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, Enterprise Content Division, formerly known as 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 segments for 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 and goodwill disclosures for the prior financial reporting periods 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 -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 years ended 2014, 2013 and 2012 are as follows (tables in millions, except percentages):



	EMC Information Infrastructure
	Information Storage			Enterprise Content Division			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
2014
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 (loss)										$	4,223		$	(205	)	$	4,018



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2014
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	4,018			1,864			(1,845		)	4,037

Non-operating income (expense)	(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			Enterprise Content Division			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
2013
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 (loss)										$	4,151		$	(179	)	$	3,972



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

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

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

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

Non-operating income (expense)	(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



	EMC Information Infrastructure
	Information Storage			Enterprise Content Division			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
2012
Revenues:
Product revenues	$	10,316		$	200		$	414		$	10,930		$	73		$	11,003
Services revenues	5,257			440			475			6,172			64			6,236
Total consolidated revenues	15,573			640			889			17,102			137			17,239

Gross profit	$	8,911		$	432		$	604		$	9,947		$	102		$	10,049
Gross profit percentage	57.2		%	67.5		%	68.0		%	58.2		%	74.4		%	58.3		%

Research and development										1,410			116			1,526
Selling, general and administrative										4,488			151			4,639
Restructuring and acquisition-related charges										—			—			—
Total costs and expenses										5,898			267			6,165

Operating income (loss)										$	4,049		$	(165	)	$	3,884



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

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

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

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

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

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):



	2014		2013		2012
United States	$	12,835	$	12,230	$	11,510
Europe, Middle East and Africa	6,981		6,355		5,908
Asia Pacific and Japan	3,191		3,193		3,017
Latin America, Mexico and Canada	1,433		1,444		1,279
Total	$	24,440	$	23,222	$	21,714

No country other than the United States accounted for 10% or more of revenues in 2014, 2013 or 2012.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,380 million at December 31, 2014 and $4,433 million at December 31, 2013. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $1,021 million at December 31, 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 December 31, 2014 or 2013.