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.