XML 62 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Information

15.       Segment Information

 

We manage our business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure. EMC Information Infrastructure operates in three segments: Information Storage, Information Intelligence Group and RSA Information Security, while VMware Virtual Infrastructure operates in a single segment. Our management measures are designed to assess performance of these operating 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, restructuring and acquisition-related charges, transition costs and infrequently occurring gains or losses are also excluded from the measures used by management in assessing segment performance. The VMware Virtual Infrastructure amounts represent the revenues and expenses of VMware as reflected within EMC's consolidated financial statements. Research and development expenses, selling, general and administrative, and other income 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 corporate level. For the three segments within the EMC Information Infrastructure business, gross profit is the segment operating performance measure.       

 

Our segment information for the three months ended March 31, 2012 and 2011 is as follows (tables in thousands, except percentages):

 

 EMC Information Infrastructure       
 Information Storage Information Intelligence Group RSA Information Security EMC Information Infrastructure VMware Virtual Infrastructure within EMC Corp Reconciling Items Consolidated
Three Months Ended:             
March 31, 2012             
Revenues:             
Product revenues$ 2,454,735 $ 36,062 $ 96,489 $ 2,587,286 $ 481,571 $ - $ 3,068,857
Services revenues 1,234,172  109,491  110,028  1,453,691  571,830  -  2,025,521
Total consolidated revenues 3,688,907  145,553  206,517  4,040,977  1,053,401  -  5,094,378
              
Cost of sales 1,629,038  55,932  73,155  1,758,125  128,185  94,851  1,981,161
Gross profit$ 2,059,869 $ 89,621 $ 133,362  2,282,852  925,216  (94,851)  3,113,217
Gross profit percentage55.8% 61.6% 64.6% 56.5% 87.8%  - 61.1%
              
Research and development       338,216  178,665  70,936  587,817
Selling, general and administrative       1,094,012  404,593  151,592  1,650,197
Restructuring and acquisition-related charges       -  -  25,893  25,893
Total costs and expenses       1,432,228  583,258  248,421  2,263,907
              
Operating income       850,624  341,958  (343,272)  849,310
Other income (expense), net       (28,502)  7,301  (11,220)  (32,421)
Income before provision for income taxes       822,122  349,259  (354,492)  816,889
Income tax provision       220,453  62,969  (92,512)  190,910
              
Net income       601,669  286,290  (261,980)  625,979
Net income attributable to the non-controlling interest in VMware, Inc.        -  (58,588)  19,451  (39,137)
Net income attributable to EMC Corporation      $ 601,669 $ 227,702 $ (242,529) $ 586,842

 EMC Information Infrastructure       
 Information Storage Information Intelligence Group RSA Information Security EMC Information Infrastructure VMware Virtual Infrastructure within EMC Corp Reconciling Items Consolidated
Three Months Ended:             
March 31, 2011             
Revenues:             
Product revenues$ 2,384,011 $ 41,132 $ 87,180 $ 2,512,323 $ 418,936 $ - $ 2,931,259
Services revenues 1,055,466  110,043  87,074  1,252,583  423,776  -  1,676,359
Total consolidated revenues 3,439,477  151,175  174,254  3,764,906  842,712  -  4,607,618
              
Cost of sales 1,574,251  57,705  79,919  1,711,875  127,290  69,402  1,908,567
Gross profit$ 1,865,226 $ 93,470 $ 94,335  2,053,031  715,422  (69,402)  2,699,051
Gross profit percentage54.2% 61.8% 54.1% 54.5% 84.9%  - 58.6%
              
Research and development       298,133  123,661  80,314  502,108
Selling, general and administrative       1,005,264  334,589  156,078  1,495,931
Restructuring and acquisition-related charges       -  -  26,893  26,893
Total costs and expenses       1,303,397  458,250  263,285  2,024,932
              
Operating income       749,634  257,172  (332,687)  674,119
Other income (expense), net       (23,993)  1,524  (27,457)  (49,926)
Income before provision for income taxes       725,641  258,696  (360,144)  624,193
Income tax provision       172,214  49,253  (99,828)  121,639
              
Net income       553,427  209,443  (260,316)  502,554
Net income attributable to the non-controlling interest in VMware, Inc.        -  (41,679)  16,273  (25,406)
Net income attributable to EMC Corporation      $ 553,427 $ 167,764 $ (244,043) $ 477,148

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 thousands):

 

  For the Three Months Ended 
  March 31, March 31, 
  2012 2011 
 United States$2,633,394 $2,371,032 
 Europe, Middle East and Africa 1,464,292  1,386,783 
 Asia Pacific and Japan 711,693  595,064 
 Latin America, Mexico and Canada 284,999  254,739 
  Total$5,094,378 $4,607,618 

No country other than the United States accounted for 10% or more of revenues during the three months ended March 31, 2012 or 2011.

 

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $3,631.2 million at March 31, 2012 and $3,622.8 million at December 31, 2011. Internationally, long-lived assets, excluding financial instruments and deferred tax assets, were $583.6 million at March 31, 2012 and $616.5 million at December 31, 2011. 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 March 31, 2012 or December 31, 2011.