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 and RSA Information Security, while VMware Virtual Infrastructure and Pivotal each operate as single segments.

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, 2015 and 2014 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, 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 interest in VMware, Inc.	—			(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
Three Months Ended
June 30, 2014
Revenues:
Product revenues	$	2,551		$	37		$	104		$	2,692		$	15		$	2,707
Services revenues	1,425			121			139			1,685			39			1,724
Total consolidated revenues	3,976			158			243			4,377			54			4,431

Gross profit	$	2,192		$	100		$	162		$	2,454		$	26		$	2,480
Gross profit percentage	55.1		%	63.2		%	66.7		%	56.1		%	47.2		%	55.9		%

Research and development										358			33			391
Selling, general and administrative										1,140			46			1,186
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										1,498			79			1,577
Operating income (expense)										$	956		$	(53	)	$	903



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure			Corp Reconciling Items			Consolidated
Three Months Ended
June 30, 2014
Revenues:
Product revenues	$	2,707		$	612		$	—		$	3,319
Services revenues	1,724			837			—			2,561
Total consolidated revenues	4,431			1,449			—			5,880

Gross profit	$	2,480		$	1,272		$	(98	)	$	3,654
Gross profit percentage	55.9		%	87.8		%	—		%	62.1		%

Research and development	391			246			103			740
Selling, general and administrative	1,186			602			222			2,010
Restructuring and acquisition-related charges	—			—			30			30
Total operating expenses	1,577			848			355			2,780

Operating income (expense)	903			424			(453		)	874

Non-operating income (expense), net	(84		)	8			11			(65		)
Income tax provision (benefit)	209			91			(113		)	187
Net income	610			341			(329		)	622
Net income attributable to the non-controlling interest in VMware, Inc.	—			(69		)	36			(33		)
Net income attributable to EMC Corporation	$	610		$	272		$	(293	)	$	589



	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 interest in VMware, Inc.	—			(146		)	74			(72		)
Net income attributable to EMC Corporation	$	857		$	611		$	(729	)	$	739



	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, 2014
Revenues:
Product revenues	$	4,853		$	72		$	208		$	5,133		$	26		$	5,159
Services revenues	2,803			240			278			3,321			78			3,399
Total consolidated revenues	7,656			312			486			8,454			104			8,558

Gross profit	$	4,168		$	199		$	323		$	4,690		$	45		$	4,735
Gross profit percentage	54.4		%	63.9		%	66.4		%	55.5		%	42.9		%	55.3		%

Research and development										736			66			802
Selling, general and administrative										2,241			87			2,328
Restructuring and acquisition-related charges										—			—			—
Total operating expenses										2,977			153			3,130
Operating income (expense)										$	1,713		$	(108	)	$	1,605



	EMC Information Infrastructure plus Pivotal			VMware Virtual Infrastructure			Corp Reconciling Items			Consolidated
Six Months Ended
June 30, 2014
Revenues:
Product revenues	$	5,159		$	1,168		$	—		$	6,327
Services revenues	3,399			1,633			—			5,032
Total consolidated revenues	8,558			2,801			—			11,359

Gross profit	$	4,735		$	2,457		$	(191	)	$	7,001
Gross profit percentage	55.3		%	87.7		%	—		%	61.6		%

Research and development	802			474			196			1,472
Selling, general and administrative	2,328			1,139			394			3,861
Restructuring and acquisition-related charges	—			—			149			149
Total operating expenses	3,130			1,613			739			5,482

Operating income (expense)	1,605			844			(930		)	1,519

Non-operating income (expense), net	(164		)	15			10			(139		)
Income tax provision (benefit)	378			175			(227		)	326
Net income	1,063			684			(693		)	1,054
Net income attributable to the non-controlling interest in VMware, Inc.	—			(138		)	64			(74		)
Net income attributable to EMC Corporation	$	1,063		$	546		$	(629	)	$	980

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, 2015		June 30, 2014		June 30, 2015		June 30, 2014
United States	$	3,270	$	3,056	$	6,284	$	5,890
Europe, Middle East and Africa	1,623		1,669		3,181		3,261
Asia Pacific and Japan	795		802		1,524		1,525
Latin America, Mexico and Canada	309		353		621		683
Total	$	5,997	$	5,880	$	11,610	$	11,359

No country other than the United States accounted for 10% or more of revenues during the three and six months ended June 30, 2015 or 2014.

Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,418 million at June 30, 2015 and $4,380 million at December 31, 2014. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $1,022 million at June 30, 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 June 30, 2015 or December 31, 2014.