Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Trading Symbol | 'EMC |
Entity Registrant Name | 'EMC CORP |
Entity Central Index Key | '0000790070 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 2,028,658,204 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $5,687 | $7,891 |
Short-term investments | 1,962 | 2,773 |
Accounts and notes receivable, less allowance for doubtful accounts of $65 and $62 | 3,344 | 3,861 |
Inventories | 1,397 | 1,334 |
Deferred income taxes | 969 | 912 |
Other current assets | 586 | 507 |
Total current assets | 13,945 | 17,278 |
Long-term investments | 6,985 | 6,924 |
Property, plant and equipment, net | 3,606 | 3,478 |
Intangible assets, net | 2,147 | 1,780 |
Goodwill | 15,802 | 14,424 |
Other assets, net | 1,953 | 1,965 |
Total assets | 44,438 | 45,849 |
Current liabilities: | ' | ' |
Accounts payable | 1,186 | 1,434 |
Accrued expenses | 2,750 | 2,783 |
Notes converted and payable | 0 | 1,665 |
Income taxes payable | 261 | 639 |
Deferred revenue | 5,693 | 5,278 |
Total current liabilities | 9,890 | 11,799 |
Income taxes payable | 298 | 296 |
Deferred revenue | 4,032 | 3,701 |
Deferred income taxes | 489 | 421 |
Long-term debt (See Note 4) | 5,494 | 5,494 |
Other liabilities | 379 | 352 |
Total liabilities | 20,582 | 22,063 |
Shareholders’ equity: | ' | ' |
Preferred stock, par value $0.01; authorized 25 shares; none outstanding | 0 | 0 |
Common stock, par value $0.01; authorized 6,000 shares; issued and outstanding 2,029 and 2,020 shares | 20 | 20 |
Additional paid-in capital | 818 | 1,406 |
Retained earnings | 21,648 | 21,114 |
Accumulated other comprehensive loss, net | -165 | -239 |
Total EMC Corporation’s shareholders’ equity | 22,321 | 22,301 |
Non-controlling interests | 1,535 | 1,485 |
Total shareholders’ equity | 23,856 | 23,786 |
Total liabilities and shareholders’ equity | $44,438 | $45,849 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Accounts and notes receivable, allowance for doubtful accounts | $65 | $62 |
Preferred stock, par value (in usd per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 6,000,000,000 | 6,000,000,000 |
Common stock, issued (in shares) | 2,029,000,000 | 2,020,000,000 |
Common stock, outstanding (in shares) | 2,029,000,000 | 2,020,000,000 |
CONSOLIDATED_INCOME_STATEMENTS
CONSOLIDATED INCOME STATEMENTS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Product sales | $3,319 | $3,258 | $6,327 | $6,369 |
Services | 2,561 | 2,356 | 5,032 | 4,632 |
Total consolidated revenues | 5,880 | 5,614 | 11,359 | 11,001 |
Costs and expenses: | ' | ' | ' | ' |
Cost of product sales | 1,372 | 1,340 | 2,668 | 2,696 |
Cost of services | 854 | 765 | 1,690 | 1,498 |
Research and development | 740 | 695 | 1,472 | 1,370 |
Selling, general and administrative | 2,010 | 1,785 | 3,861 | 3,499 |
Restructuring and acquisition-related charges | 30 | 7 | 149 | 155 |
Operating income | 874 | 1,022 | 1,519 | 1,783 |
Non-operating income (expense): | ' | ' | ' | ' |
Investment income | 35 | 34 | 71 | 67 |
Interest expense | -34 | -31 | -68 | -51 |
Other expense, net | 66 | 59 | 142 | 142 |
Total non-operating income (expense) | -65 | -56 | -139 | -126 |
Income before provision for income taxes | 809 | 966 | 1,380 | 1,657 |
Income tax provision | 187 | 216 | 326 | 292 |
Net income | 622 | 750 | 1,054 | 1,365 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -33 | -49 | -74 | -84 |
Net income attributable to EMC Corporation | $589 | $701 | $980 | $1,281 |
Net income per weighted average share, basic attributable to EMC Corporation common shareholders | $0.29 | $0.34 | $0.48 | $0.61 |
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders | $0.28 | $0.32 | $0.47 | $0.59 |
Weighted average shares, basic | 2,037 | 2,092 | 2,033 | 2,097 |
Weighted average shares, diluted | 2,064 | 2,174 | 2,070 | 2,181 |
Cash dividends declared per common share | $0.12 | $0.10 | $0.22 | $0.10 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $622 | $750 | $1,054 | $1,365 |
Other comprehensive income (loss), net of taxes (benefits): | ' | ' | ' | ' |
Foreign currency translation adjustments | 9 | -25 | 4 | -56 |
Changes in market value of investments: | ' | ' | ' | ' |
Changes in unrealized gains (losses), net of taxes (benefits) of $35, $(17), $49 and $(15) | 59 | -30 | 83 | -29 |
Reclassification adjustment for net losses (gains) realized in net income, net of benefits (taxes) of $(3), $(2), $(6) and $(5) | -6 | -4 | -11 | -8 |
Net change in market value of investments | 53 | -34 | 72 | -37 |
Changes in market value of derivatives: | ' | ' | ' | ' |
Changes in unrealized gains (losses), net of taxes (benefits) of $1, $1, $0 and $2 | 2 | 2 | 1 | 8 |
Reclassification adjustment for net losses (gains) included in net income, net of benefits (taxes) of $0, $0, $0 and $(1) | -1 | -3 | -3 | -8 |
Net change in the market value of derivatives | 1 | -1 | -2 | 0 |
Other comprehensive income (loss) | 63 | -60 | 74 | -93 |
Comprehensive income | 685 | 690 | 1,128 | 1,272 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -33 | -49 | -74 | -84 |
Less: Other comprehensive income attributable to the non-controlling interest in VMware, Inc. | 0 | 2 | -1 | 2 |
Comprehensive income attributable to EMC Corporation | $652 | $643 | $1,053 | $1,190 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in unrealized gains (losses) - taxes (benefits) | $35 | ($17) | $49 | ($15) |
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes) | -3 | -2 | -6 | -5 |
Changes in market value of derivatives - taxes (benefits) | 1 | 1 | 0 | 2 |
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes) | $0 | $0 | $0 | ($1) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Increase (Decrease) in Operating Capital [Abstract] | ' | ' |
Accounts and notes receivable | $549 | $243 |
Inventories | -183 | -178 |
Other assets | 96 | 119 |
Accounts payable | -241 | -28 |
Accrued expenses | -279 | -211 |
Income taxes payable | -336 | -290 |
Deferred revenue | 701 | 766 |
Other liabilities | 21 | -10 |
Statement [Line Items] | ' | ' |
Proceeds from Other Debt | 0 | 5,463 |
Cash flows from operating activities: | ' | ' |
Cash received from customers | 12,644 | 12,007 |
Cash paid to suppliers and employees | -9,320 | -8,485 |
Dividends and interest received | 97 | 79 |
Interest paid | 0 | -18 |
Income taxes paid | -829 | -642 |
Net cash provided by operating activities | 2,592 | 2,941 |
Cash flows from investing activities: | ' | ' |
Additions to property, plant and equipment | -472 | -437 |
Capitalized software development costs | -245 | -219 |
Purchases of short- and long-term available-for-sale securities | -5,765 | -6,456 |
Sales of short- and long-term available-for-sale securities | 4,974 | 2,394 |
Maturities of short- and long-term available-for-sale securities | 1,716 | 564 |
Business acquisitions, net of cash acquired | -1,694 | -207 |
Purchases of strategic and other related investments | -83 | -46 |
Proceeds from Sale of Other Investments | 10 | 0 |
Joint venture funding | -63 | -158 |
Proceeds from Divestiture of Businesses | 0 | 31 |
Increase in Restricted Cash | -76 | 0 |
Net cash used in investing activities | -1,698 | -4,534 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of EMC’s common stock | 234 | 175 |
EMC repurchase of EMC’s common stock | -994 | -991 |
EMC purchase of VMware’s common stock | 0 | -160 |
Excess tax benefits from stock-based compensation | 45 | 63 |
Payment of long- and short-term obligations | -1,665 | -21 |
Dividend payment | -407 | 0 |
Net cash (used in) provided by financing activities | -3,095 | 4,447 |
Effect of exchange rate changes on cash and cash equivalents | -3 | -42 |
Net increase (decrease) in cash and cash equivalents | -2,204 | 2,812 |
Cash and cash equivalents at beginning of period | 7,891 | 4,714 |
Cash and cash equivalents at end of period | 5,687 | 7,526 |
Reconciliation of net income to net cash provided by operating activities: | ' | ' |
Net income | 1,054 | 1,365 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 903 | 803 |
Non-cash interest expense on debt | 0 | 24 |
Non-cash restructuring and other special charges | 9 | 7 |
Stock-based compensation expense | 498 | 441 |
Provision for (recovery of) doubtful accounts | 2 | -3 |
Deferred income taxes, net | -168 | -55 |
Excess tax benefits from stock-based compensation | -45 | -63 |
Gain on previously held interests in strategic investments | -45 | 0 |
Impairment of strategic investment | 33 | 0 |
Other, net | 23 | 11 |
Net cash provided by operating activities | 2,592 | 2,941 |
VMware | ' | ' |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of VMware’s common stock | 99 | 115 |
EMC repurchase of EMC’s common stock | -407 | -302 |
Pivotal | ' | ' |
Statement [Line Items] | ' | ' |
Proceeds from Issuance of Preferred Stock and Preference Stock | $0 | $105 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
In Millions, unless otherwise specified | ||||||
Balance, January 1, 2014 at Dec. 31, 2012 | $23,524 | $21 | $3,691 | $18,853 | ($208) | $1,167 |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 2,107 | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Repurchase of common stock (in shares) | ' | -42 | ' | ' | ' | ' |
Stock issued through stock option and stock purchase plans (in shares) | ' | 11 | ' | ' | ' | ' |
Stock issued through stock option and stock purchase plans | 175 | 0 | 175 | ' | ' | ' |
Tax benefit from stock options exercised | 46 | ' | 46 | ' | ' | ' |
Restricted stock grants, cancellations and withholdings, net (in shares) | ' | 4 | ' | ' | ' | ' |
Restricted stock grants, cancellations and withholdings, net | -51 | 0 | -51 | ' | ' | ' |
Repurchase of common stock | -1,000 | ' | -1,000 | ' | ' | ' |
EMC purchase of VMware’s common stock | -150 | ' | -124 | ' | ' | -26 |
Stock-based compensation | 445 | ' | 445 | ' | ' | ' |
Dividends | -212 | ' | ' | -212 | ' | ' |
Noncontrolling Interest, Period Increase (Decrease) | -150 | ' | -269 | ' | ' | 119 |
Change in market value of investments | -37 | ' | ' | ' | -35 | -2 |
Change in market value of derivatives | 0 | ' | ' | ' | ' | ' |
Translation adjustment | -56 | ' | ' | ' | -56 | ' |
Stock Issued During Period Value Stock Conversion Of Convertible Securities And Warrants | 1 | ' | 1 | ' | ' | ' |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | 32 | ' | 32 | ' | ' | ' |
Net income | 1,365 | ' | ' | 1,281 | ' | 84 |
Balance, June 30, 2014 at Jun. 30, 2013 | 23,932 | 21 | 2,946 | 19,922 | -299 | 1,342 |
Ending Balance (in shares) at Jun. 30, 2013 | ' | 2,080 | ' | ' | ' | ' |
Balance, January 1, 2014 at Dec. 31, 2013 | 23,786 | 20 | 1,406 | 21,114 | -239 | 1,485 |
Beginning Balance (in shares) at Dec. 31, 2013 | 2,020 | 2,020 | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Repurchase of common stock (in shares) | ' | -39 | ' | ' | ' | ' |
Stock issued through stock option and stock purchase plans (in shares) | ' | 16 | ' | ' | ' | ' |
Stock issued through stock option and stock purchase plans | 234 | 0 | 234 | ' | ' | ' |
Tax benefit from stock options exercised | 43 | ' | 43 | ' | ' | ' |
Restricted stock grants, cancellations and withholdings, net (in shares) | ' | 3 | ' | ' | ' | ' |
Restricted stock grants, cancellations and withholdings, net | -28 | 0 | -28 | ' | ' | ' |
Repurchase of common stock | -1,000 | 0 | -1,000 | ' | ' | ' |
Stock options issued in business acquisitions | 33 | ' | 33 | ' | ' | ' |
Stock-based compensation | 506 | ' | 506 | ' | ' | ' |
Dividends | -446 | ' | ' | -446 | ' | ' |
Noncontrolling Interest, Period Increase (Decrease) | -401 | ' | -376 | ' | ' | -25 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 1 | ' | ' | ' | 1 | ' |
Change in market value of investments | 72 | ' | ' | ' | 71 | 1 |
Change in market value of derivatives | -2 | ' | ' | ' | -2 | 0 |
Translation adjustment | 4 | ' | ' | ' | 4 | ' |
Net income | 1,054 | ' | ' | 980 | ' | 74 |
Balance, June 30, 2014 at Jun. 30, 2014 | 23,856 | 20 | 818 | 21,648 | -165 | 1,535 |
Ending Balance (in shares) at Jun. 30, 2014 | 2,029 | 2,029 | ' | ' | ' | ' |
Balance, January 1, 2014 at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Change in market value of investments | 53 | ' | ' | ' | ' | ' |
Change in market value of derivatives | 1 | ' | ' | ' | ' | ' |
Translation adjustment | 9 | ' | ' | ' | ' | ' |
Stock Issued During Period Value Stock Conversion Of Convertible Securities And Warrants | 0 | 0 | 0 | ' | ' | ' |
Convertible debt conversions and warrant settlement (in shares) | ' | 29 | ' | ' | ' | ' |
Net income | 622 | ' | ' | ' | ' | ' |
Balance, June 30, 2014 at Jun. 30, 2014 | $23,856 | $20 | $818 | ' | ' | ' |
Ending Balance (in shares) at Jun. 30, 2014 | 2,029 | 2,029 | ' | ' | ' | ' |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Company | |
EMC Corporation ("EMC") and its subsidiaries develop, deliver and support the information technology ("IT") industry’s broadest range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of three businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal. | |
EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost, and enhancing competitive advantage. These benefits are primarily achieved though virtualization. EMC’s Information Infrastructure business comprises three segments – Information Storage, RSA Information Security and Information Intelligence Group. | |
EMC’s VMware Virtual Infrastructure business, which is represented by EMC’s majority equity stake in VMware, Inc. ("VMware"), is the leader in virtualization infrastructure solutions utilized by organizations to help them transform the way they build, deliver and consume IT resources. VMware’s virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, run on industry-standard desktop computers and servers and support a wide range of operating system and application environments, as well as networking and storage infrastructures. | |
EMC's Pivotal business ("Pivotal") was formed in the second quarter of 2013. Pivotal unites strategic technology, people and programs formerly within EMC and VMware, including Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products. Pivotal is building a new platform comprising next-generation data fabrics, application fabrics and a cloud independent platform-as-a-service ("PaaS"). | |
General | |
The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. These consolidated financial statements include the accounts of EMC, its wholly owned subsidiaries, as well as VMware and Pivotal, companies majority-owned by EMC. All intercompany transactions have been eliminated. | |
Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014. | |
The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for any future period or the entire fiscal year. The interim consolidated financial statements, in the opinion of management, reflect all adjustments necessary to fairly state the results as of and for the three- and six-month periods ended June 30, 2014 and 2013. | |
Net Income Per Share | |
Basic net income per weighted average share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per weighted average share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of stock options, restricted stock and restricted stock units, the shares issuable under our $1.725 billion 1.75% convertible senior notes due 2013 (the "2013 Notes") and the associated warrants. Additionally, for purposes of calculating diluted net income per weighted average share, net income is adjusted for the difference between VMware’s reported diluted and basic net income per weighted average share, if any, multiplied by the number of shares of VMware held by EMC. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform with the current year's presentation. 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 in our segment and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment for the three and six months ended June 30, 2014. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the segment reclassifications impact EMC's previously reported consolidated financial statements. See Note 15 for further discussion of the segment reclassifications. | |
Recent Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. | |
In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective beginning January 1, 2017, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements. | |
In April 2014, the FASB issued new accounting guidance on reporting discontinued operations and disclosures of disposals of components of an entity which clarifies the scope of what should be reported as discontinued operations and expands required disclosures. This new guidance is effective beginning January 1, 2015, with early adoption permitted. The impact of this guidance will be dependent on the nature and significance of any transactions within the scope of this new guidance. | |
In July 2013, the FASB issued new accounting guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, with limited exceptions. The prospective adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows. | |
In March 2013, the FASB issued guidance that requires a parent company to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows. |
Noncontrolling_Interest_in_VMw
Non-controlling Interest in VMware, Inc. | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Noncontrolling Interest [Abstract] | ' | |||||||
Non-controlling Interest in VMware, Inc. | ' | |||||||
Non-controlling Interests | ||||||||
The non-controlling interests’ share of equity in VMware is reflected as non-controlling interests in the accompanying consolidated balance sheets and was $1,430 million and $1,380 million as of June 30, 2014 and December 31, 2013, respectively. At June 30, 2014, EMC held approximately 97% of the combined voting power of VMware’s outstanding common stock and approximately 80% of the economic interest in VMware. | ||||||||
The effect of changes in our ownership interest in VMware on our equity was as follows (table in millions): | ||||||||
For the Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Net income attributable to EMC Corporation | $ | 980 | $ | 1,281 | ||||
Transfers (to) from the non-controlling interest in VMware, Inc.: | ||||||||
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances | 51 | 52 | ||||||
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity | (427 | ) | (321 | ) | ||||
Net transfers (to) from non-controlling interest | (376 | ) | (269 | ) | ||||
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc. | $ | 604 | $ | 1,012 | ||||
The non-controlling interests' share of equity in Pivotal is reflected as a component of the non-controlling interests in the accompanying consolidated balance sheets as $105 million at both June 30, 2014 and December 31, 2013. At June 30, 2014, EMC held approximately 84% of the economic interest in Pivotal. General Electric Company's ("GE") interest in Pivotal is in the form of a preferred equity instrument. Consequently, there is no net income attributable to non-controlling interest related to Pivotal on the consolidated income statements. Additionally, due to the terms of the preferred instrument, GE's non-controlling interest on the consolidated balance sheets is generally not impacted by Pivotal's equity related activity. The preferred equity instrument is convertible into common shares at GE’s election at any time. |
Business_Combinations_Intangib
Business Combinations, Intangibles and Goodwill | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||
Business Combinations, Intangibles and Goodwill | ' | |||||||||||||||||||||||
Acquisition of AirWatch | ||||||||||||||||||||||||
On February 24, 2014, VMware acquired all of the outstanding capital stock of A.W.S. Holding, LLC ("AirWatch Holding"), the sole member and equity holder of AirWatch LLC ("AirWatch"). AirWatch is a leader in enterprise mobile management and security solutions. VMware acquired AirWatch to expand its solutions within the enterprise mobile and security space. The aggregate consideration paid for AirWatch was $1,092 million, net of cash acquired, including cash of $1,068 million and the fair value of assumed unvested equity attributed to pre-combination services totaling $24 million. | ||||||||||||||||||||||||
Merger consideration totaling $300 million was payable to certain employees of AirWatch subject to specified future employment conditions and will be recognized as expense over the requisite service period. Compensation expense totaling $60 million was recognized from the date of acquisition through June 30, 2014. | ||||||||||||||||||||||||
The following table summarizes the allocation of the consideration to the fair value of the assets acquired and net liabilities assumed, net of cash acquired (table in millions): | ||||||||||||||||||||||||
Other current assets | $ | 60 | ||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||
Purchased technology (weighted-average useful life of 6 years) | 118 | |||||||||||||||||||||||
Customer relationships and customer lists (weighted-average useful life of 8 years) | 78 | |||||||||||||||||||||||
Trademarks and tradenames (weighted-average useful life of 8 years) | 40 | |||||||||||||||||||||||
Other (weighted-average useful life of 3 years) | 14 | |||||||||||||||||||||||
Total intangible assets, net, excluding goodwill | 250 | |||||||||||||||||||||||
Goodwill | 879 | |||||||||||||||||||||||
Other assets | 17 | |||||||||||||||||||||||
Total assets acquired | 1,206 | |||||||||||||||||||||||
Unearned revenue | (45 | ) | ||||||||||||||||||||||
Other assumed liabilities, net of acquired assets | (69 | ) | ||||||||||||||||||||||
Total net liabilities assumed | (114 | ) | ||||||||||||||||||||||
Fair value of assets acquired and net liabilities assumed | $ | 1,092 | ||||||||||||||||||||||
These VMware intangible assets are being amortized on a straight-line basis. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, recognized and primarily related to expected synergies from the transaction. The majority of the goodwill and identifiable intangible assets are expected to be deductible for U.S. federal income tax purposes. The results of this acquisition have been included in the consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired company were not material to our consolidated results of operations for the three and six months ended June 30, 2014 or 2013. | ||||||||||||||||||||||||
Other Acquisitions | ||||||||||||||||||||||||
During the six months ended June 30, 2014, EMC acquired two companies. We acquired all of the outstanding capital stock of DSSD, Inc., a developer of an innovative new rack-scale flash storage architecture for I/O-intensive in-memory databases and Big Data workloads, which complements and expands our Information Storage segment. We also acquired Symplified Inc, a provider of a comprehensive cloud identity solution that helps service-oriented IT organizations simplify user access, regain visibility and control over application usage and meet security and compliance requirements, which complements and expands our RSA Information Security segment. | ||||||||||||||||||||||||
The aggregate consideration for these two acquisitions was $721 million, which consisted of $657 million of cash consideration, net of cash acquired, $8 million for the fair value of assumed unvested equity attributed to pre-combination services and $11 million in contingent consideration attributed to pre-combination services which is included in accrued expenses on the consolidated balance sheets. In connection with these acquisitions, we had a $45 million gain on previously held interests in strategic investments which was recognized in other expense, net in the second quarter of 2014. The consideration was allocated to the fair value of the assets acquired and liabilities assumed based on estimated fair values as of the respective acquisition dates. The aggregate allocation to goodwill, intangibles, and net liabilities was approximately $509 million, $300 million and $88 million, respectively. | ||||||||||||||||||||||||
The intangible assets acquired were comprised of developed technology intangible assets which have a weighted-average amortization period of 7 years. These intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, recognized and primarily related to expected synergies from the transaction. The goodwill is not deductible for U.S. federal income tax purposes. The results of these acquisitions have been included in the consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired companies were not material to our consolidated results of operations for the three and six months ended June 30, 2014 or 2013. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets, excluding goodwill, as of June 30, 2014 and December 31, 2013 consist of (tables in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,783 | $ | (1,546 | ) | $ | 1,237 | |||||||||||||||||
Patents | 225 | (109 | ) | 116 | ||||||||||||||||||||
Software licenses | 104 | (92 | ) | 12 | ||||||||||||||||||||
Trademarks and tradenames | 212 | (127 | ) | 85 | ||||||||||||||||||||
Customer relationships and customer lists | 1,463 | (914 | ) | 549 | ||||||||||||||||||||
Leasehold interest | 147 | (13 | ) | 134 | ||||||||||||||||||||
Other | 44 | (30 | ) | 14 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 4,978 | $ | (2,831 | ) | $ | 2,147 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,356 | $ | (1,429 | ) | $ | 927 | |||||||||||||||||
Patents | 225 | (102 | ) | 123 | ||||||||||||||||||||
Software licenses | 101 | (90 | ) | 11 | ||||||||||||||||||||
Trademarks and tradenames | 171 | (118 | ) | 53 | ||||||||||||||||||||
Customer relationships and customer lists | 1,386 | (855 | ) | 531 | ||||||||||||||||||||
Leasehold interest | 145 | (11 | ) | 134 | ||||||||||||||||||||
Other | 28 | (27 | ) | 1 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 4,412 | $ | (2,632 | ) | $ | 1,780 | |||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the six months ended June 30, 2014 consist of (table in millions): | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Information | Information | RSA | Pivotal | VMware | Total | |||||||||||||||||||
Storage | Intelligence | Information | Virtual | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
Balance, beginning of the period | $ | 7,486 | $ | 1,487 | $ | 2,203 | $ | 177 | $ | 3,071 | $ | 14,424 | ||||||||||||
Goodwill resulting from acquisitions | 509 | — | — | — | 879 | 1,388 | ||||||||||||||||||
Finalization of purchase price allocations and other, net | — | (2 | ) | — | — | (8 | ) | (10 | ) | |||||||||||||||
Goodwill transferred in acquisition of Pivotal businesses | 6 | — | — | (6 | ) | — | — | |||||||||||||||||
Balance, end of the period | $ | 8,001 | $ | 1,485 | $ | 2,203 | $ | 171 | $ | 3,942 | $ | 15,802 | ||||||||||||
During the first quarter of 2014, the Information Storage segment acquired the Data Computing Appliance and implementation services businesses from the Pivotal segment. The transfer of goodwill pursuant to this acquisition is shown above for the six months ended June 30, 2014. For both transactions, the amount of transferred goodwill was determined using the relative fair value method. See Note 15 for further discussion of the segment reclassifications. |
Debt
Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
Debt | ||||||||
Long-Term Debt | ||||||||
In June 2013, we issued $5.5 billion aggregate principal amount of senior notes (collectively, the "Notes") which pay a fixed rate of interest semi-annually in arrears. The first interest payment occurred on December 2, 2013. The proceeds from the Notes have been used to satisfy the cash payment obligation of the converted 2013 Notes as well as for general corporate purposes including stock repurchases, dividend payments, business acquisitions, working capital needs and other business opportunities. The Notes of each series are senior, unsecured obligations of EMC and are not convertible or exchangeable. Unless previously purchased and canceled, we will repay the Notes of each series at 100% of the principal amount, together with accrued and unpaid interest thereon, at maturity. However, EMC has the right to redeem any or all of the Notes at specified redemption prices. As of June 30, 2014, we were in compliance with all debt covenants, which are customary in nature. | ||||||||
Our long-term debt as of June 30, 2014 was as follows (dollars in millions): | ||||||||
Senior Notes | Issued at Discount | Carrying | ||||||
to Par | Value | |||||||
$2.5 billion 1.875% Notes due 2018 | 99.943 | % | $ | 2,499 | ||||
$2.0 billion 2.650% Notes due 2020 | 99.76 | % | 1,996 | |||||
$1.0 billion 3.375% Notes due 2023 | 99.925 | % | 999 | |||||
$ | 5,494 | |||||||
The unamortized discount on the Notes consists of $6 million, which will be fully amortized by June 1, 2023. The effective interest rate on the Notes was 2.54% for both the three and six months ended June 30, 2014. | ||||||||
Convertible Debt | ||||||||
In November 2006, we issued our $1.725 billion 1.75% convertible senior notes due 2011 (the “2011 Notes”) and our 2013 Notes for total gross proceeds of $3.5 billion. The 2011 Notes matured and were settled in 2012. | ||||||||
The 2013 Notes matured and a majority of the noteholders exercised their right to convert the outstanding 2013 Notes as of December 31, 2013. Pursuant to the settlement terms, the majority of the converted 2013 Notes were settled on January 7, 2014. At that time, we paid the noteholders $1.7 billion in cash for the outstanding principal and 35 million shares for the $858 million in excess of the conversion value over the principal amount, as prescribed by the terms of the 2013 Notes. | ||||||||
With respect to the conversion value in excess of the principal amount of the 2013 Notes converted, we elected to settle the excess with shares of our common stock based on a daily conversion value, determined in accordance with the indenture, calculated on a proportionate basis for each day of the relevant 20-day observation period. The actual conversion rate for the 2013 Notes was 62.6978 shares of our common stock per one thousand dollars of principal amount of 2013 Notes, which represents a 26.5% conversion premium from the date the 2013 Notes were issued and is equivalent to a conversion price of approximately $15.95 per share of our common stock. | ||||||||
The 2013 Notes paid interest in cash at a rate of 1.75% semi-annually in arrears on December 1 and June 1 of each year. The effective interest rate on the 2013 Notes was 5.6% for both the three and six months ended June 30, 2013. | ||||||||
The following table represent the key components of our interest expense on convertible debt for the three and six months ended June 30, 2013 (table in millions): | ||||||||
June 30, 2013 | ||||||||
Three Months Ended | Six Months Ended | |||||||
Contractual interest expense on the coupon | $ | 7 | $ | 15 | ||||
Amortization of the discount component recognized as interest expense | 16 | 31 | ||||||
Total interest expense on the convertible debt | $ | 23 | $ | 46 | ||||
In connection with the issuance of the 2011 Notes and 2013 Notes, we entered into separate convertible note hedge transactions with respect to our common stock (the “Purchased Options”). The Purchased Options allowed us to receive shares of our common stock and/or cash related to the excess conversion value that we would pay to the holders of the 2011 Notes and 2013 Notes upon conversion. The Purchased Options covered, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock. We paid an aggregate amount of $669 million of the proceeds from the sale of the 2011 Notes and 2013 Notes for the Purchased Options that was recorded as additional paid-in-capital in shareholders’ equity. In 2011, we exercised approximately half of the Purchased Options in connection with the planned settlements of the 2011 Notes. In the fourth quarter of 2013, we exercised the remaining 108 million of the Purchased Options in conjunction with the planned settlements of the 2013 Notes, and we received 35 million shares of net settlement on January 7, 2014, representing the excess conversion value of the options. | ||||||||
We also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. We received aggregate proceeds of $391 million from the sale of the associated warrants. Upon exercise, the value of the warrants was required to be settled in shares. Approximately half of the associated warrants were exercised in 2012 and the remaining 109 million associated warrants were exercised between February 18, 2014 and March 17, 2014 and were settled with 29 million shares of our common stock. | ||||||||
The Purchased Options and associated warrants had the effect of increasing the conversion price of the 2013 Notes to approximately $19.31 per share of our common stock, representing an approximate 53% conversion premium based on the closing price of $12.61 per share of our common stock on November 13, 2006, which was the issuance date of the 2013 Notes. | ||||||||
Interest Rate Swap Contracts | ||||||||
In 2010, EMC entered into interest rate swap contracts with an aggregate notional amount of approximately $900 million. These swaps were designated as cash flow hedges of the semi-annual interest payments of the forecasted issuance of ten year debt in 2011 when our 2011 Notes were scheduled to become due. As such, the unrealized loss on these hedges was recognized in other comprehensive loss. | ||||||||
During 2011 and 2012, we settled the swaps and replaced them with new interest rate swap contracts for revised forecasted debt issuance dates. Each of these new swaps was deemed as an effective hedge as the notional amounts and other terms matched the underlying hedged item and accordingly, losses on the interest rate swap contracts were deferred as they were expected to be realized over the life of the new debt issued under the related interest rate swap contracts. In the second half of 2012, we settled the interest rate swap contracts and did not replace them. Losses on the swaps at the time of settlement were deferred as they are expected to be realized over the life of the new debt issued under the related interest rate swap contracts. | ||||||||
At June 30, 2014, we had $176 million of accumulated realized losses related to the settled swaps in accumulated other comprehensive income which will be realized over the remaining life of our ten year Notes. These losses will be reclassified from other comprehensive income and recognized on a straight-line basis in the consolidated income statements as interest expense beginning in the third quarter of 2014. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | |||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | ||||||||||||||||||||||||
Our fixed income and equity investments are classified as available for sale and recorded at their fair market values. We determine fair value using the following hierarchy: | ||||||||||||||||||||||||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||
• | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||
Most of our fixed income securities are classified as Level 2, with the exception of some of our U.S. government and agency obligations and our investments in publicly traded equity securities, which are classified as Level 1, and all of our auction rate securities, which are classified as Level 3. In addition, our strategic investments held at cost are classified as Level 3. At June 30, 2014, the vast majority of our Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. In the event observable inputs are not available, we assess other factors to determine the security’s market value, including broker quotes or model valuations. Each month, we perform independent price verifications of all of our fixed income holdings. In the event a price fails a pre-established tolerance check, it is researched so that we can assess the cause of the variance to determine what we believe is the appropriate fair market value. | ||||||||||||||||||||||||
In general, investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. Our publicly traded equity securities are classified as long-term investments and our strategic investments held at cost are classified as other assets. As a result of the lack of liquidity for auction rate securities, we have classified these as long-term investments as of June 30, 2014 and December 31, 2013. At June 30, 2014 and December 31, 2013, all of our short- and long-term investments, excluding auction rate securities, were recognized at fair value, which was determined based upon observable inputs from our pricing vendors for identical or similar assets. At June 30, 2014 and December 31, 2013, auction rate securities were valued using a discounted cash flow model. | ||||||||||||||||||||||||
The following tables summarize the composition of our short- and long-term investments at June 30, 2014 and December 31, 2013 (tables in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 2,201 | $ | 4 | $ | (1 | ) | $ | 2,204 | |||||||||||||||
U.S. corporate debt securities | 2,294 | 5 | (1 | ) | 2,298 | |||||||||||||||||||
High yield corporate debt securities | 554 | 23 | — | 577 | ||||||||||||||||||||
Asset-backed securities | 25 | — | — | 25 | ||||||||||||||||||||
Municipal obligations | 965 | 3 | — | 968 | ||||||||||||||||||||
Auction rate securities | 63 | — | (4 | ) | 59 | |||||||||||||||||||
Foreign debt securities | 2,515 | 7 | (1 | ) | 2,521 | |||||||||||||||||||
Total fixed income securities | 8,617 | 42 | (7 | ) | 8,652 | |||||||||||||||||||
Publicly traded equity securities | 166 | 133 | (4 | ) | 295 | |||||||||||||||||||
Total | $ | 8,783 | $ | 175 | $ | (11 | ) | $ | 8,947 | |||||||||||||||
We held approximately $2,521 million in foreign debt securities at June 30, 2014. These securities have an average credit rating of A+, and approximately 5% of these securities are deemed sovereign debt with an average credit rating of AA+. None of the securities deemed sovereign debt are from Argentina, Greece, Italy, Ireland, Portugal, Spain or Cyprus. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 3,726 | $ | 4 | $ | (3 | ) | $ | 3,727 | |||||||||||||||
U.S. corporate debt securities | 2,260 | 8 | (2 | ) | 2,266 | |||||||||||||||||||
High yield corporate debt securities | 515 | 19 | (3 | ) | 531 | |||||||||||||||||||
Municipal obligations | 860 | 3 | — | 863 | ||||||||||||||||||||
Auction rate securities | 63 | — | (3 | ) | 60 | |||||||||||||||||||
Foreign debt securities | 2,152 | 6 | (3 | ) | 2,155 | |||||||||||||||||||
Total fixed income securities | 9,576 | 40 | (14 | ) | 9,602 | |||||||||||||||||||
Publicly traded equity securities | 72 | 24 | (1 | ) | 95 | |||||||||||||||||||
Total | $ | 9,648 | $ | 64 | $ | (15 | ) | $ | 9,697 | |||||||||||||||
The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013 (tables in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 1,693 | $ | — | $ | — | $ | 1,693 | ||||||||||||||||
Cash equivalents | 3,330 | 664 | — | 3,994 | ||||||||||||||||||||
U.S. government and agency obligations | 1,349 | 855 | — | 2,204 | ||||||||||||||||||||
U.S. corporate debt securities | — | 2,298 | — | 2,298 | ||||||||||||||||||||
High yield corporate debt securities | — | 577 | — | 577 | ||||||||||||||||||||
Asset-backed securities | — | 25 | — | 25 | ||||||||||||||||||||
Municipal obligations | — | 968 | — | 968 | ||||||||||||||||||||
Auction rate securities | — | — | 59 | 59 | ||||||||||||||||||||
Foreign debt securities | — | 2,521 | — | 2,521 | ||||||||||||||||||||
Publicly traded equity securities | 295 | — | — | 295 | ||||||||||||||||||||
Total cash and investments | $ | 6,667 | $ | 7,908 | $ | 59 | $ | 14,634 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 296 | $ | 296 | ||||||||||||||||
Investment in joint venture | — | — | 36 | 36 | ||||||||||||||||||||
Long-term debt carried at discounted cost | — | (5,513 | ) | — | (5,513 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 20 | — | 20 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (20 | ) | — | (20 | ) | ||||||||||||||||||
Commodity derivative assets | — | 2 | — | 2 | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 1,725 | $ | — | $ | — | $ | 1,725 | ||||||||||||||||
Cash equivalents | 5,674 | 492 | — | 6,166 | ||||||||||||||||||||
U.S. government and agency obligations | 1,797 | 1,930 | — | 3,727 | ||||||||||||||||||||
U.S. corporate debt securities | — | 2,266 | — | 2,266 | ||||||||||||||||||||
High yield corporate debt securities | — | 531 | — | 531 | ||||||||||||||||||||
Municipal obligations | — | 863 | — | 863 | ||||||||||||||||||||
Auction rate securities | — | — | 60 | 60 | ||||||||||||||||||||
Foreign debt securities | — | 2,155 | — | 2,155 | ||||||||||||||||||||
Publicly traded equity securities | 95 | — | — | 95 | ||||||||||||||||||||
Total cash and investments | $ | 9,291 | $ | 8,237 | $ | 60 | $ | 17,588 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 379 | $ | 379 | ||||||||||||||||
Investment in joint venture | — | — | 35 | 35 | ||||||||||||||||||||
Convertible debt carried at discounted cost | — | (5,419 | ) | — | (5,419 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 31 | — | 31 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (20 | ) | — | (20 | ) | ||||||||||||||||||
Commodity derivative assets | — | 4 | — | 4 | ||||||||||||||||||||
Our auction rate securities are predominantly rated investment grade and are primarily collateralized by student loans. The underlying loans of all but one of our auction rate securities, with a market value of $7 million, have partial guarantees by the U.S. government as part of the Federal Family Education Loan Program (“FFELP”) through the U.S. Department of Education. FFELP guarantees at least 95% of the loans which collateralize the auction rate securities. We believe the quality of the collateral underlying most of our auction rate securities will enable us to recover our principal balance. | ||||||||||||||||||||||||
To determine the estimated fair value of our investment in auction rate securities, we used a discounted cash flow model using a five year time horizon. As of June 30, 2014, the coupon rates used ranged from 0% to 3% and the discount rate was 1%, which rate represents the rate at which similar FFELP backed securities with a five year time horizon outside of the auction rate securities market were trading at June 30, 2014. The assumptions used in preparing the discounted cash flow model include an incremental discount rate for the lack of liquidity in the market (“liquidity discount margin”) for an estimated period of time. The discount rate we selected was based on AA-rated banks as the majority of our portfolio is invested in student loans where EMC acts as a financier to these lenders. The liquidity discount margin represents an estimate of the additional return an investor would require for the lack of liquidity of these securities over an estimated five year holding period. The rate used for the discount margin was 1% at June 30, 2014 and December 31, 2013 due to the narrowing of credit spreads on AA-rated banks during 2013 and into 2014. | ||||||||||||||||||||||||
The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and six months ended June 30, 2014 and 2013 (table in millions): | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | 30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||
Balance, beginning of the period | $ | 60 | $ | 68 | $ | 60 | $ | 70 | ||||||||||||||||
Calls at par value | — | — | — | (1 | ) | |||||||||||||||||||
Other-than-temporary impairment loss | — | — | — | (1 | ) | |||||||||||||||||||
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income | (1 | ) | — | (1 | ) | — | ||||||||||||||||||
Balance, end of the period | $ | 59 | $ | 68 | $ | 59 | $ | 68 | ||||||||||||||||
Significant changes in the unobservable inputs discussed above could result in a significantly lower or higher fair value measurement. Generally, an increase in the discount rate, liquidity discount margin or coupon rate results in a decrease in our fair value measurement and a decrease in the discount rate, liquidity discount margin or coupon rate results in an increase in our fair value measurement. | ||||||||||||||||||||||||
EMC has a 49% ownership percentage of LenovoEMC Limited, a joint venture with Lenovo that was formed in 2012. We account for our LenovoEMC joint venture using the fair value method of accounting. To determine the estimated fair value at inception of our investment, we use a discounted cash flow model using a three year time horizon, and utilized a discount rate of 6%, which represented the incremental borrowing rate for a market participant. The assumptions used in preparing the discounted cash flow model include an analysis of estimated Lenovo NAS revenue against a prescribed target as well as consideration of the purchase price put and call features included in the joint venture agreement. The put and call features create a floor and a cap on the fair value of the investment. As such, there is a limit to the impact on the fair value that would result from significant changes in the unobservable inputs. We had no changes to the assumptions utilized in the fair value calculation in the second quarter of 2014. | ||||||||||||||||||||||||
The following table provides a summary of changes in fair value of our LenovoEMC joint venture for the three and six months ended June 30, 2014 and 2013 (table in millions): | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||||||||||
Balance, beginning of the period | $ | 35 | $ | 33 | $ | 35 | $ | 33 | ||||||||||||||||
Realized gain included in other expense, net | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Balance, end of period | $ | 36 | $ | 34 | $ | 36 | $ | 34 | ||||||||||||||||
The carrying value of the strategic investments held at cost were accounted for under the cost method. As part of our quarterly impairment review, we perform a fair value calculation of our strategic investments held at cost using the most currently available information. To determine the estimated fair value of private strategic investments held at cost, we use a combination of several valuation techniques including discounted cash flow models, acquisition and trading comparables. In addition, we evaluate the impact of pre- and post-money valuations of recent financing events and the impact of those on our fully diluted ownership percentages, and we consider any available information regarding the issuer’s historical and forecasted performance as well as market comparables and conditions. The fair value of these investments is considered in our review for impairment if any events and changes in circumstances occur that might have a significant adverse effect on their value. | ||||||||||||||||||||||||
Investment Losses | ||||||||||||||||||||||||
Unrealized losses on investments at June 30, 2014 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in millions): | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
U.S. government and agency obligations | $ | 400 | $ | (1 | ) | $ | — | $ | — | $ | 400 | $ | (1 | ) | ||||||||||
U.S. corporate debt securities | 493 | (1 | ) | — | — | 493 | (1 | ) | ||||||||||||||||
Auction rate securities | — | — | 59 | (4 | ) | 59 | (4 | ) | ||||||||||||||||
Foreign debt securities | 521 | (1 | ) | — | — | 521 | (1 | ) | ||||||||||||||||
Publicly traded equity securities | 26 | (3 | ) | — | (1 | ) | 26 | (4 | ) | |||||||||||||||
Total | $ | 1,440 | $ | (6 | ) | $ | 59 | $ | (5 | ) | $ | 1,499 | $ | (11 | ) | |||||||||
For all of our securities for which the amortized cost basis was greater than the fair value at June 30, 2014, we have concluded that currently we neither plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating, third party guarantees and the time to maturity. | ||||||||||||||||||||||||
In the second quarter of 2014, an unrealized gain of $88 million was recorded in other comprehensive income related to a strategic investment which completed an initial public offering in June 2014. This investment was reclassified from our portfolio of strategic investments held at cost to publicly traded equity securities. | ||||||||||||||||||||||||
Contractual Maturities | ||||||||||||||||||||||||
The contractual maturities of fixed income securities held at June 30, 2014 are as follows (table in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Amortized | Aggregate | |||||||||||||||||||||||
Cost Basis | Fair Value | |||||||||||||||||||||||
Due within one year | $ | 1,926 | $ | 1,928 | ||||||||||||||||||||
Due after 1 year through 5 years | 5,765 | 5,783 | ||||||||||||||||||||||
Due after 5 years through 10 years | 544 | 563 | ||||||||||||||||||||||
Due after 10 years | 382 | 378 | ||||||||||||||||||||||
Total | $ | 8,617 | $ | 8,652 | ||||||||||||||||||||
Short-term investments on the consolidated balance sheet include $34 million in variable rate notes which have contractual maturities in 2014, and are not classified within investments due within one year above. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of (table in millions): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Work-in-process | $ | 721 | $ | 696 | ||||
Finished goods | 676 | 638 | ||||||
$ | 1,397 | $ | 1,334 | |||||
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable and Allowance for Credit Losses | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts and Notes Receivable and Allowance for Credit Losses | ' | |||||||
Accounts and Notes Receivable and Allowance for Credit Losses | ||||||||
Accounts and notes receivable are recorded at cost. The portion of our notes receivable due in one year or less are included in accounts and notes receivable and the long-term portion is included in other assets, net on the consolidated balance sheets. Lease receivables arise from sales-type leases of products. We typically sell, without recourse, the contractual right to the lease payment stream and assets under lease to third parties. For certain customers, we retain the lease. | ||||||||
The contractual amounts due under the leases we retained as of June 30, 2014 were as follows (table in millions): | ||||||||
Year | Contractual Amounts | |||||||
Due Under Leases | ||||||||
Due within one year | $ | 87 | ||||||
Due within two years | 69 | |||||||
Due within three years | 61 | |||||||
Thereafter | 3 | |||||||
Total | 220 | |||||||
Less: Amounts representing interest | 5 | |||||||
Present value | 215 | |||||||
Current portion (included in accounts and notes receivable) | 86 | |||||||
Long-term portion (included in other assets, net) | $ | 129 | ||||||
Subsequent to June 30, 2014, we sold $39 million of these notes to third parties without recourse. | ||||||||
We maintain an allowance for credit losses on our accounts and notes receivable. The allowance is based on the credit worthiness of our customers, including an assessment of the customer’s financial position, operating performance and their ability to meet their contractual obligation. We assess the credit scores for our customers each quarter. In addition, we consider our historical experience, the age of the receivable and current market and economic conditions. Uncollectible amounts are charged against the allowance account. | ||||||||
In the event we determine that a lease may not be paid, we include in our allowance an amount for the outstanding balance related to the lease receivable. As of June 30, 2014, amounts from lease receivables past due for more than 90 days were not significant. | ||||||||
The following table presents the activity of our allowance for credit losses related to lease receivables for the six months ended June 30, 2014 and 2013 (table in millions): | ||||||||
For the Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Balance, beginning of the period | $ | 9 | $ | 17 | ||||
Recoveries | (5 | ) | (9 | ) | ||||
Provisions | 6 | 3 | ||||||
Balance, end of the period | $ | 10 | $ | 11 | ||||
Gross lease receivables totaled $220 million and $252 million as of June 30, 2014 and December 31, 2013, respectively, before the allowance. The components of these balances were individually evaluated for impairment and included in our allowance determination as necessary. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property, Plant and Equipment | ||||||||
Property, plant and equipment consist of (table in millions): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Furniture and fixtures | $ | 239 | $ | 229 | ||||
Equipment and software | 6,391 | 5,973 | ||||||
Buildings and improvements | 2,284 | 2,089 | ||||||
Land | 159 | 132 | ||||||
Building construction in progress | 100 | 215 | ||||||
9,173 | 8,638 | |||||||
Accumulated depreciation | (5,567 | ) | (5,160 | ) | ||||
$ | 3,606 | $ | 3,478 | |||||
Building construction in progress at June 30, 2014 includes $74 million for facilities not yet placed in service that we are holding for future use. |
Joint_Ventures
Joint Ventures | 6 Months Ended |
Jun. 30, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Joint Ventures | ' |
Joint Ventures | |
We make investments in joint ventures. For each joint venture investment, we consider the facts and circumstances in order to determine whether it qualifies for cost accounting, equity accounting, fair value method accounting or whether it should be consolidated. | |
In 2009, Cisco and EMC formed VCE Company LLC (“VCE”), with investments from VMware and Intel. VCE, through Vblock infrastructure platforms, delivers an integrated IT offering that combines network, computing, storage, management, security and virtualization technologies for converged infrastructures and cloud based computing models. As of June 30, 2014, we have contributed $1,255 million in funding and $17 million in stock-based compensation to VCE since inception and own approximately 58% of VCE’s outstanding equity. | |
We consider VCE a variable interest entity. Authoritative guidance related to variable interest entities states that the primary beneficiary of a variable interest entity must have both of the following characteristics: (a) the power to direct the activities of a variable interest entity that most significantly will impact the entity’s economic performance; and (b) the obligation to absorb losses that could be potentially significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Since the power to direct the activities of VCE which most significantly impact its economic performance are determined by its board of directors, which is comprised of equal representation of EMC and Cisco, and all significant decisions require the approval of the minority shareholders, we have determined we are not the primary beneficiary, and as such we account for the investment under the equity method. | |
Our portion of VCE’s gains and losses is recognized in other expense, net, in the consolidated income statements. Our consolidated share of VCE’s losses, based upon our portion of the overall funding, was approximately 63% for the three and six months ended June 30, 2014 and 2013. As of June 30, 2014, we have recorded net accumulated losses from VCE of $956 million since inception, of which $85 million and $160 million were recorded in the three and six months ending June 30, 2014, respectively, and $71 million and $140 million were recorded in the three and six months ended June 30, 2013, respectively. | |
We recognized $172 million and $342 million in revenue from sales of product and services to VCE during the three and six months ended June 30, 2014, respectively, and $102 million and $176 million for the three and six months ended June 30, 2013, respectively. We perform certain administrative services, pursuant to an administrative services agreement, on behalf of VCE and we pay certain operating expenses on behalf of VCE. Accordingly, we had a receivable from VCE related to the administrative services agreement of $60 million and $52 million as of June 30, 2014 and December 31, 2013, respectively, included in other current assets in the consolidated balance sheets. |
Accrued_Expenses
Accrued Expenses | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||||||
Accrued Expenses | ' | |||||||||||||||
Accrued Expenses | ||||||||||||||||
Accrued expenses consist of (table in millions): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Salaries and benefits | $ | 989 | $ | 1,078 | ||||||||||||
Product warranties | 255 | 289 | ||||||||||||||
Dividends payable (see Note 12) | 240 | 205 | ||||||||||||||
Partner rebates | 201 | 214 | ||||||||||||||
Restructuring, current (See Note 13) | 128 | 84 | ||||||||||||||
Derivatives | 23 | 23 | ||||||||||||||
Other | 914 | 890 | ||||||||||||||
$ | 2,750 | $ | 2,783 | |||||||||||||
Product Warranties | ||||||||||||||||
Systems sales include a standard product warranty. At the time of the sale, we accrue for systems’ warranty costs. The initial systems’ warranty accrual is based upon our historical experience, expected future costs and specific identification of systems’ requirements. Upon sale or expiration of the initial warranty, we may sell additional maintenance contracts to our customers. Revenue from these additional maintenance contracts is included in deferred revenue and recognized ratably over the service period. The following represents the activity in our warranty accrual for the three and six months ended June 30, 2014 and 2013 (table in millions): | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance, beginning of the period | $ | 274 | $ | 283 | $ | 289 | $ | 278 | ||||||||
Provision | 32 | 51 | 74 | 96 | ||||||||||||
Amounts charged to the accrual | (51 | ) | (43 | ) | (108 | ) | (83 | ) | ||||||||
Balance, end of the period | $ | 255 | $ | 291 | $ | 255 | $ | 291 | ||||||||
The provision includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods. It is not practicable to determine the amounts applicable to each of the components. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our effective income tax rates were 23.1% and 23.6% for the three and six months ended June 30, 2014, respectively. Our effective income tax rates were 22.4% and 17.7% for the three and six months ended June 30, 2013, respectively. Our effective income tax rate is based upon estimated income before provision for income taxes for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax audits or other tax contingencies. For the three and six months ended June 30, 2014, the effective income tax rate varied from the statutory income tax rate principally as a result of the mix of income attributable to foreign versus domestic jurisdictions and state taxes. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States; substantially all of our income before provision for income taxes from foreign operations has been earned by our Irish subsidiaries. We do not believe that any recent or currently expected developments in non-U.S. tax jurisdictions are reasonably likely to have a material impact on our effective income rate. For the three and six months ended June 30, 2013, the effective income tax rate varied from the statutory income tax rate principally as a result of the mix of income attributable to foreign versus domestic jurisdictions, state taxes and the U.S. federal tax credit for increasing research activities. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law. Some of the provisions were retroactive to January 1, 2012 including an extension of the U.S. federal tax credit for increasing research activities through December 31, 2013. Because the extension was enacted after December 31, 2012, our income tax provision for the six months ended June 30, 2013 included the estimated federal tax credit for increasing research activities for the full year 2012 as well as the six months ended June 30, 2013, which reduced our effective tax rate for the six month period. | |
Our effective income tax rate increased in the three and six months ended June 30, 2014 from the three and six months ended June 30, 2013 due primarily to the retroactive renewal of the U.S. federal tax credit for increasing research activities on January 2, 2013 as discussed above. The U.S. federal tax credit for increasing research activities reduced our effective income tax rate by approximately 1.0% and 5.1% for the three and six months ended June 30, 2013. Our effective income tax rate for the three and six months ended June 30, 2014 does not reflect any U.S. federal tax credit for increasing research activities because the credit expired on December 31, 2013. There were also differences in the mix of income attributable to foreign versus domestic jurisdictions, change in tax contingency reserves and discrete items, the net impact of which is immaterial. | |
We are routinely under audit by the Internal Revenue Service (the “IRS”). We have concluded all U.S. federal income tax matters for years through 2008. The IRS commenced a federal income tax audit for the tax years 2009 and 2010 in the third quarter of 2012. The current federal income tax audit is ongoing and it is not expected to be completed until 2015. We also have income tax audits in process in numerous state, local and international jurisdictions. In our international jurisdictions that comprise a significant portion of our operations, the years that may be examined vary, with the earliest year being 2004. Based on the timing and outcome of examinations of EMC, the result of the expiration of statutes of limitations for specific jurisdictions or the timing and result of ruling requests from taxing authorities, it is reasonably possible that the related unrecognized tax benefits could change from those recorded in our statement of financial position. We anticipate that several of these audits may be finalized within the next twelve months. While we expect the amount of unrecognized tax benefits to change in the next twelve months, we do not expect the change to have a significant impact on our results of operations or financial position. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Shareholders' Equity | ' | |||||||||||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||||||
The reconciliation from basic to diluted earnings per share for both the numerators and denominators is as follows (table in millions): | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income attributable to EMC Corporation | $ | 589 | $ | 701 | $ | 980 | $ | 1,281 | ||||||||||||||||
Incremental dilution from VMware | (1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||||||||||
Net income – dilution attributable to EMC Corporation | $ | 588 | $ | 699 | $ | 977 | $ | 1,278 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares, basic | 2,037 | 2,092 | 2,033 | 2,097 | ||||||||||||||||||||
Weighted common stock equivalents | 27 | 29 | 27 | 30 | ||||||||||||||||||||
Assumed conversion of the 2013 Notes and associated warrants | — | 53 | 10 | 54 | ||||||||||||||||||||
Weighted average shares, diluted | 2,064 | 2,174 | 2,070 | 2,181 | ||||||||||||||||||||
Due to the cash settlement feature of the principal amount of the 2013 Notes, we only included the impact of the premium feature in our diluted earnings per share calculation when the 2013 Notes were convertible due to maturity or when the average stock price exceeded the conversion price of the 2013 Notes. | ||||||||||||||||||||||||
Concurrent with the issuance of the 2011 Notes and 2013 Notes, we also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. Approximately half of the associated warrants were exercised during the year ended December 31, 2012. The remaining 109 million warrants were exercised between February 18, 2014 and March 17, 2014. These warrants were settled with shares of our common stock. As such, we included the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation during the three and six months ended June 30, 2013 as the average stock price exceeded the exercise price, and during the six months ended June 30, 2014 for the period the warrants were outstanding. | ||||||||||||||||||||||||
Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 1 million and 4 million for the three and six months ended June 30, 2014, respectively, and 4 million for both the three and six months ended June 30, 2013, were excluded from the calculation of diluted earnings per share because they were antidilutive. The incremental dilution from VMware represents the impact of VMware’s dilutive securities on EMC’s consolidated diluted net income per share and is calculated by multiplying the difference between VMware’s basic and diluted earnings per share by the number of VMware shares owned by EMC. | ||||||||||||||||||||||||
Repurchase of Common Stock | ||||||||||||||||||||||||
We utilize both authorized and unissued shares (including repurchased shares) for all issuances under our equity plans. Our Board of Directors authorized the repurchase of 250 million shares of our common stock in February 2013. For the six months ended June 30, 2014, we spent $1.0 billion to repurchase 39 million shares of our common stock. Of the 250 million shares authorized for repurchase, we have repurchased 133 million shares at a total cost of $3.4 billion, leaving a remaining balance of 117 million shares authorized for future repurchases. We plan to spend up to $6.0 billion in the repurchase of shares during the two years ending December 31, 2014. This includes $3.0 billion spent during the year ended December 31, 2013 and $3.0 billion to be spent during the year ending December 31, 2014. | ||||||||||||||||||||||||
Cash Dividend on Common Stock | ||||||||||||||||||||||||
In May 2013, our Board of Directors approved the initiation of a quarterly cash dividend to EMC shareholders of $0.10 per share of common stock. On April 17, 2014, our Board of Directors approved an increase in the quarterly cash dividend paid to EMC shareholders to $0.115 per share of common stock. | ||||||||||||||||||||||||
Our Board of Directors declared the following dividends during the periods presented: | ||||||||||||||||||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount (in millions) | Payment Date | ||||||||||||||||||||
Fiscal Year 2014: | ||||||||||||||||||||||||
February 6, 2014 | $ | 0.1 | April 1, 2014 | $ | 209 | April 23, 2014 | ||||||||||||||||||
April 17, 2014 | $ | 0.115 | July 1, 2014 | $ | 237 | July 23, 2014 | ||||||||||||||||||
30-Jul-14 | $ | 0.115 | October 1, 2014 | N/A | October 23, 2014 | |||||||||||||||||||
Fiscal Year 2013: | ||||||||||||||||||||||||
May 30, 2013 | $ | 0.1 | July 1, 2013 | $ | 212 | July 23, 2013 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following (table in millions): | ||||||||||||||||||||||||
Foreign Currency Translation Adjustments | Unrealized Net Gains on Investments | Unrealized Net Losses on Derivatives | Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans | Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc. | Total | |||||||||||||||||||
Balance as of December, 31 2013(a) | $ | (53 | ) | $ | 31 | $ | (106 | ) | $ | (110 | ) | $ | (1 | ) | $ | (239 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 4 | 83 | 1 | — | (1 | ) | 87 | |||||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive income | — | (11 | ) | (3 | ) | 1 | — | (13 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | 4 | 72 | (2 | ) | 1 | (1 | ) | 74 | ||||||||||||||||
Balance as of June 30, 2014(b) | $ | (49 | ) | $ | 103 | $ | (108 | ) | $ | (109 | ) | $ | (2 | ) | $ | (165 | ) | |||||||
__________________ | ||||||||||||||||||||||||
(a) | Net of taxes (benefits) of $18 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
(b) | Net of taxes (benefits) of $61 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 are as follows (tables in millions): | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Impacted Line Item on | ||||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||
For the Three Months Ended June 30, 2014: | ||||||||||||||||||||||||
Net gain on investments: | $ | 9 | Investment income | |||||||||||||||||||||
(3 | ) | Provision for income tax | ||||||||||||||||||||||
Net of tax | $ | 6 | ||||||||||||||||||||||
Net gain on derivatives: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 2 | Product sales revenue | |||||||||||||||||||||
Foreign exchange contracts | (1 | ) | Cost of product sales | |||||||||||||||||||||
Total net gain on derivatives before tax | 1 | |||||||||||||||||||||||
— | Provision for income tax | |||||||||||||||||||||||
Net of tax | $ | 1 | ||||||||||||||||||||||
Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Impacted Line Item on | ||||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||
For the Six Months Ended June 30, 2014: | ||||||||||||||||||||||||
Net gain on investments: | $ | 17 | Investment income | |||||||||||||||||||||
(6 | ) | Provision for income tax | ||||||||||||||||||||||
Net of tax | $ | 11 | ||||||||||||||||||||||
Net gain on derivatives: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 3 | Product sales revenue | |||||||||||||||||||||
Foreign exchange contracts | — | Cost of product sales | ||||||||||||||||||||||
Total net gain on derivatives before tax | 3 | |||||||||||||||||||||||
— | Provision for income tax | |||||||||||||||||||||||
Net of tax | $ | 3 | ||||||||||||||||||||||
Restructuring_and_AcquisitionR
Restructuring and Acquisition-Related Charges | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||||||
For the three and six months ended June 30, 2014, we incurred restructuring and acquisition-related charges of $30 million and $149 million, respectively. For the three and six months ended June 30, 2013, we incurred restructuring and acquisition-related charges of $7 million and $155 million, respectively. For the three and six months ended June 30, 2014, EMC incurred $29 million and $144 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and during both the three and six months ended June 30, 2014, EMC incurred $2 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For each of the three and six months ended June 30, 2014, VMware recognized a recovery of $1 million related to its restructuring program. For the six months ended June 30, 2014, VMware incurred $4 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three and six months ended June 30, 2013, EMC incurred $4 million and $85 million, respectively, of restructuring charges, primarily related to our 2013 restructuring programs. For the three and six months ended June 30, 2013, VMware incurred $2 million and $56 million, respectively, of restructuring charges, primarily related to the 2013 restructuring program. For the six months ended June 30, 2013, EMC incurred $3 million and VMware incurred $1 million of costs for financial, advisory, legal and accounting services in connection with acquisitions. Additionally, during the three and six months ended June 30, 2013, VMware incurred $1 million and $10 million, respectively, of impairment charges related to its business realignment. | ||||||||||||||||
In the first and second quarters of 2014, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of approximately 1,326 and 210 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Information Intelligence Group and Pivotal segments. All of these actions are expected to be completed within a year of the start of the program. | ||||||||||||||||
During 2013, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of 1,917 positions, of which 1,004 positions were identified in the first and second quarters of 2013. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions were completed within a year of the start of the program. | ||||||||||||||||
During 2013, VMware approved and initiated a business realignment plan to streamline its operations. The plan included the elimination of approximately 710 positions across all major functional groups and geographies. All of these actions were completed within a year of the start of the program. | ||||||||||||||||
For the three and six months ended June 30, 2014, we recognized $4 million and $8 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs and for costs associated with terminating other contractual obligations. For the three and six months ended June 30, 2013, we recognized $5 million and $12 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs. These costs are expected to be utilized by the end of 2015. | ||||||||||||||||
The activity for the restructuring programs is presented below (tables in millions): | ||||||||||||||||
Three Months Ended June 30, 2014: | ||||||||||||||||
2014 EMC Program | ||||||||||||||||
Category | Balance as of | 2014 | Utilization | Balance as of June 30, 2014 | ||||||||||||
March 31, | Charges | |||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 102 | $ | 32 | $ | (36 | ) | $ | 98 | |||||||
Consolidation of excess facilities and other contractual obligations | 1 | 4 | (2 | ) | 3 | |||||||||||
Total | $ | 103 | $ | 36 | $ | (38 | ) | $ | 101 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2014 | ||||||||||||
March 31, | ||||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 37 | $ | (7 | ) | $ | (13 | ) | $ | 17 | ||||||
Consolidation of excess facilities and other contractual obligations | 20 | — | (2 | ) | 18 | |||||||||||
Total | $ | 57 | $ | (7 | ) | $ | (15 | ) | $ | 35 | ||||||
Six Months Ended June 30, 2014: | ||||||||||||||||
2014 EMC Program | ||||||||||||||||
Category | Balance as of | 2014 | Utilization | Balance as of June 30, 2014 | ||||||||||||
December 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | — | $ | 149 | $ | (51 | ) | $ | 98 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 6 | (3 | ) | 3 | |||||||||||
Total | $ | — | $ | 155 | $ | (54 | ) | $ | 101 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2014 | ||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 66 | $ | (13 | ) | $ | (36 | ) | $ | 17 | ||||||
Consolidation of excess facilities and other contractual obligations | 24 | 2 | (8 | ) | 18 | |||||||||||
Total | $ | 90 | $ | (11 | ) | $ | (44 | ) | $ | 35 | ||||||
Three Months Ended June 30, 2013: | ||||||||||||||||
2013 EMC Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
March 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 66 | $ | 2 | $ | (23 | ) | $ | 45 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 3 | (1 | ) | 2 | |||||||||||
Total | $ | 66 | $ | 5 | $ | (24 | ) | $ | 47 | |||||||
2013 VMware Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
March 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 26 | $ | 2 | $ | (26 | ) | $ | 2 | |||||||
Consolidation of excess facilities and other contractual obligations | — | — | — | — | ||||||||||||
Total | $ | 26 | $ | 2 | $ | (26 | ) | $ | 2 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2013 | ||||||||||||
March 31, | ||||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 46 | $ | (3 | ) | $ | (14 | ) | $ | 29 | ||||||
Consolidation of excess facilities and other contractual obligations | 30 | 2 | (5 | ) | 27 | |||||||||||
Total | $ | 76 | $ | (1 | ) | $ | (19 | ) | $ | 56 | ||||||
Six Months Ended June 30, 2013: | ||||||||||||||||
2013 EMC Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
December 31, | Charges | |||||||||||||||
2012 | ||||||||||||||||
Workforce reductions | $ | — | $ | 81 | $ | (36 | ) | $ | 45 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 3 | (1 | ) | 2 | |||||||||||
Total | $ | — | $ | 84 | $ | (37 | ) | $ | 47 | |||||||
2013 VMware Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
December 31, | Charges | |||||||||||||||
2012 | ||||||||||||||||
Workforce reductions | $ | — | $ | 56 | $ | (54 | ) | $ | 2 | |||||||
Consolidation of excess facilities and other contractual obligations | — | — | — | — | ||||||||||||
Total | $ | — | $ | 56 | $ | (54 | ) | $ | 2 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2013 | ||||||||||||
December 31, | ||||||||||||||||
2012 | ||||||||||||||||
Workforce reductions | $ | 63 | $ | (8 | ) | $ | (26 | ) | $ | 29 | ||||||
Consolidation of excess facilities and other contractual obligations | 28 | 9 | (10 | ) | 27 | |||||||||||
Total | $ | 91 | $ | 1 | $ | (36 | ) | $ | 56 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
We are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including actions with respect to contracts, intellectual property, product liability, employment, benefits and securities matters. As required by authoritative guidance, we have estimated the amount of probable losses that may result from all currently pending matters, and such amounts are reflected in our consolidated financial statements. These recorded amounts are not material to our consolidated financial position or results of operations and no additional material losses related to these pending matters are reasonably possible. While it is not possible to predict the outcome of these matters with certainty, we do not expect the results of any of these actions to have a material adverse effect on our business, results of operations or financial condition. Because litigation is inherently unpredictable, however, the actual amounts of loss may prove to be larger or smaller than the amounts reflected in our consolidated financial statements, and we could incur judgments or enter into settlements of claims that could adversely affect our operating results or cash flows in a particular period. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||
We manage the Company as three federated businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal. EMC Information Infrastructure operates in three segments: Information Storage, 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 segment for the first quarter of 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 disclosures for the prior financial reporting period 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 and other 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, 2014 and 2013 is as follows (tables in millions, except percentages): | ||||||||||||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
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 costs and expenses | 1,498 | 79 | 1,577 | |||||||||||||||||||||
Operating income (expense) | $ | 956 | $ | (53 | ) | $ | 903 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
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 costs and 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 | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
Three Months Ended: | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,577 | $ | 39 | $ | 98 | $ | 2,714 | $ | 15 | $ | 2,729 | ||||||||||||
Services revenues | 1,377 | 113 | 130 | 1,620 | 27 | 1,647 | ||||||||||||||||||
Total consolidated revenues | 3,954 | 152 | 228 | 4,334 | 42 | 4,376 | ||||||||||||||||||
Gross profit | $ | 2,236 | $ | 96 | $ | 148 | $ | 2,480 | $ | 20 | $ | 2,500 | ||||||||||||
Gross profit percentage | 56.5 | % | 63.1 | % | 65.1 | % | 57.2 | % | 48.1 | % | 57.1 | % | ||||||||||||
Research and development | 377 | 26 | 403 | |||||||||||||||||||||
Selling, general and administrative | 1,118 | 36 | 1,154 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total costs and expenses | 1,495 | 62 | 1,557 | |||||||||||||||||||||
Operating income (expense) | $ | 985 | $ | (42 | ) | $ | 943 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,729 | $ | 529 | $ | — | $ | 3,258 | ||||||||||||||||
Services revenues | 1,647 | 709 | — | 2,356 | ||||||||||||||||||||
Total consolidated revenues | 4,376 | 1,238 | — | 5,614 | ||||||||||||||||||||
Gross profit | $ | 2,500 | $ | 1,109 | $ | (100 | ) | $ | 3,509 | |||||||||||||||
Gross profit percentage | 57.1 | % | 89.6 | % | — | % | 62.5 | % | ||||||||||||||||
Research and development | 403 | 207 | 85 | 695 | ||||||||||||||||||||
Selling, general and administrative | 1,154 | 489 | 142 | 1,785 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 7 | 7 | ||||||||||||||||||||
Total costs and expenses | 1,557 | 696 | 234 | 2,487 | ||||||||||||||||||||
Operating income (expense) | 943 | 413 | (334 | ) | 1,022 | |||||||||||||||||||
Non-operating income (expense), net | (78 | ) | 3 | 19 | (56 | ) | ||||||||||||||||||
Income tax provision (benefit) | 214 | 93 | (91 | ) | 216 | |||||||||||||||||||
Net income | 651 | 323 | (224 | ) | 750 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (67 | ) | 18 | (49 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 651 | $ | 256 | $ | (206 | ) | $ | 701 | |||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
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 costs and expenses | 2,977 | 153 | 3,130 | |||||||||||||||||||||
Operating income (expense) | $ | 1,713 | $ | (108 | ) | $ | 1,605 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
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 costs and 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 | |||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
Six Months Ended: | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 5,048 | $ | 82 | $ | 198 | $ | 5,328 | $ | 28 | $ | 5,356 | ||||||||||||
Services revenues | 2,704 | 226 | 262 | 3,192 | 49 | 3,241 | ||||||||||||||||||
Total consolidated revenues | 7,752 | 308 | 460 | 8,520 | 77 | 8,597 | ||||||||||||||||||
Gross profit | $ | 4,324 | $ | 195 | $ | 301 | $ | 4,820 | $ | 37 | $ | 4,857 | ||||||||||||
Gross profit percentage | 55.8 | % | 63.4 | % | 65.2 | % | 56.6 | % | 48.1 | % | 56.5 | % | ||||||||||||
Research and development | 743 | 52 | 795 | |||||||||||||||||||||
Selling, general and administrative | 2,195 | 73 | 2,268 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total costs and expenses | 2,938 | 125 | 3,063 | |||||||||||||||||||||
Operating income (expense) | $ | 1,882 | $ | (88 | ) | $ | 1,794 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
Six Months Ended: | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 5,356 | $ | 1,013 | $ | — | $ | 6,369 | ||||||||||||||||
Services revenues | 3,241 | 1,391 | — | 4,632 | ||||||||||||||||||||
Total consolidated revenues | 8,597 | 2,404 | — | 11,001 | ||||||||||||||||||||
Gross profit | $ | 4,857 | $ | 2,150 | $ | (200 | ) | $ | 6,807 | |||||||||||||||
Gross profit percentage | 56.5 | % | 89.4 | % | — | % | 61.9 | % | ||||||||||||||||
Research and development | 795 | 397 | 178 | 1,370 | ||||||||||||||||||||
Selling, general and administrative | 2,268 | 939 | 292 | 3,499 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 155 | 155 | ||||||||||||||||||||
Total costs and expenses | 3,063 | 1,336 | 625 | 5,024 | ||||||||||||||||||||
Operating income (expense) | 1,794 | 814 | (825 | ) | 1,783 | |||||||||||||||||||
Non-operating income (expense), net | (152 | ) | 7 | 19 | (126 | ) | ||||||||||||||||||
Income tax provision (benefit) | 401 | 176 | (285 | ) | 292 | |||||||||||||||||||
Net income | 1,241 | 645 | (521 | ) | 1,365 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (129 | ) | 45 | (84 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 1,241 | $ | 516 | $ | (476 | ) | $ | 1,281 | |||||||||||||||
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, | June 30, | June 30, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
United States | $ | 3,056 | $ | 2,963 | $ | 5,890 | $ | 5,795 | ||||||||||||||||
Europe, Middle East and Africa | 1,669 | 1,486 | 3,261 | 2,963 | ||||||||||||||||||||
Asia Pacific and Japan | 802 | 835 | 1,525 | 1,573 | ||||||||||||||||||||
Latin America, Mexico and Canada | 353 | 330 | 683 | 670 | ||||||||||||||||||||
Total | $ | 5,880 | $ | 5,614 | $ | 11,359 | $ | 11,001 | ||||||||||||||||
No country other than the United States accounted for 10% or more of revenues during the three and six months ended June 30, 2014 or 2013. | ||||||||||||||||||||||||
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,356 million at June 30, 2014 and $4,433 million at December 31, 2013. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $998 million at June 30, 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 June 30, 2014 or December 31, 2013. |
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations [Policy Text Block] | ' |
Company | |
EMC Corporation ("EMC") and its subsidiaries develop, deliver and support the information technology ("IT") industry’s broadest range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of three businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal. | |
EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost, and enhancing competitive advantage. These benefits are primarily achieved though virtualization. EMC’s Information Infrastructure business comprises three segments – Information Storage, RSA Information Security and Information Intelligence Group. | |
EMC’s VMware Virtual Infrastructure business, which is represented by EMC’s majority equity stake in VMware, Inc. ("VMware"), is the leader in virtualization infrastructure solutions utilized by organizations to help them transform the way they build, deliver and consume IT resources. VMware’s virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, run on industry-standard desktop computers and servers and support a wide range of operating system and application environments, as well as networking and storage infrastructures. | |
EMC's Pivotal business ("Pivotal") was formed in the second quarter of 2013. Pivotal unites strategic technology, people and programs formerly within EMC and VMware, including Greenplum, Cloud Foundry, Spring, Cetas, Pivotal Labs, GemFire and other products. Pivotal is building a new platform comprising next-generation data fabrics, application fabrics and a cloud independent platform-as-a-service ("PaaS"). | |
General | ' |
General | |
The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. These consolidated financial statements include the accounts of EMC, its wholly owned subsidiaries, as well as VMware and Pivotal, companies majority-owned by EMC. All intercompany transactions have been eliminated. | |
Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Accordingly, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2014. | |
The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for any future period or the entire fiscal year. The interim consolidated financial statements, in the opinion of management, reflect all adjustments necessary to fairly state the results as of and for the three- and six-month periods ended June 30, 2014 and 2013. | |
Net Income Per Share | ' |
Net Income Per Share | |
Basic net income per weighted average share has been computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per weighted average share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of stock options, restricted stock and restricted stock units, the shares issuable under our $1.725 billion 1.75% convertible senior notes due 2013 (the "2013 Notes") and the associated warrants. Additionally, for purposes of calculating diluted net income per weighted average share, net income is adjusted for the difference between VMware’s reported diluted and basic net income per weighted average share, if any, multiplied by the number of shares of VMware held by EMC. | |
Reclassifications and comparability of prior year financial data | ' |
Reclassifications | |
Certain prior year amounts have been reclassified to conform with the current year's presentation. 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 in our segment and included the financial results of the acquired businesses in the Information Storage segment and excluded these from the Pivotal segment for the three and six months ended June 30, 2014. We recast the segment disclosures for the prior financial reporting period to present the impact of the transaction. None of the segment reclassifications impact EMC's previously reported consolidated financial statements. See Note 15 for further discussion of the segment reclassifications. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. | |
In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective beginning January 1, 2017, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements. | |
In April 2014, the FASB issued new accounting guidance on reporting discontinued operations and disclosures of disposals of components of an entity which clarifies the scope of what should be reported as discontinued operations and expands required disclosures. This new guidance is effective beginning January 1, 2015, with early adoption permitted. The impact of this guidance will be dependent on the nature and significance of any transactions within the scope of this new guidance. | |
In July 2013, the FASB issued new accounting guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, with limited exceptions. The prospective adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows. | |
In March 2013, the FASB issued guidance that requires a parent company to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this new accounting guidance in the first quarter of 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows. |
Noncontrolling_Interest_in_VMw1
Non-controlling Interest in VMware, Inc. (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Noncontrolling Interest [Abstract] | ' | |||||||
Effect of Changes in Ownership Interest in VMware on Equity | ' | |||||||
The effect of changes in our ownership interest in VMware on our equity was as follows (table in millions): | ||||||||
For the Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Net income attributable to EMC Corporation | $ | 980 | $ | 1,281 | ||||
Transfers (to) from the non-controlling interest in VMware, Inc.: | ||||||||
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances | 51 | 52 | ||||||
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity | (427 | ) | (321 | ) | ||||
Net transfers (to) from non-controlling interest | (376 | ) | (269 | ) | ||||
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc. | $ | 604 | $ | 1,012 | ||||
Business_Combinations_Intangib1
Business Combinations, Intangibles and Goodwill (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||
Intangible Assets, Excluding Goodwill | ' | |||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets, excluding goodwill, as of June 30, 2014 and December 31, 2013 consist of (tables in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,783 | $ | (1,546 | ) | $ | 1,237 | |||||||||||||||||
Patents | 225 | (109 | ) | 116 | ||||||||||||||||||||
Software licenses | 104 | (92 | ) | 12 | ||||||||||||||||||||
Trademarks and tradenames | 212 | (127 | ) | 85 | ||||||||||||||||||||
Customer relationships and customer lists | 1,463 | (914 | ) | 549 | ||||||||||||||||||||
Leasehold interest | 147 | (13 | ) | 134 | ||||||||||||||||||||
Other | 44 | (30 | ) | 14 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 4,978 | $ | (2,831 | ) | $ | 2,147 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,356 | $ | (1,429 | ) | $ | 927 | |||||||||||||||||
Patents | 225 | (102 | ) | 123 | ||||||||||||||||||||
Software licenses | 101 | (90 | ) | 11 | ||||||||||||||||||||
Trademarks and tradenames | 171 | (118 | ) | 53 | ||||||||||||||||||||
Customer relationships and customer lists | 1,386 | (855 | ) | 531 | ||||||||||||||||||||
Leasehold interest | 145 | (11 | ) | 134 | ||||||||||||||||||||
Other | 28 | (27 | ) | 1 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 4,412 | $ | (2,632 | ) | $ | 1,780 | |||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the six months ended June 30, 2014 consist of (table in millions): | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Information | Information | RSA | Pivotal | VMware | Total | |||||||||||||||||||
Storage | Intelligence | Information | Virtual | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
Balance, beginning of the period | $ | 7,486 | $ | 1,487 | $ | 2,203 | $ | 177 | $ | 3,071 | $ | 14,424 | ||||||||||||
Goodwill resulting from acquisitions | 509 | — | — | — | 879 | 1,388 | ||||||||||||||||||
Finalization of purchase price allocations and other, net | — | (2 | ) | — | — | (8 | ) | (10 | ) | |||||||||||||||
Goodwill transferred in acquisition of Pivotal businesses | 6 | — | — | (6 | ) | — | — | |||||||||||||||||
Balance, end of the period | $ | 8,001 | $ | 1,485 | $ | 2,203 | $ | 171 | $ | 3,942 | $ | 15,802 | ||||||||||||
VMware | AirWatch | ' | |||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||
Business Acquisitions, by Acquisition | ' | |||||||||||||||||||||||
The following table summarizes the allocation of the consideration to the fair value of the assets acquired and net liabilities assumed, net of cash acquired (table in millions): | ||||||||||||||||||||||||
Other current assets | $ | 60 | ||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||
Purchased technology (weighted-average useful life of 6 years) | 118 | |||||||||||||||||||||||
Customer relationships and customer lists (weighted-average useful life of 8 years) | 78 | |||||||||||||||||||||||
Trademarks and tradenames (weighted-average useful life of 8 years) | 40 | |||||||||||||||||||||||
Other (weighted-average useful life of 3 years) | 14 | |||||||||||||||||||||||
Total intangible assets, net, excluding goodwill | 250 | |||||||||||||||||||||||
Goodwill | 879 | |||||||||||||||||||||||
Other assets | 17 | |||||||||||||||||||||||
Total assets acquired | 1,206 | |||||||||||||||||||||||
Unearned revenue | (45 | ) | ||||||||||||||||||||||
Other assumed liabilities, net of acquired assets | (69 | ) | ||||||||||||||||||||||
Total net liabilities assumed | (114 | ) | ||||||||||||||||||||||
Fair value of assets acquired and net liabilities assumed | $ | 1,092 | ||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Key Components of Convertible Debt | ' | |||||||
The following table represent the key components of our interest expense on convertible debt for the three and six months ended June 30, 2013 (table in millions): | ||||||||
June 30, 2013 | ||||||||
Three Months Ended | Six Months Ended | |||||||
Contractual interest expense on the coupon | $ | 7 | $ | 15 | ||||
Amortization of the discount component recognized as interest expense | 16 | 31 | ||||||
Total interest expense on the convertible debt | $ | 23 | $ | 46 | ||||
Our long-term debt as of June 30, 2014 was as follows (dollars in millions): | ||||||||
Senior Notes | Issued at Discount | Carrying | ||||||
to Par | Value | |||||||
$2.5 billion 1.875% Notes due 2018 | 99.943 | % | $ | 2,499 | ||||
$2.0 billion 2.650% Notes due 2020 | 99.76 | % | 1,996 | |||||
$1.0 billion 3.375% Notes due 2023 | 99.925 | % | 999 | |||||
$ | 5,494 | |||||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Composition of Investments | ' | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 3,726 | $ | 4 | $ | (3 | ) | $ | 3,727 | |||||||||||||||
U.S. corporate debt securities | 2,260 | 8 | (2 | ) | 2,266 | |||||||||||||||||||
High yield corporate debt securities | 515 | 19 | (3 | ) | 531 | |||||||||||||||||||
Municipal obligations | 860 | 3 | — | 863 | ||||||||||||||||||||
Auction rate securities | 63 | — | (3 | ) | 60 | |||||||||||||||||||
Foreign debt securities | 2,152 | 6 | (3 | ) | 2,155 | |||||||||||||||||||
Total fixed income securities | 9,576 | 40 | (14 | ) | 9,602 | |||||||||||||||||||
Publicly traded equity securities | 72 | 24 | (1 | ) | 95 | |||||||||||||||||||
Total | $ | 9,648 | $ | 64 | $ | (15 | ) | $ | 9,697 | |||||||||||||||
The following tables summarize the composition of our short- and long-term investments at June 30, 2014 and December 31, 2013 (tables in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 2,201 | $ | 4 | $ | (1 | ) | $ | 2,204 | |||||||||||||||
U.S. corporate debt securities | 2,294 | 5 | (1 | ) | 2,298 | |||||||||||||||||||
High yield corporate debt securities | 554 | 23 | — | 577 | ||||||||||||||||||||
Asset-backed securities | 25 | — | — | 25 | ||||||||||||||||||||
Municipal obligations | 965 | 3 | — | 968 | ||||||||||||||||||||
Auction rate securities | 63 | — | (4 | ) | 59 | |||||||||||||||||||
Foreign debt securities | 2,515 | 7 | (1 | ) | 2,521 | |||||||||||||||||||
Total fixed income securities | 8,617 | 42 | (7 | ) | 8,652 | |||||||||||||||||||
Publicly traded equity securities | 166 | 133 | (4 | ) | 295 | |||||||||||||||||||
Total | $ | 8,783 | $ | 175 | $ | (11 | ) | $ | 8,947 | |||||||||||||||
Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value | ' | |||||||||||||||||||||||
The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013 (tables in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 1,693 | $ | — | $ | — | $ | 1,693 | ||||||||||||||||
Cash equivalents | 3,330 | 664 | — | 3,994 | ||||||||||||||||||||
U.S. government and agency obligations | 1,349 | 855 | — | 2,204 | ||||||||||||||||||||
U.S. corporate debt securities | — | 2,298 | — | 2,298 | ||||||||||||||||||||
High yield corporate debt securities | — | 577 | — | 577 | ||||||||||||||||||||
Asset-backed securities | — | 25 | — | 25 | ||||||||||||||||||||
Municipal obligations | — | 968 | — | 968 | ||||||||||||||||||||
Auction rate securities | — | — | 59 | 59 | ||||||||||||||||||||
Foreign debt securities | — | 2,521 | — | 2,521 | ||||||||||||||||||||
Publicly traded equity securities | 295 | — | — | 295 | ||||||||||||||||||||
Total cash and investments | $ | 6,667 | $ | 7,908 | $ | 59 | $ | 14,634 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 296 | $ | 296 | ||||||||||||||||
Investment in joint venture | — | — | 36 | 36 | ||||||||||||||||||||
Long-term debt carried at discounted cost | — | (5,513 | ) | — | (5,513 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 20 | — | 20 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (20 | ) | — | (20 | ) | ||||||||||||||||||
Commodity derivative assets | — | 2 | — | 2 | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 1,725 | $ | — | $ | — | $ | 1,725 | ||||||||||||||||
Cash equivalents | 5,674 | 492 | — | 6,166 | ||||||||||||||||||||
U.S. government and agency obligations | 1,797 | 1,930 | — | 3,727 | ||||||||||||||||||||
U.S. corporate debt securities | — | 2,266 | — | 2,266 | ||||||||||||||||||||
High yield corporate debt securities | — | 531 | — | 531 | ||||||||||||||||||||
Municipal obligations | — | 863 | — | 863 | ||||||||||||||||||||
Auction rate securities | — | — | 60 | 60 | ||||||||||||||||||||
Foreign debt securities | — | 2,155 | — | 2,155 | ||||||||||||||||||||
Publicly traded equity securities | 95 | — | — | 95 | ||||||||||||||||||||
Total cash and investments | $ | 9,291 | $ | 8,237 | $ | 60 | $ | 17,588 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 379 | $ | 379 | ||||||||||||||||
Investment in joint venture | — | — | 35 | 35 | ||||||||||||||||||||
Convertible debt carried at discounted cost | — | (5,419 | ) | — | (5,419 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 31 | — | 31 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (20 | ) | — | (20 | ) | ||||||||||||||||||
Commodity derivative assets | — | 4 | — | 4 | ||||||||||||||||||||
Changes in Fair Value of Level 3 Financial Assets | ' | |||||||||||||||||||||||
The following table provides a summary of changes in fair value of our Level 3 auction rate securities for the three and six months ended June 30, 2014 and 2013 (table in millions): | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | 30-Jun-14 | 30-Jun-13 | |||||||||||||||||||||
Balance, beginning of the period | $ | 60 | $ | 68 | $ | 60 | $ | 70 | ||||||||||||||||
Calls at par value | — | — | — | (1 | ) | |||||||||||||||||||
Other-than-temporary impairment loss | — | — | — | (1 | ) | |||||||||||||||||||
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income | (1 | ) | — | (1 | ) | — | ||||||||||||||||||
Balance, end of the period | $ | 59 | $ | 68 | $ | 59 | $ | 68 | ||||||||||||||||
The following table provides a summary of changes in fair value of our LenovoEMC joint venture for the three and six months ended June 30, 2014 and 2013 (table in millions): | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||||||||||
Balance, beginning of the period | $ | 35 | $ | 33 | $ | 35 | $ | 33 | ||||||||||||||||
Realized gain included in other expense, net | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Balance, end of period | $ | 36 | $ | 34 | $ | 36 | $ | 34 | ||||||||||||||||
Unrealized Losses on Investments by Investment Category and Length of Time in Continuous Unrealized Loss Position | ' | |||||||||||||||||||||||
Unrealized losses on investments at June 30, 2014 by investment category and length of time the investment has been in a continuous unrealized loss position are as follows (table in millions): | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
U.S. government and agency obligations | $ | 400 | $ | (1 | ) | $ | — | $ | — | $ | 400 | $ | (1 | ) | ||||||||||
U.S. corporate debt securities | 493 | (1 | ) | — | — | 493 | (1 | ) | ||||||||||||||||
Auction rate securities | — | — | 59 | (4 | ) | 59 | (4 | ) | ||||||||||||||||
Foreign debt securities | 521 | (1 | ) | — | — | 521 | (1 | ) | ||||||||||||||||
Publicly traded equity securities | 26 | (3 | ) | — | (1 | ) | 26 | (4 | ) | |||||||||||||||
Total | $ | 1,440 | $ | (6 | ) | $ | 59 | $ | (5 | ) | $ | 1,499 | $ | (11 | ) | |||||||||
Contractual Maturities of Investments | ' | |||||||||||||||||||||||
The contractual maturities of fixed income securities held at June 30, 2014 are as follows (table in millions): | ||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||
Amortized | Aggregate | |||||||||||||||||||||||
Cost Basis | Fair Value | |||||||||||||||||||||||
Due within one year | $ | 1,926 | $ | 1,928 | ||||||||||||||||||||
Due after 1 year through 5 years | 5,765 | 5,783 | ||||||||||||||||||||||
Due after 5 years through 10 years | 544 | 563 | ||||||||||||||||||||||
Due after 10 years | 382 | 378 | ||||||||||||||||||||||
Total | $ | 8,617 | $ | 8,652 | ||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventories | ' | |||||||
Inventories consist of (table in millions): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Work-in-process | $ | 721 | $ | 696 | ||||
Finished goods | 676 | 638 | ||||||
$ | 1,397 | $ | 1,334 | |||||
Accounts_and_Notes_Receivable_1
Accounts and Notes Receivable and Allowance for Credit Losses (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Contractual Amounts Due Under Leases | ' | |||||||
The contractual amounts due under the leases we retained as of June 30, 2014 were as follows (table in millions): | ||||||||
Year | Contractual Amounts | |||||||
Due Under Leases | ||||||||
Due within one year | $ | 87 | ||||||
Due within two years | 69 | |||||||
Due within three years | 61 | |||||||
Thereafter | 3 | |||||||
Total | 220 | |||||||
Less: Amounts representing interest | 5 | |||||||
Present value | 215 | |||||||
Current portion (included in accounts and notes receivable) | 86 | |||||||
Long-term portion (included in other assets, net) | $ | 129 | ||||||
Allowance for Credit Losses | ' | |||||||
The following table presents the activity of our allowance for credit losses related to lease receivables for the six months ended June 30, 2014 and 2013 (table in millions): | ||||||||
For the Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Balance, beginning of the period | $ | 9 | $ | 17 | ||||
Recoveries | (5 | ) | (9 | ) | ||||
Provisions | 6 | 3 | ||||||
Balance, end of the period | $ | 10 | $ | 11 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of Property, Plant and Equipment | ' | |||||||
Property, plant and equipment consist of (table in millions): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Furniture and fixtures | $ | 239 | $ | 229 | ||||
Equipment and software | 6,391 | 5,973 | ||||||
Buildings and improvements | 2,284 | 2,089 | ||||||
Land | 159 | 132 | ||||||
Building construction in progress | 100 | 215 | ||||||
9,173 | 8,638 | |||||||
Accumulated depreciation | (5,567 | ) | (5,160 | ) | ||||
$ | 3,606 | $ | 3,478 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||||||
Components of Accrued Expenses | ' | |||||||||||||||
Accrued expenses consist of (table in millions): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Salaries and benefits | $ | 989 | $ | 1,078 | ||||||||||||
Product warranties | 255 | 289 | ||||||||||||||
Dividends payable (see Note 12) | 240 | 205 | ||||||||||||||
Partner rebates | 201 | 214 | ||||||||||||||
Restructuring, current (See Note 13) | 128 | 84 | ||||||||||||||
Derivatives | 23 | 23 | ||||||||||||||
Other | 914 | 890 | ||||||||||||||
$ | 2,750 | $ | 2,783 | |||||||||||||
Activity in Warranty Accrual for Product Warranty | ' | |||||||||||||||
The following represents the activity in our warranty accrual for the three and six months ended June 30, 2014 and 2013 (table in millions): | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance, beginning of the period | $ | 274 | $ | 283 | $ | 289 | $ | 278 | ||||||||
Provision | 32 | 51 | 74 | 96 | ||||||||||||
Amounts charged to the accrual | (51 | ) | (43 | ) | (108 | ) | (83 | ) | ||||||||
Balance, end of the period | $ | 255 | $ | 291 | $ | 255 | $ | 291 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Dividends Declared | ' | |||||||||||||||||||||||
Our Board of Directors declared the following dividends during the periods presented: | ||||||||||||||||||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount (in millions) | Payment Date | ||||||||||||||||||||
Fiscal Year 2014: | ||||||||||||||||||||||||
February 6, 2014 | $ | 0.1 | April 1, 2014 | $ | 209 | April 23, 2014 | ||||||||||||||||||
April 17, 2014 | $ | 0.115 | July 1, 2014 | $ | 237 | July 23, 2014 | ||||||||||||||||||
30-Jul-14 | $ | 0.115 | October 1, 2014 | N/A | October 23, 2014 | |||||||||||||||||||
Fiscal Year 2013: | ||||||||||||||||||||||||
May 30, 2013 | $ | 0.1 | July 1, 2013 | $ | 212 | July 23, 2013 | ||||||||||||||||||
Reconciliation from Basic to Diluted Earnings Per Share | ' | |||||||||||||||||||||||
The reconciliation from basic to diluted earnings per share for both the numerators and denominators is as follows (table in millions): | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income attributable to EMC Corporation | $ | 589 | $ | 701 | $ | 980 | $ | 1,281 | ||||||||||||||||
Incremental dilution from VMware | (1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||||||||||
Net income – dilution attributable to EMC Corporation | $ | 588 | $ | 699 | $ | 977 | $ | 1,278 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares, basic | 2,037 | 2,092 | 2,033 | 2,097 | ||||||||||||||||||||
Weighted common stock equivalents | 27 | 29 | 27 | 30 | ||||||||||||||||||||
Assumed conversion of the 2013 Notes and associated warrants | — | 53 | 10 | 54 | ||||||||||||||||||||
Weighted average shares, diluted | 2,064 | 2,174 | 2,070 | 2,181 | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following (table in millions): | ||||||||||||||||||||||||
Foreign Currency Translation Adjustments | Unrealized Net Gains on Investments | Unrealized Net Losses on Derivatives | Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans | Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc. | Total | |||||||||||||||||||
Balance as of December, 31 2013(a) | $ | (53 | ) | $ | 31 | $ | (106 | ) | $ | (110 | ) | $ | (1 | ) | $ | (239 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 4 | 83 | 1 | — | (1 | ) | 87 | |||||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive income | — | (11 | ) | (3 | ) | 1 | — | (13 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | 4 | 72 | (2 | ) | 1 | (1 | ) | 74 | ||||||||||||||||
Balance as of June 30, 2014(b) | $ | (49 | ) | $ | 103 | $ | (108 | ) | $ | (109 | ) | $ | (2 | ) | $ | (165 | ) | |||||||
__________________ | ||||||||||||||||||||||||
(a) | Net of taxes (benefits) of $18 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
(b) | Net of taxes (benefits) of $61 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||||||
The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 are as follows (tables in millions): | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Impacted Line Item on | ||||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||
For the Three Months Ended June 30, 2014: | ||||||||||||||||||||||||
Net gain on investments: | $ | 9 | Investment income | |||||||||||||||||||||
(3 | ) | Provision for income tax | ||||||||||||||||||||||
Net of tax | $ | 6 | ||||||||||||||||||||||
Net gain on derivatives: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 2 | Product sales revenue | |||||||||||||||||||||
Foreign exchange contracts | (1 | ) | Cost of product sales | |||||||||||||||||||||
Total net gain on derivatives before tax | 1 | |||||||||||||||||||||||
— | Provision for income tax | |||||||||||||||||||||||
Net of tax | $ | 1 | ||||||||||||||||||||||
Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Impacted Line Item on | ||||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||
For the Six Months Ended June 30, 2014: | ||||||||||||||||||||||||
Net gain on investments: | $ | 17 | Investment income | |||||||||||||||||||||
(6 | ) | Provision for income tax | ||||||||||||||||||||||
Net of tax | $ | 11 | ||||||||||||||||||||||
Net gain on derivatives: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 3 | Product sales revenue | |||||||||||||||||||||
Foreign exchange contracts | — | Cost of product sales | ||||||||||||||||||||||
Total net gain on derivatives before tax | 3 | |||||||||||||||||||||||
— | Provision for income tax | |||||||||||||||||||||||
Net of tax | $ | 3 | ||||||||||||||||||||||
Restructuring_and_AcquisitionR1
Restructuring and Acquisition-Related Charges (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Activity for the Restructuring Programs | ' | |||||||||||||||
The activity for the restructuring programs is presented below (tables in millions): | ||||||||||||||||
Three Months Ended June 30, 2014: | ||||||||||||||||
2014 EMC Program | ||||||||||||||||
Category | Balance as of | 2014 | Utilization | Balance as of June 30, 2014 | ||||||||||||
March 31, | Charges | |||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 102 | $ | 32 | $ | (36 | ) | $ | 98 | |||||||
Consolidation of excess facilities and other contractual obligations | 1 | 4 | (2 | ) | 3 | |||||||||||
Total | $ | 103 | $ | 36 | $ | (38 | ) | $ | 101 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2014 | ||||||||||||
March 31, | ||||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 37 | $ | (7 | ) | $ | (13 | ) | $ | 17 | ||||||
Consolidation of excess facilities and other contractual obligations | 20 | — | (2 | ) | 18 | |||||||||||
Total | $ | 57 | $ | (7 | ) | $ | (15 | ) | $ | 35 | ||||||
Six Months Ended June 30, 2014: | ||||||||||||||||
2014 EMC Program | ||||||||||||||||
Category | Balance as of | 2014 | Utilization | Balance as of June 30, 2014 | ||||||||||||
December 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | — | $ | 149 | $ | (51 | ) | $ | 98 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 6 | (3 | ) | 3 | |||||||||||
Total | $ | — | $ | 155 | $ | (54 | ) | $ | 101 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2014 | ||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 66 | $ | (13 | ) | $ | (36 | ) | $ | 17 | ||||||
Consolidation of excess facilities and other contractual obligations | 24 | 2 | (8 | ) | 18 | |||||||||||
Total | $ | 90 | $ | (11 | ) | $ | (44 | ) | $ | 35 | ||||||
Three Months Ended June 30, 2013: | ||||||||||||||||
2013 EMC Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
March 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 66 | $ | 2 | $ | (23 | ) | $ | 45 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 3 | (1 | ) | 2 | |||||||||||
Total | $ | 66 | $ | 5 | $ | (24 | ) | $ | 47 | |||||||
2013 VMware Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
March 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 26 | $ | 2 | $ | (26 | ) | $ | 2 | |||||||
Consolidation of excess facilities and other contractual obligations | — | — | — | — | ||||||||||||
Total | $ | 26 | $ | 2 | $ | (26 | ) | $ | 2 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2013 | ||||||||||||
March 31, | ||||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 46 | $ | (3 | ) | $ | (14 | ) | $ | 29 | ||||||
Consolidation of excess facilities and other contractual obligations | 30 | 2 | (5 | ) | 27 | |||||||||||
Total | $ | 76 | $ | (1 | ) | $ | (19 | ) | $ | 56 | ||||||
Six Months Ended June 30, 2013: | ||||||||||||||||
2013 EMC Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
December 31, | Charges | |||||||||||||||
2012 | ||||||||||||||||
Workforce reductions | $ | — | $ | 81 | $ | (36 | ) | $ | 45 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 3 | (1 | ) | 2 | |||||||||||
Total | $ | — | $ | 84 | $ | (37 | ) | $ | 47 | |||||||
2013 VMware Programs | ||||||||||||||||
Category | Balance as of | 2013 | Utilization | Balance as of June 30, 2013 | ||||||||||||
December 31, | Charges | |||||||||||||||
2012 | ||||||||||||||||
Workforce reductions | $ | — | $ | 56 | $ | (54 | ) | $ | 2 | |||||||
Consolidation of excess facilities and other contractual obligations | — | — | — | — | ||||||||||||
Total | $ | — | $ | 56 | $ | (54 | ) | $ | 2 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of June 30, 2013 | ||||||||||||
December 31, | ||||||||||||||||
2012 | ||||||||||||||||
Workforce reductions | $ | 63 | $ | (8 | ) | $ | (26 | ) | $ | 29 | ||||||
Consolidation of excess facilities and other contractual obligations | 28 | 9 | (10 | ) | 27 | |||||||||||
Total | $ | 91 | $ | 1 | $ | (36 | ) | $ | 56 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||
Our segment information for the three and six months ended June 30, 2014 and 2013 is as follows (tables in millions, except percentages): | ||||||||||||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
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 costs and expenses | 1,498 | 79 | 1,577 | |||||||||||||||||||||
Operating income (expense) | $ | 956 | $ | (53 | ) | $ | 903 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
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 costs and 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 | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
Three Months Ended: | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,577 | $ | 39 | $ | 98 | $ | 2,714 | $ | 15 | $ | 2,729 | ||||||||||||
Services revenues | 1,377 | 113 | 130 | 1,620 | 27 | 1,647 | ||||||||||||||||||
Total consolidated revenues | 3,954 | 152 | 228 | 4,334 | 42 | 4,376 | ||||||||||||||||||
Gross profit | $ | 2,236 | $ | 96 | $ | 148 | $ | 2,480 | $ | 20 | $ | 2,500 | ||||||||||||
Gross profit percentage | 56.5 | % | 63.1 | % | 65.1 | % | 57.2 | % | 48.1 | % | 57.1 | % | ||||||||||||
Research and development | 377 | 26 | 403 | |||||||||||||||||||||
Selling, general and administrative | 1,118 | 36 | 1,154 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total costs and expenses | 1,495 | 62 | 1,557 | |||||||||||||||||||||
Operating income (expense) | $ | 985 | $ | (42 | ) | $ | 943 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,729 | $ | 529 | $ | — | $ | 3,258 | ||||||||||||||||
Services revenues | 1,647 | 709 | — | 2,356 | ||||||||||||||||||||
Total consolidated revenues | 4,376 | 1,238 | — | 5,614 | ||||||||||||||||||||
Gross profit | $ | 2,500 | $ | 1,109 | $ | (100 | ) | $ | 3,509 | |||||||||||||||
Gross profit percentage | 57.1 | % | 89.6 | % | — | % | 62.5 | % | ||||||||||||||||
Research and development | 403 | 207 | 85 | 695 | ||||||||||||||||||||
Selling, general and administrative | 1,154 | 489 | 142 | 1,785 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 7 | 7 | ||||||||||||||||||||
Total costs and expenses | 1,557 | 696 | 234 | 2,487 | ||||||||||||||||||||
Operating income (expense) | 943 | 413 | (334 | ) | 1,022 | |||||||||||||||||||
Non-operating income (expense), net | (78 | ) | 3 | 19 | (56 | ) | ||||||||||||||||||
Income tax provision (benefit) | 214 | 93 | (91 | ) | 216 | |||||||||||||||||||
Net income | 651 | 323 | (224 | ) | 750 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (67 | ) | 18 | (49 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 651 | $ | 256 | $ | (206 | ) | $ | 701 | |||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
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 costs and expenses | 2,977 | 153 | 3,130 | |||||||||||||||||||||
Operating income (expense) | $ | 1,713 | $ | (108 | ) | $ | 1,605 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
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 costs and 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 | |||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Information | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Intelligence | Information | Information | |||||||||||||||||||||
Group | Security | Infrastructure | ||||||||||||||||||||||
Six Months Ended: | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 5,048 | $ | 82 | $ | 198 | $ | 5,328 | $ | 28 | $ | 5,356 | ||||||||||||
Services revenues | 2,704 | 226 | 262 | 3,192 | 49 | 3,241 | ||||||||||||||||||
Total consolidated revenues | 7,752 | 308 | 460 | 8,520 | 77 | 8,597 | ||||||||||||||||||
Gross profit | $ | 4,324 | $ | 195 | $ | 301 | $ | 4,820 | $ | 37 | $ | 4,857 | ||||||||||||
Gross profit percentage | 55.8 | % | 63.4 | % | 65.2 | % | 56.6 | % | 48.1 | % | 56.5 | % | ||||||||||||
Research and development | 743 | 52 | 795 | |||||||||||||||||||||
Selling, general and administrative | 2,195 | 73 | 2,268 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total costs and expenses | 2,938 | 125 | 3,063 | |||||||||||||||||||||
Operating income (expense) | $ | 1,882 | $ | (88 | ) | $ | 1,794 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
within EMC | ||||||||||||||||||||||||
Six Months Ended: | ||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 5,356 | $ | 1,013 | $ | — | $ | 6,369 | ||||||||||||||||
Services revenues | 3,241 | 1,391 | — | 4,632 | ||||||||||||||||||||
Total consolidated revenues | 8,597 | 2,404 | — | 11,001 | ||||||||||||||||||||
Gross profit | $ | 4,857 | $ | 2,150 | $ | (200 | ) | $ | 6,807 | |||||||||||||||
Gross profit percentage | 56.5 | % | 89.4 | % | — | % | 61.9 | % | ||||||||||||||||
Research and development | 795 | 397 | 178 | 1,370 | ||||||||||||||||||||
Selling, general and administrative | 2,268 | 939 | 292 | 3,499 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 155 | 155 | ||||||||||||||||||||
Total costs and expenses | 3,063 | 1,336 | 625 | 5,024 | ||||||||||||||||||||
Operating income (expense) | 1,794 | 814 | (825 | ) | 1,783 | |||||||||||||||||||
Non-operating income (expense), net | (152 | ) | 7 | 19 | (126 | ) | ||||||||||||||||||
Income tax provision (benefit) | 401 | 176 | (285 | ) | 292 | |||||||||||||||||||
Net income | 1,241 | 645 | (521 | ) | 1,365 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (129 | ) | 45 | (84 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 1,241 | $ | 516 | $ | (476 | ) | $ | 1,281 | |||||||||||||||
Revenues By Geographic Area | ' | |||||||||||||||||||||||
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, | June 30, | June 30, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
United States | $ | 3,056 | $ | 2,963 | $ | 5,890 | $ | 5,795 | ||||||||||||||||
Europe, Middle East and Africa | 1,669 | 1,486 | 3,261 | 2,963 | ||||||||||||||||||||
Asia Pacific and Japan | 802 | 835 | 1,525 | 1,573 | ||||||||||||||||||||
Latin America, Mexico and Canada | 353 | 330 | 683 | 670 | ||||||||||||||||||||
Total | $ | 5,880 | $ | 5,614 | $ | 11,359 | $ | 11,001 | ||||||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (Convertible Senior Notes 2013, USD $) | Jun. 30, 2014 | Nov. 13, 2006 |
In Millions, unless otherwise specified | ||
Convertible Senior Notes 2013 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Convertible senior notes included in calculation of net income per share | $1,725 | $1,725 |
Convertible senior notes interest rate | 1.75% | 1.75% |
Noncontrolling_Interest_in_VMw2
Non-controlling Interest in VMware, Inc. - Additional Information (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Noncontrolling Interest [Line Items] | ' | ' |
Non-controlling interest | $1,535 | $1,485 |
VMware | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Percentage of ownership non-controlling interest | 80.00% | ' |
Voting power of VMware's outstanding common stock | 97.00% | ' |
Non-controlling interest | 1,430 | 1,380 |
Pivotal | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Percentage of ownership non-controlling interest | 84.00% | ' |
Non-controlling interest | $105 | $105 |
Effect_of_Changes_in_Ownership
Effect of Changes in Ownership Interest in VMware on Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Net income attributable to EMC Corporation | $589 | $701 | $980 | $1,281 |
Net transfers (to) from non-controlling interest | ' | ' | -401 | -150 |
VMware | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Net income attributable to EMC Corporation | ' | ' | 980 | 1,281 |
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances | ' | ' | 51 | 52 |
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity | ' | ' | -427 | -321 |
Net transfers (to) from non-controlling interest | ' | ' | -376 | -269 |
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc. | ' | ' | $604 | $1,012 |
Business_Combinations_Intangib2
Business Combinations, Intangibles and Goodwill - Additional Information (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $1,694 | $207 | ' |
Increase in Restricted Cash | 76 | 0 | ' |
Gain on previously held interests in strategic investments | -45 | 0 | ' |
Goodwill | 15,802 | ' | 14,424 |
All 2014 Acquisitions | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 8 | ' | ' |
Business Combination, Contingent Compensation | 11 | ' | ' |
Business Combination, Consideration Transferred | 721 | ' | ' |
Payments to Acquire Businesses, Gross | 657 | ' | ' |
Gain on previously held interests in strategic investments | -45 | ' | ' |
Goodwill | 509 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 300 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | -88 | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '7 years | ' | ' |
VMware | AirWatch | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 24 | ' | ' |
Business Combination, Contingent Compensation | 300 | ' | ' |
Business Combination, Consideration Transferred | 1,092 | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 1,068 | ' | ' |
Business Combination, Retention Bonus | 60 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 250 | ' | ' |
Other Intangible Assets | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '3 years | ' | ' |
Other Intangible Assets | VMware | AirWatch | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14 | ' | ' |
Trademarks and Trade Names | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '8 years | ' | ' |
Trademarks and Trade Names | VMware | AirWatch | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 40 | ' | ' |
Customer Relationships And Customer Lists | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '8 years | ' | ' |
Customer Relationships And Customer Lists | VMware | AirWatch | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 78 | ' | ' |
Developed Technology Rights | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '6 years | ' | ' |
Developed Technology Rights | VMware | AirWatch | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $118 | ' | ' |
Business_Combinations_Intangib3
Business Combinations, Intangibles and Goodwill - Intangible Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | $4,978 | $4,412 |
Accumulated Amortization | -2,831 | -2,632 |
Net Book Value | 2,147 | 1,780 |
Purchased Technology | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 2,783 | 2,356 |
Accumulated Amortization | -1,546 | -1,429 |
Net Book Value | 1,237 | 927 |
Patents | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 225 | 225 |
Accumulated Amortization | -109 | -102 |
Net Book Value | 116 | 123 |
Software Licenses | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 104 | 101 |
Accumulated Amortization | -92 | -90 |
Net Book Value | 12 | 11 |
Trademarks And Tradenames | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 212 | 171 |
Accumulated Amortization | -127 | -118 |
Net Book Value | 85 | 53 |
Customer Relationships And Customer Lists | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 1,463 | 1,386 |
Accumulated Amortization | -914 | -855 |
Net Book Value | 549 | 531 |
Leasehold Interest | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 147 | 145 |
Accumulated Amortization | -13 | -11 |
Net Book Value | 134 | 134 |
Other Intangible Assets | ' | ' |
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 44 | 28 |
Accumulated Amortization | -30 | -27 |
Net Book Value | $14 | $1 |
Business_Combinations_Intangib4
Business Combinations, Intangibles and Goodwill - Goodwill (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Balance, beginning of the period | $14,424 |
Goodwill resulting from acquisitions | 1,388 |
Finalization of purchase price allocations and other, net | -10 |
Goodwill transferred in formation of Pivotal | 0 |
Balance, end of the period | 15,802 |
Information Storage | ' |
Goodwill [Roll Forward] | ' |
Balance, beginning of the period | 7,486 |
Goodwill resulting from acquisitions | 509 |
Finalization of purchase price allocations and other, net | 0 |
Goodwill transferred in formation of Pivotal | 6 |
Balance, end of the period | 8,001 |
Information Intelligence Group | ' |
Goodwill [Roll Forward] | ' |
Balance, beginning of the period | 1,487 |
Goodwill resulting from acquisitions | 0 |
Finalization of purchase price allocations and other, net | -2 |
Goodwill transferred in formation of Pivotal | 0 |
Balance, end of the period | 1,485 |
RSA Information Security | ' |
Goodwill [Roll Forward] | ' |
Balance, beginning of the period | 2,203 |
Goodwill resulting from acquisitions | 0 |
Finalization of purchase price allocations and other, net | 0 |
Goodwill transferred in formation of Pivotal | 0 |
Balance, end of the period | 2,203 |
Pivotal | ' |
Goodwill [Roll Forward] | ' |
Balance, beginning of the period | 177 |
Goodwill resulting from acquisitions | 0 |
Finalization of purchase price allocations and other, net | 0 |
Goodwill transferred in formation of Pivotal | -6 |
Balance, end of the period | 171 |
VMware Virtual Infrastructure Within EMC | ' |
Goodwill [Roll Forward] | ' |
Balance, beginning of the period | 3,071 |
Goodwill resulting from acquisitions | 879 |
Finalization of purchase price allocations and other, net | -8 |
Goodwill transferred in formation of Pivotal | 0 |
Balance, end of the period | $3,942 |
Business_Combinations_Intangib5
Business Combinations, Intangibles and Goodwill - Allocation of Purchase Price (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Other Intangible Assets | ' |
Business Acquisition [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '3 years |
Trademarks and Trade Names | ' |
Business Acquisition [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '8 years |
Customer Relationships And Customer Lists | ' |
Business Acquisition [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '8 years |
Developed Technology Rights | ' |
Business Acquisition [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '6 years |
VMware | AirWatch | ' |
Business Acquisition [Line Items] | ' |
Other current assets | 60 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Deferred Revenue | -45 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,206 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | -114 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Current Liabilities, Net of Current Assets | -69 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 1,092 |
Other Assets | 17 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 250 |
Goodwill | 879 |
VMware | Other Intangible Assets | AirWatch | ' |
Business Acquisition [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14 |
VMware | Trademarks and Trade Names | AirWatch | ' |
Business Acquisition [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 40 |
VMware | Customer Relationships And Customer Lists | AirWatch | ' |
Business Acquisition [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 78 |
VMware | Developed Technology Rights | AirWatch | ' |
Business Acquisition [Line Items] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 118 |
Debt_Key_Components_of_Longter
Debt Key Components of Long-term Debt (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 1.00% | ' |
Long-term Debt | $5,494 | $5,494 |
Long-term Notes $2.5B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 99.94% | ' |
Long-term Debt | 2,499 | ' |
Long-term Notes $2.0B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 99.76% | ' |
Long-term Debt | 1,996 | ' |
Long-term Notes $1.0B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 99.93% | ' |
Long-term Debt | 999 | ' |
Long-term Notes $5.5B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $5,494 | ' |
Key_Components_of_Convertible_
Key Components of Convertible Debt (Detail) (Convertible Senior Notes 2011 and 2013, USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Convertible Senior Notes 2011 and 2013 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Contractual interest expense on the coupon | $7 | $15 |
Amortization of the discount component recognized as interest expense | 16 | 31 |
Total interest expense on the convertible debt | $23 | $46 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | Mar. 17, 2014 | Jan. 07, 2014 | Jun. 30, 2014 | Nov. 13, 2006 | Nov. 30, 2006 | Jun. 30, 2013 | Jun. 30, 2013 | Jan. 07, 2014 | Nov. 30, 2006 | Dec. 31, 2013 | Nov. 30, 2006 | Nov. 13, 2006 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2010 |
Share data in Millions, except Per Share data, unless otherwise specified | Warrant | Convertible Senior Notes 2013 | Convertible Senior Notes 2013 | Convertible Senior Notes 2013 | Convertible Senior Notes 2011 and 2013 | Convertible Senior Notes 2011 and 2013 | Convertible Senior Notes 2011 and 2013 | Purchased Options | Purchased Options | Purchased Options | Sold Warrants | Sold Warrants | Exercised Warrants | Long-term Debt | Long-term Debt | Long-term Debt | Interest Rate Swap | Interest Rate Swap |
Senior Notes | ' | ' | $1,725,000,000 | $1,725,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of senior unsecured obligations | ' | ' | ' | ' | 3,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment to noteholders for outstanding principal of converted Notes | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued to noteholders for the excess of the conversion value over the principal amount of converted Notes | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of the conversion value over the principal amount of converted Notes | ' | 858,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Observation period | ' | ' | '20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate for the 2013 Notes in shares of our common stock per one thousand dollars of principal amount of 2013 Notes | ' | ' | 62.6978 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion premium | ' | ' | 26.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price | ' | ' | $15.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt, aggregate principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000,000 | ' | ' |
Debt Instrument, unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 6,000,000 | ' | ' | ' |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | 5.60% | 5.60% | ' | ' | ' | ' | ' | ' | 2.54% | 2.54% | ' | ' | ' |
Semi-annual interest rate | ' | ' | 1.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, frequency of periodic payment | ' | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental common shares attributable to call options and warrants | ' | ' | ' | ' | ' | ' | ' | ' | 215 | ' | 215 | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount paid for purchased options | ' | ' | ' | ' | ' | ' | ' | ' | 669,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased options shares received | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased Options Remaining | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock at an exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19.55 | $19.31 | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 391,000,000 | ' | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding | 109,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issues for exercised warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29 | ' | ' | ' | ' | ' |
Conversion premium based on the closing price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53.00% | ' | ' | ' | ' | ' | ' | ' |
Closing price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.61 | ' | ' | ' | ' | ' | ' |
Aggregate notional amount of interest rate swap contracts designated as cash flow hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000,000 |
Accumulated Other Comprehensive Income (Loss) related to realized losses on settled swaps | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $176,000,000 | ' |
Composition_of_Investments_Det
Composition of Investments (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
US Government Agencies Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | $2,201 | $3,726 |
Available For Sale Securities Unrealized Gains | 4 | 4 |
Available For Sale Securities Unrealized Losses | -1 | -3 |
Available For Sale Securities Fair Value | 2,204 | 3,727 |
Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 8,617 | 9,576 |
Available For Sale Securities Unrealized Gains | 42 | 40 |
Available For Sale Securities Unrealized Losses | -7 | -14 |
Available For Sale Securities Fair Value | 8,652 | 9,602 |
Publicly Traded Equity Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 166 | 72 |
Available For Sale Securities Unrealized Gains | 133 | 24 |
Available For Sale Securities Unrealized Losses | -4 | -1 |
Available For Sale Securities Fair Value | 295 | 95 |
Debt and Equity Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 8,783 | 9,648 |
Available For Sale Securities Unrealized Gains | 175 | 64 |
Available For Sale Securities Unrealized Losses | -11 | -15 |
Available For Sale Securities Fair Value | 8,947 | 9,697 |
US Corporate Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 2,294 | 2,260 |
Available For Sale Securities Unrealized Gains | 5 | 8 |
Available For Sale Securities Unrealized Losses | -1 | -2 |
Available For Sale Securities Fair Value | 2,298 | 2,266 |
High Yield Corporate Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 554 | 515 |
Available For Sale Securities Unrealized Gains | 23 | 19 |
Available For Sale Securities Unrealized Losses | 0 | -3 |
Available For Sale Securities Fair Value | 577 | 531 |
Asset-backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 25 | ' |
Available For Sale Securities Unrealized Gains | 0 | ' |
Available For Sale Securities Unrealized Losses | 0 | ' |
Available For Sale Securities Fair Value | 25 | ' |
Municipal Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 965 | 860 |
Available For Sale Securities Unrealized Gains | 3 | 3 |
Available For Sale Securities Unrealized Losses | 0 | 0 |
Available For Sale Securities Fair Value | 968 | 863 |
Auction Rate Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 63 | 63 |
Available For Sale Securities Unrealized Gains | 0 | 0 |
Available For Sale Securities Unrealized Losses | -4 | -3 |
Available For Sale Securities Fair Value | 59 | 60 |
Foreign Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Amortized Cost | 2,515 | 2,152 |
Available For Sale Securities Unrealized Gains | 7 | 6 |
Available For Sale Securities Unrealized Losses | -1 | -3 |
Available For Sale Securities Fair Value | $2,521 | $2,155 |
Fair_Value_Hierarchy_For_Finan
Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Percentage of Loans Guaranteed | 95.00% | ' |
Total cash and investments | $14,634 | $17,588 |
Investment in joint venture, fair value | 36 | 35 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 59 | 60 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 7,908 | 8,237 |
Investment in joint venture, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 6,667 | 9,291 |
Investment in joint venture, fair value | 0 | 0 |
Asset-backed Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 25 | ' |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 25 | ' |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Cash Equivalents | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 3,994 | 6,166 |
Cash Equivalents | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Cash Equivalents | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 664 | 492 |
Cash Equivalents | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 3,330 | 5,674 |
Cash | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 1,693 | 1,725 |
Cash | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Cash | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Cash | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 1,693 | 1,725 |
Convertible Debt | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Convertible debt | ' | -5,419 |
Convertible Debt | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Convertible debt | ' | 0 |
Convertible Debt | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Convertible debt | ' | -5,419 |
Convertible Debt | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Convertible debt | ' | ' |
Long-term Debt | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt | -5,513 | ' |
Long-term Debt | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt | 0 | ' |
Long-term Debt | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt | -5,513 | ' |
Long-term Debt | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term Debt | 0 | ' |
Private Equity Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 296 | 379 |
Private Equity Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 296 | 379 |
Private Equity Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Private Equity Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Publicly Traded Equity Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 295 | 95 |
Publicly Traded Equity Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Publicly Traded Equity Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Publicly Traded Equity Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 295 | 95 |
Foreign Debt Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 2,521 | 2,155 |
Foreign Debt Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Foreign Debt Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 2,521 | 2,155 |
Foreign Debt Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Auction Rate Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 59 | 60 |
Auction Rate Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 59 | 60 |
Auction Rate Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Auction Rate Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Municipal Obligations | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 968 | 863 |
Municipal Obligations | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
Municipal Obligations | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 968 | 863 |
Municipal Obligations | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
High Yield Corporate Debt Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 577 | 531 |
High Yield Corporate Debt Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
High Yield Corporate Debt Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 577 | 531 |
High Yield Corporate Debt Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
US Corporate Debt Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 2,298 | 2,266 |
US Corporate Debt Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
US Corporate Debt Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 2,298 | 2,266 |
US Corporate Debt Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
US Government Agencies Debt Securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 2,204 | 3,727 |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | ' | ' |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 855 | 1,930 |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total cash and investments | 1,349 | 1,797 |
Foreign Exchange Contract | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Foreign exchange derivative assets | 20 | 31 |
Foreign exchange derivative liabilities | -20 | -20 |
Foreign Exchange Contract | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Foreign exchange derivative assets | ' | 0 |
Foreign exchange derivative liabilities | ' | 0 |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Foreign exchange derivative assets | 20 | 31 |
Foreign exchange derivative liabilities | -20 | -20 |
Foreign Exchange Contract | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Foreign exchange derivative assets | ' | ' |
Foreign exchange derivative liabilities | ' | ' |
Commodity Contract | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | 2 | 4 |
Commodity Contract | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | ' | ' |
Commodity Contract | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | 2 | 4 |
Commodity Contract | Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset | ' | ' |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | |
Security | Minimum | Maximum | US Government Agencies Debt Securities | US Government Agencies Debt Securities | US Corporate Debt Securities | US Corporate Debt Securities | High Yield Corporate Debt Securities | High Yield Corporate Debt Securities | Municipal Obligations | Municipal Obligations | Debt Securities | Debt Securities | Foreign Debt Securities | Foreign Debt Securities | Foreign Sovereign Debt Securities | Auction Rate Securities | Auction Rate Securities | Variable Rate Demand Note | LenovoEMC | LenovoEMC | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Gain (Loss) on Investments | $88,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint Venture, Ownership Interest Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% |
Short-term investments | 1,962,000,000 | 1,962,000,000 | 2,773,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000,000 | ' | ' |
Number of Auction Rate Securities With Underlying Loans Which Have No Guarantees | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' | ' | ' | 2,204,000,000 | 3,727,000,000 | 2,298,000,000 | 2,266,000,000 | 577,000,000 | 531,000,000 | 968,000,000 | 863,000,000 | 8,652,000,000 | 9,602,000,000 | 2,521,000,000 | 2,155,000,000 | ' | 59,000,000 | 60,000,000 | ' | ' | ' |
Average credit rating | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'A+ | ' | 'AA+ | 'AA | ' | ' | ' | ' |
Investment Holding Period | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Available For Sale Securities Debt Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Auction rate securities that have partial guarantees by the U.S. government, market value | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coupon rate used to estimate fair value of invesments - Start Range | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coupon rate used to estimate fair value of invesments - End Range | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate used to estimate fair value of investments | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' |
The rate used for the discount margin to determine the estimated fair value of investment in auction rate securities | 1.00% | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Loans Guaranteed | 95.00% | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_In_Fair_Value_of_Level
Changes In Fair Value of Level 3 Financial Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Other than Temporary Impairment Losses, Investments | ' | ' | ($33) | $0 |
LenovoEMC | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of the period | 35 | 33 | 35 | 33 |
Realized gain (loss) included in other income (expense) | 1 | 1 | 1 | 1 |
Balance, end of the period | 36 | 34 | 36 | 34 |
Auction Rate Securities | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of the period | 60 | 68 | 60 | 70 |
Calls at par value | 0 | 0 | 0 | -1 |
Other than Temporary Impairment Losses, Investments | 0 | 0 | 0 | -1 |
(Increase) decrease in previously recognized unrealized losses included in other comprehensive income | -1 | 0 | -1 | 0 |
Balance, end of the period | $59 | $68 | $59 | $68 |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities Unrealized Losses on Investments by Investment Category and Length of Time in Continuous Unrealized Loss Position (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Gain (Loss) on Investments [Line Items] | ' |
Less Than 12 Months Fair Value | $1,440 |
Less than 12 Months Unrealized Losses | -6 |
12 Months or Greater Fair Value | 59 |
12 Months or Greater Unrealized Losses | -5 |
Total Fair Value | 1,499 |
Total, Gross Unrealized Losses | -11 |
US Government Agencies Debt Securities | ' |
Gain (Loss) on Investments [Line Items] | ' |
Less Than 12 Months Fair Value | 400 |
Less than 12 Months Unrealized Losses | -1 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Unrealized Losses | 0 |
Total Fair Value | 400 |
Total, Gross Unrealized Losses | -1 |
US Corporate Debt Securities | ' |
Gain (Loss) on Investments [Line Items] | ' |
Less Than 12 Months Fair Value | 493 |
Less than 12 Months Unrealized Losses | -1 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Unrealized Losses | 0 |
Total Fair Value | 493 |
Total, Gross Unrealized Losses | -1 |
Auction Rate Securities | ' |
Gain (Loss) on Investments [Line Items] | ' |
Less Than 12 Months Fair Value | 0 |
Less than 12 Months Unrealized Losses | 0 |
12 Months or Greater Fair Value | 59 |
12 Months or Greater Unrealized Losses | -4 |
Total Fair Value | 59 |
Total, Gross Unrealized Losses | -4 |
Foreign Debt Securities | ' |
Gain (Loss) on Investments [Line Items] | ' |
Less Than 12 Months Fair Value | 521 |
Less than 12 Months Unrealized Losses | -1 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Unrealized Losses | 0 |
Total Fair Value | 521 |
Total, Gross Unrealized Losses | -1 |
Public Equity Securities [Member] | ' |
Gain (Loss) on Investments [Line Items] | ' |
Less Than 12 Months Fair Value | 26 |
Less than 12 Months Unrealized Losses | -3 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Unrealized Losses | -1 |
Total Fair Value | 26 |
Total, Gross Unrealized Losses | ($4) |
Fair_Value_of_Financial_Assets4
Fair Value of Financial Assets and Liabilities Contractual Maturities of Investments (Detail) (Debt Securities, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Securities | ' | ' |
Amortized Cost Basis | ' | ' |
Due within one year | $1,926 | ' |
Due after 1 year through 5 years | 5,765 | ' |
Due after 5 years through 10 years | 544 | ' |
Due after 10 years | 382 | ' |
Available For Sale Securities Amortized Cost | 8,617 | 9,576 |
Aggregate Fair Value | ' | ' |
Due within one year | 1,928 | ' |
Due after 1 year through 5 years | 5,783 | ' |
Due after 5 years through 10 years | 563 | ' |
Due after 10 years | 378 | ' |
Available For Sale Securities Fair Value | $8,652 | $9,602 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work-in-process | $721 | $696 |
Finished goods | 676 | 638 |
Inventory, Net, Total | $1,397 | $1,334 |
Contractual_Amounts_Due_under_
Contractual Amounts Due under Leases (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Due within one year | $87 | ' |
Due within two years | 69 | ' |
Due within three years | 61 | ' |
Thereafter | 3 | ' |
Total | 220 | 252 |
Less amounts representing interest | 5 | ' |
Present value | 215 | ' |
Current portion (included in accounts and notes receivable) | 86 | ' |
Long-term portion (included in other assets, net) | $129 | ' |
Allowance_for_Credit_Losses_De
Allowance for Credit Losses (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance, beginning of the period | $9 | $17 |
Recoveries | -5 | -9 |
Provisions | 6 | 3 |
Balance, end of the period | $10 | $11 |
Accounts_and_Notes_Receivable_2
Accounts and Notes Receivable and Allowance for Credit Losses - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 01, 2014 |
In Millions, unless otherwise specified | Subsequent Event | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Gross lease receivables | $220 | $252 | ' |
Sales of leases to third parties without recourse | ' | ' | $39 |
Components_of_Property_Plant_a
Components of Property, Plant and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $9,173 | $8,638 |
Accumulated depreciation | -5,567 | -5,160 |
Property, plant and equipment, net | 3,606 | 3,478 |
Furniture and Fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 239 | 229 |
Assets Held For Future Use | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Construction in Progress, Gross | 74 | ' |
Computer Equipment and Capitalized Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 6,391 | 5,973 |
Building and Building Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 2,284 | 2,089 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 159 | 132 |
Construction in Progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $100 | $215 |
Joint_Ventures_Detail
Joint Ventures (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 78 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Capital contribution | ' | ' | $63 | $158 | ' | ' |
VCE Company LLC | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated stock-based compensation contributed to joint venture | ' | ' | ' | ' | 17 | ' |
Consolidated ownership perentage of outstanding equity | 58.00% | ' | 58.00% | ' | 58.00% | ' |
Capital contribution | ' | ' | ' | ' | 1,255 | ' |
Consolidated share of losses | 63.00% | 63.00% | 63.00% | 63.00% | ' | ' |
Loss From VCE | 85 | 71 | 160 | 140 | 956 | ' |
Revenue recognized from sales to VCE | 172 | 102 | 342 | 176 | ' | ' |
Receivable from joint venture | $60 | ' | $60 | ' | $60 | $52 |
Components_of_Accrued_Expenses
Components of Accrued Expenses (Detail) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||||
Payables and Accruals [Abstract] | ' | ' | ' | ' | ' | ' |
Salaries and benefits | $989 | ' | $1,078 | ' | ' | ' |
Product warranties | 255 | 274 | 289 | 291 | 283 | 278 |
Dividends Payable | 240 | ' | 205 | ' | ' | ' |
Partner rebates | 201 | ' | 214 | ' | ' | ' |
Restructuring, current (see Note 13) | 128 | ' | 84 | ' | ' | ' |
Derivatives | 23 | ' | 23 | ' | ' | ' |
Other | 914 | ' | 890 | ' | ' | ' |
Accrued Liabilities, Current, Total | $2,750 | ' | $2,783 | ' | ' | ' |
Activity_in_Warranty_Accrual_f
Activity in Warranty Accrual for Product Warranty (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of the period | $274 | $283 | $289 | $278 |
Provision | 32 | 51 | 74 | 96 |
Amounts charged to the accrual | -51 | -43 | -108 | -83 |
Balance, end of the period | $255 | $291 | $255 | $291 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rates | 23.10% | 22.40% | 23.60% | 17.70% |
Impact of the expiration of the U.S. federal research and development tax credit | ' | -1.00% | ' | -5.10% |
Reconciliation_from_Basic_To_D
Reconciliation from Basic To Diluted Earnings Per Share for both Numerators and Denominators (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income attributable to EMC Corporation | $589 | $701 | $980 | $1,281 |
Incremental dilution from VMware | -1 | -2 | -3 | -3 |
Net income - dilution attributable to EMC Corporation | $588 | $699 | $977 | $1,278 |
Denominator: | ' | ' | ' | ' |
Weighted average shares, basic | 2,037 | 2,092 | 2,033 | 2,097 |
Weighted common stock equivalents | 27 | 29 | 27 | 30 |
Assumed conversion of the 2013 Notes and associated warrants | 0 | 53 | 10 | 54 |
Weighted average shares, diluted | 2,064 | 2,174 | 2,070 | 2,181 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 16 Months Ended | 12 Months Ended | 24 Months Ended | 1 Months Ended | |||||||
Share data in Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Apr. 17, 2014 | 30-May-13 | Feb. 28, 2013 | Nov. 30, 2006 | Dec. 31, 2014 | Dec. 31, 2014 | Nov. 30, 2006 | Mar. 17, 2014 |
Scenario, Forecast | Scenario, Forecast | Sold Warrants | Warrant | |||||||||||
Dividends Payable, Amount Per Share | ' | ' | ' | ' | ' | ' | $0.12 | $0.10 | ' | ' | ' | ' | ' | ' |
Sold warrants to acquire shares of our common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215 | ' |
Sold warrants to acquire shares of our common stock, exercise price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.55 | ' | ' | ' | ' |
Common stock excluded from calculation of diluted earnings per share | 1 | 4 | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $109,000,000 |
Repurchases of Common Stock, shares authorized to repurchase | ' | ' | ' | ' | ' | ' | ' | ' | 250 | ' | ' | ' | ' | ' |
Total Repurchases of Common Stock, shares | ' | ' | 39 | ' | ' | 133 | ' | ' | ' | ' | ' | ' | ' | ' |
Total Repurchases of Common Stock | ' | ' | 1,000,000,000 | ' | ' | 3,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for future repurchases | 117 | ' | 117 | ' | ' | 117 | ' | ' | ' | ' | ' | ' | ' | ' |
Plan to spend for the year on common stock repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | 6,000,000,000 | ' | ' |
Payments for Repurchase of Common Stock | ' | ' | $994,000,000 | $991,000,000 | $3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss, Net of Tax (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Accumulated Translation Adjustment | Accumulated Translation Adjustment | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Defined Benefit Plans Adjustment | Accumulated Defined Benefit Plans Adjustment | Non-controlling Interest in VMware | Non-controlling Interest in VMware | ||||||
Accumulated other comprehensive income (loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | $87 | ' | ' | $4 | ' | $83 | ' | $1 | ' | $0 | ' | ($1) | ' |
Net losses (gains) reclassified from accumulated other comprehensive income | ' | ' | -13 | ' | ' | 0 | ' | -11 | ' | -3 | ' | 1 | ' | 0 | ' |
Net current period other comprehensive income (loss) | ' | ' | 74 | ' | ' | 4 | ' | 72 | ' | -2 | ' | 1 | ' | -1 | ' |
Accumulated other comprehensive loss, net | -165 | ' | -165 | ' | -239 | -49 | -53 | 103 | 31 | -108 | -106 | -109 | -110 | -2 | -1 |
Provision for income tax | $187 | $216 | $326 | $292 | ' | ' | ' | $61 | $18 | ($66) | ($66) | ($61) | ($61) | ' | ' |
Reclassification_Out_of_Accumu
Reclassification Out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Defined Benefit Plans Adjustment | Accumulated Defined Benefit Plans Adjustment | Foreign Exchange Contract | Foreign Exchange Contract | Unrealized Gain on Investments | Unrealized Gain on Investments | |||||
Reclassification Out of Accumulated Other Comprehensive Income | Reclassification Out of Accumulated Other Comprehensive Income | Reclassification Out of Accumulated Other Comprehensive Income | Reclassification Out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment income | $35,000,000 | $34,000,000 | $71,000,000 | $67,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $9,000,000 | $17,000,000 |
Provision for income tax | -187,000,000 | -216,000,000 | -326,000,000 | -292,000,000 | -61,000,000 | -18,000,000 | 66,000,000 | 66,000,000 | 61,000,000 | 61,000,000 | 0 | 0 | -3,000,000 | -6,000,000 |
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 3,000,000 | 6,000,000 | 11,000,000 |
Product sales revenue | 3,319,000,000 | 3,258,000,000 | 6,327,000,000 | 6,369,000,000 | ' | ' | ' | ' | ' | ' | 2,000,000 | 3,000,000 | ' | ' |
Cost of product sales | -1,372,000,000 | -1,340,000,000 | -2,668,000,000 | -2,696,000,000 | ' | ' | ' | ' | ' | ' | -1,000,000 | 0 | ' | ' |
Total net gain on derivatives before tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | $3,000,000 | ' | ' |
Stockholders_Equity_Dividends_
Stockholders' Equity Dividends Declared (Details) (USD $) | 0 Months Ended | 0 Months Ended | ||||
Apr. 17, 2014 | Feb. 06, 2014 | 30-May-13 | Apr. 17, 2014 | 30-May-13 | Jul. 31, 2014 | |
Subsequent Event | ||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date Declared | 17-Apr-14 | 6-Feb-14 | 30-May-13 | ' | ' | 30-Jul-14 |
Common Stock Dividend Rate | ' | ' | ' | $0.12 | $0.10 | ' |
Dividends Payable, Date of Record | 1-Jul-14 | 1-Apr-14 | 1-Jul-13 | ' | ' | 1-Oct-14 |
Dividends, Common Stock, Cash | $237,000,000 | $209,000,000 | $212,000,000 | ' | ' | ' |
Dividends Payable, Date to be Paid | 23-Jul-14 | 23-Apr-14 | 23-Jul-13 | ' | ' | 23-Oct-14 |
Restructuring_and_AcquisitionR2
Restructuring and Acquisition-Related Charges - Additional information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
VMware | VMware | VMware | Restructuring 2014 Programs | Restructuring 2014 Programs | Restructuring 2013 Programs | Restructuring 2013 Programs | Restructuring 2013 Programs | Restructuring 2013 Programs | Restructuring 2013 Programs | Consolidation of excess facilities and other contractual obligations | Consolidation of excess facilities and other contractual obligations | Consolidation of excess facilities and other contractual obligations | Workforce reductions | Workforce reductions | |||||
Positions | Positions | Positions | VMware | VMware | VMware | Restructuring 2013 Programs | Restructuring 2013 Programs | Restructuring 2013 Programs | Restructuring 2013 Programs | ||||||||||
Positions | VMware | VMware | VMware | VMware | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and acquisition-related charges | $30,000,000 | $7,000,000 | $149,000,000 | $155,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 29,000,000 | 4,000,000 | 144,000,000 | 85,000,000 | 2,000,000 | ' | 56,000,000 | ' | ' | ' | ' | 2,000,000 | 56,000,000 | ' | ' | 0 | 0 | 2,000,000 | 56,000,000 |
Asset Impairment Charges | ' | ' | ' | ' | 1,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related charges | 2,000,000 | ' | ' | 3,000,000 | ' | 4,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve, Accrual Adjustment | ' | ' | ' | ' | ' | -1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | 210 | 1,326 | 1,004 | 1,917 | ' | ' | 710 | ' | ' | ' | ' | ' |
Lease termination costs for facilities | $4,000,000 | $5,000,000 | $8,000,000 | $12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of completion of workforce reduction and/or consolidation of facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2015 | ' | ' | ' | ' |
Activity_For_Restructuring_Pro
Activity For Restructuring Program (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Charges/ (Adjustments to the Provision) | $29 | $4 | $144 | $85 |
EMC Information Infrastructure | Restructuring 2014 Programs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 103 | ' | 0 | ' |
Charges/ (Adjustments to the Provision) | 36 | ' | 155 | ' |
Restructuring Utilization | -38 | ' | -54 | ' |
Ending Balance | 101 | ' | 101 | ' |
EMC Information Infrastructure | Restructuring 2014 Programs | Workforce reductions | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 102 | ' | 0 | ' |
Charges/ (Adjustments to the Provision) | 32 | ' | 149 | ' |
Restructuring Utilization | -36 | ' | -51 | ' |
Ending Balance | 98 | ' | 98 | ' |
EMC Information Infrastructure | Restructuring 2014 Programs | Consolidation of excess facilities and other contractual obligations | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 1 | ' | 0 | ' |
Charges/ (Adjustments to the Provision) | 4 | ' | 6 | ' |
Restructuring Utilization | -2 | ' | -3 | ' |
Ending Balance | 3 | ' | 3 | ' |
EMC Information Infrastructure | Restructuring Other Programs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 57 | 76 | 90 | 91 |
Charges/ (Adjustments to the Provision) | -7 | -1 | -11 | 1 |
Restructuring Utilization | -15 | -19 | -44 | -36 |
Ending Balance | 35 | 56 | 35 | 56 |
EMC Information Infrastructure | Restructuring Other Programs | Workforce reductions | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 37 | 46 | 66 | 63 |
Charges/ (Adjustments to the Provision) | -7 | -3 | -13 | -8 |
Restructuring Utilization | -13 | -14 | -36 | -26 |
Ending Balance | 17 | 29 | 17 | 29 |
EMC Information Infrastructure | Restructuring Other Programs | Consolidation of excess facilities and other contractual obligations | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 20 | 30 | 24 | 28 |
Charges/ (Adjustments to the Provision) | 0 | 2 | 2 | 9 |
Restructuring Utilization | -2 | -5 | -8 | -10 |
Ending Balance | 18 | 27 | 18 | 27 |
EMC Information Infrastructure | Restructuring 2013 Programs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | 66 | ' | 0 |
Charges/ (Adjustments to the Provision) | ' | 5 | ' | 84 |
Restructuring Utilization | ' | -24 | ' | -37 |
Ending Balance | ' | 47 | ' | 47 |
EMC Information Infrastructure | Restructuring 2013 Programs | Workforce reductions | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | 66 | ' | 0 |
Charges/ (Adjustments to the Provision) | ' | 2 | ' | 81 |
Restructuring Utilization | ' | -23 | ' | -36 |
Ending Balance | ' | 45 | ' | 45 |
EMC Information Infrastructure | Restructuring 2013 Programs | Consolidation of excess facilities and other contractual obligations | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | 0 | ' | 0 |
Charges/ (Adjustments to the Provision) | ' | 3 | ' | 3 |
Restructuring Utilization | ' | -1 | ' | -1 |
Ending Balance | ' | 2 | ' | 2 |
VMware | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Charges/ (Adjustments to the Provision) | ' | 2 | ' | 56 |
VMware | Restructuring 2013 Programs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | 26 | ' | 0 |
Charges/ (Adjustments to the Provision) | ' | 2 | ' | 56 |
Restructuring Utilization | ' | -26 | ' | -54 |
Ending Balance | ' | 2 | ' | 2 |
VMware | Restructuring 2013 Programs | Workforce reductions | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | 26 | ' | 0 |
Charges/ (Adjustments to the Provision) | ' | 2 | ' | 56 |
Restructuring Utilization | ' | -26 | ' | -54 |
Ending Balance | ' | 2 | ' | 2 |
VMware | Restructuring 2013 Programs | Consolidation of excess facilities and other contractual obligations | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | 0 | ' | 0 |
Charges/ (Adjustments to the Provision) | ' | 0 | ' | 0 |
Restructuring Utilization | ' | 0 | ' | 0 |
Ending Balance | ' | $0 | ' | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
segment | EMC Information Infrastructure | United States | United States | International Segment | International Segment | Geographic Concentration | Geographic Concentration | Geographic Concentration | Geographic Concentration | Geographic Concentration | Geographic Concentration | Geographic Concentration | Geographic Concentration | |
segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Sales Revenue, Segment | Long-lived Assets, Total | Long-lived Assets, Total | Long-lived Assets, Total | Long-lived Assets, Total | ||||||
Country | Country | Country | Country | Country | ||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of federated businesses | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of countries other than the US that accounted for 10% or more | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets | ' | ' | $4,356 | $4,433 | $998 | $877 | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Segment_in
Segment Information Segment information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Product sales | $3,319,000,000 | $3,258,000,000 | $6,327,000,000 | $6,369,000,000 |
Services revenues | 2,561,000,000 | 2,356,000,000 | 5,032,000,000 | 4,632,000,000 |
Total consolidated revenues | 5,880,000,000 | 5,614,000,000 | 11,359,000,000 | 11,001,000,000 |
Gross profit | 3,654,000,000 | 3,509,000,000 | 7,001,000,000 | 6,807,000,000 |
Gross profit percentage | 62.10% | 62.50% | 61.60% | 61.90% |
Research and development | 740,000,000 | 695,000,000 | 1,472,000,000 | 1,370,000,000 |
Selling, general and administrative | 2,010,000,000 | 1,785,000,000 | 3,861,000,000 | 3,499,000,000 |
Restructuring and Acquisition-related Charges | 30,000,000 | 7,000,000 | 149,000,000 | 155,000,000 |
Total costs and expenses | 2,780,000,000 | 2,487,000,000 | 5,482,000,000 | 5,024,000,000 |
Operating income | 874,000,000 | 1,022,000,000 | 1,519,000,000 | 1,783,000,000 |
Other income (expense), net | -65,000,000 | -56,000,000 | -139,000,000 | -126,000,000 |
Income before provision for income taxes | 809,000,000 | 966,000,000 | 1,380,000,000 | 1,657,000,000 |
Income tax provision | 187,000,000 | 216,000,000 | 326,000,000 | 292,000,000 |
Net income | 622,000,000 | 750,000,000 | 1,054,000,000 | 1,365,000,000 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -33,000,000 | -49,000,000 | -74,000,000 | -84,000,000 |
Net income attributable to EMC Corporation | 589,000,000 | 701,000,000 | 980,000,000 | 1,281,000,000 |
Information Storage | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 2,551,000,000 | 2,577,000,000 | 4,853,000,000 | 5,048,000,000 |
Services revenues | 1,425,000,000 | 1,377,000,000 | 2,803,000,000 | 2,704,000,000 |
Total consolidated revenues | 3,976,000,000 | 3,954,000,000 | 7,656,000,000 | 7,752,000,000 |
Gross profit | 2,192,000,000 | 2,236,000,000 | 4,168,000,000 | 4,324,000,000 |
Gross profit percentage | 55.10% | 56.50% | 54.40% | 55.80% |
Information Intelligence Group | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 37,000,000 | 39,000,000 | 72,000,000 | 82,000,000 |
Services revenues | 121,000,000 | 113,000,000 | 240,000,000 | 226,000,000 |
Total consolidated revenues | 158,000,000 | 152,000,000 | 312,000,000 | 308,000,000 |
Gross profit | 100,000,000 | 96,000,000 | 199,000,000 | 195,000,000 |
Gross profit percentage | 63.20% | 63.10% | 63.90% | 63.40% |
RSA Information Security | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 104,000,000 | 98,000,000 | 208,000,000 | 198,000,000 |
Services revenues | 139,000,000 | 130,000,000 | 278,000,000 | 262,000,000 |
Total consolidated revenues | 243,000,000 | 228,000,000 | 486,000,000 | 460,000,000 |
Gross profit | 162,000,000 | 148,000,000 | 323,000,000 | 301,000,000 |
Gross profit percentage | 66.70% | 65.10% | 66.40% | 65.20% |
EMC Information Infrastructure | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 2,692,000,000 | 2,714,000,000 | 5,133,000,000 | 5,328,000,000 |
Services revenues | 1,685,000,000 | 1,620,000,000 | 3,321,000,000 | 3,192,000,000 |
Total consolidated revenues | 4,377,000,000 | 4,334,000,000 | 8,454,000,000 | 8,520,000,000 |
Gross profit | 2,454,000,000 | 2,480,000,000 | 4,690,000,000 | 4,820,000,000 |
Gross profit percentage | 56.10% | 57.20% | 55.50% | 56.60% |
Research and development | 358,000,000 | 377,000,000 | 736,000,000 | 743,000,000 |
Selling, general and administrative | 1,140,000,000 | 1,118,000,000 | 2,241,000,000 | 2,195,000,000 |
Restructuring and Acquisition-related Charges | 0 | 0 | 0 | 0 |
Total costs and expenses | 1,498,000,000 | 1,495,000,000 | 2,977,000,000 | 2,938,000,000 |
Operating income | 956,000,000 | 985,000,000 | 1,713,000,000 | 1,882,000,000 |
Pivotal | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 15,000,000 | 15,000,000 | 26,000,000 | 28,000,000 |
Services revenues | 39,000,000 | 27,000,000 | 78,000,000 | 49,000,000 |
Total consolidated revenues | 54,000,000 | 42,000,000 | 104,000,000 | 77,000,000 |
Gross profit | 26,000,000 | 20,000,000 | 45,000,000 | 37,000,000 |
Gross profit percentage | 47.20% | 48.10% | 42.90% | 48.10% |
Research and development | 33,000,000 | 26,000,000 | 66,000,000 | 52,000,000 |
Selling, general and administrative | 46,000,000 | 36,000,000 | 87,000,000 | 73,000,000 |
Restructuring and Acquisition-related Charges | 0 | 0 | 0 | 0 |
Total costs and expenses | 79,000,000 | 62,000,000 | 153,000,000 | 125,000,000 |
Operating income | -53,000,000 | -42,000,000 | -108,000,000 | -88,000,000 |
EMC Information Infrastructure Plus Pivotal | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 2,707,000,000 | 2,729,000,000 | 5,159,000,000 | 5,356,000,000 |
Services revenues | 1,724,000,000 | 1,647,000,000 | 3,399,000,000 | 3,241,000,000 |
Total consolidated revenues | 4,431,000,000 | 4,376,000,000 | 8,558,000,000 | 8,597,000,000 |
Gross profit | 2,480,000,000 | 2,500,000,000 | 4,735,000,000 | 4,857,000,000 |
Gross profit percentage | 55.90% | 57.10% | 55.30% | 56.50% |
Research and development | 391,000,000 | 403,000,000 | 802,000,000 | 795,000,000 |
Selling, general and administrative | 1,186,000,000 | 1,154,000,000 | 2,328,000,000 | 2,268,000,000 |
Restructuring and Acquisition-related Charges | 0 | 0 | 0 | 0 |
Total costs and expenses | 1,577,000,000 | 1,557,000,000 | 3,130,000,000 | 3,063,000,000 |
Operating income | 903,000,000 | 943,000,000 | 1,605,000,000 | 1,794,000,000 |
Other income (expense), net | -84,000,000 | -78,000,000 | -164,000,000 | -152,000,000 |
Income tax provision | 209,000,000 | 214,000,000 | 378,000,000 | 401,000,000 |
Net income | 610,000,000 | 651,000,000 | 1,063,000,000 | 1,241,000,000 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | 0 | 0 | 0 | 0 |
Net income attributable to EMC Corporation | 610,000,000 | 651,000,000 | 1,063,000,000 | 1,241,000,000 |
VMware Virtual Infrastructure Within EMC | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 612,000,000 | 529,000,000 | 1,168,000,000 | 1,013,000,000 |
Services revenues | 837,000,000 | 709,000,000 | 1,633,000,000 | 1,391,000,000 |
Total consolidated revenues | 1,449,000,000 | 1,238,000,000 | 2,801,000,000 | 2,404,000,000 |
Gross profit | 1,272,000,000 | 1,109,000,000 | 2,457,000,000 | 2,150,000,000 |
Gross profit percentage | 87.80% | 89.60% | 87.70% | 89.40% |
Research and development | 246,000,000 | 207,000,000 | 474,000,000 | 397,000,000 |
Selling, general and administrative | 602,000,000 | 489,000,000 | 1,139,000,000 | 939,000,000 |
Restructuring and Acquisition-related Charges | 0 | 0 | 0 | 0 |
Total costs and expenses | 848,000,000 | 696,000,000 | 1,613,000,000 | 1,336,000,000 |
Operating income | 424,000,000 | 413,000,000 | 844,000,000 | 814,000,000 |
Other income (expense), net | 8,000,000 | 3,000,000 | 15,000,000 | 7,000,000 |
Income tax provision | 91,000,000 | 93,000,000 | 175,000,000 | 176,000,000 |
Net income | 341,000,000 | 323,000,000 | 684,000,000 | 645,000,000 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -69,000,000 | -67,000,000 | -138,000,000 | -129,000,000 |
Net income attributable to EMC Corporation | 272,000,000 | 256,000,000 | 546,000,000 | 516,000,000 |
Corp Reconciling Items [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product sales | 0 | 0 | 0 | 0 |
Services revenues | 0 | 0 | 0 | 0 |
Total consolidated revenues | 0 | 0 | 0 | 0 |
Gross profit | -98,000,000 | -100,000,000 | -191,000,000 | -200,000,000 |
Gross profit percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Research and development | 103,000,000 | 85,000,000 | 196,000,000 | 178,000,000 |
Selling, general and administrative | 222,000,000 | 142,000,000 | 394,000,000 | 292,000,000 |
Restructuring and Acquisition-related Charges | 30,000,000 | 7,000,000 | 149,000,000 | 155,000,000 |
Total costs and expenses | 355,000,000 | 234,000,000 | 739,000,000 | 625,000,000 |
Operating income | -453,000,000 | -334,000,000 | -930,000,000 | -825,000,000 |
Other income (expense), net | 11,000,000 | 19,000,000 | 10,000,000 | 19,000,000 |
Income tax provision | -113,000,000 | -91,000,000 | -227,000,000 | -285,000,000 |
Net income | -329,000,000 | -224,000,000 | -693,000,000 | -521,000,000 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | 36,000,000 | 18,000,000 | 64,000,000 | 45,000,000 |
Net income attributable to EMC Corporation | ($293,000,000) | ($206,000,000) | ($629,000,000) | ($476,000,000) |
Revenues_By_Geographic_Area_De
Revenues By Geographic Area (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total consolidated revenues | $5,880 | $5,614 | $11,359 | $11,001 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total consolidated revenues | 3,056 | 2,963 | 5,890 | 5,795 |
Europe, Middle East and Africa | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total consolidated revenues | 1,669 | 1,486 | 3,261 | 2,963 |
Asia Pacific And Japan | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total consolidated revenues | 802 | 835 | 1,525 | 1,573 |
Latin America, Mexico And Canada | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total consolidated revenues | $353 | $330 | $683 | $670 |