Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

We manage the Company as a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC Information Infrastructure operates in three segments: Information Storage, Enterprise Content Division and RSA Information Security, while VMware Virtual Infrastructure and Pivotal each operate as single segments. The results of Virtustream are currently reported within our Information Storage segment.

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, intangible asset amortization expense, restructuring charges and acquisition and other related charges. Additionally, in certain instances, infrequently occurring items are also excluded or included 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 2015, 2014 and 2013 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
2015
Revenues:
Product revenues	$	10,200		$	156		$	424		$	10,780		$	87		$	10,867
Services revenues	6,101			443			564			7,108			180			7,288
Total consolidated revenues	16,301			599			988			17,888			267			18,155
Gross profit	$	8,518		$	407		$	660		$	9,585		$	104		$	9,689
Gross profit percentage	52.3		%	67.9		%	66.8		%	53.6		%	39.0		%	53.4		%
Research and development										1,593			109			1,702
Selling, general and administrative										4,834			216			5,050
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										6,427			325			6,752
Operating income (expense)										$	3,158		$	(221	)	$	2,937

	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure within EMC			Corp Reconciling Items			Consolidated
2015
Revenues:
Product revenues	$	10,867		$	2,723		$	(76	)	$	13,514
Services revenues	7,288			3,902			—			11,190
Total consolidated revenues	18,155			6,625			(76		)	24,704
Gross profit	$	9,689		$	5,780		$	(478	)	$	14,991
Gross profit percentage	53.4		%	87.3		%	—			60.7		%
Research and development	1,702			1,066			399			3,167
Selling, general and administrative	5,050			2,606			877			8,533
Restructuring and acquisition-related charges	—			—			450			450
Total operating expenses	6,752			3,672			1,726			12,150
Operating income (expense)	2,937			2,108			(2,204		)	2,841
Non-operating income (expense), net	27			34			(20		)	41
Income tax provision (benefit)	819			398			(507		)	710
Net income	2,145			1,744			(1,717		)	2,172
Net income attributable to the non-controlling interests	7			(324		)	135			(182		)
Net income attributable to EMC Corporation	$	2,152		$	1,420		$	(1,582	)	$	1,990

	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 operating expenses										6,072			311			6,383
Operating income (expense)										$	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 operating expenses	6,383			3,377			1,452			11,212
Operating income (expense)	4,018			1,864			(1,845		)	4,037
Non-operating income (expense), net	(362		)	34			53			(275		)
Income tax provision (benefit)	942			385			(459		)	868
Net income	2,714			1,513			(1,333		)	2,894
Net income attributable to the non-controlling interests	—			(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 operating expenses										6,032			270			6,302
Operating income (expense)										$	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 operating expenses	6,302			2,829			1,192			10,323
Operating income (expense)	3,972			1,760			(1,582		)	4,150
Non-operating income (expense), net	(337		)	22			30			(285		)
Income tax provision (benefit)	911			317			(456		)	772
Net income	2,724			1,465			(1,096		)	3,093
Net income attributable to the non-controlling interests	—			(295		)	91			(204		)
Net income attributable to EMC Corporation	$	2,724		$	1,170		$	(1,005	)	$	2,889

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):

	2015		2014		2013
United States	$	13,361	$	12,835	$	12,230
Europe, Middle East and Africa	6,845		6,981		6,355
Asia Pacific and Japan	3,157		3,191		3,193
Latin America, Mexico and Canada	1,341		1,433		1,444
Total	$	24,704	$	24,440	$	23,222

No country other than the United States accounted for 10% or more of revenues in 2015, 2014 or 2013.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,584 million at December 31, 2015 and $4,355 million at December 31, 2014. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $1,053 million at December 31, 2015 and $1,021 million at December 31, 2014. 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, 2015 or 2014.