling items, consisting of stock-based compensation, acquisition and other related intangible asset amortization and the amortization of VMware’s capitalized software from prior periods increased the consolidated gross margin percentage by 8 basis points.

For segment reporting purposes, stock-based compensation, acquisition and other related intangible asset amortization and the amortization of VMware’s capitalized software from prior periods are recognized as corporate expenses and are not allocated among our various operating segments. The decrease of $2 million in the corporate reconciling items within cost of goods sold for the three months ended June 30, 2014 compared to the same period in 2013 was attributable to a $12 milliondecrease in amortization of VMware’s capitalized software from prior periods, partially offset by a $7 millionincrease in stock-based compensation expense and a $3 millionincrease in intangible asset amortization. The decrease of $9 million in the corporate reconciling items within cost of goods sold for the six months ended June 30, 2014 compared to the same period in 2013 was attributable to a $25 milliondecrease in amortization of VMware’s capitalized software from prior periods, partially offset by a $12 millionincrease in stock-based compensation expense and a $4 millionincrease in intangible asset amortization.

The gross margin percentages for the Information Storage segment were 55.1% and 56.5% for the three months ended June 30, 2014 and 2013, respectively, and 54.4% and 55.8% for the six months ended June 30, 2014 and 2013, respectively. The decrease in gross margin percentage for the three and six months ended June 30, 2014 compared to the same periods in 2013 was due to a decrease in product margins and product and service margins, respectively. The decrease in product margins in both the three and six months ended June 30, 2014 was primarily due to lower sales volume without a corresponding decrease in fixed costs and pricing pressures on our high-end storage products in anticipation of the new VMAX refresh. The decrease in service margins was due to higher costs to support increased field service activity in the three and six months ended June 30, 2014, which was consistent with the field service costs in the second half of 2013, but higher than the field service costs experienced in the first half of 2013.

The gross margin percentages for the Pivotal segment were 47.2% and 48.1% for the three months ended June 30, 2014 and 2013, respectively, and 42.9% and 48.1% for the six months ended June 30, 2014 and 2013, respectively. The decrease in gross margin percentage for the three and six months ended June 30, 2014 compared to the same periods in 2013 was primarily due to a higher mix of services revenues as a result of the increased demand for subscription-based licenses and for Pivotal services as Pivotal works with customers to determine how best to leverage newer technologies such as Pivotal CF and Pivotal One.

The gross margin percentages for the VMware Virtual Infrastructure segment were 87.8% and 89.6% for the three months ended June 30, 2014 and 2013, respectively, and 87.7% and 89.4% for the six months ended June 30, 2014 and 2013, respectively. The decrease in gross margin percentage for the three and six months ended June 30, 2014 compared to the same periods in 2013 was primarily attributable to the decrease in services margin due to an increase in employee-related expenses driven by incremental growth in headcount, both organic and through the AirWatch acquisition. In addition, increases in costs incurred to provide technical support as well as increases in equipment and depreciation costs contributed to the decreased margins.

The gross margin percentages for the RSA Information Security segment were 66.7% and 65.1% for the three months ended June 30, 2014 and 2013, respectively, and 66.4% and 65.2% for the six months ended June 30, 2014 and 2013, respectively. The increase in gross margin percentage for the three and six months ended June 30, 2014 compared to the same periods in 2013 was primarily due to an increase in product margins resulting from sales of higher margin products.

The gross margin percentages for the Information Intelligence Group segment were 63.2% and 63.1% for three months ended June 30, 2014 and 2013, respectively, and 63.9% and 63.4% for the six months ended June 30, 2014 and 2013, respectively. The increase in gross margin percentage for the three and six months ended June 30, 2014 compared to the same periods in 2013 was driven by a higher mix of services revenue as a result of lower licenses revenue as demand for subscription-based licenses increases.

Research and Development

As a percentage of revenues, R&D expenses were 13% and 12% for the three months ended June 30, 2014 and 2013, respectively, and were 13% for both the six months ended June 30, 2014 and 2013. R&D expenses increased$45 million and $102 million for the three and six months ended June 30, 2014, respectively, compared to the same periods in 2013 primarily due to an increase in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring and business

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acquisitions, depreciation expense, infrastructure costs, material costs and business development costs. Personnel-related costs increased by $43 million and $87 million, depreciation expense increased by $10 million and $17 million, infrastructure costs increased by $4 million and $8 million and material costs increased by $6 million and $9 million for the three and six months ended June 30, 2014, respectively. Partially offsetting these increased costs was an increase in capitalized software development costs of $13 million and $24 million for the three and six months ended June 30, 2014, respectively.

Corporate reconciling items within R&D, which consist of stock-based compensation and intangible asset amortization, increased$18 million for both the three and six months ended June 30, 2014 when compared to the same periods in 2013. This increase was attributable to stock-based compensation expense for the three and six months ended June 30, 2014.

R&D expenses within EMC’s Information Infrastructure business, as a percentage of EMC’s Information Infrastructure business revenues, were 8% and 9% for the three months ended June 30, 2014 and 2013, respectively, and were 9% for both the six months ended June 30, 2014 and 2013. R&D expenses decreased$19 million and $7 million for the three and six months ended June 30, 2014, respectively, primarily due to changes in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring, infrastructure costs, depreciation expense, material costs, and business development costs. Personnel-related costs decreased by $6 million and increased$1 million, infrastructure costs increased by $2 million and $8 million, depreciation expense increased by $5 million and $10 million, and material costs increased$5 million and $9 million for the three and six months ended June 30, 2014, respectively. Business development costs decreased by $8 million and $4 million for the for the three and six months ended June 30, 2014, respectively. Partially offsetting these costs was an increase in capitalized software development costs of $17 million and $32 million for the three and six months ended June 30, 2014, respectively.

R&D expenses within the Pivotal business, as a percentage of Pivotal's revenues, were 62% and for both the three months ended June 30, 2014 and 2013 and were 63% and 68% for the six months ended June 30, 2014 and 2013, respectively. R&D expenses increased$7 million and $14 million for the three and six months ended June 30, 2014, respectively, primarily due to increases in personnel-related costs as the business continues to transition to its new strategic focus and a decrease in capitalized software development costs 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, remained flat at 17% for the three and six months ended June 30, 2014 and 2013. R&D expenses increased $39 million and $77 million for the three and six months ended June 30, 2014, respectively, when compared to the same periods in 2013 largely due to increases in personnel-related costs of $32 million and $66 million, driven by incremental headcount from strategic hiring, depreciation costs of $4 million and $7 million and business development costs of $3 million for each of the three and six months ended June 30, 2014, respectively.

Selling, General and Administrative

As a percentage of revenues, selling, general and administrative (“SG&A”) expenses were 34% and 32% for the three and six months ended June 30, 2014 and 2013, respectively. SG&A expenses increased by $225 million and $362 million for the three and six months ended June 30, 2014, respectively, when compared to the same periods in 2013 primarily due to increases in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring and business acquisitions, increases in business development expense and increases in depreciation expense. Personnel-related costs increased by $178 million and $289 million, business development expense increased by $11 million and $22 million, and depreciation expense increased$20 million for each of the three and six months ended June 30, 2014, respectively. In addition, travel costs increased during the three months ended June 30, 2014 and infrastructure costs increased$17 million for the six months ended June 30, 2014.

Corporate reconciling items within SG&A, which consist of stock-based compensation, intangible asset amortization, litigation and acquisition and other related costs, increased$80 million and $102 million for the three and six months ended June 30, 2014, respectively, when compared to the same periods in 2013. Acquisition and other related costs relating to the specified future employment conditions of DSSD employees and AirWatch employees at VMware increased $50 million and $69 million for the three and six months ended June 30, 2014, respectively. Stock-based compensation expense increased$20 million and $24 million for the three and six months ended June 30, 2014, respectively. In addition, during the three and six months ended June 30, 2014, there was a VMware litigation accrual of $11 million.

SG&A expenses within EMC’s Information Infrastructure business, as a percentage of EMC’s Information Infrastructure business revenues, were 26% for both the three months ended June 30, 2014 and 2013 and were 27% and 26% for the six months ended June 30, 2014 and 2013, respectively. SG&A expenses increased $22 million and $46 million for the three and six months ended June 30, 2014, respectively, when compared to the same periods in 2013 primarily due to increases in personnel-related

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

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costs, which are expenses driven by incremental headcount from strategic hiring and business acquisitions and increases in infrastructure costs, slightly offset by decreases in travel costs. Personnel-related costs increased by $10 million and $29 million, depreciation expense increased by $4 million and $6 million, and infrastructure costs increased by $3 million and $14 million for the three and six months ended June 30, 2014, respectively. Additionally, business development costs increased$3 million for the three months ended June 30, 2014 and travel costs decreased by $3 million for the six months ended June 30, 2014.

SG&A expenses within the Pivotal business, as a percentage of Pivotal's revenues, were 85% and 86% for the three months ended June 30, 2014 and 2013, respectively, and were 84% and 95% for the six months ended June 30, 2014 and 2013, respectively. SG&A expenses increased$10 million and $14 million for the three and six months ended June 30, 2014, respectively, when compared to the same periods in 2013 primarily due to increases in personnel-related costs related to strategic hiring by $8 million and $11 million for the three and six months ended June 30, 2014, respectively.

SG&A expenses within the VMware Virtual Infrastructure business, as a percentage of VMware’s revenues, were 41% and 39% for both the three and six months ended June 30, 2014 and 2013, respectively. SG&A expenses increased $113 million and $200 million for the three and six months ended June 30, 2014, respectively, when compared to the same periods in 2013 primarily due to increases in personnel-related costs, which are expenses driven by incremental headcount from strategic hiring and business acquisitions, depreciation expenses and business development costs. Personnel-related costs increased $82 million and $146 million, depreciation expense increased by $16 million and $17 million and business development costs increased by $8 million and $20 million in the three and six months ended June 30, 2014, respectively. Additionally, travel related costs increased$11 million for both the three and six months ended June 30, 2014.

Restructuring and Acquisition-Related Charges

For the three and six months ended June 30, 2014, we incurred restructuring and acquisition-related charges of $30 million and $149 million, respectively. For the three and six months ended June 30, 2013, we incurred restructuring and acquisition-related charges of $7 million and $155 million, respectively. For the three and six months ended June 30, 2014, EMC incurred $29 million and $144 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and during both the three and six months ended June 30, 2014, EMC incurred $2 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For each of the three and six months ended June 30, 2014, VMware recognized a recovery of $1 million related to its restructuring program. For the six months ended June 30, 2014, VMware incurred $4 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three and six months ended June 30, 2013, EMC incurred $4 million and $85 million, respectively, of restructuring charges, primarily related to our 2013 restructuring programs. For the three and six months ended June 30, 2013, VMware incurred $2 million and $56 million, respectively, of restructuring charges, primarily related to the 2013 restructuring program. For the six months ended June 30, 2013, EMC incurred $3 million and VMware incurred $1 million of costs for financial, advisory, legal and accounting services in connection with acquisitions. Additionally, during the three and six months ended June 30, 2013, VMware incurred $1 million and $10 million, respectively, of impairment charges related to its business realignment.

In the first and second quarters of 2014, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of approximately 1,326 and 210 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Information Intelligence Group and Pivotal segments. All of these actions are expected to be completed within a year of the start of the program.

During 2013, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of 1,917 positions, of which 1,004 positions were identified in the first and second quarters of 2013. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions were completed within a year of the start of the program.

During 2013, VMware approved and initiated a business realignment plan to streamline its operations. The plan included the elimination of approximately 710 positions across all major functional groups and geographies. All of these actions were completed within a year of the start of the program.

For the three and six months ended June 30, 2014, we recognized $4 million and $8 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 six months ended June 30, 2013, we recognized $5 million and $12 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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Investment Income

Investment income was $35 million and $34 million for the three months ended June 30, 2014 and 2013, respectively, and $71 million and $67 million for the six months ended June 30, 2014 and 2013, respectively. Investment income increased for both the three and six months ended June 30, 2014 when compared to the same periods in 2013 primarily due to an increase in net realized gains. For the three months ended June 30, 2014, interest income was $25 million and net realized gains were $9 million. For the six months ended June 30, 2014, interest income was $52 million and net realized gains were $17 million. For the three and six months ended June 30, 2013, interest income was $26 million and $52 million and net realized gains were $7 million and $12 million, respectively.

Interest Expense

Interest expense was $34 million and $31 million for the three months ended June 30, 2014 and 2013, respectively, and was $68 million and $51 million for the six months ended June 30, 2014 and 2013, respectively. Interest expense during the three and six months ended June 30, 2014 consists primarily of interest on the Notes. Interest expense during the three and six months ended June 30, 2013 consists primarily of interest on the 2013 Notes which includes non-cash interest charges related to amortization of the debt discount attributable to the conversion feature of $16 million and $31 million for the three and six months ended June 30, 2013, respectively, as we accreted the 2013 Notes to their stated values over their terms. The increase in interest expense for the three and six months ended June 30, 2014 when compared to the same periods in 2013 is due to interest related to the Notes which were issued during June 2013 and which have a much higher principal amount than the 2013 Notes. See Note 4 to the consolidated financial statements.

Other Expense, Net

Other expense, net was $66 million and $59 million for the three months ended June 30, 2014 and 2013, respectively, and was $142 million for both the six months ended June 30, 2014 and 2013. Other expense, net primarily consists of our consolidated share of the losses from our converged infrastructure joint venture, VCE Company LLC, net gains and losses on strategic investments and foreign exchange losses. The VCE joint venture is accounted for under the equity method and our consolidated share of VCE's losses is based upon our portion of the overall funding, which was approximately 63% at June 30, 2014, and represents our share of the net losses of the joint venture, net of equity accounting adjustments. The losses recognized from the joint venture exclude our consolidated revenues and gross margins from sales of products and services to VCE, and any additional related selling expenses.  See Note 9 to the consolidated financial statements.

During the three months ended June 30, 2014 and 2013, we incurred losses related to VCE of $85 million and $71 million, respectively, and for the six months ended June 30, 2014 and 2013, we incurred $160 million and $140 million, respectively. During the three months ended June 30, 2014 and 2013, we recognized net gains from strategic investments of $25 million and net losses from strategic investments of $7 million, respectively, and for the six months ended June 30, 2014 and 2013, we recognized net gains from strategic investments of $27 million and net losses from strategic investments of $21 million, respectively. Included in the net gains on strategic investments during the three months ended June 30, 2014 was a gain on previously held interests in strategic investments of $45 million and an impairment of a strategic investment of $33 million. Additionally, during the three months ended June 30, 2013, we recorded net gains on the divestiture of businesses of $19 million.

Provision for Income Taxes

Our effective income tax rates were 23.1% and 23.6% for the three and six months ended June 30, 2014, respectively. Our effective income tax rates were 22.4% and 17.7% for the three and six months ended June 30, 2013, respectively. Our effective income tax rate is based upon estimated income before provision for income taxes 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 six months ended June 30, 2014, 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 and state taxes. 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. For the three and six months ended June 30, 2013, 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, state taxes and the U.S. federal tax credit for increasing research activities. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law. Some of the provisions were retroactive to January 1, 2012 including an extension of the U.S. federal tax credit for increasing research activities through December 31, 2013. Because the extension was enacted

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after December 31, 2012, our income tax provision for the six months ended June 30, 2013 included the estimated federal tax credit for increasing research activities for the full year 2012 as well as the six months ended June 30, 2013, which reduced our effective tax rate for the six month period.

Our effective income tax rate increased in the three and six months ended June 30, 2014 from the three and six months ended June 30, 2013 due primarily to the retroactive renewal of the U.S. federal tax credit for increasing research activities on January 2, 2013 as discussed above. The U.S. federal tax credit for increasing research activities reduced our effective income tax rate by approximately 1.0% and 5.1% for the three and six months ended June 30, 2013, respectively. Our effective income tax rates for the three and six months ended June 30, 2014 does not reflect any U.S. federal tax credit for increasing research activities because the credit expired on December 31, 2013. There were also differences in the mix of income attributable to foreign versus domestic jurisdictions, change in tax contingency reserves and discrete items, the net impact of which is immaterial.

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 2009 and 2010 in the third quarter of 2012. The current federal income tax audit is ongoing and it is not expected to be completed until 2015. We also have income tax audits in process in numerous state, local and international jurisdictions. In our international jurisdictions that comprise a significant portion of our operations, the years that may be examined vary, with the earliest year being 2004. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions 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 twelve months. While we expect the amount of unrecognized tax benefits to change in the next twelve months, we do not expect the change to have a significant impact on our results of operations or financial position.

Our effective income tax rate for the remainder of 2014 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 provision for income taxes. 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 $33 million and $49 million for the three months ended June 30, 2014 and 2013, respectively, and was $74 million and $84 million for the six months ended June 30, 2014 and 2013, respectively. The decrease in the three and six months ended June 30, 2014 compared to the same periods in 2013 was due to decreases in VMware’s net income. VMware’s reported net income was $167 million and $245 million for the three months ended June 30, 2014 and 2013, respectively, and was $366 million and $418 million for the six months ended June 30, 2014 and 2013, respectively. The weighted average non-controlling interest in VMware was approximately 20% for both the three and six months ended June 30, 2014 and 2013. EMC did not purchase any shares of VMware common stock during the three and six months ended June 30, 2014.

Financial Condition

Cash provided by operating activities was $2,592 million and $2,941 million for the six months ended June 30, 2014 and 2013, respectively. Cash received from customers was $12,644 million and $12,007 million for the six months ended June 30, 2014 and 2013, respectively. The increase in cash received from customers was attributable to an increase in sales volume. Cash paid to suppliers and employees was $9,320 million and $8,485 million for the six months ended June 30, 2014 and 2013, respectively. The increase was primarily due to a general growth in the business to support the increased revenue base as well as the timing of cash payments. For the six months ended June 30, 2014 and 2013, we paid $829 million and $642 million, respectively, in income taxes. These 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. The higher payments in the six months ended June 30, 2014 compared to the six months ended June 30, 2013 were primarily driven by lower stock-based compensation deductions in 2013 compared to 2012.

Cash used in investing activities was $1,698 million and $4,534 million for the six months ended June 30, 2014 and 2013, respectively. Cash used for business acquisitions, net of cash acquired, was $1,694 million and $207 million for the six months ended June 30, 2014 and 2013, respectively. This increase in cash used for business acquisitions was due to VMware's acquisition of AirWatch and EMC's acquisitions of DSSD and Symplified during the six months ended June 30, 2014. Acquisition activity

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varies from period to period based upon the number and size of acquisitions in a given period. During the six months ended June 30, 2014, VMware increased its restricted cash by $76 million for amounts to be paid to certain AirWatch employees subject to the achievement of defined employment conditions. Net cash spent on the purchase of strategic and other related investments was $73 million and $46 million during the six months ended June 30, 2014 and 2013, respectively. We provided $63 million and $158 million of funding to our joint venture, VCE Company LLC, during the six months ended June 30, 2014 and 2013, respectively. Also during the six months ended June 30, 2013, VMware received $31 million from dispositions of certain lines of business. Capital additions were $472 million and $437 million for the six months ended June 30, 2014 and 2013, respectively. The increase in capital additions was primarily due to the purchase of a building and other infrastructure investments during the six months ended June 30, 2014. Capitalized software development costs were $245 million and $219 million for the six months ended June 30, 2014 and 2013, respectively. The increase in capitalized software costs was primarily attributable to EMC Information Infrastructure's software development activities. Net sales of investments were $925 million and net purchases of investments were $3,498 million for the six months ended June 30, 2014 and 2013, respectively. This activity varies from period to period based upon our cash collections, cash requirements and maturity dates of our investments as well as cash available after the issuance and payment of debt.

Cash used in financing activities was $3,095 million and cash provided by financing activities $4,447 million for the six months ended June 30, 2014 and 2013, respectively. We spent $1,665 million and $21 million for repayment of our long- and short-term obligations including convertible debt in the six months ended June 30, 2014 and 2013, respectively. We received $5,463 million through the issuance of long-term notes in the six months ended June 30, 2013. We spent $994 million and $991 million to repurchase 39 million and 42 million shares of our common stock for the six months ended June 30, 2014 and 2013, respectively. In the six months ended June 30, 2013, we also spent $160 million to purchase 2 million shares of VMware’s common stock. In the six months ended June 30, 2014 and 2013, VMware spent $407 million and $302 million, respectively, to repurchase 4 million shares of its common stock in each of the quarters. We generated $333 million and $290 million during the six months ended June 30, 2014 and 2013, respectively, from the issuance of common stock. We generated $45 million and $63 million during the six months ended June 30, 2014 and 2013, respectively, of excess tax benefits from stock-based compensation. Pivotal received a $105 million capital contribution from GE during the six months ended June 30, 2013. Additionally, EMC paid dividends of $407 million to shareholders during the six months ended June 30, 2014.

On April 17, 2014, our Board of Directors approved an increase in the quarterly cash dividend paid to EMC shareholders to $0.115 per share of common stock. On July 23, 2014, EMC paid a cash dividend at this new rate of $233 million to shareholders of record as of the close of business on July 1, 2014. Our Board of Directors also declared a cash dividend which will be paid on October 23, 2014 to shareholders of record as of the close of business on October 1, 2014.

We plan to spend up to $6.0 billion in the repurchase of shares during the two years ending December 31, 2014. This includes $3.0 billion spent during the year ended December 31, 2013 and $3.0 billion to be spent during the year ending December 31, 2014.

We expect to continue to generate positive cash flows from operations 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.

In June 2013, we issued $5.5 billion aggregate principal amount of senior notes (collectively, the "Notes") which pay a fixed rate of interest semi-annually in arrears. The first interest payment occurred on December 2, 2013. The proceeds from the Notes have been used to satisfy the cash payment obligation of the converted 2013 Notes as well as for general corporate purposes including stock repurchases, dividend payments, working capital needs and other business opportunities. The Notes of each series are senior, unsecured obligations of EMC and are not convertible or exchangeable. Unless previously purchased and canceled, we will repay the Notes of each series at 100% of the principal amount, together with accrued and unpaid interest thereon, at maturity. However, EMC has the right to redeem any or all of the Notes at specified redemption prices. As of June 30, 2014, we were in compliance with all debt covenants which are customary in nature.

The 2011 Notes matured and were settled in 2012. The 2013 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2013 Notes at the end of 2013. Pursuant to the settlement terms, the majority of the converted 2013 Notes were not settled until January 7, 2014. At that time, we paid the noteholders $1.7 billion in cash for the outstanding principal and 35 million shares for the $858 million in excess of the conversion value over the principal amount, as prescribed by the terms of the 2013 Notes.

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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 allowed 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 covered, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669 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 2011, we exercised approximately half of the Purchased Options in connection with the planned settlements of the 2011 Notes. In the fourth quarter of 2013, we exercised the remaining 108 million of the Purchased Options in conjunction with the planned settlements of the 2013 Notes, and we received 35 million shares of net settlement on January 7, 2014, representing the excess conversion value of the options. 

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 million from the sale of the associated warrants. Upon exercise, the value of the warrants was required to be settled in shares. Approximately half of the associated warrants were exercised in 2012 and the remaining 109 million associated warrants were exercised between February 18, 2014 and March 17, 2014 and were settled with 29 million shares of our common stock.

At June 30, 2014, our total cash, cash equivalents, and short-term and long-term investments were $14,634 million. This balance includes approximately $6,637 million held by VMware, of which $4,695 million is held overseas and $1,942 million is held in the U.S. and $7,997 million held by EMC, of which $4,298 million is held overseas and $3,699 million is held in the U.S. 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 uses certain non-GAAP financial measures, which exclude stock-based compensation, intangible asset amortization, restructuring charges, acquisition and other related charges, the amortization of VMware's capitalized software from prior periods, infrequently occurring gains, losses, benefits and charges, and special tax items to measure its gross margin, operating margin, 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 property, plant and equipment 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.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

Our non-GAAP operating results for the three months ended June 30, 2014 and 2013 were as follows (in millions):

	For the Three Months Ended
	June 30, 2014			June 30, 2013
Gross margin	$	3,752		$	3,609
Gross margin percentage	63.8		%	64.3		%
Operating income	1,327			1,356
Operating margin percentage	22.6		%	24.2		%
Income tax provision	300			308
Net income attributable to EMC	882			907
Diluted earnings per share attributable to EMC	$	0.43		$	0.42

The improvement in the non-GAAP gross margin was attributable to higher sales volume. The decrease in gross margin percentage for the three months ended June 30, 2014 was attributable to a decrease in Information Storage product margins. The product margins for the three months ended June 30, 2014 decreased due to lower sales volume without a corresponding decrease in fixed costs and pricing pressure on our high-end storage products in anticipation of the new VMAX refresh in the second half of 2014.

The decrease in the non-GAAP operating income for the three months ended June 30, 2014 was attributable to higher operating expenses. Non-GAAP operating margin percentage for the three months ended June 30, 2014 decreased primarily due to a decrease in gross margin percentage and increases in operating expenses. The decrease in gross margin percentage was primarily attributable to lower storage product gross margins. The increase in operating expenses is driven by the investments we are making at Pivotal and VMware, including continuing development of our offerings in software-defined data center, Big Data analytics, PaaS, hybrid cloud and mobile.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

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

	For the Three Months Ended June 30, 2014
	Gross margin		Operating income		Income tax provision (benefit)			Net income attributable to EMC			Diluted Earnings per share attributable to EMC
GAAP	$	3,654	$	874	$	187		$	589		$	0.29
Stock-based compensation	37		262		59			180			0.09
Intangible asset amortization	61		100		30			65			0.03
Restructuring charges	—		28		6			22			0.01
Acquisition and other related charges	—		52		18			29			0.01
R&D tax credit	—		—		(13		)	12			0.01
Gain on previously held interests in strategic investments	—		—		—			(45		)	(0.02		)
Impairment of strategic investments	—		—		9			24			0.01
VMware litigation charge	—		11		4			6			—
Non-GAAP	$	3,752	$	1,327	$	300		$	882		$	0.43

	For the Three Months Ended June 30, 2013
	Gross margin		Operating income		Income tax provision (benefit)			Net income attributable to EMC			Diluted Earnings per share attributable to EMC
GAAP	$	3,509	$	1,022	$	216		$	701		$	0.32
Stock-based compensation	30		218		62			140			0.07
Intangible asset amortization	58		97		28			65			0.03
Restructuring charges	—		5		2			3			—
Acquisition and other related charges	—		2		—			2			—
Amortization of VMware's capitalized software from prior periods	12		12		4			7			—
Net gain on disposition of certain lines of business and other	—		—		(5		)	(11		)	—
Non-GAAP	$	3,609	$	1,356	$	308		$	907		$	0.42

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 six months ended June 30, 2014, our free cash flow was $1,875 million, a decrease of 18% compared to the free cash flow generated for the six months ended June 30, 2013. The free cash flow for the six months ended June 30, 2014 exceeded our same period non-GAAP net income attributable to EMC by $266 million. 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, fund joint ventures, repurchase shares, service debt, pay dividends 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.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS - (Continued)

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

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Cash Flow from Operations	$	1,253		$	1,228		$	2,592		$	2,941
Capital Expenditures	(196		)	(272		)	(472		)	(437		)
Capitalized Software Development Costs	(127		)	(113		)	(245		)	(219		)
Free Cash Flow	$	930		$	843		$	1,875		$	2,285

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 $2,592 million and $2,941 million for the six months ended June 30, 2014 and 2013, respectively, cash used in investing activities of $1,698 million and $4,534 million for the six months ended June 30, 2014 and 2013, respectively, and net cash used in financing activities of $3,095 million and provided by the financing activities of $4,447 million for the six months ended June 30, 2014 and 2013, 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 25, 2014. 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. There was no 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, 2013. 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.

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. In addition, our industry is experiencing one of the most disruptive periods of transition in its history as we move from IT solutions built for the client-server second platform into the next phase of IT growth and innovation, or the third platform. There can be no assurance that our existing products will be properly positioned in the third platform 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, Big Data and trust 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;

• the inability to successfully manage the interoperability and transition from older products;

• 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.

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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:

• successfully communicating and executing on our unique federation strategy;

• 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 effectively, given the breadth of our offerings;

• 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 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 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 sectors and across many geographies. 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 revenue including the relative mixture of product revenue which is subscription based. Increased component costs, increased pricing pressures, the relative and varying rates of increases or decreases

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in component costs and product price, changes in product and services revenue mixture, including the mixture of subscription based product revenue, 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. We may have difficulty managing our component and product design 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 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.

Our financial performance is 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;

• 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 and services 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 services and enhancements that meet customer demand, certification requirements and technical requirements;

• VMware's ability to compete effectively;

• 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 and services 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;

• 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 and the amounts of the renewals for enterprise license agreements, or ELA’s, as original ELA terms expire;

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

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• 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 acquired intangible assets, and the potential impairment of these assets.

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 book orders or 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.

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 that are beyond our control. If these conditions remain challenging or deteriorate, our business, results of operations or financial condition could be materially adversely affected. Possible consequences from macroeconomic global challenges include 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.

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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.

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 stock price is volatile and may be affected by the trading price of VMware Class A common stock.

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 our relationship with VMware; and

• factors impacting the 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.

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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. Our employees, contractors and agents may take actions in violation of our policies that are designed to ensure compliance with these laws. Any such violations 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 with a U.S. dollar functional currency. As a result, Bolivar-denominated transactions are subject to exchange gains and losses that may impact our earnings. As of quarter end, three exchange rates are available, via legal mechanisms administered by the Venezuelan government, to convert Bolivars into U.S. dollars. These three mechanisms are CENCOEX (official exchange rate), SICAD I and SICAD II. We have continued to use the official exchange rate to remeasure these balances based upon the expected rate at which we believe is most appropriate for these items to be settled. We are closely monitoring information concerning these rates in the event it becomes appropriate to adopt a rate other than the official rate. Changing the rate used to re-measure our Bolivar-denominated transactions to either the SICAD I or SICAD II rates could have an adverse effect on our financial position, results of operations or cash flows.

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 flash drives, 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 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

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

We held $8.9 billion in short- and long-term investments as of June 30, 2014. 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, could cause the investments to decline in value or could impact the liquidity of the portfolio. If market conditions deteriorate significantly, our results of operations or financial condition could be materially adversely affected.

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 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 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.

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

We have alliances, such as our VCE joint venture, with leading information technology companies, some of whom may be our competitors in other areas, 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.

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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 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. In the past, VMware has been made aware of public postings by hackers of portions of their source code.

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. While one phase of our upgrade was implemented in the third quarter of 2012, we still have further planned phases to our upgrade. 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. Due to economic and political conditions, tax rates in various jurisdictions may be subject to significant change, which might significantly impact our effective income tax rate in the future. 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.

As part of the current Administration’s ongoing negotiations, President Obama and the House of Representatives and Senate Committees have called for a comprehensive tax reform, which might change certain U.S. tax rules for U.S. corporations doing business outside the United States. While the scope of future changes differs among various tax proposals and remains unclear, proposed changes might 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. The enactment of some or all of these proposals could increase the Company's effective tax rate and adversely affect our profitability.

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 which includes “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.

57

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.

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, investments and joint ventures.

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 or failing to close an announced transaction. Further, the risks described above may be exacerbated as a result of managing multiple acquisitions at the same time.

We also seek to invest in businesses that offer complementary products, services or technologies and to, from time to time, create new joint ventures or alliances. These investments and ventures are accompanied by risks similar to those encountered in an acquisition of a business.

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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, 2013. As market conditions permit, we expect to continue to shift the asset allocation to lower the percentage of investments in equities 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 of return on plan assets and an increase in future pension expense. As of December 31, 2013, the ten-year historical rate of return on plan assets was 6.85%, and the inception to date return on plan assets was 9.87%. In 2013, we experienced a 8.69% 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.

Our failure to pay quarterly dividends to our shareholders could materially adversely affect our stock price.

Our ability to pay quarterly dividends will be subject to, among other things, our financial position and results of operations, available cash and cash flow, and capital requirements. Any reduction or discontinuation of quarterly dividends could cause our stock price to decline significantly.

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

ISSUER PURCHASES OF EQUITY SECURITIES IN THE SECOND QUARTER OF 2014

(table in millions, except per share amounts)

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
April 1, 2014 – April 30, 2014	4		$	25.44	4	136
May 1, 2014 – May 31, 2014	16		25.80		16	120
June 1, 2014 – June 30, 2014	3		26.52		3	117
Total	23	(2)	$	25.85	23	117

__________________________

(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 February 2013 to repurchase 250 million shares of our common stock. This repurchase authorization does not have a fixed termination date.

(2) Includes an aggregate of 0.3 million shares withheld from employees for the payment of taxes.

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 62of this report.

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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: August 1, 2014	EMC CORPORATION
	By:	/s/ David I. Goulden
		David I. Goulden
		Chief Executive Officer, EMC Information Infrastructure
		(Principal Financial Officer)

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EXHIBIT INDEX

3.1	Restated Articles of Organization of EMC Corporation. (1)
3.2	Amended and Restated Bylaws of EMC Corporation. (1)
4.1	Form of Stock Certificate. (2)
4.2	Indenture with Wells Fargo Bank, N.A., as trustee, dated as of November 17, 2006. (3)
4.3	Registration Rights Agreement with Goldman, Sachs & Co., Lehman Brothers Inc. and Citigroup Global Markets Inc., dated as of November 17, 2006. (3)
4.4	Underwriting Agreement, dated as of June 3, 2013, by and among the Company, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the several underwriters named therein. (4)
4.5	Indenture, dated as of June 6, 2013, by and between the Company and Wells Fargo Bank, National Association, as Trustee. (4)
10.1	DSSD, Inc. Amended and Restated 2013 Equity Incentive Plan (amended and restated as of May 2, 2014). (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)

_________________

* 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 Quarterly Report on Form 10-Q filed May 3, 2013 (No. 1-9853).

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

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

(4) Incorporated by reference to EMC Corporation’s Current Report on Form 8-K filed June 6, 2013 (No. 1-9853).

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EX-10.1

Exhibit 10.1

DSSD, INC.

AMENDED AND RESTATED

2013 EQUITY INCENTIVE PLAN

(amended and restated as of May 2, 2014)

1.Purposes of the Plan. The purposes of this Plan are:

• to attract and retain the best available personnel for positions of substantial responsibility,

• to provide additional incentive to Employees, Directors and Consultants, and

• to promote the success of the Company’s business.

The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock and Restricted Stock Units.

2.Definitions. As used herein, the following definitions will apply:

(a)“Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the Plan.

(b)“Applicable Laws” means the requirements relating to the administration of equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

(c)“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, or Restricted Stock Units.

(d)“Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

(e)“Board” means the Board of Directors of the Company.

(f)Change in Control” means the occurrence of any of the following events:

(i)Change in Ownership of the Company. A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company, except that any change in the ownership

of the stock of the Company as a result of a private financing of the Company that is approved by the Board will not be considered a Change in Control; or

(ii)Change in Effective Control of the Company. If the Company has a class of securities registered pursuant to Section 12 of the Exchange Act, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

(iii)Change in Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

For purposes of this Section 2(f), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

(g)“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any successor or amended section of the Code.

(h)“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or by the compensation committee of the Board, in accordance with Section 4 hereof.

(i)“Common Stock” means the common stock of the Company.

(j)“Company” means DSSD, Inc., a Nevada corporation, or any successor thereto.

(k)Consultant” means any individual, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity. For the avoidance of doubt, the term “Consultant” shall not include any entity or any non-natural person.

(l)“Director” means a member of the Board.

(m)“Disability” means total and permanent disability as defined in Code Section 22(e)(3), provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.

(n)“Employee” means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.

(o)“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(p)“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for Awards of the same type (which may have higher or lower exercise prices and different terms), Awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is reduced or increased. The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.

(q)“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

(i)If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(ii)If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

(iii)In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

(r) “Incentive Stock Option” means an Option that by its terms qualifies and is otherwise intended to qualify as an incentive stock option within the meaning of Code Section 422 and the regulations promulgated thereunder.

(s)“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

(t)“Option” means a stock option granted pursuant to the Plan.

(u)“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).

(v)“Participant” means the holder of an outstanding Award.

(w)“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

(x)“Plan” means this Amended and Restated 2013 Equity Incentive Plan.

(y)“Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 8 of the Plan, or issued pursuant to the early exercise of an Option.

(z)“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 9. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

(aa)“Service Provider” means an Employee, Director or Consultant.

(bb)    “Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

(cc)    “Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 7 is designated as a Stock Appreciation Right.

(dd)    “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f).

3.Stock Subject to the Plan.

(a)Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be subject to Awards and sold under the Plan is 6,199,208 Shares. The Shares may be authorized but unissued, or reacquired Common Stock.

(b)Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock or Restricted Stock Units, is forfeited to or repurchased by the Company due to the failure to vest, the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). With respect to Stock Appreciation Rights, only Shares actually issued pursuant to a Stock Appreciation Right will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Stock or Restricted Stock Units are repurchased by the Company or are forfeited to the Company due to the failure to vest, such Shares will become available for future grant under the Plan. Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award

will become available for future grant or sale under the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan. Notwithstanding the foregoing and, subject to adjustment as provided in Section 13, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Code Section 422 and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance under the Plan pursuant to Section 3(b).

(c)Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.

4.Administration of the Plan.

(a)Procedure.

(i)Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan.

(ii)Other Administration. Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which Committee will be constituted to satisfy Applicable Laws.

(b)Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

(i)to determine the Fair Market Value;

(ii)to select the Service Providers to whom Awards may be granted hereunder;

(iii)to determine the number of Shares to be covered by each Award granted hereunder;

(iv)to approve forms of Award Agreements for use under the Plan;

(v)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;

(vi)to institute and determine the terms and conditions of an Exchange Program;

(vii)to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

(viii)to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws;

(ix)to modify or amend each Award (subject to Section 18(c) of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of Awards and to extend the maximum term of an Option (subject to Section 6(d));

(x)to allow Participants to satisfy withholding tax obligations in a manner prescribed in Section 14;

(xi)to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

(xii)to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that otherwise would be due to such Participant under an Award; and

(xiii)to make all other determinations deemed necessary or advisable for administering the Plan.

(c)Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards.

5.Eligibility. Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, and Restricted Stock Units may be granted to Service Providers. Incentive Stock Options may be granted only to Employees.

6.Stock Options.

(a)Grant of Options. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Options in such amounts as the Administrator, in its sole discretion, will determine.

(b)Option Agreement. Each Award of an Option will be evidenced by an Award Agreement that will specify the exercise price, the term of the Option, the number of Shares subject to the Option, the exercise restrictions, if any, applicable to the Option, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

(c)Limitations. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. Notwithstanding such designation, however, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options. For purposes of this Section 6(c), Incentive Stock Options will be taken into account in the order in which they were granted, the Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted, and calculation will be performed in accordance with Code Section 422 and Treasury Regulations promulgated thereunder.

(d)Term of Option. The term of each Option will be stated in the Award Agreement; provided, however, that the term will be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all

classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement.

(e)Option Exercise Price and Consideration.

(i)“Exercise Price. The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option will be determined by the Administrator, but in the case of an Incentive Stock Option, such exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. In addition, in the case of an Incentive Stock Option granted to an Employee who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant. Notwithstanding the foregoing provisions of this Section 6(e)(i), Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Code Section 424(a).

(ii)Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.

(iii)Form of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, to the extent permitted by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided further that accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (5) consideration received by the Company under cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (6) by net exercise, (7) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws, or (8) any combination of the foregoing methods of payment. In making its determination as to the type of consideration to accept, the Administrator will consider if acceptance of such consideration may be reasonably expected to benefit the Company.

(f)Exercise of Option.

(i)Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share.

An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable tax withholding). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote

or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13of the Plan.

Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

(ii)Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within thirty (30) days of termination, or such longer period of time as is specified in the Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent that the Option is vested on the date of termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

(iii)Disability of Participant. If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within six (6) months of termination, or such longer period of time as is specified in the Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent the Option is vested on the date of termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

(iv)Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised within six (6) months following the Participant’s death, or within such longer period of time as is specified in the Award Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent that the Option is vested on the date of death, by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to the Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution. Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

7.Stock Appreciation Rights.

(a)Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

(b)Number of Shares. The Administrator will have complete discretion to determine the number of Shares subject to any Award of Stock Appreciation Rights.

(c)Exercise Price and Other Terms. The per Share exercise price for the Shares that will determine the amount of the payment to be received upon exercise of a Stock Appreciation Right as set forth in Section 7(f) will be determined by the Administrator and will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. Otherwise, the Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan.

(d)Stock Appreciation Right Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

(e)Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 6(d) relating to the maximum term and Section 6(f) relating to exercise also will apply to Stock Appreciation Rights.

(f)Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

(i)The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times

(ii)The number of Shares with respect to which the Stock Appreciation Right is exercised.

At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.

8.Restricted Stock.

(a)Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

(b)Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator

determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.

(c)Transferability. Except as provided in this Section 8 or as the Administrator determines, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

(d)Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

(e)Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

(f)Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

(g)Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

(h)Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

9.Restricted Stock Units.

(a)Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator. After the Administrator determines that it will grant Restricted Stock Units, it will advise the Participant in an Award Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

(b)Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment or service), or any other basis determined by the Administrator in its discretion.

(c)Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout as determined by the Administrator. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.

(d)Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s) determined by the Administrator and set forth in the Award Agreement. The Administrator, in its sole discretion, may settle earned Restricted Stock Units in cash, Shares, or a combination of both.

(e)Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.

10.Compliance With Code Section 409A. Awards will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the requirements of Code Section 409A, except as otherwise determined in the sole discretion of the Administrator. The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A.

11.Leaves of Absence/Transfer Between Locations. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1^st) day of such leave, any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

12.Limited Transferability of Awards.

(a)Unless determined otherwise by the Administrator, Awards may not be sold, pledged, assigned, hypothecated, or otherwise transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, or (iii) as permitted by Rule 701 of the Securities Act of 1933, as amended (the “Securities Act”).

(b)Further, until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, or after the Administrator determines that it is, will, or may no longer be relying upon the exemption from registration under the Exchange Act as set forth in Rule 12h-1(f) promulgated under the Exchange Act, an Option, or prior to exercise, the Shares subject to the Option, may not be pledged, hypothecated or otherwise transferred or disposed of, in any manner, including by entering into any short position, any “put equivalent position” or any “call equivalent position” (as defined in Rule 16a-1(h) and Rule 16a-1(b) of the Exchange Act, respectively), other than to (i) persons who are “family members” (as defined in Rule 701(c)(3) of the Securities Act) through gifts or domestic relations orders, or (ii) to an executor or guardian of the Participant upon the death or disability of the Participant. Notwithstanding the foregoing sentence, the Administrator, in its sole discretion, may determine to permit transfers to the Company or in connection with a Change in Control or other acquisition transactions involving the Company to the extent permitted by Rule 12h-1(f).

13.Adjustments; Dissolution or Liquidation; Merger or Change in Control.

(a)Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of shares of stock that may be delivered under the Plan and/or the number, class, and price of shares of stock covered by each outstanding Award; provided, however, that the Administrator will make such adjustments to an Award required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon the exemption afforded thereby with respect to the Award.

(b)Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

(c)Merger or Change in Control. In the event of a merger of the Company with or into another corporation or other entity or a Change in Control, each outstanding Award will be treated as the Administrator determines (subject to the provisions of the following paragraph) without a Participant’s consent, including, without limitation, that (i) Awards will be assumed, or substantially equivalent Awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Awards will terminate upon or immediately prior to the consummation of such merger or Change in Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in whole or in part prior to or upon consummation of such merger or Change in Control, and, to the extent the Administrator determines, terminate upon or immediately prior to the effectiveness of such merger or Change in Control; (iv) (A) the termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion; or (v) any combination of the foregoing. In taking any of the actions permitted under this subsection 13(c), the Administrator will not be obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same type, similarly.

In the event that the successor corporation does not assume or substitute for the Award (or portion thereof), the Participant will fully vest in and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted in the event of a merger or Change in Control, the Administrator will notify the Participant in writing or electronically that the Option

or Stock Appreciation Right will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period.

For the purposes of this subsection 13(c), an Award will be considered assumed if, following the merger or Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control.

Notwithstanding anything in this Section 13(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

Notwithstanding anything in this Section 13(c) to the contrary, if a payment under an Award Agreement is subject to Code Section 409A and if the change in control definition contained in the Award Agreement does not comply with the definition of “change of control” for purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section will be delayed until the earliest time that such payment would be permissible under Code Section 409A without triggering any penalties applicable under Code Section 409A.

14.Tax Withholding.

(a)Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof).

(b)Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a Fair Market Value equal to the minimum statutory amount required to be withheld, (iii) delivering to the Company already-owned Shares having a Fair Market Value equal to the statutory amount required to be withheld, provided the delivery of such Shares will not result in any adverse accounting consequences, as the Administrator determines in its sole discretion, or (iv) selling a sufficient number of Shares otherwise deliverable to the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local marginal income tax rates applicable to the Participant with

respect to the Award on the date that the amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

15.No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant’s right or the Company’s right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

16.Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.

17.Term of Plan. Subject to Section 21 of the Plan, the Plan will become effective upon its adoption by the Board. Unless sooner terminated under Section 18, it will continue in effect for a term of ten (10) years from the later of (a) the effective date of the Plan, or (b) the earlier of the most recent Board or stockholder approval of an increase in the number of Shares reserved for issuance under the Plan.

18.Amendment and Termination of the Plan.

(a)Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

(b)Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

(c)Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

19.Conditions Upon Issuance of Shares.

(a)Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

(b)Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

20.Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained.

21.Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

22.Information to Participants. Beginning on the earlier of (i) the date that the aggregate number of Participants under this Plan is five hundred (500) or more and the Company is relying on the exemption provided by Rule 12h-1(f)(1) under the Exchange Act and (ii) the date that the Company is required to deliver information to Participants pursuant to Rule 701 under the Securities Act, and until such time as the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, is no longer relying on the exemption provided by Rule 12h-1(f)(1) under the Exchange Act or is no longer required to deliver information to Participants pursuant to Rule 701 under the Securities Act, the Company shall provide to each Participant the information described in paragraphs (e)(3), (4), and (5) of Rule 701 under the Securities Act not less frequently than every six (6) months with the financial statements being not more than 180 days old and with such information provided either by physical or electronic delivery to the Participants or by written notice to the Participants of the availability of the information on an Internet site that may be password-protected and of any password needed to access the information. The Company may request that Participants agree to keep the information to be provided pursuant to this section confidential. If a Participant does not agree to keep the information to be provided pursuant to this section confidential, then the Company will not be required to provide the information unless otherwise required pursuant to Rule 12h-1(f)(1) under the Exchange Act or Rule 701 of the Securities Act.

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: August 1, 2014 /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: August 1, 2014 /s/ David I. Goulden            

David I. Goulden

Chief Executive Officer, EMC Information

Infrastructure 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 June 30, 2014, 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

August 1, 2014

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 June 30, 2014, 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

Chief Executive Officer, EMC Information

Infrastructure and Chief Financial Officer

August 1, 2014

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 $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 1,694	$ 207
Increase in Restricted Cash	76	0
Gain on previously held interests in strategic investments	(45)	0
Goodwill	15,802		14,424
All 2014 Acquisitions
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	8
Business Combination, Contingent Compensation	11
Business Combination, Consideration Transferred	721
Payments to Acquire Businesses, Gross	657
Gain on previously held interests in strategic investments	(45)
Goodwill	509
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	(88)
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years
VMware | AirWatch
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	24
Business Combination, Contingent Compensation	300
Business Combination, Consideration Transferred	1,092
Payments to Acquire Businesses, Net of Cash Acquired	1,068
Business Combination, Retention Bonus	60
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	250
Other Intangible Assets
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years
Other Intangible Assets | VMware | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	14
Trademarks and Trade Names
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
Trademarks and Trade Names | VMware | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	40
Customer Relationships And Customer Lists
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
Customer Relationships And Customer Lists | VMware | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	78
Developed Technology Rights
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Developed Technology Rights | VMware | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 118

XML

Allowance for Credit Losses (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of the period	$ 9	$ 17
Recoveries	(5)	(9)
Provisions	6	3
Balance, end of the period	$ 10	$ 11

XML

Fair Value of Financial Assets and Liabilities - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended		6 Months Ended												6 Months Ended		6 Months Ended				12 Months Ended
	Jun. 30, 2014	Jun. 30, 2014 Security	Dec. 31, 2013	Jun. 30, 2014 Minimum	Jun. 30, 2014 Maximum	Jun. 30, 2014 US Government Agencies Debt Securities	Dec. 31, 2013 US Government Agencies Debt Securities	Jun. 30, 2014 US Corporate Debt Securities	Dec. 31, 2013 US Corporate Debt Securities	Jun. 30, 2014 High Yield Corporate Debt Securities	Dec. 31, 2013 High Yield Corporate Debt Securities	Jun. 30, 2014 Municipal Obligations	Dec. 31, 2013 Municipal Obligations	Jun. 30, 2014 Debt Securities	Dec. 31, 2013 Debt Securities	Jun. 30, 2014 Foreign Debt Securities	Dec. 31, 2013 Foreign Debt Securities	Jun. 30, 2014 Foreign Sovereign Debt Securities	Jun. 30, 2014 Auction Rate Securities	Dec. 31, 2013 Auction Rate Securities	Jun. 30, 2014 Variable Rate Demand Note	Dec. 31, 2012 LenovoEMC	Jun. 30, 2014 LenovoEMC
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized Gain (Loss) on Investments	$ 88,000,000
Joint Venture, Ownership Interest Percentage																							49.00%
Short-term investments	1,962,000,000	1,962,000,000	2,773,000,000																		34,000,000
Number of Auction Rate Securities With Underlying Loans Which Have No Guarantees		1
Available-for-sale Securities						2,204,000,000	3,727,000,000	2,298,000,000	2,266,000,000	577,000,000	531,000,000	968,000,000	863,000,000	8,652,000,000	9,602,000,000	2,521,000,000	2,155,000,000		59,000,000	60,000,000
Average credit rating																A+		AA+	AA
Investment Holding Period		5 years
Percentage of Available For Sale Securities Debt Securities																		5.00%
Auction rate securities that have partial guarantees by the U.S. government, market value	$ 0	$ 0
Coupon rate used to estimate fair value of invesments - Start Range				0.00%
Coupon rate used to estimate fair value of invesments - End Range					3.00%
Discount rate used to estimate fair value of investments		1.00%																				6.00%
The rate used for the discount margin to determine the estimated fair value of investment in auction rate securities	1.00%	1.00%	1.00%
Percentage of Loans Guaranteed	95.00%	95.00%

XML

Revenues By Geographic Area (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Total consolidated revenues	$ 5,880	$ 5,614	$ 11,359	$ 11,001
United States
Segment Reporting Information [Line Items]
Total consolidated revenues	3,056	2,963	5,890	5,795
Europe, Middle East and Africa
Segment Reporting Information [Line Items]
Total consolidated revenues	1,669	1,486	3,261	2,963
Asia Pacific And Japan
Segment Reporting Information [Line Items]
Total consolidated revenues	802	835	1,525	1,573
Latin America, Mexico And Canada
Segment Reporting Information [Line Items]
Total consolidated revenues	$ 353	$ 330	$ 683	$ 670

XML

Accounts and Notes Receivable and Allowance for Credit Losses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified			1 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Aug. 01, 2014 Subsequent Event
Financing Receivable, Recorded Investment, Past Due [Line Items]
Gross lease receivables	$ 220	$ 252
Sales of leases to third parties without recourse			$ 39

XML

Composition of Investments (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
US Government Agencies Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	$ 2,201	$ 3,726
Available For Sale Securities Unrealized Gains	4	4
Available For Sale Securities Unrealized Losses	(1)	(3)
Available For Sale Securities Fair Value	2,204	3,727
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	8,617	9,576
Available For Sale Securities Unrealized Gains	42	40
Available For Sale Securities Unrealized Losses	(7)	(14)
Available For Sale Securities Fair Value	8,652	9,602
Publicly Traded Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	166	72
Available For Sale Securities Unrealized Gains	133	24
Available For Sale Securities Unrealized Losses	(4)	(1)
Available For Sale Securities Fair Value	295	95
Debt and Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	8,783	9,648
Available For Sale Securities Unrealized Gains	175	64
Available For Sale Securities Unrealized Losses	(11)	(15)
Available For Sale Securities Fair Value	8,947	9,697
US Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	2,294	2,260
Available For Sale Securities Unrealized Gains	5	8
Available For Sale Securities Unrealized Losses	(1)	(2)
Available For Sale Securities Fair Value	2,298	2,266
High Yield Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	554	515
Available For Sale Securities Unrealized Gains	23	19
Available For Sale Securities Unrealized Losses	0	(3)
Available For Sale Securities Fair Value	577	531
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	25
Available For Sale Securities Unrealized Gains	0
Available For Sale Securities Unrealized Losses	0
Available For Sale Securities Fair Value	25
Municipal Obligations
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	965	860
Available For Sale Securities Unrealized Gains	3	3
Available For Sale Securities Unrealized Losses	0	0
Available For Sale Securities Fair Value	968	863
Auction Rate Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	63	63
Available For Sale Securities Unrealized Gains	0	0
Available For Sale Securities Unrealized Losses	(4)	(3)
Available For Sale Securities Fair Value	59	60
Foreign Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Amortized Cost	2,515	2,152
Available For Sale Securities Unrealized Gains	7	6
Available For Sale Securities Unrealized Losses	(1)	(3)
Available For Sale Securities Fair Value	$ 2,521	$ 2,155

XML

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Dividends Declared

Our Board of Directors declared the following dividends during the periods presented:

Declaration Date	Dividend Per Share		Record Date	Total Amount (in millions)		Payment Date
Fiscal Year 2014:
February 6, 2014	$	0.10	April 1, 2014	$	209	April 23, 2014
April 17, 2014	$	0.115	July 1, 2014	$	237	July 23, 2014
July 30, 2014	$	0.115	October 1, 2014	N/A		October 23, 2014
Fiscal Year 2013:
May 30, 2013	$	0.10	July 1, 2013	$	212	July 23, 2013

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 millions):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Numerator:
Net income attributable to EMC Corporation	$	589		$	701		$	980		$	1,281
Incremental dilution from VMware	(1		)	(2		)	(3		)	(3		)
Net income – dilution attributable to EMC Corporation	$	588		$	699		$	977		$	1,278
Denominator:
Weighted average shares, basic	2,037			2,092			2,033			2,097
Weighted common stock equivalents	27			29			27			30
Assumed conversion of the 2013 Notes and associated warrants	—			53			10			54
Weighted average shares, diluted	2,064			2,174			2,070			2,181

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following (table in millions):

	Foreign Currency Translation Adjustments			Unrealized Net Gains on Investments			Unrealized Net Losses on Derivatives			Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans			Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc.			Total
Balance as of December, 31 2013(a)	$	(53	)	$	31		$	(106	)	$	(110	)	$	(1	)	$	(239	)
Other comprehensive income (loss) before reclassifications	4			83			1			—			(1		)	87
Net losses (gains) reclassified from accumulated other comprehensive income	—			(11		)	(3		)	1			—			(13		)
Net current period other comprehensive income (loss)	4			72			(2		)	1			(1		)	74
Balance as of June 30, 2014(b)	$	(49	)	$	103		$	(108	)	$	(109	)	$	(2	)	$	(165	)

__________________

(a) Net of taxes (benefits) of $18 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

(b) Net of taxes (benefits) of $61 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

Reclassification Out Of Accumulated Other Comprehensive Income

The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 are as follows (tables in millions):

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Three Months Ended June 30, 2014:
Net gain on investments:	$	9		Investment income
	(3		)	Provision for income tax
Net of tax	$	6
Net gain on derivatives:
Foreign exchange contracts	$	2		Product sales revenue
Foreign exchange contracts	(1		)	Cost of product sales
Total net gain on derivatives before tax	1
	—			Provision for income tax
Net of tax	$	1

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Six Months Ended June 30, 2014:
Net gain on investments:	$	17		Investment income
	(6		)	Provision for income tax
Net of tax	$	11
Net gain on derivatives:
Foreign exchange contracts	$	3		Product sales revenue
Foreign exchange contracts	—			Cost of product sales
Total net gain on derivatives before tax	3
	—			Provision for income tax
Net of tax	$	3

XML

Joint Ventures (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		78 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
Capital contribution			$ 63	$ 158
VCE Company LLC
Schedule of Equity Method Investments [Line Items]
Accumulated stock-based compensation contributed to joint venture					17
Consolidated ownership perentage of outstanding equity	58.00%		58.00%		58.00%
Capital contribution					1,255
Consolidated share of losses	63.00%	63.00%	63.00%	63.00%
Loss From VCE	85	71	160	140	956
Revenue recognized from sales to VCE	172	102	342	176
Receivable from joint venture	$ 60		$ 60		$ 60	$ 52

XML

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

6 Months Ended

Jun. 30, 2014

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 millions):

	For the Six Months Ended
	June 30, 2014			June 30, 2013
Net income attributable to EMC Corporation	$	980		$	1,281
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances	51			52
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity	(427		)	(321		)
Net transfers (to) from non-controlling interest	(376		)	(269		)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.	$	604		$	1,012

XML

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 Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	$ 1,440
Less than 12 Months Unrealized Losses	(6)
12 Months or Greater Fair Value	59
12 Months or Greater Unrealized Losses	(5)
Total Fair Value	1,499
Total, Gross Unrealized Losses	(11)
US Government Agencies Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	400
Less than 12 Months Unrealized Losses	(1)
12 Months or Greater Fair Value	0
12 Months or Greater Unrealized Losses	0
Total Fair Value	400
Total, Gross Unrealized Losses	(1)
US Corporate Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	493
Less than 12 Months Unrealized Losses	(1)
12 Months or Greater Fair Value	0
12 Months or Greater Unrealized Losses	0
Total Fair Value	493
Total, Gross Unrealized Losses	(1)
Auction Rate Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	0
Less than 12 Months Unrealized Losses	0
12 Months or Greater Fair Value	59
12 Months or Greater Unrealized Losses	(4)
Total Fair Value	59
Total, Gross Unrealized Losses	(4)
Foreign Debt Securities
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	521
Less than 12 Months Unrealized Losses	(1)
12 Months or Greater Fair Value	0
12 Months or Greater Unrealized Losses	0
Total Fair Value	521
Total, Gross Unrealized Losses	(1)
Public Equity Securities [Member]
Gain (Loss) on Investments [Line Items]
Less Than 12 Months Fair Value	26
Less than 12 Months Unrealized Losses	(3)
12 Months or Greater Fair Value	0
12 Months or Greater Unrealized Losses	(1)
Total Fair Value	26
Total, Gross Unrealized Losses	$ (4)

XML

Business Combinations, Intangibles and Goodwill - Allocation of Purchase Price (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Other Intangible Assets
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years
Trademarks and Trade Names
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
Customer Relationships And Customer Lists
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
Developed Technology Rights
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
VMware | AirWatch
Business Acquisition [Line Items]
Other current assets	$ 60
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Deferred Revenue	(45)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	1,206
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	(114)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Current Liabilities, Net of Current Assets	(69)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	1,092
Other Assets	17
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	250
Goodwill	879
VMware | Other Intangible Assets | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	14
VMware | Trademarks and Trade Names | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	40
VMware | Customer Relationships And Customer Lists | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	78
VMware | Developed Technology Rights | AirWatch
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 118

XML

Non-controlling Interest in VMware, Inc. - Additional Information (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Noncontrolling Interest [Line Items]
Non-controlling interest	$ 1,535	$ 1,485
VMware
Noncontrolling Interest [Line Items]
Percentage of ownership non-controlling interest	80.00%
Voting power of VMware's outstanding common stock	97.00%
Non-controlling interest	1,430	1,380
Pivotal
Noncontrolling Interest [Line Items]
Percentage of ownership non-controlling interest	84.00%
Non-controlling interest	$ 105	$ 105

XML

Components of Inventories (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Work-in-process	$ 721	$ 696
Finished goods	676	638
Inventory, Net, Total	$ 1,397	$ 1,334

XML

Activity For Restructuring Program (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Restructuring Reserve [Roll Forward]
Charges/ (Adjustments to the Provision)	$ 29	$ 4	$ 144	$ 85
EMC Information Infrastructure | Restructuring 2014 Programs
Restructuring Reserve [Roll Forward]
Beginning Balance	103		0
Charges/ (Adjustments to the Provision)	36		155
Restructuring Utilization	(38)		(54)
Ending Balance	101		101
EMC Information Infrastructure | Restructuring 2014 Programs | Workforce reductions
Restructuring Reserve [Roll Forward]
Beginning Balance	102		0
Charges/ (Adjustments to the Provision)	32		149
Restructuring Utilization	(36)		(51)
Ending Balance	98		98
EMC Information Infrastructure | Restructuring 2014 Programs | Consolidation of excess facilities and other contractual obligations
Restructuring Reserve [Roll Forward]
Beginning Balance	1		0
Charges/ (Adjustments to the Provision)	4		6
Restructuring Utilization	(2)		(3)
Ending Balance	3		3
EMC Information Infrastructure | Restructuring Other Programs
Restructuring Reserve [Roll Forward]
Beginning Balance	57	76	90	91
Charges/ (Adjustments to the Provision)	(7)	(1)	(11)	1
Restructuring Utilization	(15)	(19)	(44)	(36)
Ending Balance	35	56	35	56
EMC Information Infrastructure | Restructuring Other Programs | Workforce reductions
Restructuring Reserve [Roll Forward]
Beginning Balance	37	46	66	63
Charges/ (Adjustments to the Provision)	(7)	(3)	(13)	(8)
Restructuring Utilization	(13)	(14)	(36)	(26)
Ending Balance	17	29	17	29
EMC Information Infrastructure | Restructuring Other Programs | Consolidation of excess facilities and other contractual obligations
Restructuring Reserve [Roll Forward]
Beginning Balance	20	30	24	28
Charges/ (Adjustments to the Provision)	0	2	2	9
Restructuring Utilization	(2)	(5)	(8)	(10)
Ending Balance	18	27	18	27
EMC Information Infrastructure | Restructuring 2013 Programs
Restructuring Reserve [Roll Forward]
Beginning Balance		66		0
Charges/ (Adjustments to the Provision)		5		84
Restructuring Utilization		(24)		(37)
Ending Balance		47		47
EMC Information Infrastructure | Restructuring 2013 Programs | Workforce reductions
Restructuring Reserve [Roll Forward]
Beginning Balance		66		0
Charges/ (Adjustments to the Provision)		2		81
Restructuring Utilization		(23)		(36)
Ending Balance		45		45
EMC Information Infrastructure | Restructuring 2013 Programs | Consolidation of excess facilities and other contractual obligations
Restructuring Reserve [Roll Forward]
Beginning Balance		0		0
Charges/ (Adjustments to the Provision)		3		3
Restructuring Utilization		(1)		(1)
Ending Balance		2		2
VMware
Restructuring Reserve [Roll Forward]
Charges/ (Adjustments to the Provision)		2		56
VMware | Restructuring 2013 Programs
Restructuring Reserve [Roll Forward]
Beginning Balance		26		0
Charges/ (Adjustments to the Provision)		2		56
Restructuring Utilization		(26)		(54)
Ending Balance		2		2
VMware | Restructuring 2013 Programs | Workforce reductions
Restructuring Reserve [Roll Forward]
Beginning Balance		26		0
Charges/ (Adjustments to the Provision)		2		56
Restructuring Utilization		(26)		(54)
Ending Balance		2		2
VMware | Restructuring 2013 Programs | Consolidation of excess facilities and other contractual obligations
Restructuring Reserve [Roll Forward]
Beginning Balance		0		0
Charges/ (Adjustments to the Provision)		0		0
Restructuring Utilization		0		0
Ending Balance		$ 0		$ 0

XML

Reconciliation from Basic To Diluted Earnings Per Share for both Numerators and Denominators (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:
Net income attributable to EMC Corporation	$ 589	$ 701	$ 980	$ 1,281
Incremental dilution from VMware	(1)	(2)	(3)	(3)
Net income - dilution attributable to EMC Corporation	$ 588	$ 699	$ 977	$ 1,278
Denominator:
Weighted average shares, basic	2,037	2,092	2,033	2,097
Weighted common stock equivalents	27	29	27	30
Assumed conversion of the 2013 Notes and associated warrants	0	53	10	54
Weighted average shares, diluted	2,064	2,174	2,070	2,181

XML

Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of Loans Guaranteed	95.00%
Total cash and investments	$ 14,634	$ 17,588
Investment in joint venture, fair value	36	35
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	59	60
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	7,908	8,237
Investment in joint venture, fair value	0	0
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	6,667	9,291
Investment in joint venture, fair value	0	0
Asset-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	25
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	25
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	3,994	6,166
Cash Equivalents | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Cash Equivalents | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	664	492
Cash Equivalents | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	3,330	5,674
Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,693	1,725
Cash | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Cash | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Cash | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,693	1,725
Convertible Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt		(5,419)
Convertible Debt | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt		0
Convertible Debt | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt		(5,419)
Convertible Debt | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible debt
Long-term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	(5,513)
Long-term Debt | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	0
Long-term Debt | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	(5,513)
Long-term Debt | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	0
Private Equity Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	296	379
Private Equity Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	296	379
Private Equity Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Private Equity Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Publicly Traded Equity Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	295	95
Publicly Traded Equity Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Publicly Traded Equity Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Publicly Traded Equity Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	295	95
Foreign Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,521	2,155
Foreign Debt Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Foreign Debt Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,521	2,155
Foreign Debt Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Auction Rate Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	59	60
Auction Rate Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	59	60
Auction Rate Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Auction Rate Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Municipal Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	968	863
Municipal Obligations | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
Municipal Obligations | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	968	863
Municipal Obligations | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
High Yield Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	577	531
High Yield Corporate Debt Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
High Yield Corporate Debt Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	577	531
High Yield Corporate Debt Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
US Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,298	2,266
US Corporate Debt Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
US Corporate Debt Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,298	2,266
US Corporate Debt Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
US Government Agencies Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	2,204	3,727
US Government Agencies Debt Securities | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments
US Government Agencies Debt Securities | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	855	1,930
US Government Agencies Debt Securities | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total cash and investments	1,349	1,797
Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange derivative assets	20	31
Foreign exchange derivative liabilities	(20)	(20)
Foreign Exchange Contract | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange derivative assets		0
Foreign exchange derivative liabilities		0
Foreign Exchange Contract | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange derivative assets	20	31
Foreign exchange derivative liabilities	(20)	(20)
Foreign Exchange Contract | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange derivative assets
Foreign exchange derivative liabilities
Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	2	4
Commodity Contract | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset
Commodity Contract | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	2	4
Commodity Contract | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2014

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 manages the Company as part of a federation of three businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal.

EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost, and enhancing competitive advantage. These benefits are primarily achieved though virtualization. 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 infrastructure solutions utilized by organizations to help them transform the way they build, deliver and consume IT resources. VMware’s virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, 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.

EMC's Pivotal business ("Pivotal") was formed in the second quarter of 2013. Pivotal unites strategic technology, people and programs formerly within EMC and VMware, including Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products. Pivotal is building a new platform comprising next-generation data fabrics, application fabrics and a cloud independent platform-as-a-service ("PaaS").

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, as well as VMware and Pivotal, companies 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, 2013 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014.

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 six-month periods ended June 30, 2014 and 2013.

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, the shares issuable under our $1.725 billion1.75% convertible senior notes due 2013 (the "2013 Notes") and the 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.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year's presentation. During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The acquisition of these businesses was accounted for as a business combination between entities under common control. We reflected the impact of the transaction in our segment and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment for the three and six months ended June 30, 2014. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the segment reclassifications impact EMC's previously reported consolidated financial statements. See Note 15 for further discussion of the segment reclassifications.

Recent Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (“FASB”) issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. 

In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective beginning January 1, 2017, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements.

In April 2014, the FASB issued new accounting guidance on reporting discontinued operations and disclosures of disposals of components of an entity which clarifies the scope of what should be reported as discontinued operations and expands required disclosures. This new guidance is effective beginning January 1, 2015, with early adoption permitted. The impact of this guidance will be dependent on the nature and significance of any transactions within the scope of this new guidance.

In July 2013, the FASB issued new accounting guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, with limited exceptions. The prospective adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

In March 2013, the FASB issued guidance that requires a parent company to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

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Stockholders' Equity - Additional Information (Detail) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended	16 Months Ended					12 Months Ended	24 Months Ended	1 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014	Apr. 17, 2014	May 30, 2013	Feb. 28, 2013	Nov. 30, 2006	Dec. 31, 2014 Scenario, Forecast	Dec. 31, 2014 Scenario, Forecast	Nov. 30, 2006 Sold Warrants	Mar. 17, 2014 Warrant
Dividends Payable, Amount Per Share							$ 0.12	$ 0.10
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	1	4	4	4
Warrants and Rights Outstanding														$ 109,000,000
Repurchases of Common Stock, shares authorized to repurchase									250
Total Repurchases of Common Stock, shares			39			133
Total Repurchases of Common Stock			1,000,000,000			3,400,000,000
Shares authorized for future repurchases	117		117			117
Plan to spend for the year on common stock repurchases											3,000,000,000	6,000,000,000
Payments for Repurchase of Common Stock			$ 994,000,000	$ 991,000,000	$ 3,000,000,000

XML

Debt Key Components of Long-term Debt (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Fair Value Inputs, Discount Rate	1.00%
Long-term Debt	$ 5,494	$ 5,494
Long-term Notes $2.5B
Debt Instrument [Line Items]
Fair Value Inputs, Discount Rate	99.943%
Long-term Debt	2,499
Long-term Notes $2.0B
Debt Instrument [Line Items]
Fair Value Inputs, Discount Rate	99.76%
Long-term Debt	1,996
Long-term Notes $1.0B
Debt Instrument [Line Items]
Fair Value Inputs, Discount Rate	99.925%
Long-term Debt	999
Long-term Notes $5.5B
Debt Instrument [Line Items]
Long-term Debt	$ 5,494

XML

Inventories (Tables)

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Components of Inventories

Inventories consist of (table in millions):

	June 30, 2014		December 31, 2013
Work-in-process	$	721	$	696
Finished goods	676		638
	$	1,397	$	1,334

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Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Composition of Investments

	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	3,726	$	4	$	(3	)	$	3,727
U.S. corporate debt securities	2,260		8		(2		)	2,266
High yield corporate debt securities	515		19		(3		)	531
Municipal obligations	860		3		—			863
Auction rate securities	63		—		(3		)	60
Foreign debt securities	2,152		6		(3		)	2,155
Total fixed income securities	9,576		40		(14		)	9,602
Publicly traded equity securities	72		24		(1		)	95
Total	$	9,648	$	64	$	(15	)	$	9,697

The following tables summarize the composition of our short- and long-term investments at June 30, 2014 and December 31, 2013 (tables in millions):

	June 30, 2014
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,201	$	4	$	(1	)	$	2,204
U.S. corporate debt securities	2,294		5		(1		)	2,298
High yield corporate debt securities	554		23		—			577
Asset-backed securities	25		—		—			25
Municipal obligations	965		3		—			968
Auction rate securities	63		—		(4		)	59
Foreign debt securities	2,515		7		(1		)	2,521
Total fixed income securities	8,617		42		(7		)	8,652
Publicly traded equity securities	166		133		(4		)	295
Total	$	8,783	$	175	$	(11	)	$	8,947

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

The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013 (tables in millions):

	June 30, 2014
	Level 1		Level 2			Level 3		Total
Cash	$	1,693	$	—		$	—	$	1,693
Cash equivalents	3,330		664			—		3,994
U.S. government and agency obligations	1,349		855			—		2,204
U.S. corporate debt securities	—		2,298			—		2,298
High yield corporate debt securities	—		577			—		577
Asset-backed securities	—		25			—		25
Municipal obligations	—		968			—		968
Auction rate securities	—		—			59		59
Foreign debt securities	—		2,521			—		2,521
Publicly traded equity securities	295		—			—		295
Total cash and investments	$	6,667	$	7,908		$	59	$	14,634
Other items:
Strategic investments held at cost	$	—	$	—		$	296	$	296
Investment in joint venture	—		—			36		36
Long-term debt carried at discounted cost	—		(5,513		)	—		(5,513		)
Foreign exchange derivative assets	—		20			—		20
Foreign exchange derivative liabilities	—		(20		)	—		(20		)
Commodity derivative assets	—		2			—		2

	December 31, 2013
	Level 1		Level 2			Level 3		Total
Cash	$	1,725	$	—		$	—	$	1,725
Cash equivalents	5,674		492			—		6,166
U.S. government and agency obligations	1,797		1,930			—		3,727
U.S. corporate debt securities	—		2,266			—		2,266
High yield corporate debt securities	—		531			—		531
Municipal obligations	—		863			—		863
Auction rate securities	—		—			60		60
Foreign debt securities	—		2,155			—		2,155
Publicly traded equity securities	95		—			—		95
Total cash and investments	$	9,291	$	8,237		$	60	$	17,588
Other items:
Strategic investments held at cost	$	—	$	—		$	379	$	379
Investment in joint venture	—		—			35		35
Convertible debt carried at discounted cost	—		(5,419		)	—		(5,419		)
Foreign exchange derivative assets	—		31			—		31
Foreign exchange derivative liabilities	—		(20		)	—		(20		)
Commodity derivative assets	—		4			—		4

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 six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended					For the Six Months Ended
	June 30, 2014			June 30, 2013		June 30, 2014			June 30, 2013
Balance, beginning of the period	$	60		$	68	$	60		$	70
Calls at par value	—			—		—			(1		)
Other-than-temporary impairment loss	—			—		—			(1		)
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	(1		)	—		(1		)	—
Balance, end of the period	$	59		$	68	$	59		$	68

The following table provides a summary of changes in fair value of our LenovoEMC joint venture for the three and six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended				For the Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Balance, beginning of the period	$	35	$	33	$	35	$	33
Realized gain included in other expense, net	1		1		1		1
Balance, end of period	$	36	$	34	$	36	$	34

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

Unrealized losses on investments at June 30, 2014 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in millions):

	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	$	400	$	(1	)	$	—	$	—		$	400	$	(1	)
U.S. corporate debt securities	493		(1		)	—		—			493		(1		)
Auction rate securities	—		—			59		(4		)	59		(4		)
Foreign debt securities	521		(1		)	—		—			521		(1		)
Publicly traded equity securities	26		(3		)	—		(1		)	26		(4		)
Total	$	1,440	$	(6	)	$	59	$	(5	)	$	1,499	$	(11	)

Contractual Maturities of Investments

The contractual maturities of fixed income securities held at June 30, 2014 are as follows (table in millions):

	June 30, 2014
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,926	$	1,928
Due after 1 year through 5 years	5,765		5,783
Due after 5 years through 10 years	544		563
Due after 10 years	382		378
Total	$	8,617	$	8,652

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Components of Property, Plant and Equipment (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 9,173	$ 8,638
Accumulated depreciation	(5,567)	(5,160)
Property, plant and equipment, net	3,606	3,478
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	239	229
Assets Held For Future Use
Property, Plant and Equipment [Line Items]
Construction in Progress, Gross	74
Computer Equipment and Capitalized Software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,391	5,973
Building and Building Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,284	2,089
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	159	132
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 100	$ 215

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Key Components of Convertible Debt (Detail) (Convertible Senior Notes 2011 and 2013, USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Convertible Senior Notes 2011 and 2013
Debt Instrument [Line Items]
Contractual interest expense on the coupon	$ 7	$ 15
Amortization of the discount component recognized as interest expense	16	31
Total interest expense on the convertible debt	$ 23	$ 46

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

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Contractual Amounts Due Under Leases

The contractual amounts due under the leases we retained as of June 30, 2014 were as follows (table in millions):

Year	Contractual Amounts Due Under Leases
Due within one year	$	87
Due within two years	69
Due within three years	61
Thereafter	3
Total	220
Less: Amounts representing interest	5
Present value	215
Current portion (included in accounts and notes receivable)	86
Long-term portion (included in other assets, net)	$	129

Allowance for Credit Losses

The following table presents the activity of our allowance for credit losses related to lease receivables for the six months ended June 30, 2014 and 2013 (table in millions):

	For the Six Months Ended
	June 30, 2014			June 30, 2013
Balance, beginning of the period	$	9		$	17
Recoveries	(5		)	(9		)
Provisions	6			3
Balance, end of the period	$	10		$	11

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Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Components of Property, Plant and Equipment

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

	June 30, 2014			December 31, 2013
Furniture and fixtures	$	239		$	229
Equipment and software	6,391			5,973
Buildings and improvements	2,284			2,089
Land	159			132
Building construction in progress	100			215
	9,173			8,638
Accumulated depreciation	(5,567		)	(5,160		)
	$	3,606		$	3,478

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) In Millions, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non-controlling Interests
Balance, January 1, 2014 at Dec. 31, 2012	$ 23,524	$ 21	$ 3,691	$ 18,853	$ (208)	$ 1,167
Beginning Balance (in shares) at Dec. 31, 2012		2,107
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(42)
Stock issued through stock option and stock purchase plans (in shares)		11
Stock issued through stock option and stock purchase plans	175	0	175
Tax benefit from stock options exercised	46		46
Restricted stock grants, cancellations and withholdings, net (in shares)		4
Restricted stock grants, cancellations and withholdings, net	(51)	0	(51)
Repurchase of common stock	(1,000)		(1,000)
EMC purchase of VMware’s common stock	(150)		(124)			(26)
Stock-based compensation	445		445
Dividends	(212)			(212)
Noncontrolling Interest, Period Increase (Decrease)	(150)		(269)			119
Change in market value of investments	(37)				(35)	(2)
Change in market value of derivatives	0
Translation adjustment	(56)				(56)
Stock Issued During Period Value Stock Conversion Of Convertible Securities And Warrants	1		1
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments	32		32
Net income	1,365			1,281		84
Balance, June 30, 2014 at Jun. 30, 2013	23,932	21	2,946	19,922	(299)	1,342
Ending Balance (in shares) at Jun. 30, 2013		2,080
Balance, January 1, 2014 at Dec. 31, 2013	23,786	20	1,406	21,114	(239)	1,485
Beginning Balance (in shares) at Dec. 31, 2013	2,020	2,020
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(39)
Stock issued through stock option and stock purchase plans (in shares)		16
Stock issued through stock option and stock purchase plans	234	0	234
Tax benefit from stock options exercised	43		43
Restricted stock grants, cancellations and withholdings, net (in shares)		3
Restricted stock grants, cancellations and withholdings, net	(28)	0	(28)
Repurchase of common stock	(1,000)	0	(1,000)
Stock options issued in business acquisitions	33		33
Stock-based compensation	506		506
Dividends	(446)			(446)
Noncontrolling Interest, Period Increase (Decrease)	(401)		(376)			(25)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	1				1
Change in market value of investments	72				71	1
Change in market value of derivatives	(2)				(2)	0
Translation adjustment	4				4
Net income	1,054			980		74
Balance, June 30, 2014 at Jun. 30, 2014	23,856	20	818	21,648	(165)	1,535
Ending Balance (in shares) at Jun. 30, 2014	2,029	2,029
Balance, January 1, 2014 at Mar. 31, 2014
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Change in market value of investments	53
Change in market value of derivatives	1
Translation adjustment	9
Stock Issued During Period Value Stock Conversion Of Convertible Securities And Warrants	0	0	0
Convertible debt conversions and warrant settlement (in shares)		29
Net income	622
Balance, June 30, 2014 at Jun. 30, 2014	$ 23,856	$ 20	$ 818
Ending Balance (in shares) at Jun. 30, 2014	2,029	2,029

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Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2014

Payables and Accruals [Abstract]

Components of Accrued Expenses

Accrued expenses consist of (table in millions):

	June 30, 2014		December 31, 2013
Salaries and benefits	$	989	$	1,078
Product warranties	255		289
Dividends payable (see Note 12)	240		205
Partner rebates	201		214
Restructuring, current (See Note 13)	128		84
Derivatives	23		23
Other	914		890
	$	2,750	$	2,783

Activity in Warranty Accrual for Product Warranty

The following represents the activity in our warranty accrual for the three and six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Balance, beginning of the period	$	274		$	283		$	289		$	278
Provision	32			51			74			96
Amounts charged to the accrual	(51		)	(43		)	(108		)	(83		)
Balance, end of the period	$	255		$	291		$	255		$	291

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Business Combinations, Intangibles and Goodwill - Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	$ 4,978	$ 4,412
Accumulated Amortization	(2,831)	(2,632)
Net Book Value	2,147	1,780
Purchased Technology
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	2,783	2,356
Accumulated Amortization	(1,546)	(1,429)
Net Book Value	1,237	927
Patents
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	225	225
Accumulated Amortization	(109)	(102)
Net Book Value	116	123
Software Licenses
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	104	101
Accumulated Amortization	(92)	(90)
Net Book Value	12	11
Trademarks And Tradenames
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	212	171
Accumulated Amortization	(127)	(118)
Net Book Value	85	53
Customer Relationships And Customer Lists
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	1,463	1,386
Accumulated Amortization	(914)	(855)
Net Book Value	549	531
Leasehold Interest
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	147	145
Accumulated Amortization	(13)	(11)
Net Book Value	134	134
Other Intangible Assets
Schedule of Intangible Assets, Excluding Goodwill [Line Items]
Gross Carrying Amount	44	28
Accumulated Amortization	(30)	(27)
Net Book Value	$ 14	$ 1

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Contractual Amounts Due under Leases (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Receivables [Abstract]
Due within one year	$ 87
Due within two years	69
Due within three years	61
Thereafter	3
Total	220	252
Less amounts representing interest	5
Present value	215
Current portion (included in accounts and notes receivable)	86
Long-term portion (included in other assets, net)	$ 129

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CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 5,687	$ 7,891
Short-term investments	1,962	2,773
Accounts and notes receivable, less allowance for doubtful accounts of $65 and $62	3,344	3,861
Inventories	1,397	1,334
Deferred income taxes	969	912
Other current assets	586	507
Total current assets	13,945	17,278
Long-term investments	6,985	6,924
Property, plant and equipment, net	3,606	3,478
Intangible assets, net	2,147	1,780
Goodwill	15,802	14,424
Other assets, net	1,953	1,965
Total assets	44,438	45,849
Current liabilities:
Accounts payable	1,186	1,434
Accrued expenses	2,750	2,783
Notes converted and payable	0	1,665
Income taxes payable	261	639
Deferred revenue	5,693	5,278
Total current liabilities	9,890	11,799
Income taxes payable	298	296
Deferred revenue	4,032	3,701
Deferred income taxes	489	421
Long-term debt (See Note 4)	5,494	5,494
Other liabilities	379	352
Total liabilities	20,582	22,063
Shareholders’ equity:
Preferred stock, par value $0.01; authorized 25 shares; none outstanding	0	0
Common stock, par value $0.01; authorized 6,000 shares; issued and outstanding 2,029 and 2,020 shares	20	20
Additional paid-in capital	818	1,406
Retained earnings	21,648	21,114
Accumulated other comprehensive loss, net	(165)	(239)
Total EMC Corporation’s shareholders’ equity	22,321	22,301
Non-controlling interests	1,535	1,485
Total shareholders’ equity	23,856	23,786
Total liabilities and shareholders’ equity	$ 44,438	$ 45,849

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Debt - Additional Information (Detail) (USD $) Share data in Millions, except Per Share data, unless otherwise specified		0 Months Ended	3 Months Ended		1 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended	1 Months Ended		1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 17, 2014 Warrant	Jan. 07, 2014 Convertible Senior Notes 2013	Jun. 30, 2014 Convertible Senior Notes 2013	Nov. 13, 2006 Convertible Senior Notes 2013	Nov. 30, 2006 Convertible Senior Notes 2011 and 2013	Jun. 30, 2013 Convertible Senior Notes 2011 and 2013	Jun. 30, 2013 Convertible Senior Notes 2011 and 2013	Jan. 07, 2014 Purchased Options	Nov. 30, 2006 Purchased Options	Dec. 31, 2013 Purchased Options	Nov. 30, 2006 Sold Warrants	Nov. 13, 2006 Sold Warrants	Jun. 30, 2014 Exercised Warrants	Jun. 30, 2014 Long-term Debt	Jun. 30, 2014 Long-term Debt	Jun. 30, 2013 Long-term Debt	Jun. 30, 2014 Interest Rate Swap	Dec. 31, 2010 Interest Rate Swap
Senior Notes			$ 1,725,000,000	$ 1,725,000,000
Proceeds from issuance of senior unsecured obligations					3,500,000,000
Cash payment to noteholders for outstanding principal of converted Notes		1,700,000,000
Shares issued to noteholders for the excess of the conversion value over the principal amount of converted Notes		35
Value of the conversion value over the principal amount of converted Notes		858,000,000
Observation period			20 days
Conversion rate for the 2013 Notes in shares of our common stock per one thousand dollars of principal amount of 2013 Notes			62.6978
Conversion premium			26.50%
Conversion price			$ 15.95
Long term debt, aggregate principal																5,500,000,000
Debt Instrument, unamortized discount														6,000,000	6,000,000
Debt Instrument, Interest Rate During Period						5.60%	5.60%							2.54%	2.54%
Semi-annual interest rate			1.75%	1.75%
Debt Instrument, frequency of periodic payment			semi-annually
Incremental common shares attributable to call options and warrants									215		215
Aggregate amount paid for purchased options									669,000,000
Purchased options shares received								35
Purchased Options Remaining										108
Common stock at an exercise price											$ 19.55	$ 19.31
Proceeds from issuance of warrants											391,000,000
Warrants and Rights Outstanding	109,000,000
Shares issues for exercised warrants													29
Conversion premium based on the closing price											53.00%
Closing price per share												$ 12.61
Aggregate notional amount of interest rate swap contracts designated as cash flow hedges																		900,000,000
Accumulated Other Comprehensive Income (Loss) related to realized losses on settled swaps																	$ 176,000,000

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Changes in unrealized gains (losses) - taxes (benefits)	$ 35	$ (17)	$ 49	$ (15)
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes)	(3)	(2)	(6)	(5)
Changes in market value of derivatives - taxes (benefits)	1	1	0	2
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes)	$ 0	$ 0	$ 0	$ (1)

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Activity in Warranty Accrual for Product Warranty (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of the period	$ 274	$ 283	$ 289	$ 278
Provision	32	51	74	96
Amounts charged to the accrual	(51)	(43)	(108)	(83)
Balance, end of the period	$ 255	$ 291	$ 255	$ 291

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

Our segment information for the three and six months ended June 30, 2014 and 2013 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, 2014
Revenues:
Product revenues	$	2,551		$	37		$	104		$	2,692		$	15		$	2,707
Services revenues	1,425			121			139			1,685			39			1,724
Total consolidated revenues	3,976			158			243			4,377			54			4,431
Gross profit	$	2,192		$	100		$	162		$	2,454		$	26		$	2,480
Gross profit percentage	55.1		%	63.2		%	66.7		%	56.1		%	47.2		%	55.9		%
Research and development										358			33			391
Selling, general and administrative										1,140			46			1,186
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,498			79			1,577
Operating income (expense)										$	956		$	(53	)	$	903

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended
June 30, 2014
Revenues:
Product revenues	$	2,707		$	612		$	—		$	3,319
Services revenues	1,724			837			—			2,561
Total consolidated revenues	4,431			1,449			—			5,880
Gross profit	$	2,480		$	1,272		$	(98	)	$	3,654
Gross profit percentage	55.9		%	87.8		%	—		%	62.1		%
Research and development	391			246			103			740
Selling, general and administrative	1,186			602			222			2,010
Restructuring and acquisition-related charges	—			—			30			30
Total costs and expenses	1,577			848			355			2,780
Operating income (expense)	903			424			(453		)	874
Non-operating income (expense), net	(84		)	8			11			(65		)
Income tax provision (benefit)	209			91			(113		)	187
Net income	610			341			(329		)	622
Net income attributable to the non-controlling interest in VMware, Inc.	—			(69		)	36			(33		)
Net income attributable to EMC Corporation	$	610		$	272		$	(293	)	$	589

	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	$	2,577		$	39		$	98		$	2,714		$	15		$	2,729
Services revenues	1,377			113			130			1,620			27			1,647
Total consolidated revenues	3,954			152			228			4,334			42			4,376
Gross profit	$	2,236		$	96		$	148		$	2,480		$	20		$	2,500
Gross profit percentage	56.5		%	63.1		%	65.1		%	57.2		%	48.1		%	57.1		%
Research and development										377			26			403
Selling, general and administrative										1,118			36			1,154
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,495			62			1,557
Operating income (expense)										$	985		$	(42	)	$	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 (expense)	943			413			(334		)	1,022
Non-operating income (expense), net	(78		)	3			19			(56		)
Income tax provision (benefit)	214			93			(91		)	216
Net income	651			323			(224		)	750
Net income attributable to the non-controlling interest in VMware, Inc.	—			(67		)	18			(49		)
Net income attributable to EMC Corporation	$	651		$	256		$	(206	)	$	701

	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, 2014
Revenues:
Product revenues	$	4,853		$	72		$	208		$	5,133		$	26		$	5,159
Services revenues	2,803			240			278			3,321			78			3,399
Total consolidated revenues	7,656			312			486			8,454			104			8,558
Gross profit	$	4,168		$	199		$	323		$	4,690		$	45		$	4,735
Gross profit percentage	54.4		%	63.9		%	66.4		%	55.5		%	42.9		%	55.3		%
Research and development										736			66			802
Selling, general and administrative										2,241			87			2,328
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,977			153			3,130
Operating income (expense)										$	1,713		$	(108	)	$	1,605

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Six Months Ended:
June 30, 2014
Revenues:
Product revenues	$	5,159		$	1,168		$	—		$	6,327
Services revenues	3,399			1,633			—			5,032
Total consolidated revenues	8,558			2,801			—			11,359
Gross profit	$	4,735		$	2,457		$	(191	)	$	7,001
Gross profit percentage	55.3		%	87.7		%	—		%	61.6		%
Research and development	802			474			196			1,472
Selling, general and administrative	2,328			1,139			394			3,861
Restructuring and acquisition-related charges	—			—			149			149
Total costs and expenses	3,130			1,613			739			5,482
Operating income (expense)	1,605			844			(930		)	1,519
Non-operating income (expense), net	(164		)	15			10			(139		)
Income tax provision (benefit)	378			175			(227		)	326
Net income	1,063			684			(693		)	1,054
Net income attributable to the non-controlling interest in VMware, Inc.	—			(138		)	64			(74		)
Net income attributable to EMC Corporation	$	1,063		$	546		$	(629	)	$	980

	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	$	5,048		$	82		$	198		$	5,328		$	28		$	5,356
Services revenues	2,704			226			262			3,192			49			3,241
Total consolidated revenues	7,752			308			460			8,520			77			8,597
Gross profit	$	4,324		$	195		$	301		$	4,820		$	37		$	4,857
Gross profit percentage	55.8		%	63.4		%	65.2		%	56.6		%	48.1		%	56.5		%
Research and development										743			52			795
Selling, general and administrative										2,195			73			2,268
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,938			125			3,063
Operating income (expense)										$	1,882		$	(88	)	$	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 (expense)	1,794			814			(825		)	1,783
Non-operating income (expense), net	(152		)	7			19			(126		)
Income tax provision (benefit)	401			176			(285		)	292
Net income	1,241			645			(521		)	1,365
Net income attributable to the non-controlling interest in VMware, Inc.	—			(129		)	45			(84		)
Net income attributable to EMC Corporation	$	1,241		$	516		$	(476	)	$	1,281

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 millions):

	For the Three Months Ended				For the Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
United States	$	3,056	$	2,963	$	5,890	$	5,795
Europe, Middle East and Africa	1,669		1,486		3,261		2,963
Asia Pacific and Japan	802		835		1,525		1,573
Latin America, Mexico and Canada	353		330		683		670
Total	$	5,880	$	5,614	$	11,359	$	11,001

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Stockholders' Equity Dividends Declared (Details) (USD $)	0 Months Ended					0 Months Ended
	Apr. 17, 2014	Feb. 06, 2014	May 30, 2013	Apr. 17, 2014	May 30, 2013	Jul. 31, 2014 Subsequent Event
Dividends Payable [Line Items]
Dividends Payable, Date Declared	Apr. 17, 2014	Feb. 06, 2014	May 30, 2013			Jul. 30, 2014
Common Stock Dividend Rate				$ 0.115	$ 0.10
Dividends Payable, Date of Record	Jul. 01, 2014	Apr. 01, 2014	Jul. 01, 2013			Oct. 01, 2014
Dividends, Common Stock, Cash	$ 237,000,000	$ 209,000,000	$ 212,000,000
Dividends Payable, Date to be Paid	Jul. 23, 2014	Apr. 23, 2014	Jul. 23, 2013			Oct. 23, 2014

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

 Commitments and Contingencies

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) (Convertible Senior Notes 2013, USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Nov. 13, 2006
Convertible Senior Notes 2013
Debt Instrument [Line Items]
Convertible senior notes included in calculation of net income per share	$ 1,725	$ 1,725
Convertible senior notes interest rate	1.75%	1.75%

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Basis of Presentation Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Nature of Operations [Policy Text Block]

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 manages the Company as part of a federation of three businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal.

EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost, and enhancing competitive advantage. These benefits are primarily achieved though virtualization. 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 infrastructure solutions utilized by organizations to help them transform the way they build, deliver and consume IT resources. VMware’s virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, 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.

EMC's Pivotal business ("Pivotal") was formed in the second quarter of 2013. Pivotal unites strategic technology, people and programs formerly within EMC and VMware, including Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products. Pivotal is building a new platform comprising next-generation data fabrics, application fabrics and a cloud independent platform-as-a-service ("PaaS").

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, as well as VMware and Pivotal, companies 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, 2013 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014.

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 six-month periods ended June 30, 2014 and 2013.

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, the shares issuable under our $1.725 billion1.75% convertible senior notes due 2013 (the "2013 Notes") and the 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.

Reclassifications and comparability of prior year financial data

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year's presentation. During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The acquisition of these businesses was accounted for as a business combination between entities under common control. We reflected the impact of the transaction in our segment and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment for the three and six months ended June 30, 2014. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the segment reclassifications impact EMC's previously reported consolidated financial statements. See Note 15 for further discussion of the segment reclassifications.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (“FASB”) issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. 

In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective beginning January 1, 2017, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements.

In April 2014, the FASB issued new accounting guidance on reporting discontinued operations and disclosures of disposals of components of an entity which clarifies the scope of what should be reported as discontinued operations and expands required disclosures. This new guidance is effective beginning January 1, 2015, with early adoption permitted. The impact of this guidance will be dependent on the nature and significance of any transactions within the scope of this new guidance.

In July 2013, the FASB issued new accounting guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, with limited exceptions. The prospective adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

In March 2013, the FASB issued guidance that requires a parent company to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

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Segment Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended						3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2014 segment	Jun. 30, 2014 EMC Information Infrastructure segment	Jun. 30, 2014 United States	Dec. 31, 2013 United States	Jun. 30, 2014 International Segment	Dec. 31, 2013 International Segment	Jun. 30, 2014 Geographic Concentration Sales Revenue, Segment Country	Jun. 30, 2013 Geographic Concentration Sales Revenue, Segment Country	Jun. 30, 2014 Geographic Concentration Sales Revenue, Segment Country	Jun. 30, 2013 Geographic Concentration Sales Revenue, Segment Country	Jun. 30, 2014 Geographic Concentration Long-lived Assets, Total Country	Jun. 30, 2013 Geographic Concentration Long-lived Assets, Total	Jun. 30, 2014 Geographic Concentration Long-lived Assets, Total	Jun. 30, 2013 Geographic Concentration Long-lived Assets, Total
Segment Reporting Information [Line Items]
Number of federated businesses	3
Number of operating segments		3
Number of countries other than the US that accounted for 10% or more							0	0	0	0	0	0	0	0
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets			$ 4,356	$ 4,433	$ 998	$ 877

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Increase (Decrease) in Operating Capital [Abstract]
Accounts and notes receivable	$ 549	$ 243
Inventories	(183)	(178)
Other assets	96	119
Accounts payable	(241)	(28)
Accrued expenses	(279)	(211)
Income taxes payable	(336)	(290)
Deferred revenue	701	766
Other liabilities	21	(10)
Statement [Line Items]
Proceeds from Other Debt	0	5,463
Cash flows from operating activities:
Cash received from customers	12,644	12,007
Cash paid to suppliers and employees	(9,320)	(8,485)
Dividends and interest received	97	79
Interest paid	0	(18)
Income taxes paid	(829)	(642)
Net cash provided by operating activities	2,592	2,941
Cash flows from investing activities:
Additions to property, plant and equipment	(472)	(437)
Capitalized software development costs	(245)	(219)
Purchases of short- and long-term available-for-sale securities	(5,765)	(6,456)
Sales of short- and long-term available-for-sale securities	4,974	2,394
Maturities of short- and long-term available-for-sale securities	1,716	564
Business acquisitions, net of cash acquired	(1,694)	(207)
Purchases of strategic and other related investments	(83)	(46)
Proceeds from Sale of Other Investments	10	0
Joint venture funding	(63)	(158)
Proceeds from Divestiture of Businesses	0	31
Increase in Restricted Cash	(76)	0
Net cash used in investing activities	(1,698)	(4,534)
Cash flows from financing activities:
Proceeds from the issuance of EMC’s common stock	234	175
EMC repurchase of EMC’s common stock	(994)	(991)
EMC purchase of VMware’s common stock	0	(160)
Excess tax benefits from stock-based compensation	45	63
Payment of long- and short-term obligations	(1,665)	(21)
Dividend payment	(407)	0
Net cash (used in) provided by financing activities	(3,095)	4,447
Effect of exchange rate changes on cash and cash equivalents	(3)	(42)
Net increase (decrease) in cash and cash equivalents	(2,204)	2,812
Cash and cash equivalents at beginning of period	7,891	4,714
Cash and cash equivalents at end of period	5,687	7,526
Reconciliation of net income to net cash provided by operating activities:
Net income	1,054	1,365
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	903	803
Non-cash interest expense on debt	0	24
Non-cash restructuring and other special charges	9	7
Stock-based compensation expense	498	441
Provision for (recovery of) doubtful accounts	2	(3)
Deferred income taxes, net	(168)	(55)
Excess tax benefits from stock-based compensation	(45)	(63)
Gain on previously held interests in strategic investments	(45)	0
Impairment of strategic investment	33	0
Other, net	23	11
Net cash provided by operating activities	2,592	2,941
VMware
Cash flows from financing activities:
Proceeds from the issuance of VMware’s common stock	99	115
EMC repurchase of EMC’s common stock	(407)	(302)
Pivotal
Statement [Line Items]
Proceeds from Issuance of Preferred Stock and Preference Stock	$ 0	$ 105

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Accounts and notes receivable, allowance for doubtful accounts	$ 65	$ 62
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)	2,029,000,000	2,020,000,000
Common stock, outstanding (in shares)	2,029,000,000	2,020,000,000

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Joint Ventures

6 Months Ended

Jun. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

Joint Ventures

Joint Ventures

We make investments in joint ventures. For each joint venture investment, we consider the facts and circumstances in order to determine whether it qualifies for cost accounting, equity accounting, fair value method accounting or whether it should be consolidated.

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 June 30, 2014, we have contributed $1,255 million in funding and $17 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 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% for the three and six months ended June 30, 2014 and 2013. As of June 30, 2014, we have recorded net accumulated losses from VCE of $956 million since inception, of which $85 million and $160 million were recorded in the three and six months ending June 30, 2014, respectively, and $71 million and $140 million were recorded in the three and six months ended June 30, 2013, respectively.

We recognized $172 million and $342 million in revenue from sales of product and services to VCE during the three and six months ended June 30, 2014, respectively, and $102 million and $176 million for the three and six months ended June 30, 2013, 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 had a receivable from VCE related to the administrative services agreement of $60 million and $52 million as of June 30, 2014 and December 31, 2013, respectively, included in other current assets in the consolidated balance sheets.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
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	2,028,658,204

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Accrued Expenses

6 Months Ended

Jun. 30, 2014

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of (table in millions):

	June 30, 2014		December 31, 2013
Salaries and benefits	$	989	$	1,078
Product warranties	255		289
Dividends payable (see Note 12)	240		205
Partner rebates	201		214
Restructuring, current (See Note 13)	128		84
Derivatives	23		23
Other	914		890
	$	2,750	$	2,783

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 six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Balance, beginning of the period	$	274		$	283		$	289		$	278
Provision	32			51			74			96
Amounts charged to the accrual	(51		)	(43		)	(108		)	(83		)
Balance, end of the period	$	255		$	291		$	255		$	291

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 Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues:
Product sales	$ 3,319	$ 3,258	$ 6,327	$ 6,369
Services	2,561	2,356	5,032	4,632
Total consolidated revenues	5,880	5,614	11,359	11,001
Costs and expenses:
Cost of product sales	1,372	1,340	2,668	2,696
Cost of services	854	765	1,690	1,498
Research and development	740	695	1,472	1,370
Selling, general and administrative	2,010	1,785	3,861	3,499
Restructuring and acquisition-related charges	30	7	149	155
Operating income	874	1,022	1,519	1,783
Non-operating income (expense):
Investment income	35	34	71	67
Interest expense	(34)	(31)	(68)	(51)
Other expense, net	66	59	142	142
Total non-operating income (expense)	(65)	(56)	(139)	(126)
Income before provision for income taxes	809	966	1,380	1,657
Income tax provision	187	216	326	292
Net income	622	750	1,054	1,365
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(33)	(49)	(74)	(84)
Net income attributable to EMC Corporation	$ 589	$ 701	$ 980	$ 1,281
Net income per weighted average share, basic attributable to EMC Corporation common shareholders	$ 0.29	$ 0.34	$ 0.48	$ 0.61
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders	$ 0.28	$ 0.32	$ 0.47	$ 0.59
Weighted average shares, basic	2,037	2,092	2,033	2,097
Weighted average shares, diluted	2,064	2,174	2,070	2,181
Cash dividends declared per common share	$ 0.12	$ 0.10	$ 0.22	$ 0.10

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Debt

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt

Long-Term Debt

In June 2013, we issued $5.5 billion aggregate principal amount of senior notes (collectively, the "Notes") which pay a fixed rate of interest semi-annually in arrears. The first interest payment occurred on December 2, 2013. The proceeds from the Notes have been used to satisfy the cash payment obligation of the converted 2013 Notes as well as for general corporate purposes including stock repurchases, dividend payments, business acquisitions, working capital needs and other business opportunities. The Notes of each series are senior, unsecured obligations of EMC and are not convertible or exchangeable. Unless previously purchased and canceled, we will repay the Notes of each series at 100% of the principal amount, together with accrued and unpaid interest thereon, at maturity. However, EMC has the right to redeem any or all of the Notes at specified redemption prices. As of June 30, 2014, we were in compliance with all debt covenants, which are customary in nature.

Our long-term debt as of June 30, 2014 was as follows (dollars in millions):

Senior Notes	Issued at Discount to Par		Carrying Value
$2.5 billion 1.875% Notes due 2018	99.943	%	$	2,499
$2.0 billion 2.650% Notes due 2020	99.760	%	1,996
$1.0 billion 3.375% Notes due 2023	99.925	%	999
			$	5,494

The unamortized discount on the Notes consists of $6 million, which will be fully amortized by June 1, 2023. The effective interest rate on the Notes was 2.54% for both the three and six months ended June 30, 2014.

Convertible Debt

In November 2006, we issued our $1.725 billion1.75% convertible senior notes due 2011 (the “2011 Notes”) and our 2013 Notes for total gross proceeds of $3.5 billion. The 2011 Notes matured and were settled in 2012.

The 2013 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2013 Notes as of December 31, 2013. Pursuant to the settlement terms, the majority of the converted 2013 Notes were settled on January 7, 2014. At that time, we paid the noteholders $1.7 billion in cash for the outstanding principal and 35 million shares for the $858 million in excess of the conversion value over the principal amount, as prescribed by the terms of the 2013 Notes.

With respect to the conversion value in excess of the principal amount of the 2013 Notes converted, we elected to settle the excess with 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 actual conversion rate for the 2013 Notes was 62.6978 shares of our common stock per one thousand dollars of principal amount of 2013 Notes, which represents a 26.5% conversion premium from the date the 2013 Notes were issued and is equivalent to a conversion price of approximately $15.95 per share of our common stock.

The 2013 Notes paid 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 2013 Notes was 5.6% for both the three and six months ended June 30, 2013.

The following table represent the key components of our interest expense on convertible debt for the three and six months ended June 30, 2013 (table in millions):

	June 30, 2013
	Three Months Ended		Six Months Ended
Contractual interest expense on the coupon	$	7	$	15
Amortization of the discount component recognized as interest expense	16		31
Total interest expense on the convertible debt	$	23	$	46

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 allowed 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 covered, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669 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 2011, we exercised approximately half of the Purchased Options in connection with the planned settlements of the 2011 Notes. In the fourth quarter of 2013, we exercised the remaining 108 million of the Purchased Options in conjunction with the planned settlements of the 2013 Notes, and we received 35 million shares of net settlement on January 7, 2014, representing the excess conversion value of the options. 

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 million from the sale of the associated warrants. Upon exercise, the value of the warrants was required to be settled in shares. Approximately half of the associated warrants were exercised in 2012 and the remaining 109 million associated warrants were exercised between February 18, 2014 and March 17, 2014 and were settled with 29 million shares of our common stock.

The Purchased Options and associated warrants had the effect of increasing the conversion price of the 2013 Notes to approximately $19.31 per share of our common stock, representing an approximate 53% 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.

Interest Rate Swap Contracts

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 ten year 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.

During 2011 and 2012, we settled the swaps and replaced them with new interest rate swap contracts for revised forecasted debt issuance dates. Each of these new swaps was deemed as an effective hedge as the notional amounts and other terms matched the underlying hedged item and accordingly, losses on the interest rate swap contracts were deferred as they were expected to be realized over the life of the new debt issued under the related interest rate swap contracts. In the second half of 2012, we settled the interest rate swap contracts and did not replace them. Losses on the swaps at the time of settlement were deferred as they are expected to be realized over the life of the new debt issued under the related interest rate swap contracts.

At June 30, 2014, we had $176 million of accumulated realized losses related to the settled swaps in accumulated other comprehensive income which will be realized over the remaining life of our ten year Notes. These losses will be reclassified from other comprehensive income and recognized on a straight-line basis in the consolidated income statements as interest expense beginning in the third quarter of 2014.

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Business Combinations, Intangibles and Goodwill

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Business Combinations, Intangibles and Goodwill

Acquisition of AirWatch

On February 24, 2014, VMware acquired all of the outstanding capital stock of A.W.S. Holding, LLC ("AirWatch Holding"), the sole member and equity holder of AirWatch LLC ("AirWatch"). AirWatch is a leader in enterprise mobile management and security solutions. VMware acquired AirWatch to expand its solutions within the enterprise mobile and security space. The aggregate consideration paid for AirWatch was $1,092 million, net of cash acquired, including cash of $1,068 million and the fair value of assumed unvested equity attributed to pre-combination services totaling $24 million.

Merger consideration totaling $300 million was payable to certain employees of AirWatch subject to specified future employment conditions and will be recognized as expense over the requisite service period. Compensation expense totaling $60 million was recognized from the date of acquisition through June 30, 2014.

The following table summarizes the allocation of the consideration to the fair value of the assets acquired and net liabilities assumed, net of cash acquired (table in millions):

Other current assets	$	60
Intangible assets:
Purchased technology (weighted-average useful life of 6 years)	118
Customer relationships and customer lists (weighted-average useful life of 8 years)	78
Trademarks and tradenames (weighted-average useful life of 8 years)	40
Other (weighted-average useful life of 3 years)	14
Total intangible assets, net, excluding goodwill	250
Goodwill	879
Other assets	17
Total assets acquired	1,206
Unearned revenue	(45		)
Other assumed liabilities, net of acquired assets	(69		)
Total net liabilities assumed	(114		)
Fair value of assets acquired and net liabilities assumed	$	1,092

These VMware intangible assets are being amortized on a straight-line basis. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, recognized and primarily related to expected synergies from the transaction. The majority of the goodwill and identifiable intangible assets are expected to be deductible for U.S. federal income tax purposes. The results of this acquisition 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 company were not material to our consolidated results of operations for the three and six months ended June 30, 2014 or 2013.

Other Acquisitions

During the six months ended June 30, 2014, EMC acquired two companies. We acquired all of the outstanding capital stock of DSSD, Inc., a developer of an innovative new rack-scale flash storage architecture for I/O-intensive in-memory databases and Big Data workloads, which complements and expands our Information Storage segment. We also acquired Symplified Inc, a provider of a comprehensive cloud identity solution that helps service-oriented IT organizations simplify user access, regain visibility and control over application usage and meet security and compliance requirements, which complements and expands our RSA Information Security segment.

The aggregate consideration for these two acquisitions was $721 million, which consisted of $657 million of cash consideration, net of cash acquired, $8 million for the fair value of assumed unvested equity attributed to pre-combination services and $11 million in contingent consideration attributed to pre-combination services which is included in accrued expenses on the consolidated balance sheets. In connection with these acquisitions, we had a $45 million gain on previously held interests in strategic investments which was recognized in other expense, net in the second quarter of 2014. The consideration 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 $509 million, $300 million and $88 million, respectively.

The intangible assets acquired were comprised of developed technology intangible assets which have a weighted-average amortization period of 7 years. These intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, recognized and primarily related to expected synergies from the transaction. The goodwill is not deductible for U.S. federal income tax purposes. 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 to our consolidated results of operations for the three and six months ended June 30, 2014 or 2013.

Intangible Assets

Intangible assets, excluding goodwill, as of June 30, 2014 and December 31, 2013 consist of (tables in millions):

	June 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,783	$	(1,546	)	$	1,237
Patents	225		(109		)	116
Software licenses	104		(92		)	12
Trademarks and tradenames	212		(127		)	85
Customer relationships and customer lists	1,463		(914		)	549
Leasehold interest	147		(13		)	134
Other	44		(30		)	14
Total intangible assets, excluding goodwill	$	4,978	$	(2,831	)	$	2,147

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,356	$	(1,429	)	$	927
Patents	225		(102		)	123
Software licenses	101		(90		)	11
Trademarks and tradenames	171		(118		)	53
Customer relationships and customer lists	1,386		(855		)	531
Leasehold interest	145		(11		)	134
Other	28		(27		)	1
Total intangible assets, excluding goodwill	$	4,412	$	(2,632	)	$	1,780

Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the six months ended June 30, 2014 consist of (table in millions):

	Six Months Ended June 30, 2014
	Information Storage		Information Intelligence Group			RSA Information Security		Pivotal			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,486	$	1,487		$	2,203	$	177		$	3,071		$	14,424
Goodwill resulting from acquisitions	509		—			—		—			879			1,388
Finalization of purchase price allocations and other, net	—		(2		)	—		—			(8		)	(10		)
Goodwill transferred in acquisition of Pivotal businesses	6		—			—		(6		)	—			—
Balance, end of the period	$	8,001	$	1,485		$	2,203	$	171		$	3,942		$	15,802

During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The transfer of goodwill pursuant to this acquisition is shown above for the six months ended June 30, 2014. For both transactions, the amount of transferred goodwill was determined using the relative fair value method. See Note 15 for further discussion of the segment reclassifications.

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Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

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 each operate as single segments.

During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The acquisition of these businesses was accounted for as a business combination between entities under common control. We reflected the impact of the transaction on our segment for the first quarter of 2014 and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the segment reclassifications impact EMC's 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 and other 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 provision 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 within EMC 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, 2014 and 2013 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, 2014
Revenues:
Product revenues	$	2,551		$	37		$	104		$	2,692		$	15		$	2,707
Services revenues	1,425			121			139			1,685			39			1,724
Total consolidated revenues	3,976			158			243			4,377			54			4,431
Gross profit	$	2,192		$	100		$	162		$	2,454		$	26		$	2,480
Gross profit percentage	55.1		%	63.2		%	66.7		%	56.1		%	47.2		%	55.9		%
Research and development										358			33			391
Selling, general and administrative										1,140			46			1,186
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,498			79			1,577
Operating income (expense)										$	956		$	(53	)	$	903

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended
June 30, 2014
Revenues:
Product revenues	$	2,707		$	612		$	—		$	3,319
Services revenues	1,724			837			—			2,561
Total consolidated revenues	4,431			1,449			—			5,880
Gross profit	$	2,480		$	1,272		$	(98	)	$	3,654
Gross profit percentage	55.9		%	87.8		%	—		%	62.1		%
Research and development	391			246			103			740
Selling, general and administrative	1,186			602			222			2,010
Restructuring and acquisition-related charges	—			—			30			30
Total costs and expenses	1,577			848			355			2,780
Operating income (expense)	903			424			(453		)	874
Non-operating income (expense), net	(84		)	8			11			(65		)
Income tax provision (benefit)	209			91			(113		)	187
Net income	610			341			(329		)	622
Net income attributable to the non-controlling interest in VMware, Inc.	—			(69		)	36			(33		)
Net income attributable to EMC Corporation	$	610		$	272		$	(293	)	$	589

	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	$	2,577		$	39		$	98		$	2,714		$	15		$	2,729
Services revenues	1,377			113			130			1,620			27			1,647
Total consolidated revenues	3,954			152			228			4,334			42			4,376
Gross profit	$	2,236		$	96		$	148		$	2,480		$	20		$	2,500
Gross profit percentage	56.5		%	63.1		%	65.1		%	57.2		%	48.1		%	57.1		%
Research and development										377			26			403
Selling, general and administrative										1,118			36			1,154
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,495			62			1,557
Operating income (expense)										$	985		$	(42	)	$	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 (expense)	943			413			(334		)	1,022
Non-operating income (expense), net	(78		)	3			19			(56		)
Income tax provision (benefit)	214			93			(91		)	216
Net income	651			323			(224		)	750
Net income attributable to the non-controlling interest in VMware, Inc.	—			(67		)	18			(49		)
Net income attributable to EMC Corporation	$	651		$	256		$	(206	)	$	701

	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, 2014
Revenues:
Product revenues	$	4,853		$	72		$	208		$	5,133		$	26		$	5,159
Services revenues	2,803			240			278			3,321			78			3,399
Total consolidated revenues	7,656			312			486			8,454			104			8,558
Gross profit	$	4,168		$	199		$	323		$	4,690		$	45		$	4,735
Gross profit percentage	54.4		%	63.9		%	66.4		%	55.5		%	42.9		%	55.3		%
Research and development										736			66			802
Selling, general and administrative										2,241			87			2,328
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,977			153			3,130
Operating income (expense)										$	1,713		$	(108	)	$	1,605

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Six Months Ended:
June 30, 2014
Revenues:
Product revenues	$	5,159		$	1,168		$	—		$	6,327
Services revenues	3,399			1,633			—			5,032
Total consolidated revenues	8,558			2,801			—			11,359
Gross profit	$	4,735		$	2,457		$	(191	)	$	7,001
Gross profit percentage	55.3		%	87.7		%	—		%	61.6		%
Research and development	802			474			196			1,472
Selling, general and administrative	2,328			1,139			394			3,861
Restructuring and acquisition-related charges	—			—			149			149
Total costs and expenses	3,130			1,613			739			5,482
Operating income (expense)	1,605			844			(930		)	1,519
Non-operating income (expense), net	(164		)	15			10			(139		)
Income tax provision (benefit)	378			175			(227		)	326
Net income	1,063			684			(693		)	1,054
Net income attributable to the non-controlling interest in VMware, Inc.	—			(138		)	64			(74		)
Net income attributable to EMC Corporation	$	1,063		$	546		$	(629	)	$	980

	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	$	5,048		$	82		$	198		$	5,328		$	28		$	5,356
Services revenues	2,704			226			262			3,192			49			3,241
Total consolidated revenues	7,752			308			460			8,520			77			8,597
Gross profit	$	4,324		$	195		$	301		$	4,820		$	37		$	4,857
Gross profit percentage	55.8		%	63.4		%	65.2		%	56.6		%	48.1		%	56.5		%
Research and development										743			52			795
Selling, general and administrative										2,195			73			2,268
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										2,938			125			3,063
Operating income (expense)										$	1,882		$	(88	)	$	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 (expense)	1,794			814			(825		)	1,783
Non-operating income (expense), net	(152		)	7			19			(126		)
Income tax provision (benefit)	401			176			(285		)	292
Net income	1,241			645			(521		)	1,365
Net income attributable to the non-controlling interest in VMware, Inc.	—			(129		)	45			(84		)
Net income attributable to EMC Corporation	$	1,241		$	516		$	(476	)	$	1,281

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, 2014		June 30, 2013		June 30, 2014		June 30, 2013
United States	$	3,056	$	2,963	$	5,890	$	5,795
Europe, Middle East and Africa	1,669		1,486		3,261		2,963
Asia Pacific and Japan	802		835		1,525		1,573
Latin America, Mexico and Canada	353		330		683		670
Total	$	5,880	$	5,614	$	11,359	$	11,001

No country other than the United States accounted for 10% or more of revenues during the three and six months ended June 30, 2014 or 2013.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,356 million at June 30, 2014 and $4,433 million at December 31, 2013. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $998 million at June 30, 2014 and $877 million at December 31, 2013. 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, 2014 or December 31, 2013.

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective income tax rates were 23.1% and 23.6% for the three and six months ended June 30, 2014, respectively. Our effective income tax rates were 22.4% and 17.7% for the three and six months ended June 30, 2013, respectively. Our effective income tax rate is based upon estimated income before provision for income taxes 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 six months ended June 30, 2014, 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 and state taxes. 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. For the three and six months ended June 30, 2013, 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, state taxes and the U.S. federal tax credit for increasing research activities. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law. Some of the provisions were retroactive to January 1, 2012 including an extension of the U.S. federal tax credit for increasing research activities through December 31, 2013. Because the extension was enacted after December 31, 2012, our income tax provision for the six months ended June 30, 2013 included the estimated federal tax credit for increasing research activities for the full year 2012 as well as the six months ended June 30, 2013, which reduced our effective tax rate for the six month period.

Our effective income tax rate increased in the three and six months ended June 30, 2014 from the three and six months ended June 30, 2013 due primarily to the retroactive renewal of the U.S. federal tax credit for increasing research activities on January 2, 2013 as discussed above. The U.S. federal tax credit for increasing research activities reduced our effective income tax rate by approximately 1.0% and 5.1% for the three and six months ended June 30, 2013. Our effective income tax rate for the three and six months ended June 30, 2014 does not reflect any U.S. federal tax credit for increasing research activities because the credit expired on December 31, 2013. There were also differences in the mix of income attributable to foreign versus domestic jurisdictions, change in tax contingency reserves and discrete items, the net impact of which is immaterial.

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 2009 and 2010 in the third quarter of 2012. The current federal income tax audit is ongoing and it is not expected to be completed until 2015. We also have income tax audits in process in numerous state, local and international jurisdictions. In our international jurisdictions that comprise a significant portion of our operations, the years that may be examined vary, with the earliest year being 2004. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions 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 twelve months. While we expect the amount of unrecognized tax benefits to change in the next twelve months, we do not expect the change to have a significant impact on our results of operations or financial position.

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Accounts and Notes Receivable and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Accounts and Notes Receivable and Allowance for Credit Losses

Accounts and Notes Receivable and Allowance for Credit Losses

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 on the consolidated balance sheets. 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 June 30, 2014 were as follows (table in millions):

Year	Contractual Amounts Due Under Leases
Due within one year	$	87
Due within two years	69
Due within three years	61
Thereafter	3
Total	220
Less: Amounts representing interest	5
Present value	215
Current portion (included in accounts and notes receivable)	86
Long-term portion (included in other assets, net)	$	129

Subsequent to June 30, 2014, we sold $39 millionof 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 June 30, 2014, 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 six months ended June 30, 2014 and 2013 (table in millions):

	For the Six Months Ended
	June 30, 2014			June 30, 2013
Balance, beginning of the period	$	9		$	17
Recoveries	(5		)	(9		)
Provisions	6			3
Balance, end of the period	$	10		$	11

Gross lease receivables totaled $220 million and $252 million as of June 30, 2014 and December 31, 2013, respectively, before the allowance. The components of these balances were individually evaluated for impairment and included in our allowance determination as necessary.

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Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Effective income tax rates	23.10%	22.40%	23.60%	17.70%
Impact of the expiration of the U.S. federal research and development tax credit		(1.00%)		(5.10%)

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Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2014

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 June 30, 2014, 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 June 30, 2014 and December 31, 2013. At June 30, 2014 and December 31, 2013, 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 June 30, 2014 and December 31, 2013, 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 June 30, 2014 and December 31, 2013 (tables in millions):

	June 30, 2014
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	2,201	$	4	$	(1	)	$	2,204
U.S. corporate debt securities	2,294		5		(1		)	2,298
High yield corporate debt securities	554		23		—			577
Asset-backed securities	25		—		—			25
Municipal obligations	965		3		—			968
Auction rate securities	63		—		(4		)	59
Foreign debt securities	2,515		7		(1		)	2,521
Total fixed income securities	8,617		42		(7		)	8,652
Publicly traded equity securities	166		133		(4		)	295
Total	$	8,783	$	175	$	(11	)	$	8,947

We held approximately $2,521 million in foreign debt securities at June 30, 2014. 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 Argentina, Greece, Italy, Ireland, Portugal, Spain or Cyprus.

	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized (Losses)			Aggregate Fair Value
U.S. government and agency obligations	$	3,726	$	4	$	(3	)	$	3,727
U.S. corporate debt securities	2,260		8		(2		)	2,266
High yield corporate debt securities	515		19		(3		)	531
Municipal obligations	860		3		—			863
Auction rate securities	63		—		(3		)	60
Foreign debt securities	2,152		6		(3		)	2,155
Total fixed income securities	9,576		40		(14		)	9,602
Publicly traded equity securities	72		24		(1		)	95
Total	$	9,648	$	64	$	(15	)	$	9,697

The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013 (tables in millions):

	June 30, 2014
	Level 1		Level 2			Level 3		Total
Cash	$	1,693	$	—		$	—	$	1,693
Cash equivalents	3,330		664			—		3,994
U.S. government and agency obligations	1,349		855			—		2,204
U.S. corporate debt securities	—		2,298			—		2,298
High yield corporate debt securities	—		577			—		577
Asset-backed securities	—		25			—		25
Municipal obligations	—		968			—		968
Auction rate securities	—		—			59		59
Foreign debt securities	—		2,521			—		2,521
Publicly traded equity securities	295		—			—		295
Total cash and investments	$	6,667	$	7,908		$	59	$	14,634
Other items:
Strategic investments held at cost	$	—	$	—		$	296	$	296
Investment in joint venture	—		—			36		36
Long-term debt carried at discounted cost	—		(5,513		)	—		(5,513		)
Foreign exchange derivative assets	—		20			—		20
Foreign exchange derivative liabilities	—		(20		)	—		(20		)
Commodity derivative assets	—		2			—		2

	December 31, 2013
	Level 1		Level 2			Level 3		Total
Cash	$	1,725	$	—		$	—	$	1,725
Cash equivalents	5,674		492			—		6,166
U.S. government and agency obligations	1,797		1,930			—		3,727
U.S. corporate debt securities	—		2,266			—		2,266
High yield corporate debt securities	—		531			—		531
Municipal obligations	—		863			—		863
Auction rate securities	—		—			60		60
Foreign debt securities	—		2,155			—		2,155
Publicly traded equity securities	95		—			—		95
Total cash and investments	$	9,291	$	8,237		$	60	$	17,588
Other items:
Strategic investments held at cost	$	—	$	—		$	379	$	379
Investment in joint venture	—		—			35		35
Convertible debt carried at discounted cost	—		(5,419		)	—		(5,419		)
Foreign exchange derivative assets	—		31			—		31
Foreign exchange derivative liabilities	—		(20		)	—		(20		)
Commodity derivative assets	—		4			—		4

Our auction rate securities are predominantly rated investment grade and are primarily collateralized by student loans. The underlying loans of all but one of our auction rate securities, with a market value of $7 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 June 30, 2014, the coupon rates used ranged from 0% to 3% 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 June 30, 2014. 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 June 30, 2014 and December 31, 2013 due to the narrowing of credit spreads on AA-rated banks during 2013 and into 2014.

The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended					For the Six Months Ended
	June 30, 2014			June 30, 2013		June 30, 2014			June 30, 2013
Balance, beginning of the period	$	60		$	68	$	60		$	70
Calls at par value	—			—		—			(1		)
Other-than-temporary impairment loss	—			—		—			(1		)
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	(1		)	—		(1		)	—
Balance, end of the period	$	59		$	68	$	59		$	68

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.

EMC has a 49% ownership percentage of LenovoEMC Limited, a joint venture with Lenovo that was formed in 2012. We account for our LenovoEMC joint venture using the fair value method of accounting. To determine the estimated fair value at inception of our investment, we use a discounted cash flow model using a three year time horizon, and utilized a discount rate of 6%, which represented the incremental borrowing rate for a market participant. The assumptions used in preparing the discounted cash flow model include an analysis of estimated Lenovo NAS revenue against a prescribed target as well as consideration of the purchase price put and call features included in the joint venture agreement. The put and call features create a floor and a cap on the fair value of the investment. As such, there is a limit to the impact on the fair value that would result from significant changes in the unobservable inputs. We had no changes to the assumptions utilized in the fair value calculation in the second quarter of 2014.

The following table provides a summary of changes in fair value of our LenovoEMC joint venture for the three and six months ended June 30, 2014 and 2013 (table in millions):

	For the Three Months Ended				For the Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Balance, beginning of the period	$	35	$	33	$	35	$	33
Realized gain included in other expense, net	1		1		1		1
Balance, end of period	$	36	$	34	$	36	$	34

The carrying value of the strategic investments held at cost were accounted for under the cost method. As part of our quarterly impairment review, we perform a fair value calculation of our strategic investments held at cost 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 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 June 30, 2014 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in millions):

	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	$	400	$	(1	)	$	—	$	—		$	400	$	(1	)
U.S. corporate debt securities	493		(1		)	—		—			493		(1		)
Auction rate securities	—		—			59		(4		)	59		(4		)
Foreign debt securities	521		(1		)	—		—			521		(1		)
Publicly traded equity securities	26		(3		)	—		(1		)	26		(4		)
Total	$	1,440	$	(6	)	$	59	$	(5	)	$	1,499	$	(11	)

For all of our securities for which the amortized cost basis was greater than the fair value at June 30, 2014, 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, third party guarantees and the time to maturity.

In the second quarter of 2014, an unrealized gain of $88 million was recorded in other comprehensive income related to a strategic investment which completed an initial public offering in June 2014. This investment was reclassified from our portfolio of strategic investments held at cost to publicly traded equity securities.

Contractual Maturities

The contractual maturities of fixed income securities held at June 30, 2014 are as follows (table in millions):

	June 30, 2014
	Amortized Cost Basis		Aggregate Fair Value
Due within one year	$	1,926	$	1,928
Due after 1 year through 5 years	5,765		5,783
Due after 5 years through 10 years	544		563
Due after 10 years	382		378
Total	$	8,617	$	8,652

Short-term investments on the consolidated balance sheet include $34 million in variable rate notes which have contractual maturities in 2014, and are not classified within investments due within one year above.

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Inventories

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of (table in millions):

	June 30, 2014		December 31, 2013
Work-in-process	$	721	$	696
Finished goods	676		638
	$	1,397	$	1,334

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Property, Plant and Equipment

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

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

	June 30, 2014			December 31, 2013
Furniture and fixtures	$	239		$	229
Equipment and software	6,391			5,973
Buildings and improvements	2,284			2,089
Land	159			132
Building construction in progress	100			215
	9,173			8,638
Accumulated depreciation	(5,567		)	(5,160		)
	$	3,606		$	3,478

Building construction in progress at June 30, 2014 includes $74 million for facilities not yet placed in service that we are holding for future use.

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Reclassification Out of Accumulated Other Comprehensive Income (Details) (USD $)	3 Months Ended		6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014 Accumulated Net Unrealized Investment Gain (Loss)	Dec. 31, 2013 Accumulated Net Unrealized Investment Gain (Loss)	Jun. 30, 2014 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Dec. 31, 2013 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Jun. 30, 2014 Accumulated Defined Benefit Plans Adjustment	Dec. 31, 2013 Accumulated Defined Benefit Plans Adjustment	Jun. 30, 2014 Foreign Exchange Contract Reclassification Out of Accumulated Other Comprehensive Income Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Jun. 30, 2014 Foreign Exchange Contract Reclassification Out of Accumulated Other Comprehensive Income Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Jun. 30, 2014 Unrealized Gain on Investments Reclassification Out of Accumulated Other Comprehensive Income Accumulated Net Unrealized Investment Gain (Loss)	Jun. 30, 2014 Unrealized Gain on Investments Reclassification Out of Accumulated Other Comprehensive Income Accumulated Net Unrealized Investment Gain (Loss)
Reclassification out of Accumulated Other Comprehensive Income
Investment income	$ 35,000,000	$ 34,000,000	$ 71,000,000	$ 67,000,000									$ 9,000,000	$ 17,000,000
Provision for income tax	(187,000,000)	(216,000,000)	(326,000,000)	(292,000,000)	(61,000,000)	(18,000,000)	66,000,000	66,000,000	61,000,000	61,000,000	0	0	(3,000,000)	(6,000,000)
Net of tax											1,000,000	3,000,000	6,000,000	11,000,000
Product sales revenue	3,319,000,000	3,258,000,000	6,327,000,000	6,369,000,000							2,000,000	3,000,000
Cost of product sales	(1,372,000,000)	(1,340,000,000)	(2,668,000,000)	(2,696,000,000)							(1,000,000)	0
Total net gain on derivatives before tax											$ 1,000,000	$ 3,000,000

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Restructuring and Acquisition-Related Charges - Additional information (Detail) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		3 Months Ended		6 Months Ended	12 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended	3 Months Ended		6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2013 VMware	Jun. 30, 2014 VMware	Jun. 30, 2013 VMware	Jun. 30, 2014 Restructuring 2014 Programs Positions	Mar. 31, 2014 Restructuring 2014 Programs Positions	Jun. 30, 2013 Restructuring 2013 Programs Positions	Dec. 31, 2013 Restructuring 2013 Programs	Jun. 30, 2013 Restructuring 2013 Programs VMware	Jun. 30, 2013 Restructuring 2013 Programs VMware	Dec. 31, 2013 Restructuring 2013 Programs VMware Positions	Jun. 30, 2014 Consolidation of excess facilities and other contractual obligations	Jun. 30, 2013 Consolidation of excess facilities and other contractual obligations Restructuring 2013 Programs VMware	Jun. 30, 2013 Consolidation of excess facilities and other contractual obligations Restructuring 2013 Programs VMware	Jun. 30, 2013 Workforce reductions Restructuring 2013 Programs VMware	Jun. 30, 2013 Workforce reductions Restructuring 2013 Programs VMware
Restructuring Cost and Reserve [Line Items]
Restructuring and acquisition-related charges	$ 30,000,000	$ 7,000,000	$ 149,000,000	$ 155,000,000
Restructuring charges	29,000,000	4,000,000	144,000,000	85,000,000	2,000,000		56,000,000					2,000,000	56,000,000			0	0	2,000,000	56,000,000
Asset Impairment Charges					1,000,000		10,000,000
Acquisition-related charges	2,000,000			3,000,000		4,000,000	1,000,000
Restructuring Reserve, Accrual Adjustment						(1,000,000)
Restructuring and Related Cost, Number of Positions Eliminated								210	1,326	1,004	1,917			710
Lease termination costs for facilities	$ 4,000,000	$ 5,000,000	$ 8,000,000	$ 12,000,000
Date of completion of workforce reduction and/or consolidation of facilities															2015

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Accumulated Other Comprehensive Loss, Net of Tax (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			6 Months Ended		6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014 Accumulated Translation Adjustment	Dec. 31, 2013 Accumulated Translation Adjustment	Jun. 30, 2014 Accumulated Net Unrealized Investment Gain (Loss)	Dec. 31, 2013 Accumulated Net Unrealized Investment Gain (Loss)	Jun. 30, 2014 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Dec. 31, 2013 Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]	Jun. 30, 2014 Accumulated Defined Benefit Plans Adjustment	Dec. 31, 2013 Accumulated Defined Benefit Plans Adjustment	Jun. 30, 2014 Non-controlling Interest in VMware	Dec. 31, 2013 Non-controlling Interest in VMware
Accumulated other comprehensive income (loss) [Line Items]
Other comprehensive income (loss) before reclassifications			$ 87			$ 4		$ 83		$ 1		$ 0		$ (1)
Net losses (gains) reclassified from accumulated other comprehensive income			(13)			0		(11)		(3)		1		0
Net current period other comprehensive income (loss)			74			4		72		(2)		1		(1)
Accumulated other comprehensive loss, net	(165)		(165)		(239)	(49)	(53)	103	31	(108)	(106)	(109)	(110)	(2)	(1)
Provision for income tax	$ 187	$ 216	$ 326	$ 292				$ 61	$ 18	$ (66)	$ (66)	$ (61)	$ (61)

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Restructuring and Acquisition-Related Charges (Tables)

6 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Activity for the Restructuring Programs

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

Three Months Ended June 30, 2014:

2014 EMC Program
Category	Balance as of March 31, 2014		2014 Charges		Utilization			Balance as of June 30, 2014
Workforce reductions	$	102	$	32	$	(36	)	$	98
Consolidation of excess facilities and other contractual obligations	1		4		(2		)	3
Total	$	103	$	36	$	(38	)	$	101

Other EMC Programs
Category	Balance as of March 31, 2014		Adjustments to the Provision			Utilization			Balance as of June 30, 2014
Workforce reductions	$	37	$	(7	)	$	(13	)	$	17
Consolidation of excess facilities and other contractual obligations	20		—			(2		)	18
Total	$	57	$	(7	)	$	(15	)	$	35

Six Months Ended June 30, 2014:

2014 EMC Program
Category	Balance as of December 31, 2013		2014 Charges		Utilization			Balance as of June 30, 2014
Workforce reductions	$	—	$	149	$	(51	)	$	98
Consolidation of excess facilities and other contractual obligations	—		6		(3		)	3
Total	$	—	$	155	$	(54	)	$	101

Other EMC Programs
Category	Balance as of December 31, 2013		Adjustments to the Provision			Utilization			Balance as of June 30, 2014
Workforce reductions	$	66	$	(13	)	$	(36	)	$	17
Consolidation of excess facilities and other contractual obligations	24		2			(8		)	18
Total	$	90	$	(11	)	$	(44	)	$	35

Three Months Ended June 30, 2013:

2013 EMC Programs
Category	Balance as of March 31, 2013		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	66	$	2	$	(23	)	$	45
Consolidation of excess facilities and other contractual obligations	—		3		(1		)	2
Total	$	66	$	5	$	(24	)	$	47

2013 VMware Programs
Category	Balance as of March 31, 2013		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	26	$	2	$	(26	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	26	$	2	$	(26	)	$	2

Other EMC Programs
Category	Balance as of March 31, 2013		Adjustments to the Provision			Utilization			Balance as of June 30, 2013
Workforce reductions	$	46	$	(3	)	$	(14	)	$	29
Consolidation of excess facilities and other contractual obligations	30		2			(5		)	27
Total	$	76	$	(1	)	$	(19	)	$	56

Six Months Ended June 30, 2013:

2013 EMC Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	—	$	81	$	(36	)	$	45
Consolidation of excess facilities and other contractual obligations	—		3		(1		)	2
Total	$	—	$	84	$	(37	)	$	47

2013 VMware Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	—	$	56	$	(54	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	—	$	56	$	(54	)	$	2

Other EMC Programs
Category	Balance as of December 31, 2012		Adjustments to the Provision			Utilization			Balance as of June 30, 2013
Workforce reductions	$	63	$	(8	)	$	(26	)	$	29
Consolidation of excess facilities and other contractual obligations	28		9			(10		)	27
Total	$	91	$	1		$	(36	)	$	56

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Fair Value of Financial Assets and Liabilities Contractual Maturities of Investments (Detail) (Debt Securities, USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Debt Securities
Amortized Cost Basis
Due within one year	$ 1,926
Due after 1 year through 5 years	5,765
Due after 5 years through 10 years	544
Due after 10 years	382
Available For Sale Securities Amortized Cost	8,617	9,576
Aggregate Fair Value
Due within one year	1,928
Due after 1 year through 5 years	5,783
Due after 5 years through 10 years	563
Due after 10 years	378
Available For Sale Securities Fair Value	$ 8,652	$ 9,602

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Restructuring and Acquisition-Related Charges

6 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

For the three and six months ended June 30, 2014, we incurred restructuring and acquisition-related charges of $30 million and $149 million, respectively. For the three and six months ended June 30, 2013, we incurred restructuring and acquisition-related charges of $7 million and $155 million, respectively. For the three and six months ended June 30, 2014, EMC incurred $29 million and $144 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and during both the three and six months ended June 30, 2014, EMC incurred $2 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For each of the three and six months ended June 30, 2014, VMware recognized a recovery of $1 million related to its restructuring program. For the six months ended June 30, 2014, VMware incurred $4 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three and six months ended June 30, 2013, EMC incurred $4 million and $85 million, respectively, of restructuring charges, primarily related to our 2013 restructuring programs. For the three and six months ended June 30, 2013, VMware incurred $2 million and $56 million, respectively, of restructuring charges, primarily related to the 2013 restructuring program. For the six months ended June 30, 2013, EMC incurred $3 million and VMware incurred $1 million of costs for financial, advisory, legal and accounting services in connection with acquisitions. Additionally, during the three and six months ended June 30, 2013, VMware incurred $1 million and $10 million, respectively, of impairment charges related to its business realignment.

In the first and second quarters of 2014, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of approximately 1,326 and 210 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Information Intelligence Group and Pivotal segments. All of these actions are expected to be completed within a year of the start of the program.

During 2013, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of 1,917 positions, of which 1,004 positions were identified in the first and second quarters of 2013. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions were completed within a year of the start of the program.

During 2013, VMware approved and initiated a business realignment plan to streamline its operations. The plan included the elimination of approximately 710 positions across all major functional groups and geographies. All of these actions were completed within a year of the start of the program.

For the three and six months ended June 30, 2014, we recognized $4 million and $8 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 six months ended June 30, 2013, we recognized $5 million and $12 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 millions):

Three Months Ended June 30, 2014:

2014 EMC Program
Category	Balance as of March 31, 2014		2014 Charges		Utilization			Balance as of June 30, 2014
Workforce reductions	$	102	$	32	$	(36	)	$	98
Consolidation of excess facilities and other contractual obligations	1		4		(2		)	3
Total	$	103	$	36	$	(38	)	$	101

Other EMC Programs
Category	Balance as of March 31, 2014		Adjustments to the Provision			Utilization			Balance as of June 30, 2014
Workforce reductions	$	37	$	(7	)	$	(13	)	$	17
Consolidation of excess facilities and other contractual obligations	20		—			(2		)	18
Total	$	57	$	(7	)	$	(15	)	$	35

Six Months Ended June 30, 2014:

2014 EMC Program
Category	Balance as of December 31, 2013		2014 Charges		Utilization			Balance as of June 30, 2014
Workforce reductions	$	—	$	149	$	(51	)	$	98
Consolidation of excess facilities and other contractual obligations	—		6		(3		)	3
Total	$	—	$	155	$	(54	)	$	101

Other EMC Programs
Category	Balance as of December 31, 2013		Adjustments to the Provision			Utilization			Balance as of June 30, 2014
Workforce reductions	$	66	$	(13	)	$	(36	)	$	17
Consolidation of excess facilities and other contractual obligations	24		2			(8		)	18
Total	$	90	$	(11	)	$	(44	)	$	35

Three Months Ended June 30, 2013:

2013 EMC Programs
Category	Balance as of March 31, 2013		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	66	$	2	$	(23	)	$	45
Consolidation of excess facilities and other contractual obligations	—		3		(1		)	2
Total	$	66	$	5	$	(24	)	$	47

2013 VMware Programs
Category	Balance as of March 31, 2013		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	26	$	2	$	(26	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	26	$	2	$	(26	)	$	2

Other EMC Programs
Category	Balance as of March 31, 2013		Adjustments to the Provision			Utilization			Balance as of June 30, 2013
Workforce reductions	$	46	$	(3	)	$	(14	)	$	29
Consolidation of excess facilities and other contractual obligations	30		2			(5		)	27
Total	$	76	$	(1	)	$	(19	)	$	56

Six Months Ended June 30, 2013:

2013 EMC Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	—	$	81	$	(36	)	$	45
Consolidation of excess facilities and other contractual obligations	—		3		(1		)	2
Total	$	—	$	84	$	(37	)	$	47

2013 VMware Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of June 30, 2013
Workforce reductions	$	—	$	56	$	(54	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	—	$	56	$	(54	)	$	2

Other EMC Programs
Category	Balance as of December 31, 2012		Adjustments to the Provision			Utilization			Balance as of June 30, 2013
Workforce reductions	$	63	$	(8	)	$	(26	)	$	29
Consolidation of excess facilities and other contractual obligations	28		9			(10		)	27
Total	$	91	$	1		$	(36	)	$	56

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Business Combinations, Intangibles and Goodwill (Tables)

6 Months Ended

Jun. 30, 2014

Business Acquisition [Line Items]

Intangible Assets, Excluding Goodwill

Intangible Assets

Intangible assets, excluding goodwill, as of June 30, 2014 and December 31, 2013 consist of (tables in millions):

	June 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,783	$	(1,546	)	$	1,237
Patents	225		(109		)	116
Software licenses	104		(92		)	12
Trademarks and tradenames	212		(127		)	85
Customer relationships and customer lists	1,463		(914		)	549
Leasehold interest	147		(13		)	134
Other	44		(30		)	14
Total intangible assets, excluding goodwill	$	4,978	$	(2,831	)	$	2,147

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,356	$	(1,429	)	$	927
Patents	225		(102		)	123
Software licenses	101		(90		)	11
Trademarks and tradenames	171		(118		)	53
Customer relationships and customer lists	1,386		(855		)	531
Leasehold interest	145		(11		)	134
Other	28		(27		)	1
Total intangible assets, excluding goodwill	$	4,412	$	(2,632	)	$	1,780

Changes in Carrying Amount of Goodwill

Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the six months ended June 30, 2014 consist of (table in millions):

	Six Months Ended June 30, 2014
	Information Storage		Information Intelligence Group			RSA Information Security		Pivotal			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,486	$	1,487		$	2,203	$	177		$	3,071		$	14,424
Goodwill resulting from acquisitions	509		—			—		—			879			1,388
Finalization of purchase price allocations and other, net	—		(2		)	—		—			(8		)	(10		)
Goodwill transferred in acquisition of Pivotal businesses	6		—			—		(6		)	—			—
Balance, end of the period	$	8,001	$	1,485		$	2,203	$	171		$	3,942		$	15,802

VMware | AirWatch

Business Acquisition [Line Items]

Business Acquisitions, by Acquisition

The following table summarizes the allocation of the consideration to the fair value of the assets acquired and net liabilities assumed, net of cash acquired (table in millions):

Other current assets	$	60
Intangible assets:
Purchased technology (weighted-average useful life of 6 years)	118
Customer relationships and customer lists (weighted-average useful life of 8 years)	78
Trademarks and tradenames (weighted-average useful life of 8 years)	40
Other (weighted-average useful life of 3 years)	14
Total intangible assets, net, excluding goodwill	250
Goodwill	879
Other assets	17
Total assets acquired	1,206
Unearned revenue	(45		)
Other assumed liabilities, net of acquired assets	(69		)
Total net liabilities assumed	(114		)
Fair value of assets acquired and net liabilities assumed	$	1,092

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Changes In Fair Value of Level 3 Financial Assets (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Other than Temporary Impairment Losses, Investments			$ (33)	$ 0
LenovoEMC
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of the period	35	33	35	33
Realized gain (loss) included in other income (expense)	1	1	1	1
Balance, end of the period	36	34	36	34
Auction Rate Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of the period	60	68	60	70
Calls at par value	0	0	0	(1)
Other than Temporary Impairment Losses, Investments	0	0	0	(1)
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income	(1)	0	(1)	0
Balance, end of the period	$ 59	$ 68	$ 59	$ 68

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Business Combinations, Intangibles and Goodwill - Goodwill (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Goodwill [Roll Forward]
Balance, beginning of the period	$ 14,424
Goodwill resulting from acquisitions	1,388
Finalization of purchase price allocations and other, net	(10)
Goodwill transferred in formation of Pivotal	0
Balance, end of the period	15,802
Information Storage
Goodwill [Roll Forward]
Balance, beginning of the period	7,486
Goodwill resulting from acquisitions	509
Finalization of purchase price allocations and other, net	0
Goodwill transferred in formation of Pivotal	6
Balance, end of the period	8,001
Information Intelligence Group
Goodwill [Roll Forward]
Balance, beginning of the period	1,487
Goodwill resulting from acquisitions	0
Finalization of purchase price allocations and other, net	(2)
Goodwill transferred in formation of Pivotal	0
Balance, end of the period	1,485
RSA Information Security
Goodwill [Roll Forward]
Balance, beginning of the period	2,203
Goodwill resulting from acquisitions	0
Finalization of purchase price allocations and other, net	0
Goodwill transferred in formation of Pivotal	0
Balance, end of the period	2,203
Pivotal
Goodwill [Roll Forward]
Balance, beginning of the period	177
Goodwill resulting from acquisitions	0
Finalization of purchase price allocations and other, net	0
Goodwill transferred in formation of Pivotal	(6)
Balance, end of the period	171
VMware Virtual Infrastructure Within EMC
Goodwill [Roll Forward]
Balance, beginning of the period	3,071
Goodwill resulting from acquisitions	879
Finalization of purchase price allocations and other, net	(8)
Goodwill transferred in formation of Pivotal	0
Balance, end of the period	$ 3,942

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net income	$ 622	$ 750	$ 1,054	$ 1,365
Other comprehensive income (loss), net of taxes (benefits):
Foreign currency translation adjustments	9	(25)	4	(56)
Changes in market value of investments:
Changes in unrealized gains (losses), net of taxes (benefits) of $35, $(17), $49 and $(15)	59	(30)	83	(29)
Reclassification adjustment for net losses (gains) realized in net income, net of benefits (taxes) of $(3), $(2), $(6) and $(5)	(6)	(4)	(11)	(8)
Net change in market value of investments	53	(34)	72	(37)
Changes in market value of derivatives:
Changes in unrealized gains (losses), net of taxes (benefits) of $1, $1, $0 and $2	2	2	1	8
Reclassification adjustment for net losses (gains) included in net income, net of benefits (taxes) of $0, $0, $0 and $(1)	(1)	(3)	(3)	(8)
Net change in the market value of derivatives	1	(1)	(2)	0
Other comprehensive income (loss)	63	(60)	74	(93)
Comprehensive income	685	690	1,128	1,272
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(33)	(49)	(74)	(84)
Less: Other comprehensive income attributable to the non-controlling interest in VMware, Inc.	0	2	(1)	2
Comprehensive income attributable to EMC Corporation	$ 652	$ 643	$ 1,053	$ 1,190

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Non-controlling Interest in VMware, Inc.

6 Months Ended

Jun. 30, 2014

Noncontrolling Interest [Abstract]

Non-controlling Interest in VMware, Inc.

Non-controlling Interests

The non-controlling interests’ share of equity in VMware is reflected as non-controlling interests in the accompanying consolidated balance sheets and was $1,430 million and $1,380 million as of June 30, 2014 and December 31, 2013, respectively. At June 30, 2014, EMC held approximately 97% of the combined voting power of VMware’s outstanding common stock and approximately 80% of the economic interest in VMware.

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

	For the Six Months Ended
	June 30, 2014			June 30, 2013
Net income attributable to EMC Corporation	$	980		$	1,281
Transfers (to) from the non-controlling interest in VMware, Inc.:
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances	51			52
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity	(427		)	(321		)
Net transfers (to) from non-controlling interest	(376		)	(269		)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.	$	604		$	1,012

The non-controlling interests' share of equity in Pivotal is reflected as a component of the non-controlling interests in the accompanying consolidated balance sheets as $105 million at both June 30, 2014 and December 31, 2013. At June 30, 2014, EMC held approximately 84% of the economic interest in Pivotal. General Electric Company's ("GE") 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. Additionally, due to the terms of the preferred instrument, GE's non-controlling interest on the consolidated balance sheets is generally not impacted by Pivotal's equity related activity. The preferred equity instrument is convertible into common shares at GE’s election at any time.

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Components of Accrued Expenses (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Payables and Accruals [Abstract]
Salaries and benefits	$ 989		$ 1,078
Product warranties	255	274	289	291	283	278
Dividends Payable	240		205
Partner rebates	201		214
Restructuring, current (see Note 13)	128		84
Derivatives	23		23
Other	914		890
Accrued Liabilities, Current, Total	$ 2,750		$ 2,783

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Segment Information Segment information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues:
Product sales	$ 3,319,000,000	$ 3,258,000,000	$ 6,327,000,000	$ 6,369,000,000
Services revenues	2,561,000,000	2,356,000,000	5,032,000,000	4,632,000,000
Total consolidated revenues	5,880,000,000	5,614,000,000	11,359,000,000	11,001,000,000
Gross profit	3,654,000,000	3,509,000,000	7,001,000,000	6,807,000,000
Gross profit percentage	62.10%	62.50%	61.60%	61.90%
Research and development	740,000,000	695,000,000	1,472,000,000	1,370,000,000
Selling, general and administrative	2,010,000,000	1,785,000,000	3,861,000,000	3,499,000,000
Restructuring and Acquisition-related Charges	30,000,000	7,000,000	149,000,000	155,000,000
Total costs and expenses	2,780,000,000	2,487,000,000	5,482,000,000	5,024,000,000
Operating income	874,000,000	1,022,000,000	1,519,000,000	1,783,000,000
Other income (expense), net	(65,000,000)	(56,000,000)	(139,000,000)	(126,000,000)
Income before provision for income taxes	809,000,000	966,000,000	1,380,000,000	1,657,000,000
Income tax provision	187,000,000	216,000,000	326,000,000	292,000,000
Net income	622,000,000	750,000,000	1,054,000,000	1,365,000,000
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(33,000,000)	(49,000,000)	(74,000,000)	(84,000,000)
Net income attributable to EMC Corporation	589,000,000	701,000,000	980,000,000	1,281,000,000
Information Storage
Revenues:
Product sales	2,551,000,000	2,577,000,000	4,853,000,000	5,048,000,000
Services revenues	1,425,000,000	1,377,000,000	2,803,000,000	2,704,000,000
Total consolidated revenues	3,976,000,000	3,954,000,000	7,656,000,000	7,752,000,000
Gross profit	2,192,000,000	2,236,000,000	4,168,000,000	4,324,000,000
Gross profit percentage	55.10%	56.50%	54.40%	55.80%
Information Intelligence Group
Revenues:
Product sales	37,000,000	39,000,000	72,000,000	82,000,000
Services revenues	121,000,000	113,000,000	240,000,000	226,000,000
Total consolidated revenues	158,000,000	152,000,000	312,000,000	308,000,000
Gross profit	100,000,000	96,000,000	199,000,000	195,000,000
Gross profit percentage	63.20%	63.10%	63.90%	63.40%
RSA Information Security
Revenues:
Product sales	104,000,000	98,000,000	208,000,000	198,000,000
Services revenues	139,000,000	130,000,000	278,000,000	262,000,000
Total consolidated revenues	243,000,000	228,000,000	486,000,000	460,000,000
Gross profit	162,000,000	148,000,000	323,000,000	301,000,000
Gross profit percentage	66.70%	65.10%	66.40%	65.20%
EMC Information Infrastructure
Revenues:
Product sales	2,692,000,000	2,714,000,000	5,133,000,000	5,328,000,000
Services revenues	1,685,000,000	1,620,000,000	3,321,000,000	3,192,000,000
Total consolidated revenues	4,377,000,000	4,334,000,000	8,454,000,000	8,520,000,000
Gross profit	2,454,000,000	2,480,000,000	4,690,000,000	4,820,000,000
Gross profit percentage	56.10%	57.20%	55.50%	56.60%
Research and development	358,000,000	377,000,000	736,000,000	743,000,000
Selling, general and administrative	1,140,000,000	1,118,000,000	2,241,000,000	2,195,000,000
Restructuring and Acquisition-related Charges	0	0	0	0
Total costs and expenses	1,498,000,000	1,495,000,000	2,977,000,000	2,938,000,000
Operating income	956,000,000	985,000,000	1,713,000,000	1,882,000,000
Pivotal
Revenues:
Product sales	15,000,000	15,000,000	26,000,000	28,000,000
Services revenues	39,000,000	27,000,000	78,000,000	49,000,000
Total consolidated revenues	54,000,000	42,000,000	104,000,000	77,000,000
Gross profit	26,000,000	20,000,000	45,000,000	37,000,000
Gross profit percentage	47.20%	48.10%	42.90%	48.10%
Research and development	33,000,000	26,000,000	66,000,000	52,000,000
Selling, general and administrative	46,000,000	36,000,000	87,000,000	73,000,000
Restructuring and Acquisition-related Charges	0	0	0	0
Total costs and expenses	79,000,000	62,000,000	153,000,000	125,000,000
Operating income	(53,000,000)	(42,000,000)	(108,000,000)	(88,000,000)
EMC Information Infrastructure Plus Pivotal
Revenues:
Product sales	2,707,000,000	2,729,000,000	5,159,000,000	5,356,000,000
Services revenues	1,724,000,000	1,647,000,000	3,399,000,000	3,241,000,000
Total consolidated revenues	4,431,000,000	4,376,000,000	8,558,000,000	8,597,000,000
Gross profit	2,480,000,000	2,500,000,000	4,735,000,000	4,857,000,000
Gross profit percentage	55.90%	57.10%	55.30%	56.50%
Research and development	391,000,000	403,000,000	802,000,000	795,000,000
Selling, general and administrative	1,186,000,000	1,154,000,000	2,328,000,000	2,268,000,000
Restructuring and Acquisition-related Charges	0	0	0	0
Total costs and expenses	1,577,000,000	1,557,000,000	3,130,000,000	3,063,000,000
Operating income	903,000,000	943,000,000	1,605,000,000	1,794,000,000
Other income (expense), net	(84,000,000)	(78,000,000)	(164,000,000)	(152,000,000)
Income tax provision	209,000,000	214,000,000	378,000,000	401,000,000
Net income	610,000,000	651,000,000	1,063,000,000	1,241,000,000
Less: Net income attributable to the non-controlling interest in VMware, Inc.	0	0	0	0
Net income attributable to EMC Corporation	610,000,000	651,000,000	1,063,000,000	1,241,000,000
VMware Virtual Infrastructure Within EMC
Revenues:
Product sales	612,000,000	529,000,000	1,168,000,000	1,013,000,000
Services revenues	837,000,000	709,000,000	1,633,000,000	1,391,000,000
Total consolidated revenues	1,449,000,000	1,238,000,000	2,801,000,000	2,404,000,000
Gross profit	1,272,000,000	1,109,000,000	2,457,000,000	2,150,000,000
Gross profit percentage	87.80%	89.60%	87.70%	89.40%
Research and development	246,000,000	207,000,000	474,000,000	397,000,000
Selling, general and administrative	602,000,000	489,000,000	1,139,000,000	939,000,000
Restructuring and Acquisition-related Charges	0	0	0	0
Total costs and expenses	848,000,000	696,000,000	1,613,000,000	1,336,000,000
Operating income	424,000,000	413,000,000	844,000,000	814,000,000
Other income (expense), net	8,000,000	3,000,000	15,000,000	7,000,000
Income tax provision	91,000,000	93,000,000	175,000,000	176,000,000
Net income	341,000,000	323,000,000	684,000,000	645,000,000
Less: Net income attributable to the non-controlling interest in VMware, Inc.	(69,000,000)	(67,000,000)	(138,000,000)	(129,000,000)
Net income attributable to EMC Corporation	272,000,000	256,000,000	546,000,000	516,000,000
Corp Reconciling Items [Member]
Revenues:
Product sales	0	0	0	0
Services revenues	0	0	0	0
Total consolidated revenues	0	0	0	0
Gross profit	(98,000,000)	(100,000,000)	(191,000,000)	(200,000,000)
Gross profit percentage	0.00%	0.00%	0.00%	0.00%
Research and development	103,000,000	85,000,000	196,000,000	178,000,000
Selling, general and administrative	222,000,000	142,000,000	394,000,000	292,000,000
Restructuring and Acquisition-related Charges	30,000,000	7,000,000	149,000,000	155,000,000
Total costs and expenses	355,000,000	234,000,000	739,000,000	625,000,000
Operating income	(453,000,000)	(334,000,000)	(930,000,000)	(825,000,000)
Other income (expense), net	11,000,000	19,000,000	10,000,000	19,000,000
Income tax provision	(113,000,000)	(91,000,000)	(227,000,000)	(285,000,000)
Net income	(329,000,000)	(224,000,000)	(693,000,000)	(521,000,000)
Less: Net income attributable to the non-controlling interest in VMware, Inc.	36,000,000	18,000,000	64,000,000	45,000,000
Net income attributable to EMC Corporation	$ (293,000,000)	$ (206,000,000)	$ (629,000,000)	$ (476,000,000)

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Debt (Tables)

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Key Components of Convertible Debt

The following table represent the key components of our interest expense on convertible debt for the three and six months ended June 30, 2013 (table in millions):

	June 30, 2013
	Three Months Ended		Six Months Ended
Contractual interest expense on the coupon	$	7	$	15
Amortization of the discount component recognized as interest expense	16		31
Total interest expense on the convertible debt	$	23	$	46

Our long-term debt as of June 30, 2014 was as follows (dollars in millions):

Senior Notes	Issued at Discount to Par		Carrying Value
$2.5 billion 1.875% Notes due 2018	99.943	%	$	2,499
$2.0 billion 2.650% Notes due 2020	99.760	%	1,996
$1.0 billion 3.375% Notes due 2023	99.925	%	999
			$	5,494

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Effect of Changes in Ownership Interest in VMware on Equity (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Noncontrolling Interest [Line Items]
Net income attributable to EMC Corporation	$ 589	$ 701	$ 980	$ 1,281
Net transfers (to) from non-controlling interest			(401)	(150)
VMware
Noncontrolling Interest [Line Items]
Net income attributable to EMC Corporation			980	1,281
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances			51	52
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity			(427)	(321)
Net transfers (to) from non-controlling interest			(376)	(269)
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc.			$ 604	$ 1,012

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Stockholders' Equity

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

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

	For the Three Months Ended						For the Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Numerator:
Net income attributable to EMC Corporation	$	589		$	701		$	980		$	1,281
Incremental dilution from VMware	(1		)	(2		)	(3		)	(3		)
Net income – dilution attributable to EMC Corporation	$	588		$	699		$	977		$	1,278
Denominator:
Weighted average shares, basic	2,037			2,092			2,033			2,097
Weighted common stock equivalents	27			29			27			30
Assumed conversion of the 2013 Notes and associated warrants	—			53			10			54
Weighted average shares, diluted	2,064			2,174			2,070			2,181

Due to the cash settlement feature of the principal amount of the 2013 Notes, we only included the impact of the premium feature in our diluted earnings per share calculation when the 2013 Notes were convertible due to maturity or when the average stock price exceeded 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. Approximately half of the associated warrants were exercised during the year ended December 31, 2012. The remaining 109 million warrants were exercised between February 18, 2014 and March 17, 2014. These warrants were settled with shares of our common stock. As such, we included the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation during the three and six months ended June 30, 2013 as the average stock price exceeded the exercise price, and during the six months ended June 30, 2014 for the period the warrants were outstanding.

Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 1 million and 4 million for the three and six months ended June 30, 2014, respectively, and 4 million for both the three and six months ended June 30, 2013, 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.

Repurchase of Common Stock

We utilize both authorized and unissued shares (including repurchased shares) for all issuances under our equity plans. Our Board of Directors authorized the repurchase of 250 million shares of our common stock in February 2013. For the six months ended June 30, 2014, we spent $1.0 billion to repurchase 39 million shares of our common stock. Of the 250 million shares authorized for repurchase, we have repurchased 133 million shares at a total cost of $3.4 billion, leaving a remaining balance of 117 million shares authorized for future repurchases.  We plan to spend up to $6.0 billion in the repurchase of shares during the two years ending December 31, 2014. This includes $3.0 billion spent during the year ended December 31, 2013 and $3.0 billion to be spent during the year ending December 31, 2014.

Cash Dividend on Common Stock

In May 2013, our Board of Directors approved the initiation of a quarterly cash dividend to EMC shareholders of $0.10 per share of common stock. On April 17, 2014, our Board of Directors approved an increase in the quarterly cash dividend paid to EMC shareholders to $0.115 per share of common stock.

Our Board of Directors declared the following dividends during the periods presented:

Declaration Date	Dividend Per Share		Record Date	Total Amount (in millions)		Payment Date
Fiscal Year 2014:
February 6, 2014	$	0.10	April 1, 2014	$	209	April 23, 2014
April 17, 2014	$	0.115	July 1, 2014	$	237	July 23, 2014
July 30, 2014	$	0.115	October 1, 2014	N/A		October 23, 2014
Fiscal Year 2013:
May 30, 2013	$	0.10	July 1, 2013	$	212	July 23, 2013

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following (table in millions):

	Foreign Currency Translation Adjustments			Unrealized Net Gains on Investments			Unrealized Net Losses on Derivatives			Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans			Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc.			Total
Balance as of December, 31 2013(a)	$	(53	)	$	31		$	(106	)	$	(110	)	$	(1	)	$	(239	)
Other comprehensive income (loss) before reclassifications	4			83			1			—			(1		)	87
Net losses (gains) reclassified from accumulated other comprehensive income	—			(11		)	(3		)	1			—			(13		)
Net current period other comprehensive income (loss)	4			72			(2		)	1			(1		)	74
Balance as of June 30, 2014(b)	$	(49	)	$	103		$	(108	)	$	(109	)	$	(2	)	$	(165	)

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(a) Net of taxes (benefits) of $18 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

(b) Net of taxes (benefits) of $61 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 are as follows (tables in millions):

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Three Months Ended June 30, 2014:
Net gain on investments:	$	9		Investment income
	(3		)	Provision for income tax
Net of tax	$	6
Net gain on derivatives:
Foreign exchange contracts	$	2		Product sales revenue
Foreign exchange contracts	(1		)	Cost of product sales
Total net gain on derivatives before tax	1
	—			Provision for income tax
Net of tax	$	1

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Six Months Ended June 30, 2014:
Net gain on investments:	$	17		Investment income
	(6		)	Provision for income tax
Net of tax	$	11
Net gain on derivatives:
Foreign exchange contracts	$	3		Product sales revenue
Foreign exchange contracts	—			Cost of product sales
Total net gain on derivatives before tax	3
	—			Provision for income tax
Net of tax	$	3