FORM 8-K |
Massachusetts | 1-9853 | 04-2680009 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
176 South Street Hopkinton, Massachusetts (Address of principal executive offices) | 01748 (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release from EMC Corporation dated January 29, 2015 |
EMC CORPORATION | |
By: | /s/ Zane C. Rowe |
Zane C. Rowe | |
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 | Press release from EMC Corporation dated January 29, 2015 |
Press Contact: | Katryn McGaughey |
Highlights: | |
l | Record Q4 revenue of $7 billion, up 5% year over year |
l | Q4 GAAP EPS up 17% year over year; Q4 non-GAAP EPS up 15% year over year |
l | EMC Information Infrastructure, VMware and Pivotal Q4 revenue up 2%, 16% and 18% year over year, respectively |
l | Q4 revenue from Emerging Storage grew 40% year over year; Full-year 2014 revenue grew 52% year over year |
• | EMC Information Infrastructure business fourth-quarter and full-year 2014 revenue were each up 2% year over year. Information Storage revenue in the fourth quarter grew 3% year over year and 2% for the full year. Emerging Storage4 revenue in the fourth quarter grew 40% year over year and 52% for the full-year 2014, achieving $2.3 billion in revenue over the course of 2014, with notably strong growth for EMC XtremIO, EMC ViPR, EMC Isilon and EMC ScaleIO. Within this, EMC XtremIO bookings more than doubled to nearly $300 million in the fourth quarter compared with the previous quarter, thereby securing a commanding lead over the all-flash array market segment. Unified and Backup and Recovery revenue grew in the fourth quarter and was up 4% for the full-year 2014. Within this, EMC VNX systems continue to do well, adding approximately 2,000 new customers in the fourth quarter, with the vast majority being new to EMC storage. RSA fourth-quarter revenue grew 4% year over year and grew 5% for 2014. Converged infrastructure offerings from VCE and VSPEX continued to drive revenue growth in the fourth quarter, with VCE adding a record number of new customers in the quarter. |
• | VMware continued its rapid growth trajectory with fourth-quarter and full-year 2014 revenue within EMC each up 16% year over year as customers continue investing in software-defined data center, hybrid cloud solutions and end-user computing. |
• | Pivotal grew fourth-quarter revenue 18% and full-year 2014 revenue 27% year over year, and remains the fastest growing of EMC’s federated businesses, benefiting from customers leveraging the portfolio to build third platform applications that are transforming their business. |
• | Consolidated revenues are expected to be $26.1 billion for 2015. |
• | Consolidated GAAP operating income is expected to be 13.7% of revenues for 2015 and consolidated non-GAAP5 operating income is expected to be 21.4% of revenues for 2015. |
• | Consolidated GAAP earnings per weighted average diluted share are expected to be $1.27 for 2015 and consolidated non-GAAP5 earnings per weighted average diluted share are expected to be $1.98 for 2015. |
• | The consolidated GAAP income tax rate is expected to be 23.0% and the consolidated non-GAAP5 income tax rate is expected to be 23.6% for 2015. This assumes that the U.S. research and development tax credit is extended during 2015. |
• | The weighted average outstanding diluted shares are expected to be 1.96 billion for 2015. |
• | EMC expects to repurchase an aggregate of $3.0 billion of the company’s common stock in 2015. |
• | The fourth-quarter and full-year 2014 webcast will be available for replay on the EMC Investor Relations website at http://www.emc.com/ir |
• | EMC financial results are also available on the U.S. Securities and Exchange Commission website |
• | Visit http://ir.vmware.com for more detail on VMware’s fourth-quarter 2014 financial results |
• | Download the EMC Investor Relations App here |
• | Visit EMC Pulse for breaking product and technology news from EMC |
• | Visit EMC Reflections for executive insight on business and IT trends |
• | Connect with EMC via @EMCCorp, LinkedIn and Facebook |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | 4,322 | $ | 4,155 | $ | 14,051 | $ | 13,690 | ||||||||
Services | 2,726 | 2,527 | 10,389 | 9,532 | ||||||||||||
7,048 | 6,682 | 24,440 | 23,222 | |||||||||||||
Cost and expenses: | ||||||||||||||||
Cost of product sales | 1,669 | 1,630 | 5,738 | 5,650 | ||||||||||||
Cost of services | 874 | 828 | 3,453 | 3,099 | ||||||||||||
Research and development | 752 | 705 | 2,991 | 2,761 | ||||||||||||
Selling, general and administrative | 2,131 | 2,029 | 7,982 | 7,338 | ||||||||||||
Restructuring and acquisition-related charges | 52 | 29 | 239 | 224 | ||||||||||||
Operating income | 1,570 | 1,461 | 4,037 | 4,150 | ||||||||||||
Non-operating income (expense): | ||||||||||||||||
Investment income | 24 | 35 | 123 | 128 | ||||||||||||
Interest expense | (39 | ) | (47 | ) | (147 | ) | (156 | ) | ||||||||
Other expense, net | (6 | ) | (61 | ) | (251 | ) | (257 | ) | ||||||||
Total non-operating income (expense) | (21 | ) | (73 | ) | (275 | ) | (285 | ) | ||||||||
Income before provision for income taxes | 1,549 | 1,388 | 3,762 | 3,865 | ||||||||||||
Income tax provision | 336 | 298 | 868 | 772 | ||||||||||||
Net income | 1,213 | 1,090 | 2,894 | 3,093 | ||||||||||||
Less: Net income attributable to the non-controlling interest in VMware, Inc. | (66 | ) | (68 | ) | (180 | ) | (204 | ) | ||||||||
Net income attributable to EMC Corporation | $ | 1,147 | $ | 1,022 | $ | 2,714 | $ | 2,889 | ||||||||
Net income per weighted average share, basic attributable to EMC Corporation common shareholders | $ | 0.57 | $ | 0.50 | $ | 1.34 | $ | 1.39 | ||||||||
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders | $ | 0.56 | $ | 0.48 | $ | 1.32 | $ | 1.33 | ||||||||
Weighted average shares, basic | 2,014 | 2,034 | 2,028 | 2,074 | ||||||||||||
Weighted average shares, diluted | 2,038 | 2,114 | 2,059 | 2,160 | ||||||||||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.10 | $ | 0.45 | $ | 0.30 |
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,343 | $ | 7,891 | ||||
Short-term investments | 1,978 | 2,773 | ||||||
Accounts and notes receivable, less allowance for doubtful accounts of $72 and $62 | 4,413 | 3,861 | ||||||
Inventories | 1,276 | 1,334 | ||||||
Deferred income taxes | 1,070 | 912 | ||||||
Other current assets | 653 | 507 | ||||||
Total current assets | 15,733 | 17,278 | ||||||
Long-term investments | 6,334 | 6,924 | ||||||
Property, plant and equipment, net | 3,766 | 3,478 | ||||||
Intangible assets, net | 2,125 | 1,780 | ||||||
Goodwill | 16,134 | 14,424 | ||||||
Other assets, net | 1,793 | 1,965 | ||||||
Total assets | $ | 45,885 | $ | 45,849 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,696 | $ | 1,434 | ||||
Accrued expenses | 3,141 | 2,783 | ||||||
Notes converted and payable | — | 1,665 | ||||||
Income taxes payable | 852 | 639 | ||||||
Deferred revenue | 6,021 | 5,278 | ||||||
Total current liabilities | 11,710 | 11,799 | ||||||
Income taxes payable | 306 | 296 | ||||||
Deferred revenue | 4,144 | 3,701 | ||||||
Deferred income taxes | 274 | 421 | ||||||
Long-term debt | 5,495 | 5,494 | ||||||
Other liabilities | 431 | 352 | ||||||
Total liabilities | 22,360 | 22,063 | ||||||
Commitments and contingencies | ||||||||
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 1,985 and 2,020 shares | 20 | 20 | ||||||
Additional paid-in capital | — | 1,406 | ||||||
Retained earnings | 22,242 | 21,114 | ||||||
Accumulated other comprehensive loss, net | (366 | ) | (239 | ) | ||||
Total EMC Corporation's shareholders' equity | 21,896 | 22,301 | ||||||
Non-controlling interests | 1,629 | 1,485 | ||||||
Total shareholders' equity | 23,525 | 23,786 | ||||||
Total liabilities and shareholders' equity | $ | 45,885 | $ | 45,849 |
Twelve Months Ended | |||||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Cash flows from operating activities: | |||||||||||
Cash received from customers | $ | 25,360 | $ | 24,319 | |||||||
Cash paid to suppliers and employees | (17,893 | ) | (16,708 | ) | |||||||
Dividends and interest received | 143 | 169 | |||||||||
Interest paid | (134 | ) | (96 | ) | |||||||
Income taxes paid | (953 | ) | (761 | ) | |||||||
Net cash provided by operating activities | 6,523 | 6,923 | |||||||||
Cash flows from investing activities: | |||||||||||
Additions to property, plant and equipment | (979 | ) | (943 | ) | |||||||
Capitalized software development costs | (509 | ) | (465 | ) | |||||||
Purchases of short- and long-term available-for-sale securities | (9,982 | ) | (11,250 | ) | |||||||
Sales of short- and long-term available-for-sale securities | 8,722 | 5,292 | |||||||||
Maturities of short- and long-term available-for-sale securities | 2,651 | 2,845 | |||||||||
Business acquisitions, net of cash acquired | (1,973 | ) | (770 | ) | |||||||
Purchases of strategic and other related investments | (144 | ) | (131 | ) | |||||||
Sales of strategic and other related investments | 101 | 35 | |||||||||
Joint venture funding | (360 | ) | (411 | ) | |||||||
Proceeds from divestiture of business | — | 38 | |||||||||
Increase in restricted cash | (78 | ) | — | ||||||||
Net cash used in investing activities | (2,551 | ) | (5,760 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from the issuance of EMC's common stock | 503 | 342 | |||||||||
Proceeds from the issuance of VMware's common stock | 164 | 197 | |||||||||
EMC repurchase of EMC's common stock | (2,969 | ) | (3,015 | ) | |||||||
EMC purchase of VMware's common stock | — | (160 | ) | ||||||||
VMware repurchase of VMware's common stock | (700 | ) | (508 | ) | |||||||
Excess tax benefits from stock-based compensation | 102 | 116 | |||||||||
Payment of long- and short-term obligations | (1,665 | ) | (46 | ) | |||||||
Proceeds from long- and short-term obligations | — | 5,460 | |||||||||
Contributions from non-controlling interests | 7 | 105 | |||||||||
Dividend payment | (879 | ) | (415 | ) | |||||||
Net cash (used in) provided by financing activities | (5,437 | ) | 2,076 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (83 | ) | (62 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (1,548 | ) | 3,177 | ||||||||
Cash and cash equivalents at beginning of period | 7,891 | 4,714 | |||||||||
Cash and cash equivalents at end of period | $ | 6,343 | $ | 7,891 | |||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||||||
Net income | $ | 2,894 | $ | 3,093 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,864 | 1,665 | |||||||||
Non-cash interest expense on debt | 1 | 62 | |||||||||
Non-cash restructuring and other special charges | 19 | 8 | |||||||||
Stock-based compensation expense | 1,031 | 935 | |||||||||
Provision for (recovery of) doubtful accounts | 10 | (1 | ) | ||||||||
Deferred income taxes, net | (396 | ) | (202 | ) |
Excess tax benefits from stock-based compensation | (102 | ) | (116 | ) | |||||||
Gain on previously held interests in strategic investments and joint venture | (101 | ) | — | ||||||||
Impairment of strategic investment | 33 | — | |||||||||
Other, net | 20 | 40 | |||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||
Accounts and notes receivable | (309 | ) | (377 | ) | |||||||
Inventories | (149 | ) | (408 | ) | |||||||
Other assets | 345 | 269 | |||||||||
Accounts payable | 167 | 380 | |||||||||
Accrued expenses | (286 | ) | (162 | ) | |||||||
Income taxes payable | 314 | 222 | |||||||||
Deferred revenue | 1,126 | 1,475 | |||||||||
Other liabilities | 42 | 40 | |||||||||
Net cash provided by operating activities | $ | 6,523 | $ | 6,923 |
Three Months Ended | |||||||||||||||
Diluted | Diluted | ||||||||||||||
December 31, | Earnings | December 31, | Earnings | ||||||||||||
2014 | Per Share | 2013 | Per Share | ||||||||||||
Net Income Attributable to EMC GAAP | $ | 1,147 | $ | 0.562 | $ | 1,022 | $ | 0.482 | |||||||
Stock-based compensation expense | 190 | 0.093 | 176 | 0.083 | |||||||||||
Intangible asset amortization | 68 | 0.034 | 62 | 0.030 | |||||||||||
Restructuring charges | 34 | 0.017 | 19 | 0.009 | |||||||||||
Acquisition and other related charges | 31 | 0.015 | — | — | |||||||||||
R&D tax credit | (32 | ) | (0.016 | ) | — | — | |||||||||
Gain on previously held interests in strategic investments and joint venture | (33 | ) | (0.016 | ) | — | — | |||||||||
Amortization of VMware's capitalized software from prior periods | — | — | 1 | — | |||||||||||
Special tax items | — | — | (4 | ) | (0.002 | ) | |||||||||
Net Income Attributable to EMC Non-GAAP | $ | 1,405 | $ | 0.689 | $ | 1,276 | $ | 0.602 | |||||||
Weighted average shares, diluted | 2,038 | 2,114 | |||||||||||||
Incremental VMware dilution | $ | 2 | $ | 2 |
Twelve Months Ended | |||||||||||||||
Diluted | Diluted | ||||||||||||||
December 31, | Earnings | December 31, | Earnings | ||||||||||||
2014 | Per Share | 2013 | Per Share | ||||||||||||
Net Income Attributable to EMC GAAP | $ | 2,714 | $ | 1.315 | $ | 2,889 | $ | 1.333 | |||||||
Stock-based compensation expense | 713 | 0.347 | 638 | 0.295 | |||||||||||
Intangible asset amortization | 263 | 0.128 | 257 | 0.118 | |||||||||||
Restructuring charges | 168 | 0.082 | 148 | 0.068 | |||||||||||
Acquisition and other related charges | 108 | 0.052 | 8 | 0.004 | |||||||||||
R&D tax credit | — | — | (61 | ) | (0.028 | ) | |||||||||
Gain on previously held interests in strategic investments and joint venture | (77 | ) | (0.038 | ) | — | — | |||||||||
Impairment of strategic investment | 23 | 0.011 | — | — | |||||||||||
VMware litigation and other contingencies | 7 | 0.003 | — | — | |||||||||||
Amortization of VMware's capitalized software from prior periods | — | — | 18 | 0.009 | |||||||||||
Special tax items | — | — | 19 | 0.009 | |||||||||||
Net gain on disposition of certain lines of business and other | — | — | (22 | ) | (0.010 | ) | |||||||||
Net Income Attributable to EMC Non-GAAP | $ | 3,919 | $ | 1.900 | $ | 3,894 | $ | 1.798 | |||||||
Weighted average shares, diluted | 2,059 | 2,160 | |||||||||||||
Incremental VMware dilution | $ | 7 | $ | 8 |
* | Net of tax and non-controlling interest in VMware, Inc., except weighted average shares, diluted. See Income Tax Provision and Net Income Attributable to VMware lines in Supplemental Information schedules. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Gross Margin GAAP | $ | 4,505 | $ | 4,224 | $ | 15,249 | $ | 14,473 | |||||||
Stock-based compensation expense | 39 | 32 | 146 | 124 | |||||||||||
Intangible asset amortization | 64 | 59 | 247 | 232 | |||||||||||
Amortization of VMware's capitalized software from prior periods | — | 1 | — | 34 | |||||||||||
Gross Margin Non-GAAP | $ | 4,608 | $ | 4,316 | $ | 15,642 | $ | 14,863 | |||||||
Revenues | $ | 7,048 | $ | 6,682 | $ | 24,440 | $ | 23,222 | |||||||
Gross Margin Percentages: | |||||||||||||||
GAAP | 63.9 | % | 63.2 | % | 62.4 | % | 62.3 | % | |||||||
Non-GAAP | 65.4 | % | 64.6 | % | 64.0 | % | 64.0 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Operating Margin GAAP | $ | 1,570 | $ | 1,461 | $ | 4,037 | $ | 4,150 | |||||||
Stock-based compensation expense | 260 | 239 | 1,020 | 935 | |||||||||||
Intangible asset amortization | 102 | 98 | 402 | 389 | |||||||||||
Restructuring charges | 47 | 27 | 226 | 212 | |||||||||||
Acquisition and other related charges | 56 | 2 | 186 | 12 | |||||||||||
Amortization of VMware's capitalized software from prior periods | — | 1 | — | 34 | |||||||||||
VMware litigation and other contingencies | — | — | 11 | — | |||||||||||
Operating Margin Non-GAAP | $ | 2,035 | $ | 1,828 | $ | 5,882 | $ | 5,732 | |||||||
Revenues | $ | 7,048 | $ | 6,682 | $ | 24,440 | $ | 23,222 | |||||||
Operating Margin Percentages: | |||||||||||||||
GAAP | 22.3 | % | 21.9 | % | 16.5 | % | 17.9 | % | |||||||
Non-GAAP | 28.9 | % | 27.4 | % | 24.1 | % | 24.7 | % |
Three Months Ended December 31, 2014 | Twelve Months Ended December 31, 2014 | ||||||||||||||||||||
Income Before | Tax Provision | Tax | Income Before | Tax Provision | Tax | ||||||||||||||||
Tax | (Benefit) | Rate | Tax | (Benefit) | Rate | ||||||||||||||||
EMC Consolidated GAAP | $ | 1,549 | $ | 336 | 21.7 | % | $ | 3,762 | $ | 868 | 23.1 | % | |||||||||
Stock-based compensation expense | 260 | 49 | 18.7 | % | 1,021 | 224 | 22.0 | % | |||||||||||||
Intangible asset amortization | 102 | 28 | 27.8 | % | 402 | 118 | 29.2 | % | |||||||||||||
Restructuring charges | 47 | 12 | 25.8 | % | 226 | 56 | 24.6 | % | |||||||||||||
Acquisition and other related charges | 56 | 20 | 35.2 | % | 187 | 60 | 32.3 | % | |||||||||||||
R&D tax credit | — | 34 | N/A | — | — | N/A | |||||||||||||||
VMware litigation and other contingencies | — | — | N/A | 11 | 2 | 19.0 | % | ||||||||||||||
Gain on previously held interests in strategic investments and joint venture | (44 | ) | (11 | ) | 24.7 | % | (88 | ) | (11 | ) | 12.1 | % | |||||||||
Impairment of strategic investment | — | — | N/A | 33 | 10 | 28.8 | % | ||||||||||||||
EMC Consolidated Non-GAAP | $ | 1,970 | $ | 468 | 23.8 | % | $ | 5,554 | $ | 1,327 | 23.9 | % |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cash Flow from Operations | $ | 2,231 | $ | 2,190 | $ | 6,523 | $ | 6,923 | ||||||||
Capital expenditures | (286 | ) | (270 | ) | (979 | ) | (943 | ) | ||||||||
Capitalized software development costs | (127 | ) | (123 | ) | (509 | ) | (465 | ) | ||||||||
Free Cash Flow | $ | 1,818 | $ | 1,797 | $ | 5,035 | $ | 5,515 |
Twelve Months Ending December 31, | ||
2015 | ||
Operating Income as a % of Revenue - GAAP | 13.7 | % |
Stock-based compensation expense | 4.6 | % |
Intangible asset amortization | 1.5 | % |
Restructuring charges | 0.9 | % |
Acquisition and other related charges | 0.7 | % |
Operating Income as a % of Revenue - Non-GAAP | 21.4 | % |
Twelve Months Ending December 31, | |||
2015 | |||
Diluted Earnings Per Share - GAAP | $ | 1.27 | |
Stock-based compensation expense | 0.44 | ||
Intangible asset amortization | 0.14 | ||
Restructuring charges | 0.08 | ||
Acquisition and other related charges | 0.05 | ||
Diluted Earnings Per Share - Non-GAAP | $ | 1.98 |
Twelve Months Ending December 31, | ||
2015 | ||
Tax Rate - GAAP | 23.0 | % |
Impact of stock-based compensation expense, intangible asset amortization, restructuring charges and acquisition and other related charges | 0.6 | % |
Tax Rate - Non-GAAP | 23.6 | % |
Impact of VCE Acquisition | Twelve Months Ending December 31, | ||
2015 | |||
Diluted Earnings Per Share - GAAP | $ | 0.06 | |
Stock-based compensation expense | (0.01 | ) | |
Intangible asset amortization | (0.01 | ) | |
Diluted Earnings Per Share - Non-GAAP | $ | 0.04 |
Stock-Based Compensation Expense | Intangible Asset Amortization | Restructuring Charges | Acquisition and Other Related Charges | R&D Tax Credit | Gain on Previously Held Interests in Strategic Investments and Joint Venture | ||||||||||||||||||
EMC Consolidated | |||||||||||||||||||||||
Cost of revenue | $ | (39 | ) | $ | (64 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Research and development | (93 | ) | 4 | — | — | — | — | ||||||||||||||||
Selling, general and administrative | (128 | ) | (42 | ) | — | (51 | ) | — | — | ||||||||||||||
Restructuring and acquisition-related charges | — | — | (47 | ) | (5 | ) | — | — | |||||||||||||||
Non-operating (income) expense | — | — | — | — | — | (44 | ) | ||||||||||||||||
Income tax provision | 49 | 28 | 12 | 20 | 34 | (11 | ) | ||||||||||||||||
Net income attributable to VMware | (21 | ) | (6 | ) | (1 | ) | (5 | ) | 2 | — | |||||||||||||
EMC Information Infrastructure plus Pivotal | |||||||||||||||||||||||
Cost of revenue | $ | (27 | ) | $ | (35 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Research and development | (36 | ) | (1 | ) | — | — | — | — | |||||||||||||||
Selling, general and administrative | (66 | ) | (31 | ) | — | (10 | ) | — | — | ||||||||||||||
Restructuring and acquisition-related charges | — | — | (36 | ) | (3 | ) | — | — | |||||||||||||||
Non-operating (income) expense | — | — | — | — | — | (44 | ) | ||||||||||||||||
Income tax provision | 21 | 21 | 8 | 2 | 22 | (11 | ) | ||||||||||||||||
Net income attributable to VMware | — | — | — | — | — | — | |||||||||||||||||
VMware within EMC | |||||||||||||||||||||||
Cost of revenue | $ | (12 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Research and development | (57 | ) | 5 | — | — | — | — | ||||||||||||||||
Selling, general and administrative | (62 | ) | (11 | ) | — | (41 | ) | — | — | ||||||||||||||
Restructuring and acquisition-related charges | — | — | (11 | ) | (2 | ) | — | — | |||||||||||||||
Non-operating (income) expense | — | — | — | — | — | — | |||||||||||||||||
Income tax provision | 28 | 7 | 4 | 18 | 12 | — | |||||||||||||||||
Net income attributable to VMware | (21 | ) | (6 | ) | (1 | ) | (5 | ) | 2 | — |
Stock-Based Compensation Expense | Intangible Asset Amortization | Restructuring Charges | Acquisition and Other Related Charges | Amortization of VMware's Capitalized Software from Prior Periods | Special Tax Items | ||||||||||||||||||
EMC Consolidated | |||||||||||||||||||||||
Cost of revenue | $ | (32 | ) | $ | (59 | ) | $ | — | $ | — | $ | (1 | ) | $ | — | ||||||||
Research and development | (94 | ) | (2 | ) | — | — | — | — | |||||||||||||||
Selling, general and administrative | (113 | ) | (37 | ) | — | — | — | — | |||||||||||||||
Restructuring and acquisition-related charges | — | — | (27 | ) | (2 | ) | — | — | |||||||||||||||
Non-operating (income) expense | — | — | — | — | — | — | |||||||||||||||||
Income tax provision | 41 | 32 | 8 | 2 | — | 5 | |||||||||||||||||
Net income attributable to VMware | (22 | ) | (4 | ) | — | — | — | 1 | |||||||||||||||
EMC Information Infrastructure plus Pivotal | |||||||||||||||||||||||
Cost of revenue | $ | (24 | ) | $ | (36 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
Research and development | (32 | ) | (1 | ) | — | — | — | — | |||||||||||||||
Selling, general and administrative | (61 | ) | (36 | ) | — | — | — | — | |||||||||||||||
Restructuring and acquisition-related charges | — | — | (23 | ) | — | — | — | ||||||||||||||||
Non-operating (income) expense | — | — | — | — | — | — | |||||||||||||||||
Income tax provision | 28 | 27 | 4 | 1 | — | — | |||||||||||||||||
Net income attributable to VMware | — | — | — | — | — | — | |||||||||||||||||
VMware within EMC | |||||||||||||||||||||||
Cost of revenue | $ | (8 | ) | $ | (23 | ) | $ | — | $ | — | $ | (1 | ) | $ | — | ||||||||
Research and development | (62 | ) | (1 | ) | — | — | — | — | |||||||||||||||
Selling, general and administrative | (52 | ) | (1 | ) | — | — | — | — | |||||||||||||||
Restructuring and acquisition-related charges | — | — | (4 | ) | (2 | ) | — | — | |||||||||||||||
Non-operating (income) expense | — | — | — | — | — | — | |||||||||||||||||
Income tax provision | 13 | 5 | 4 | 1 | — | 5 | |||||||||||||||||
Net income attributable to VMware | (22 | ) | (4 | ) | — | — | — | 1 |
Stock-Based Compensation Expense | Intangible Asset Amortization | Restructuring Charges | Acquisition and Other Related Charges | Gain on Previously Held Interests in Strategic Investments and Joint Venture | Impairment of Strategic Investment | VMware Litigation and Other Contingencies | |||||||||||||||||||||
EMC Consolidated | |||||||||||||||||||||||||||
Cost of revenue | $ | (146 | ) | $ | (247 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Research and development | (382 | ) | (5 | ) | — | — | — | — | — | ||||||||||||||||||
Selling, general and administrative | (492 | ) | (150 | ) | — | (173 | ) | — | — | (11 | ) | ||||||||||||||||
Restructuring and acquisition-related charges | — | — | (226 | ) | (13 | ) | — | — | — | ||||||||||||||||||
Non-operating (income) expense | 1 | — | — | 1 | (88 | ) | 33 | — | |||||||||||||||||||
Income tax provision | 224 | 118 | 56 | 60 | (11 | ) | 10 | 2 | |||||||||||||||||||
Net income attributable to VMware | (84 | ) | (21 | ) | (2 | ) | (19 | ) | — | — | (2 | ) | |||||||||||||||
EMC Information Infrastructure plus Pivotal | |||||||||||||||||||||||||||
Cost of revenue | $ | (102 | ) | $ | (138 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Research and development | (138 | ) | (5 | ) | — | — | — | — | — | ||||||||||||||||||
Selling, general and administrative | (251 | ) | (122 | ) | — | (31 | ) | — | — | — | |||||||||||||||||
Restructuring and acquisition-related charges | — | — | (210 | ) | (6 | ) | — | — | — | ||||||||||||||||||
Non-operating (income) expense | 1 | — | — | — | (88 | ) | 33 | — | |||||||||||||||||||
Income tax provision | 111 | 84 | 50 | 4 | (11 | ) | 10 | — | |||||||||||||||||||
Net income attributable to VMware | — | — | — | — | — | — | — | ||||||||||||||||||||
VMware within EMC | |||||||||||||||||||||||||||
Cost of revenue | $ | (44 | ) | $ | (109 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Research and development | (244 | ) | — | — | — | — | — | — | |||||||||||||||||||
Selling, general and administrative | (241 | ) | (28 | ) | — | (142 | ) | — | — | (11 | ) | ||||||||||||||||
Restructuring and acquisition-related charges | — | — | (16 | ) | (7 | ) | — | — | — | ||||||||||||||||||
Non-operating (income) expense | — | — | — | 1 | — | — | — | ||||||||||||||||||||
Income tax provision | 113 | 34 | 6 | 56 | — | — | 2 | ||||||||||||||||||||
Net income attributable to VMware | (84 | ) | (21 | ) | (2 | ) | (19 | ) | — | — | (2 | ) |
Stock-Based Compensation Expense | Intangible Asset Amortization | Restructuring Charges | Acquisition and Other Related Charges | Amortization of VMware's Capitalized Software from Prior Periods | Net Gain on Disposition of Certain Lines of Business and Other | Special Tax Items | R&D Tax Credit | ||||||||||||||||||||||||
EMC Consolidated | |||||||||||||||||||||||||||||||
Cost of revenue | $ | (124 | ) | $ | (232 | ) | $ | — | $ | — | $ | (34 | ) | $ | — | $ | — | $ | — | ||||||||||||
Research and development | (357 | ) | (8 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Selling, general and administrative | (454 | ) | (149 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | (212 | ) | (12 | ) | — | — | — | — | |||||||||||||||||||||
Non-operating (income) expense | 1 | — | — | — | — | (31 | ) | — | — | ||||||||||||||||||||||
Income tax provision | 225 | 117 | 54 | 3 | 11 | (3 | ) | (18 | ) | 67 | |||||||||||||||||||||
Net income attributable to VMware | (73 | ) | (15 | ) | (10 | ) | (1 | ) | (5 | ) | 6 | 1 | 6 | ||||||||||||||||||
EMC Information Infrastructure plus Pivotal | |||||||||||||||||||||||||||||||
Cost of revenue | $ | (88 | ) | $ | (141 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Research and development | (134 | ) | (5 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Selling, general and administrative | (256 | ) | (142 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | (144 | ) | (7 | ) | — | — | — | — | |||||||||||||||||||||
Non-operating (income) expense | 1 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Income tax provision | 128 | 95 | 31 | 2 | — | — | (23 | ) | 35 | ||||||||||||||||||||||
Net income attributable to VMware | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
VMware within EMC | |||||||||||||||||||||||||||||||
Cost of revenue | $ | (36 | ) | $ | (91 | ) | $ | — | $ | — | $ | (34 | ) | $ | — | $ | — | $ | — | ||||||||||||
Research and development | (223 | ) | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Selling, general and administrative | (198 | ) | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | (68 | ) | (5 | ) | — | — | — | — | |||||||||||||||||||||
Non-operating (income) expense | — | — | — | — | — | (31 | ) | — | — | ||||||||||||||||||||||
Income tax provision | 97 | 22 | 23 | 1 | 11 | (3 | ) | 5 | 32 | ||||||||||||||||||||||
Net income attributable to VMware | (73 | ) | (15 | ) | (10 | ) | (1 | ) | (5 | ) | 6 | 1 | 6 |
VMware Standalone GAAP | GAAP Adjustments and Eliminations | VMware within EMC GAAP | |||||||||
Revenue | $ | 1,703 | $ | (16 | ) | $ | 1,687 | ||||
Cost of revenue | 254 | (6 | ) | 248 | |||||||
Gross margin | 1,449 | (10 | ) | 1,439 | |||||||
Research and development | 302 | (1 | ) | 301 | |||||||
Selling, general and administrative | 792 | (11 | ) | 781 | |||||||
Restructuring and acquisition-related charges | 11 | 2 | 13 | ||||||||
Operating income | 344 | — | 344 | ||||||||
Non-operating income (expense) | 14 | (1 | ) | 13 | |||||||
Income before taxes | 358 | (1 | ) | 357 | |||||||
Income tax provision | 32 | 10 | 42 | ||||||||
Net income | $ | 326 | (11 | ) | 315 | ||||||
Net income attributable to VMware | (66 | ) | (66 | ) | |||||||
Net income attributable to EMC | $ | (77 | ) | $ | 249 |
VMware Standalone GAAP | GAAP Adjustments and Eliminations | VMware within EMC GAAP | |||||||||
Revenue | $ | 1,483 | $ | (25 | ) | $ | 1,458 | ||||
Cost of revenue | 192 | — | 192 | ||||||||
Gross margin | 1,291 | (25 | ) | 1,266 | |||||||
Research and development | 284 | (1 | ) | 283 | |||||||
Selling, general and administrative | 629 | (4 | ) | 625 | |||||||
Restructuring and acquisition-related charges | 4 | 2 | 6 | ||||||||
Operating income | 374 | (22 | ) | 352 | |||||||
Non-operating income (expense) | 7 | — | 7 | ||||||||
Income before taxes | 381 | (22 | ) | 359 | |||||||
Income tax provision | 46 | (3 | ) | 43 | |||||||
Net income | $ | 335 | (19 | ) | 316 | ||||||
Net income attributable to VMware | (68 | ) | (68 | ) | |||||||
Net income attributable to EMC | $ | (87 | ) | $ | 248 |
VMware Standalone GAAP | GAAP Adjustments and Eliminations | VMware within EMC GAAP | |||||||||
Revenue | $ | 6,035 | $ | (39 | ) | $ | 5,996 | ||||
Cost of revenue | 917 | (9 | ) | 908 | |||||||
Gross margin | 5,118 | (30 | ) | 5,088 | |||||||
Research and development | 1,239 | (8 | ) | 1,231 | |||||||
Selling, general and administrative | 2,836 | (24 | ) | 2,812 | |||||||
Restructuring and acquisition-related charges | 16 | 7 | 23 | ||||||||
Operating income | 1,027 | (5 | ) | 1,022 | |||||||
Non-operating income (expense) | 21 | 12 | 33 | ||||||||
Income before taxes | 1,048 | 7 | 1,055 | ||||||||
Income tax provision | 162 | 12 | 174 | ||||||||
Net income | $ | 886 | (5 | ) | 881 | ||||||
Net income attributable to VMware | (180 | ) | (180 | ) | |||||||
Net income attributable to EMC | $ | (185 | ) | $ | 701 |
VMware Standalone GAAP | GAAP Adjustments and Eliminations | VMware within EMC GAAP | |||||||||
Revenue | $ | 5,207 | $ | (60 | ) | $ | 5,147 | ||||
Cost of revenue | 730 | (12 | ) | 718 | |||||||
Gross margin | 4,477 | (48 | ) | 4,429 | |||||||
Research and development | 1,082 | (30 | ) | 1,052 | |||||||
Selling, general and administrative | 2,234 | (25 | ) | 2,209 | |||||||
Restructuring and acquisition-related charges | 68 | 5 | 73 | ||||||||
Operating income | 1,093 | 2 | 1,095 | ||||||||
Non-operating income (expense) | 54 | (2 | ) | 52 | |||||||
Income before taxes | 1,147 | — | 1,147 | ||||||||
Income tax provision | 133 | (4 | ) | 129 | |||||||
Net income | $ | 1,014 | 4 | 1,018 | |||||||
Net income attributable to VMware | (204 | ) | (204 | ) | |||||||
Net income attributable to EMC | $ | (200 | ) | $ | 814 |
EMC Information Infrastructure | |||||||||||||||||||||||
Information Storage | Information Intelligence Group | RSA Information Security | EMC Information Infrastructure | Pivotal | EMC Information Infrastructure plus Pivotal | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Product revenues | $ | 3,338 | $ | 56 | $ | 139 | $ | 3,533 | $ | 21 | $ | 3,554 | |||||||||||
Services revenues | 1,497 | 118 | 148 | 1,763 | 44 | 1,807 | |||||||||||||||||
Total consolidated revenues | 4,835 | 174 | 287 | 5,296 | 65 | 5,361 | |||||||||||||||||
Gross profit | $ | 2,776 | $ | 117 | $ | 201 | 3,094 | 34 | 3,128 | ||||||||||||||
Gross profit percentage | 57.4 | % | 67.2 | % | 70.1 | % | 58.4 | % | 52.1 | % | 58.3 | % | |||||||||||
Research and development | 384 | 30 | 414 | ||||||||||||||||||||
Selling, general and administrative | 1,193 | 50 | 1,243 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | ||||||||||||||||||||
Total costs and expenses | 1,577 | 80 | 1,657 | ||||||||||||||||||||
Operating income (expense) | $ | 1,517 | $ | (46 | ) | $ | 1,471 | ||||||||||||||||
Operating margin percentage | 28.7 | % | (70.5 | )% | 27.4 | % |
EMC Information Infrastructure plus Pivotal | VMware Virtual Infrastructure within EMC | Corporate Reconciling Items | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Product revenues | $ | 3,554 | $ | 768 | $ | — | $ | 4,322 | |||||||
Services revenues | 1,807 | 919 | — | 2,726 | |||||||||||
Total consolidated revenues | 5,361 | 1,687 | — | 7,048 | |||||||||||
Gross profit | $ | 3,128 | $ | 1,480 | $ | (103 | ) | $ | 4,505 | ||||||
Gross profit percentage | 58.3 | % | 87.8 | % | — | 63.9 | % | ||||||||
Research and development | 414 | 249 | 89 | 752 | |||||||||||
Selling, general and administrative | 1,243 | 667 | 221 | 2,131 | |||||||||||
Restructuring and acquisition-related charges | — | — | 52 | 52 | |||||||||||
Total costs and expenses | 1,657 | 916 | 362 | 2,935 | |||||||||||
Operating income (expense) | 1,471 | 564 | (465 | ) | 1,570 | ||||||||||
Operating margin percentage | 27.4 | % | 33.5 | % | — | 22.3 | % | ||||||||
Non-operating income (expense), net | (78 | ) | 13 | 44 | (21 | ) | |||||||||
Income tax provision | 357 | 111 | (132 | ) | 336 | ||||||||||
Net income | 1,036 | 466 | (289 | ) | 1,213 | ||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (97 | ) | 31 | (66 | ) | |||||||||
Net income attributable to EMC Corporation | $ | 1,036 | $ | 369 | $ | (258 | ) | $ | 1,147 |
EMC Information Infrastructure | |||||||||||||||||||||||
Information Storage | Information Intelligence Group | RSA Information Security | EMC Information Infrastructure | Pivotal | EMC Information Infrastructure plus Pivotal | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Product revenues | $ | 3,260 | $ | 65 | $ | 136 | $ | 3,461 | $ | 18 | $ | 3,479 | |||||||||||
Services revenues | 1,445 | 124 | 139 | 1,708 | 37 | 1,745 | |||||||||||||||||
Total consolidated revenues | 4,705 | 189 | 275 | 5,169 | 55 | 5,224 | |||||||||||||||||
Gross profit | $ | 2,680 | $ | 129 | $ | 185 | 2,994 | 25 | 3,019 | ||||||||||||||
Gross profit percentage | 57.0 | % | 68.2 | % | 67.2 | % | 57.9 | % | 45.7 | % | 57.8 | % | |||||||||||
Research and development | 362 | 27 | 389 | ||||||||||||||||||||
Selling, general and administrative | 1,262 | 46 | 1,308 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | ||||||||||||||||||||
Total costs and expenses | 1,624 | 73 | 1,697 | ||||||||||||||||||||
Operating income (expense) | $ | 1,370 | $ | (48 | ) | $ | 1,322 | ||||||||||||||||
Operating margin percentage | 26.5 | % | (86.3 | )% | 25.3 | % |
EMC Information Infrastructure plus Pivotal | VMware Virtual Infrastructure within EMC | Corporate Reconciling Items | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Product revenues | $ | 3,479 | $ | 676 | $ | — | $ | 4,155 | |||||||
Services revenues | 1,745 | 782 | — | 2,527 | |||||||||||
Total consolidated revenues | 5,224 | 1,458 | — | 6,682 | |||||||||||
Gross profit | $ | 3,019 | $ | 1,297 | $ | (92 | ) | $ | 4,224 | ||||||
Gross profit percentage | 57.8 | % | 89.1 | % | — | 63.2 | % | ||||||||
Research and development | 389 | 220 | 96 | 705 | |||||||||||
Selling, general and administrative | 1,308 | 571 | 150 | 2,029 | |||||||||||
Restructuring and acquisition-related charges | — | — | 29 | 29 | |||||||||||
Total costs and expenses | 1,697 | 791 | 275 | 2,763 | |||||||||||
Operating income (expense) | 1,322 | 506 | (367 | ) | 1,461 | ||||||||||
Operating margin percentage | 25.3 | % | 34.7 | % | — | 21.9 | % | ||||||||
Non-operating income (expense), net | (80 | ) | 7 | — | (73 | ) | |||||||||
Income tax provision | 316 | 70 | (88 | ) | 298 | ||||||||||
Net income | 926 | 443 | (279 | ) | 1,090 | ||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (93 | ) | 25 | (68 | ) | |||||||||
Net income attributable to EMC Corporation | $ | 926 | $ | 350 | $ | (254 | ) | $ | 1,022 |
EMC Information Infrastructure | |||||||||||||||||||||||
Information Storage | Information Intelligence Group | RSA Information Security | EMC Information Infrastructure | Pivotal | EMC Information Infrastructure plus Pivotal | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Product revenues | $ | 10,785 | $ | 164 | $ | 462 | $ | 11,411 | $ | 65 | $ | 11,476 | |||||||||||
Services revenues | 5,757 | 476 | 573 | 6,806 | 162 | 6,968 | |||||||||||||||||
Total consolidated revenues | 16,542 | 640 | 1,035 | 18,217 | 227 | 18,444 | |||||||||||||||||
Gross profit | $ | 9,180 | $ | 417 | $ | 698 | 10,295 | 106 | 10,401 | ||||||||||||||
Gross profit percentage | 55.5 | % | 65.2 | % | 67.4 | % | 56.5 | % | 46.5 | % | 56.4 | % | |||||||||||
Research and development | 1,489 | 128 | 1,617 | ||||||||||||||||||||
Selling, general and administrative | 4,583 | 183 | 4,766 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | ||||||||||||||||||||
Total costs and expenses | 6,072 | 311 | 6,383 | ||||||||||||||||||||
Operating income (expense) | $ | 4,223 | $ | (205 | ) | $ | 4,018 | ||||||||||||||||
Operating margin percentage | 23.2 | % | (90.6 | )% | 21.8 | % |
EMC Information Infrastructure plus Pivotal | VMware Virtual Infrastructure within EMC | Corporate Reconciling Items | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Product revenues | $ | 11,476 | $ | 2,575 | $ | — | $ | 14,051 | |||||||
Services revenues | 6,968 | 3,421 | — | 10,389 | |||||||||||
Total consolidated revenues | 18,444 | 5,996 | — | 24,440 | |||||||||||
Gross profit | $ | 10,401 | $ | 5,241 | $ | (393 | ) | $ | 15,249 | ||||||
Gross profit percentage | 56.4 | % | 87.4 | % | — | 62.4 | % | ||||||||
Research and development | 1,617 | 987 | 387 | 2,991 | |||||||||||
Selling, general and administrative | 4,766 | 2,390 | 826 | 7,982 | |||||||||||
Restructuring and acquisition-related charges | — | — | 239 | 239 | |||||||||||
Total costs and expenses | 6,383 | 3,377 | 1,452 | 11,212 | |||||||||||
Operating income (expense) | 4,018 | 1,864 | (1,845 | ) | 4,037 | ||||||||||
Operating margin percentage | 21.8 | % | 31.1 | % | — | 16.5 | % | ||||||||
Non-operating income (expense), net | (362 | ) | 34 | 53 | (275 | ) | |||||||||
Income tax provision | 942 | 385 | (459 | ) | 868 | ||||||||||
Net income | 2,714 | 1,513 | (1,333 | ) | 2,894 | ||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (308 | ) | 128 | (180 | ) | |||||||||
Net income attributable to EMC Corporation | $ | 2,714 | $ | 1,205 | $ | (1,205 | ) | $ | 2,714 |
EMC Information Infrastructure | |||||||||||||||||||||||
Information Storage | Information Intelligence Group | RSA Information Security | EMC Information Infrastructure | Pivotal | EMC Information Infrastructure plus Pivotal | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Product revenues | $ | 10,738 | $ | 180 | $ | 453 | $ | 11,371 | $ | 66 | $ | 11,437 | |||||||||||
Services revenues | 5,524 | 467 | 534 | 6,525 | 113 | 6,638 | |||||||||||||||||
Total consolidated revenues | 16,262 | 647 | 987 | 17,896 | 179 | 18,075 | |||||||||||||||||
Gross profit | $ | 9,109 | $ | 419 | $ | 655 | 10,183 | 91 | 10,274 | ||||||||||||||
Gross profit percentage | 56.0 | % | 64.8 | % | 66.4 | % | 56.9 | % | 50.7 | % | 56.8 | % | |||||||||||
Research and development | 1,461 | 109 | 1,570 | ||||||||||||||||||||
Selling, general and administrative | 4,571 | 161 | 4,732 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | ||||||||||||||||||||
Total costs and expenses | 6,032 | 270 | 6,302 | ||||||||||||||||||||
Operating income (expense) | $ | 4,151 | $ | (179 | ) | $ | 3,972 | ||||||||||||||||
Operating margin percentage | 23.2 | % | (100.3 | )% | 22.0 | % |
EMC Information Infrastructure plus Pivotal | VMware Virtual Infrastructure within EMC | Corporate Reconciling Items | Consolidated | ||||||||||||
Revenues | |||||||||||||||
Product revenues | $ | 11,437 | $ | 2,253 | $ | — | $ | 13,690 | |||||||
Services revenues | 6,638 | 2,894 | — | 9,532 | |||||||||||
Total consolidated revenues | 18,075 | 5,147 | — | 23,222 | |||||||||||
Gross profit | $ | 10,274 | $ | 4,589 | $ | (390 | ) | $ | 14,473 | ||||||
Gross profit percentage | 56.8 | % | 89.2 | % | — | 62.3 | % | ||||||||
Research and development | 1,570 | 826 | 365 | 2,761 | |||||||||||
Selling, general and administrative | 4,732 | 2,003 | 603 | 7,338 | |||||||||||
Restructuring and acquisition-related charges | — | — | 224 | 224 | |||||||||||
Total costs and expenses | 6,302 | 2,829 | 1,192 | 10,323 | |||||||||||
Operating income (expense) | 3,972 | 1,760 | (1,582 | ) | 4,150 | ||||||||||
Operating margin percentage | 22.0 | % | 34.2 | % | — | 17.9 | % | ||||||||
Non-operating income (expense), net | (337 | ) | 22 | 30 | (285 | ) | |||||||||
Income tax provision | 911 | 317 | (456 | ) | 772 | ||||||||||
Net income | 2,724 | 1,465 | (1,096 | ) | 3,093 | ||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (295 | ) | 91 | (204 | ) | |||||||||
Net income attributable to EMC Corporation | $ | 2,724 | $ | 1,170 | $ | (1,005 | ) | $ | 2,889 |
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | FY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | ||||||||||||||||||||||||||||||
Information Storage: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 2,472 | $ | 2,577 | $ | 2,430 | $ | 3,260 | $ | 10,738 | $ | 2,302 | $ | 2,551 | $ | 2,595 | $ | 3,338 | $ | 10,785 | |||||||||||||||||||
Services Revenues | 1,326 | 1,377 | 1,376 | 1,445 | 5,524 | 1,378 | 1,425 | 1,456 | 1,497 | 5,757 | |||||||||||||||||||||||||||||
Total Information Storage Revenues | $ | 3,798 | $ | 3,954 | $ | 3,806 | $ | 4,705 | $ | 16,262 | $ | 3,680 | $ | 3,976 | $ | 4,051 | $ | 4,835 | $ | 16,542 | |||||||||||||||||||
Information Intelligence Group: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 43 | $ | 39 | $ | 32 | $ | 65 | $ | 180 | $ | 35 | $ | 37 | $ | 36 | $ | 56 | $ | 164 | |||||||||||||||||||
Services Revenues | 112 | 113 | 117 | 124 | 467 | 119 | 121 | 118 | 118 | 476 | |||||||||||||||||||||||||||||
Total Information Intelligence Group Revenues | $ | 155 | $ | 152 | $ | 149 | $ | 189 | $ | 647 | $ | 154 | $ | 158 | $ | 154 | $ | 174 | $ | 640 | |||||||||||||||||||
RSA Information Security: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 100 | $ | 98 | $ | 120 | $ | 136 | $ | 453 | $ | 104 | $ | 104 | $ | 114 | $ | 139 | $ | 462 | |||||||||||||||||||
Services Revenues | 133 | 130 | 132 | 139 | 534 | 140 | 139 | 147 | 148 | 573 | |||||||||||||||||||||||||||||
Total RSA Information Security Revenues | $ | 233 | $ | 228 | $ | 252 | $ | 275 | $ | 987 | $ | 244 | $ | 243 | $ | 261 | $ | 287 | $ | 1,035 | |||||||||||||||||||
EMC Information Infrastructure: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 2,615 | $ | 2,714 | $ | 2,582 | $ | 3,461 | $ | 11,371 | $ | 2,441 | $ | 2,692 | $ | 2,745 | $ | 3,533 | $ | 11,411 | |||||||||||||||||||
Services Revenues | 1,571 | 1,620 | 1,625 | 1,708 | 6,525 | 1,637 | 1,685 | 1,721 | 1,763 | 6,806 | |||||||||||||||||||||||||||||
Total EMC Information Infrastructure Revenues | $ | 4,186 | $ | 4,334 | $ | 4,207 | $ | 5,169 | $ | 17,896 | $ | 4,078 | $ | 4,377 | $ | 4,466 | $ | 5,296 | $ | 18,217 | |||||||||||||||||||
Pivotal: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 13 | $ | 15 | $ | 20 | $ | 18 | $ | 66 | $ | 11 | $ | 15 | $ | 17 | $ | 21 | $ | 65 | |||||||||||||||||||
Services Revenues | 22 | 27 | 27 | 37 | 113 | 38 | 39 | 41 | 44 | 162 | |||||||||||||||||||||||||||||
Total Pivotal Revenues | $ | 35 | $ | 42 | $ | 47 | $ | 55 | $ | 179 | $ | 49 | $ | 54 | $ | 58 | $ | 65 | $ | 227 | |||||||||||||||||||
VMware: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 484 | $ | 529 | $ | 563 | $ | 676 | $ | 2,253 | $ | 556 | $ | 612 | $ | 638 | $ | 768 | $ | 2,575 | |||||||||||||||||||
Services Revenues | 682 | 709 | 722 | 782 | 2,894 | 796 | 837 | 870 | 919 | 3,421 | |||||||||||||||||||||||||||||
Total VMware Revenues | $ | 1,166 | $ | 1,238 | $ | 1,285 | $ | 1,458 | $ | 5,147 | $ | 1,352 | $ | 1,449 | $ | 1,508 | $ | 1,687 | $ | 5,996 | |||||||||||||||||||
Consolidated Revenues: | |||||||||||||||||||||||||||||||||||||||
Product Revenues | $ | 3,112 | $ | 3,258 | $ | 3,165 | $ | 4,155 | $ | 13,690 | $ | 3,008 | $ | 3,319 | $ | 3,400 | $ | 4,322 | $ | 14,051 | |||||||||||||||||||
Services Revenues | 2,275 | 2,356 | 2,374 | 2,527 | 9,532 | 2,471 | 2,561 | 2,632 | 2,726 | 10,389 | |||||||||||||||||||||||||||||
Total Consolidated Revenues | $ | 5,387 | $ | 5,614 | $ | 5,539 | $ | 6,682 | $ | 23,222 | $ | 5,479 | $ | 5,880 | $ | 6,032 | $ | 7,048 | $ | 24,440 | |||||||||||||||||||
Percentage impact to EMC revenues growth rate due to changes in exchange rates from the prior year | (0.5)% | (0.7)% | (0.8)% | (0.5)% | (0.6)% | (0.4)% | 0.5% | (0.1)% | (1.7)% | (0.5)% |