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 three and six months ended June 30, 2016 and 2015 is 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
Three Months Ended
June 30, 2016
Revenues:
Product revenues	$	2,362		$	42		$	91		$	2,495		$	32		$	2,527
Services revenues	1,507			106			135			1,748			64			1,812
Total consolidated revenues	3,869			148			226			4,243			96			4,339

Gross profit	$	2,087		$	106		$	147		$	2,340		$	46		$	2,386
Gross profit percentage	53.9		%	71.4		%	64.8		%	55.1		%	48.4		%	55.0		%

Research and development										378			35			413
Selling, general and administrative										1,132			57			1,189
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										1,510			92			1,602
Operating income (expense)										$	830		$	(46	)	$	784



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure			Corp Reconciling Items			Consolidated
Three Months Ended
June 30, 2016
Revenues:
Product revenues	$	2,527		$	634		$	—		$	3,161
Services revenues	1,812			1,044			—			2,856
Total consolidated revenues	4,339			1,678			—			6,017

Gross profit	$	2,386		$	1,456		$	(106	)	$	3,736
Gross profit percentage	55.0		%	86.8		%	—		%	62.1		%

Research and development	413			283			125			821
Selling, general and administrative	1,189			670			175			2,034
Restructuring and acquisition-related charges	—			—			(1		)	(1		)
Total operating expenses	1,602			953			299			2,854

Operating income (expense)	784			503			(405		)	882

Non-operating income (expense), net	(7		)	16			(39		)	(30		)
Income tax provision (benefit)	221			109			(108		)	222
Net income	556			410			(336		)	630
Net income attributable to the non-controlling interests	2			(80		)	29			(49		)
Net income attributable to EMC Corporation	$	558		$	330		$	(307	)	$	581



	EMC Information Infrastructure
	Information Storage			Enterprise Content Division			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Three Months Ended
June 30, 2015
Revenues:
Product revenues	$	2,509		$	40		$	97		$	2,646		$	20		$	2,666
Services revenues	1,519			115			141			1,775			44			1,819
Total consolidated revenues	4,028			155			238			4,421			64			4,485

Gross profit	$	2,092		$	105		$	158		$	2,355		$	26		$	2,381
Gross profit percentage	51.9		%	67.8		%	66.6		%	53.3		%	40.0		%	53.1		%

Research and development										398			25			423
Selling, general and administrative										1,201			53			1,254
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										1,599			78			1,677
Operating income (expense)										$	756		$	(52	)	$	704



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure			Corp Reconciling Items			Consolidated
Three Months Ended
June 30, 2015
Revenues:
Product revenues	$	2,666		$	635		$	(76	)	$	3,225
Services revenues	1,819			953			—			2,772
Total consolidated revenues	4,485			1,588			(76		)	5,997

Gross profit	$	2,381		$	1,381		$	(175	)	$	3,587
Gross profit percentage	53.1		%	87.0		%	—		%	59.8		%

Research and development	423			267			92			782
Selling, general and administrative	1,254			640			208			2,102
Restructuring and acquisition-related charges	—			—			23			23
Total operating expenses	1,677			907			323			2,907

Operating income (expense)	704			474			(498		)	680

Non-operating income (expense), net	18			11			(20		)	9
Income tax provision (benefit)	183			107			(120		)	170
Net income	539			378			(398		)	519
Net income attributable to the non-controlling interests	—			(72		)	40			(32		)
Net income attributable to EMC Corporation	$	539		$	306		$	(358	)	$	487



	EMC Information Infrastructure
	Information Storage			Enterprise Content Division			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Six Months Ended
June 30, 2016
Revenues:
Product revenues	$	4,322		$	71		$	186		$	4,579		$	59		$	4,638
Services revenues	2,994			210			269			3,473			120			3,593
Total consolidated revenues	7,316			281			455			8,052			179			8,231

Gross profit	$	3,797		$	197		$	298		$	4,292		$	81		$	4,373
Gross profit percentage	51.9		%	69.8		%	65.6		%	53.3		%	45.0		%	53.1		%

Research and development										756			69			825
Selling, general and administrative										2,216			115			2,331
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										2,972			184			3,156
Operating income (expense)										$	1,320		$	(103	)	$	1,217



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure			Corp Reconciling Items			Consolidated
Six Months Ended
June 30, 2016
Revenues:
Product revenues	$	4,638		$	1,205		$	—		$	5,843
Services revenues	3,593			2,056			—			5,649
Total consolidated revenues	8,231			3,261			—			11,492

Gross profit	$	4,373		$	2,828		$	(205	)	$	6,996
Gross profit percentage	53.1		%	86.7		%	—		%	60.9		%

Research and development	825			566			244			1,635
Selling, general and administrative	2,331			1,313			377			4,021
Restructuring and acquisition-related charges	—			—			48			48
Total operating expenses	3,156			1,879			669			5,704

Operating income (expense)	1,217			949			(874		)	1,292

Non-operating income (expense), net	(22		)	25			(57		)	(54		)
Income tax provision (benefit)	296			237			(222		)	311
Net income	899			737			(709		)	927
Net income attributable to the non-controlling interests	4			(148		)	66			(78		)
Net income attributable to EMC Corporation	$	903		$	589		$	(643	)	$	849



	EMC Information Infrastructure
	Information Storage			Enterprise Content Division			RSA Information Security			EMC Information Infrastructure			Pivotal			EMC Information Infrastructure plus Pivotal
Six Months Ended
June 30, 2015
Revenues:
Product revenues	$	4,688		$	67		$	197		$	4,952		$	36		$	4,988
Services revenues	3,003			226			289			3,518			82			3,600
Total consolidated revenues	7,691			293			486			8,470			118			8,588

Gross profit	$	3,943		$	195		$	323		$	4,461		$	47		$	4,508
Gross profit percentage	51.3		%	66.5		%	66.6		%	52.7		%	40.1		%	52.5		%

Research and development										822			52			874
Selling, general and administrative										2,371			101			2,472
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										3,193			153			3,346
Operating income (expense)										$	1,268		$	(106	)	$	1,162



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure			Corp Reconciling Items			Consolidated
Six Months Ended
June 30, 2015
Revenues:
Product revenues	$	4,988		$	1,218		$	(76	)	$	6,130
Services revenues	3,600			1,880			—			5,480
Total consolidated revenues	8,588			3,098			(76		)	11,610

Gross profit	$	4,508		$	2,692		$	(274	)	$	6,926
Gross profit percentage	52.5		%	86.9		%	—		%	59.7		%

Research and development	874			514			182			1,570
Selling, general and administrative	2,472			1,245			422			4,139
Restructuring and acquisition-related charges	—			—			158			158
Total operating expenses	3,346			1,759			762			5,867

Operating income (expense)	1,162			933			(1,036		)	1,059

Non-operating income (expense), net	4			20			(20		)	4
Income tax provision (benefit)	309			196			(253		)	252
Net income	857			757			(803		)	811
Net income attributable to the non-controlling interests	—			(146		)	74			(72		)
Net income attributable to EMC Corporation	$	857		$	611		$	(729	)	$	739

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, 2016		June 30, 2015		June 30, 2016		June 30, 2015
United States	$	3,289	$	3,270	$	6,186	$	6,284
Europe, Middle East and Africa	1,673		1,623		3,210		3,181
Asia Pacific and Japan	762		795		1,502		1,524
Latin America, Mexico and Canada	293		309		594		621
Total	$	6,017	$	5,997	$	11,492	$	11,610

No country other than the United States accounted for 10% or more of revenues during the three and six months ended June 30, 2016 or 2015.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,387 million at June 30, 2016 and $4,584 million at December 31, 2015. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $1,118 million at June 30, 2016 and $1,053 million at December 31, 2015. 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, 2016 or December 31, 2015.