Segment Information

We manage the Company as a federation of 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 nine months ended September 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:
September 30, 2014
Revenues:
Product revenues	$	2,595		$	36		$	114		$	2,745		$	17		$	2,762
Services revenues	1,456			118			147			1,721			41			1,762
Total consolidated revenues	4,051			154			261			4,466			58			4,524

Gross profit	$	2,238		$	100		$	173		$	2,511		$	27		$	2,538
Gross profit percentage	55.2		%	65.2		%	66.3		%	56.2		%	46.9		%	56.1		%

Research and development										372			33			405
Selling, general and administrative										1,146			46			1,192
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,518			79			1,597
Operating income (expense)										$	993		$	(52	)	$	941



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended
September 30, 2014
Revenues:
Product revenues	$	2,762		$	638		$	—		$	3,400
Services revenues	1,762			870			—			2,632
Total consolidated revenues	4,524			1,508			—			6,032

Gross profit	$	2,538		$	1,304		$	(99	)	$	3,743
Gross profit percentage	56.1		%	86.5		%	—		%	62.0		%

Research and development	405			263			99			767
Selling, general and administrative	1,192			586			212			1,990
Restructuring and acquisition-related charges	—			—			39			39
Total costs and expenses	1,597			849			350			2,796

Operating income (expense)	941			455			(449		)	947

Non-operating income (expense), net	(120		)	6			—			(114		)
Income tax provision (benefit)	207			99			(100		)	206
Net income	614			362			(349		)	627
Net income attributable to the non-controlling interest in VMware, Inc.	—			(73		)	33			(40		)
Net income attributable to EMC Corporation	$	614		$	289		$	(316	)	$	587



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Three Months Ended:
September 30, 2013
Revenues:
Product revenues	$	2,430		$	32		$	120		$	2,582		$	20		$	2,602
Services revenues	1,376			117			132			1,625			27			1,652
Total consolidated revenues	3,806			149			252			4,207			47			4,254

Gross profit	$	2,106		$	94		$	170		$	2,370		$	29		$	2,399
Gross profit percentage	55.3		%	63.3		%	67.6		%	56.3		%	61.0		%	56.4		%

Research and development										356			30			386
Selling, general and administrative										1,115			42			1,157
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										1,471			72			1,543
Operating income (expense)										$	899		$	(43	)	$	856



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Three Months Ended
September 30, 2013
Revenues:
Product revenues	$	2,602		$	563		$	—		$	3,165
Services revenues	1,652			722			—			2,374
Total consolidated revenues	4,254			1,285			—			5,539

Gross profit	$	2,399		$	1,141		$	(98	)	$	3,442
Gross profit percentage	56.4		%	88.8		%	—		%	62.1		%

Research and development	386			208			92			686
Selling, general and administrative	1,157			493			159			1,809
Restructuring and acquisition-related charges	—			—			40			40
Total costs and expenses	1,543			701			291			2,535

Operating income (expense)	856			440			(389		)	907

Non-operating income (expense), net	(106		)	7			12			(87		)
Income tax provision (benefit)	193			70			(82		)	181
Net income	557			377			(295		)	639
Net income attributable to the non-controlling interest in VMware, Inc.	—			(74		)	21			(53		)
Net income attributable to EMC Corporation	$	557		$	303		$	(274	)	$	586



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Nine Months Ended:
September 30, 2014
Revenues:
Product revenues	$	7,447		$	108		$	323		$	7,878		$	43		$	7,921
Services revenues	4,260			358			425			5,043			118			5,161
Total consolidated revenues	11,707			466			748			12,921			161			13,082

Gross profit	$	6,405		$	300		$	497		$	7,202		$	71		$	7,273
Gross profit percentage	54.7		%	64.4		%	66.4		%	55.7		%	44.3		%	55.6		%

Research and development										1,106			98			1,204
Selling, general and administrative										3,388			133			3,521
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										4,494			231			4,725
Operating income (expense)										$	2,708		$	(160	)	$	2,548



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2014
Revenues:
Product revenues	$	7,921		$	1,807		$	—		$	9,728
Services revenues	5,161			2,502			—			7,663
Total consolidated revenues	13,082			4,309			—			17,391

Gross profit	$	7,273		$	3,761		$	(290	)	$	10,744
Gross profit percentage	55.6		%	87.3		%	—		%	61.8		%

Research and development	1,204			737			298			2,239
Selling, general and administrative	3,521			1,725			606			5,852
Restructuring and acquisition-related charges	—			—			187			187
Total costs and expenses	4,725			2,462			1,091			8,278

Operating income (expense)	2,548			1,299			(1,381		)	2,466

Non-operating income (expense), net	(285		)	21			11			(253		)
Income tax provision (benefit)	584			274			(326		)	532
Net income	1,679			1,046			(1,044		)	1,681
Net income attributable to the non-controlling interest in VMware, Inc.	—			(211		)	98			(113		)
Net income attributable to EMC Corporation	$	1,679		$	835		$	(946	)	$	1,568



	EMC Information Infrastructure
	Information Storage			Information Intelligence Group			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Nine Months Ended:
September 30, 2013
Revenues:
Product revenues	$	7,478		$	115		$	317		$	7,910		$	48		$	7,958
Services revenues	4,079			343			395			4,817			76			4,893
Total consolidated revenues	11,557			458			712			12,727			124			12,851

Gross profit	$	6,429		$	290		$	471		$	7,190		$	65		$	7,255
Gross profit percentage	55.6		%	63.3		%	66.1		%	56.5		%	52.9		%	56.5		%

Research and development										1,099			82			1,181
Selling, general and administrative										3,309			115			3,424
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										4,408			197			4,605
Operating income (expense)										$	2,782		$	(132	)	$	2,650



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
Nine Months Ended:
September 30, 2013
Revenues:
Product revenues	$	7,958		$	1,577		$	—		$	9,535
Services revenues	4,893			2,112			—			7,005
Total consolidated revenues	12,851			3,689			—			16,540

Gross profit	$	7,255		$	3,292		$	(298	)	$	10,249
Gross profit percentage	56.5		%	89.2		%	—		%	62.0		%

Research and development	1,181			606			269			2,056
Selling, general and administrative	3,424			1,432			452			5,308
Restructuring and acquisition-related charges	—			—			195			195
Total costs and expenses	4,605			2,038			916			7,559

Operating income (expense)	2,650			1,254			(1,214		)	2,690

Non-operating income (expense), net	(258		)	14			31			(213		)
Income tax provision (benefit)	594			247			(367		)	474
Net income	1,798			1,021			(816		)	2,003
Net income attributable to the non-controlling interest in VMware, Inc.	—			(202		)	66			(136		)
Net income attributable to EMC Corporation	$	1,798		$	819		$	(750	)	$	1,867

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 Nine Months Ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
United States	$	3,212	$	2,956	$	9,102	$	8,752
Europe, Middle East and Africa	1,672		1,455		4,933		4,418
Asia Pacific and Japan	821		789		2,346		2,361
Latin America, Mexico and Canada	327		339		1,010		1,009
Total	$	6,032	$	5,539	$	17,391	$	16,540

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

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,337 million at September 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 $973 million at September 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 September 30, 2014 or December 31, 2013.