Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document-Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | EMC |
Entity Registrant Name | EMC CORP |
Entity Central Index Key | 790070 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,942,061,163 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $4,388 | $6,343 |
Short-term investments | 2,062 | 1,978 |
Accounts and notes receivable, less allowance for doubtful accounts of $71 and $72 | 2,966 | 4,413 |
Inventories | 1,292 | 1,276 |
Deferred income taxes | 1,067 | 1,070 |
Other current assets | 788 | 653 |
Total current assets | 12,563 | 15,733 |
Long-term investments | 7,022 | 6,334 |
Property, plant and equipment, net | 3,742 | 3,766 |
Intangible assets, net | 2,041 | 2,125 |
Goodwill | 16,174 | 16,134 |
Other assets, net | 1,751 | 1,793 |
Total assets | 43,293 | 45,885 |
Current liabilities: | ||
Accounts payable | 1,206 | 1,696 |
Accrued expenses | 2,817 | 3,141 |
Income taxes payable | 103 | 852 |
Deferred revenue | 6,355 | 6,021 |
Total current liabilities | 10,481 | 11,710 |
Income taxes payable | 290 | 306 |
Deferred revenue | 4,332 | 4,144 |
Deferred income taxes | 270 | 274 |
Long-term debt (See Note 4) | 5,495 | 5,495 |
Other liabilities | 421 | 431 |
Total liabilities | 21,289 | 22,360 |
Commitments and contingencies (See Note 13) | ||
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 1,942 and 1,985 shares | 19 | 20 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 20,887 | 22,242 |
Accumulated other comprehensive loss, net | -457 | -366 |
Total EMC Corporation’s shareholders’ equity | 20,449 | 21,896 |
Non-controlling interests | 1,555 | 1,629 |
Total shareholders’ equity | 22,004 | 23,525 |
Total liabilities and shareholders’ equity | $43,293 | $45,885 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowance for doubtful accounts | $71 | $72 |
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) | 1,942,000,000 | 1,985,000,000 |
Common stock, outstanding (in shares) | 1,942,000,000 | 1,985,000,000 |
CONSOLIDATED_INCOME_STATEMENTS
CONSOLIDATED INCOME STATEMENTS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Product sales | $2,905 | $3,008 |
Services | 2,708 | 2,471 |
Total consolidated revenues | 5,613 | 5,479 |
Costs and expenses: | ||
Cost of product sales | 1,329 | 1,296 |
Cost of services | 945 | 836 |
Research and development | 788 | 731 |
Selling, general and administrative | 2,037 | 1,852 |
Restructuring and acquisition-related charges | 135 | 119 |
Operating income | 379 | 645 |
Non-operating income (expense): | ||
Investment income | 24 | 36 |
Interest expense | -40 | -34 |
Other income (expense), net | 10 | -76 |
Total non-operating income (expense) | -6 | -74 |
Income before provision for income taxes | 373 | 571 |
Income tax provision | 82 | 139 |
Net income | 291 | 432 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -39 | -40 |
Net income attributable to EMC Corporation | $252 | $392 |
Net income per weighted average share, basic attributable to EMC Corporation common shareholders | $0.13 | $0.19 |
Net income per weighted average share, diluted attributable to EMC Corporation common shareholders | $0.13 | $0.19 |
Weighted average shares, basic | 1,974 | 2,029 |
Weighted average shares, diluted | 1,996 | 2,076 |
Cash dividends declared per common share (in usd per share) | $0.12 | $0.10 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $291 | $432 |
Other comprehensive income (loss), net of taxes (benefits): | ||
Foreign currency translation adjustments | -104 | -4 |
Changes in market value of investments: | ||
Changes in unrealized gains (losses), net of taxes (benefits) of $13 and $14 | 19 | 24 |
Reclassification adjustment for net losses (gains) realized in net income, net of benefits (taxes) of $(6) and $(3) | -8 | -5 |
Net change in market value of investments | 11 | 19 |
Changes in market value of derivatives: | ||
Changes in unrealized gains (losses), net of taxes (benefits) of $3 and $(1) | 14 | -1 |
Reclassification adjustment for net losses (gains) included in net income, net of benefits (taxes) of $0 and $0 | -11 | -2 |
Net change in the market value of derivatives | 3 | -3 |
Other comprehensive income (loss) | -90 | 12 |
Comprehensive income | 201 | 444 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -39 | -40 |
Less: Other comprehensive (income) loss attributable to the non-controlling interest in VMware, Inc. | -1 | -1 |
Comprehensive income attributable to EMC Corporation | $161 | $403 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Changes in unrealized gains (losses) - taxes (benefits) | $13 | $14 |
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes) | -6 | -3 |
Changes in market value of derivatives - taxes (benefits) | 3 | -1 |
Reclassification adjustment for net losses (gains) realized in net income - benefits (taxes) | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Cash received from customers | $7,495 | $6,965 |
Cash paid to suppliers and employees | -5,584 | -4,962 |
Dividends and interest received | 24 | 55 |
Income taxes paid | -855 | -720 |
Net cash provided by operating activities | 1,080 | 1,338 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | -197 | -275 |
Capitalized software development costs | -128 | -117 |
Purchases of short- and long-term available-for-sale securities | -2,421 | -2,931 |
Sales of short- and long-term available-for-sale securities | 1,311 | 2,362 |
Maturities of short- and long-term available-for-sale securities | 422 | 1,307 |
Business acquisitions, net of cash acquired | -49 | -1,068 |
Purchases of strategic and other related investments | -106 | -22 |
Sales of strategic and other related investments | 57 | 0 |
Increase in restricted cash | 0 | -76 |
Net cash used in investing activities | -1,111 | -820 |
Cash flows from financing activities: | ||
Proceeds from the issuance of EMC’s common stock | 121 | 194 |
Repurchase of common stock | -1,346 | -390 |
Excess tax benefits from stock-based compensation | 20 | 29 |
Payment of long- and short-term obligations | 0 | -1,665 |
Dividend payment | -232 | -202 |
Net cash used in financing activities | -1,821 | -2,115 |
Effect of exchange rate changes on cash and cash equivalents | -103 | -3 |
Net decrease in cash and cash equivalents | -1,955 | -1,600 |
Cash and cash equivalents at beginning of period | 6,343 | 7,891 |
Cash and cash equivalents at end of period | 4,388 | 6,291 |
Reconciliation of net income to net cash provided by operating activities: | ||
Net income | 291 | 432 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 470 | 442 |
Non-cash restructuring and other special charges | 11 | 5 |
Stock-based compensation expense | 245 | 239 |
Provision for doubtful accounts | 16 | 4 |
Deferred income taxes, net | -20 | -47 |
Excess tax benefits from stock-based compensation | -20 | -29 |
Other, net | 0 | 17 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts and notes receivable | 1,420 | 910 |
Inventories | -69 | -139 |
Other assets | -45 | -13 |
Accounts payable | -575 | -369 |
Accrued expenses | -376 | -236 |
Income taxes payable | -754 | -535 |
Deferred revenue | 494 | 650 |
Other liabilities | -8 | 7 |
Net cash provided by operating activities | 1,080 | 1,338 |
VMware | ||
Cash flows from financing activities: | ||
Proceeds from noncontrolling interests - issuance of common stock and contributions | 54 | 88 |
Repurchase of common stock | ($438) | ($169) |
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 | ||||||
Beginning Balance at Dec. 31, 2013 | $23,786 | $20 | $1,406 | $21,114 | ($239) | $1,485 |
Beginning Balance (in shares) at Dec. 31, 2013 | 2,020 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Stock issued through stock option and stock purchase plans (in shares) | 13 | |||||
Stock issued through stock option and stock purchase plans | 194 | 0 | 194 | |||
Tax benefit from stock options exercised | 44 | 44 | ||||
Restricted stock grants, cancellations and withholdings, net (in shares) | 1 | |||||
Restricted stock grants, cancellations and withholdings, net | -20 | 0 | -20 | |||
Repurchase of common stock (in shares) | -16 | |||||
Repurchase of common stock | -405 | -405 | ||||
Stock options issued in business acquisitions | 24 | 24 | ||||
Stock-based compensation | 244 | 244 | ||||
Cash dividends declared | -209 | -209 | ||||
Impact from equity transactions of non-controlling interests | -107 | -124 | 17 | |||
Change in market value of investments | 19 | 18 | 1 | |||
Change in market value of derivatives | -3 | -3 | ||||
Translation adjustment | -4 | -4 | ||||
Convertible debt conversions and warrant settlement | 0 | 0 | ||||
Net income | 432 | 392 | 40 | |||
Ending Balance at Mar. 31, 2014 | 23,995 | 20 | 1,363 | 21,297 | -228 | 1,543 |
Ending Balance (in shares) at Mar. 31, 2014 | 2,047 | |||||
Beginning Balance at Dec. 31, 2014 | 23,525 | 20 | 0 | 22,242 | -366 | 1,629 |
Beginning Balance (in shares) at Dec. 31, 2014 | 1,985 | 1,985 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Stock issued through stock option and stock purchase plans (in shares) | 6 | |||||
Stock issued through stock option and stock purchase plans | 121 | 0 | 121 | |||
Tax benefit from stock options exercised | 13 | 13 | ||||
Restricted stock grants, cancellations and withholdings, net (in shares) | 5 | |||||
Restricted stock grants, cancellations and withholdings, net | -64 | 0 | -64 | |||
Repurchase of common stock (in shares) | -54 | |||||
Repurchase of common stock | -1,446 | -1 | -64 | -1,381 | ||
Stock-based compensation | 295 | 295 | ||||
Cash dividends declared | -226 | -226 | ||||
Impact from equity transactions of non-controlling interests | -415 | -301 | -114 | |||
Change in market value of investments | 11 | 9 | 2 | |||
Change in market value of derivatives | 3 | 4 | -1 | |||
Translation adjustment | -104 | -104 | ||||
Net income | 291 | 252 | 39 | |||
Ending Balance at Mar. 31, 2015 | $22,004 | $19 | $0 | $20,887 | ($457) | $1,555 |
Ending Balance (in shares) at Mar. 31, 2015 | 1,942 | 1,942 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 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. EMC’s Information Infrastructure business comprises three segments – Information Storage, Enterprise Content Division and RSA Information Security. | |
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 and services 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”) unites strategic technology, people and programs from EMC and VMware and has built a new platform comprising of next-generation data, agile development practices and a cloud independent platform-as-a-service (“PaaS”). These capabilities are made available through Pivotal’s three primary offerings: the Pivotal Big Data Suite, Pivotal Labs and Pivotal Cloud Foundry. | |
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, 2014 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2015. | |
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-month periods ended March 31, 2015 and 2014. | |
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. | |
Investments in 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, equity or 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. In December 2014, EMC acquired the controlling interest in VCE and, since the date of acquisition, has consolidated VCE’s financial position and results of operations as part of EMC’s consolidated financial statements. | |
Prior to the acquisition of the controlling interest in VCE, we considered VCE a variable interest entity and accounted for the investment under the equity method with our portion of the gains and losses recognized in other expense, net in the consolidated income statements for the majority of 2014. Our consolidated share of VCE’s losses, based upon our portion of the overall funding, was approximately 63% for the three months ended March 31, 2014. We recorded $75 million in net losses and $170 million in revenue from sales of product and services to VCE during the three months ended March 31, 2014. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform with the current year’s presentation. | |
Recent Accounting Pronouncements | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance to clarify the required presentation of debt issuance costs. The amended guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the related debt liability rather than as an asset. It is effective beginning January 1, 2016, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. We are currently evaluating the impact of the new guidance on our consolidated financial statements. | |
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. In April 2015, the FASB proposed a one-year delay in the effective date of the new standard to 2018. Under this proposal, early adoption will be allowed, but not earlier than the original effective date. The principles 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. |
Noncontrolling_Interests
Non-controlling Interests | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Noncontrolling Interest [Abstract] | ||||||||
Non-controlling Interests | Non-controlling Interests | |||||||
The non-controlling interests’ share of equity in VMware is reflected as a component of the non-controlling interests in the accompanying consolidated balance sheets and was $1,450 million and $1,524 million as of March 31, 2015 and December 31, 2014, respectively. At March 31, 2015, EMC held approximately 97% of the combined voting power of VMware’s outstanding common stock and approximately 81% 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 Three Months Ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Net income attributable to EMC Corporation | $ | 252 | $ | 392 | ||||
Transfers (to) from the non-controlling interest in VMware, Inc.: | ||||||||
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances | 30 | 47 | ||||||
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity | (331 | ) | (171 | ) | ||||
Net transfers (to) from non-controlling interest | (301 | ) | (124 | ) | ||||
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc. | $ | (49 | ) | $ | 268 | |||
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 March 31, 2015 and December 31, 2014. At March 31, 2015, EMC consolidated 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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||
Business Combinations, Intangibles and Goodwill | Business Combinations, Intangibles and Goodwill | |||||||||||||||||||||||
During the three months ended March 31, 2015, EMC acquired all of the outstanding capital stock of Renasar Technologies, Inc., which complements our Information Storage segment, and VMware acquired all of the outstanding capital stock of Immidio B.V. The aggregate consideration for these two acquisitions was $49 million, net of cash acquired. 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 $38 million, $16 million and $5 million, respectively. | ||||||||||||||||||||||||
The intangible assets acquired were primarily comprised of developed technology which have a weighted-average amortization period of 3.6 years. Most of our intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized; the remainder are 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, and is 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 months ended March 31, 2015 or 2014. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets, excluding goodwill, as of March 31, 2015 and December 31, 2014 consist of (tables in millions): | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,949 | $ | (1,728 | ) | $ | 1,221 | |||||||||||||||||
Patents | 225 | (120 | ) | 105 | ||||||||||||||||||||
Software licenses | 108 | (93 | ) | 15 | ||||||||||||||||||||
Trademarks and tradenames | 226 | (141 | ) | 85 | ||||||||||||||||||||
Customer relationships and customer lists | 1,473 | (1,003 | ) | 470 | ||||||||||||||||||||
Leasehold interest | 152 | (17 | ) | 135 | ||||||||||||||||||||
Other | 46 | (36 | ) | 10 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 5,179 | $ | (3,138 | ) | $ | 2,041 | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,935 | $ | (1,668 | ) | $ | 1,267 | |||||||||||||||||
Patents | 225 | (117 | ) | 108 | ||||||||||||||||||||
Software licenses | 108 | (93 | ) | 15 | ||||||||||||||||||||
Trademarks and tradenames | 226 | (136 | ) | 90 | ||||||||||||||||||||
Customer relationships and customer lists | 1,473 | (974 | ) | 499 | ||||||||||||||||||||
Leasehold interest | 152 | (16 | ) | 136 | ||||||||||||||||||||
Other | 44 | (34 | ) | 10 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 5,163 | $ | (3,038 | ) | $ | 2,125 | |||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the three months ended March 31, 2015 consist of (table in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Information | Enterprise | RSA | Pivotal | VMware | Total | |||||||||||||||||||
Storage | Content Division | Information | Virtual | |||||||||||||||||||||
Security | Infrastructure | |||||||||||||||||||||||
Balance, beginning of the period | $ | 8,266 | $ | 1,486 | $ | 2,203 | $ | 171 | $ | 4,008 | $ | 16,134 | ||||||||||||
Goodwill resulting from acquisitions | 21 | — | — | — | 17 | 38 | ||||||||||||||||||
Finalization of purchase price allocations and other, net | 2 | — | — | — | — | 2 | ||||||||||||||||||
Balance, end of the period | $ | 8,289 | $ | 1,486 | $ | 2,203 | $ | 171 | $ | 4,025 | $ | 16,174 | ||||||||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Short-Term Debt | ||||||||
On February 27, 2015, we entered into a credit agreement with the lenders named therein, Citibank, N.A., as Administrative Agent, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as Syndication Agents, and Citigroup Global Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, as Joint Lead Arrangers and Joint Bookrunners (the “Credit Agreement”). The Credit Agreement provides for a $2.5 billion unsecured revolving credit facility to be used for general corporate purposes that is scheduled to mature on February 27, 2020. At our option, subject to certain conditions, any loan under the Credit Agreement will bear interest at a rate equal to, either (i) the LIBOR Rate or (ii) the Base Rate (defined as the highest of (a) the Federal Funds rate plus 0.50%, (b) Citibank, N.A.’s “prime rate” as announced from time to time, or (c) one-month LIBOR plus 1.00%), plus, in each case the Applicable Margin, as defined in the Credit Agreement. The Credit Agreement contains customary representations and warranties, covenants and events of default. We may also, upon the agreement of the existing lenders and/or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $1.0 billion. In addition, we may request to extend the maturity date of the credit facility, subject to certain conditions, for additional one-year periods. As of March 31, 2015, we were in compliance with customary required covenants and we had not borrowed any funds under the credit facility. | ||||||||
On March 23, 2015, we established a short-term debt financing program whereby we may issue short-term unsecured commercial paper notes (“Commercial Paper”). Amounts available under the program may be borrowed, repaid and re-borrowed from time to time, with the aggregate face or principal amount of the notes outstanding at any time not to exceed $2.5 billion. The Commercial Paper will have maturities of up to 397 days from the date of issue. The net proceeds from the issuance of the Commercial Paper are expected to be used for general corporate purposes. As of March 31, 2015, we were in compliance with customary required covenants and we had no Commercial Paper outstanding under the program. | ||||||||
At May 4, 2015, we had $950 million of Commercial Paper outstanding, with a weighted-average interest rate of 0.16% and maturities ranging from 21 days to 59 days. | ||||||||
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, business acquisitions, dividend payments, 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 March 31, 2015, we were in compliance with all debt covenants, which are customary in nature. | ||||||||
Our long-term debt as of March 31, 2015 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 | % | 1,000 | |||||
$ | 5,495 | |||||||
The unamortized discount on the Notes consists of $5 million, which will be fully amortized by June 1, 2023. The effective interest rate on the Notes was 2.55% for the three months ended March 31, 2015. | ||||||||
Convertible Debt | ||||||||
In November 2006, we issued the 2013 Notes. These 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. | ||||||||
In connection with the issuance of the 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 2013 Notes upon conversion. We exercised 108 million of the purchased options in conjunction with the planned settlements of the 2013 Notes and 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 debt in 2011. In 2012, the interest rate swap contracts were settled and accumulated losses of $176 million were deferred as they were expected to be realized over the life of the new debt issued under the related interest rate swap contracts. The accumulated realized losses related to the settled swaps included in accumulated other comprehensive income are being realized over the remaining life of the ten year Notes. During the three months ended March 31, 2015, $6 million in losses were reclassified from other comprehensive income and recognized as interest expense in the consolidated income statements. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 March 31, 2015, 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 March 31, 2015 and December 31, 2014. At March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 (tables in millions): | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 2,261 | $ | 5 | $ | (1 | ) | $ | 2,265 | |||||||||||||||
U.S. corporate debt securities | 2,390 | 6 | (1 | ) | 2,395 | |||||||||||||||||||
High yield corporate debt securities | 394 | 8 | (7 | ) | 395 | |||||||||||||||||||
Asset-backed securities | 87 | — | — | 87 | ||||||||||||||||||||
Municipal obligations | 960 | 2 | — | 962 | ||||||||||||||||||||
Auction rate securities | 29 | — | (2 | ) | 27 | |||||||||||||||||||
Foreign debt securities | 2,664 | 5 | (1 | ) | 2,668 | |||||||||||||||||||
Total fixed income securities | 8,785 | 26 | (12 | ) | 8,799 | |||||||||||||||||||
Publicly traded equity securities | 201 | 98 | (14 | ) | 285 | |||||||||||||||||||
Total | $ | 8,986 | $ | 124 | $ | (26 | ) | $ | 9,084 | |||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 1,951 | $ | 2 | $ | (2 | ) | $ | 1,951 | |||||||||||||||
U.S. corporate debt securities | 1,998 | 1 | (4 | ) | 1,995 | |||||||||||||||||||
High yield corporate debt securities | 570 | 9 | (16 | ) | 563 | |||||||||||||||||||
Asset-backed securities | 53 | — | — | 53 | ||||||||||||||||||||
Municipal obligations | 948 | 2 | — | 950 | ||||||||||||||||||||
Auction rate securities | 29 | — | (2 | ) | 27 | |||||||||||||||||||
Foreign debt securities | 2,566 | 2 | (4 | ) | 2,564 | |||||||||||||||||||
Total fixed income securities | 8,115 | 16 | (28 | ) | 8,103 | |||||||||||||||||||
Publicly traded equity securities | 117 | 103 | (11 | ) | 209 | |||||||||||||||||||
Total | $ | 8,232 | $ | 119 | $ | (39 | ) | $ | 8,312 | |||||||||||||||
We held approximately $2,668 million in foreign debt securities at March 31, 2015. These securities have an average credit rating of A+, and approximately 3% 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. | ||||||||||||||||||||||||
The following tables represent our fair value hierarchy for our financial assets and liabilities measured at fair value as of March 31, 2015 and December 31, 2014 (tables in millions): | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 2,254 | $ | — | $ | — | $ | 2,254 | ||||||||||||||||
Cash equivalents | 2,079 | 55 | — | 2,134 | ||||||||||||||||||||
U.S. government and agency obligations | 1,250 | 1,015 | — | 2,265 | ||||||||||||||||||||
U.S. corporate debt securities | — | 2,395 | — | 2,395 | ||||||||||||||||||||
High yield corporate debt securities | — | 395 | — | 395 | ||||||||||||||||||||
Asset-backed securities | — | 87 | — | 87 | ||||||||||||||||||||
Municipal obligations | — | 962 | — | 962 | ||||||||||||||||||||
Auction rate securities | — | — | 27 | 27 | ||||||||||||||||||||
Foreign debt securities | — | 2,668 | — | 2,668 | ||||||||||||||||||||
Publicly traded equity securities | 285 | — | — | 285 | ||||||||||||||||||||
Total cash and investments | $ | 5,868 | $ | 7,577 | $ | 27 | $ | 13,472 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 339 | $ | 339 | ||||||||||||||||
Investment in joint venture | — | — | 37 | 37 | ||||||||||||||||||||
Long-term debt carried at discounted cost | — | (5,614 | ) | — | (5,614 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 87 | — | 87 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (86 | ) | — | (86 | ) | ||||||||||||||||||
Commodity derivative liabilities | — | (5 | ) | — | (5 | ) | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 2,022 | $ | — | $ | — | $ | 2,022 | ||||||||||||||||
Cash equivalents | 3,710 | 611 | — | 4,321 | ||||||||||||||||||||
U.S. government and agency obligations | 1,141 | 810 | — | 1,951 | ||||||||||||||||||||
U.S. corporate debt securities | — | 1,995 | — | 1,995 | ||||||||||||||||||||
High yield corporate debt securities | — | 563 | — | 563 | ||||||||||||||||||||
Asset-backed securities | — | 53 | — | 53 | ||||||||||||||||||||
Municipal obligations | — | 950 | — | 950 | ||||||||||||||||||||
Auction rate securities | — | — | 27 | 27 | ||||||||||||||||||||
Foreign debt securities | — | 2,564 | — | 2,564 | ||||||||||||||||||||
Publicly traded equity securities | 209 | — | — | 209 | ||||||||||||||||||||
Total cash and investments | $ | 7,082 | $ | 7,546 | $ | 27 | $ | 14,655 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 333 | $ | 333 | ||||||||||||||||
Investment in joint venture | — | — | 37 | 37 | ||||||||||||||||||||
Long-term debt carried at discounted cost | — | (5,544 | ) | — | (5,544 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 44 | — | 44 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (71 | ) | — | (71 | ) | ||||||||||||||||||
Commodity derivative assets | — | 12 | — | 12 | ||||||||||||||||||||
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 use a discounted cash flow model using a five year time horizon. As of March 31, 2015, 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 March 31, 2015. 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 both March 31, 2015 and December 31, 2014 due to the narrowing of credit spreads on AA-rated banks during 2014 and into 2015. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, there were no material changes to the fair value of our auction rate securities. | ||||||||||||||||||||||||
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 used 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 first quarter of 2015 and there were no material changes to the fair value of this joint venture during the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||
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 March 31, 2015 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 | $ | 501 | $ | (1 | ) | $ | — | $ | — | $ | 501 | $ | (1 | ) | ||||||||||
U.S. corporate debt securities | 778 | (1 | ) | — | — | 778 | (1 | ) | ||||||||||||||||
High yield corporate debt securities | 138 | (7 | ) | — | — | 138 | (7 | ) | ||||||||||||||||
Auction rate securities | — | — | 27 | (2 | ) | 27 | (2 | ) | ||||||||||||||||
Foreign debt securities | 918 | (1 | ) | — | — | 918 | (1 | ) | ||||||||||||||||
Publicly traded equity securities | 106 | (10 | ) | 9 | (4 | ) | 115 | (14 | ) | |||||||||||||||
Total | $ | 2,441 | $ | (20 | ) | $ | 36 | $ | (6 | ) | $ | 2,477 | $ | (26 | ) | |||||||||
For all of our securities for which the amortized cost basis was greater than the fair value at March 31, 2015, 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 and the time to maturity. | ||||||||||||||||||||||||
Contractual Maturities | ||||||||||||||||||||||||
The contractual maturities of fixed income securities held at March 31, 2015 are as follows (table in millions): | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Amortized | Aggregate | |||||||||||||||||||||||
Cost Basis | Fair Value | |||||||||||||||||||||||
Due within one year | $ | 2,036 | $ | 2,037 | ||||||||||||||||||||
Due after 1 year through 5 years | 5,905 | 5,920 | ||||||||||||||||||||||
Due after 5 years through 10 years | 524 | 523 | ||||||||||||||||||||||
Due after 10 years | 320 | 319 | ||||||||||||||||||||||
Total | $ | 8,785 | $ | 8,799 | ||||||||||||||||||||
Short-term investments on the consolidated balance sheet include $25 million in variable rate notes which have contractual maturities in 2015, and are not classified within investments due within one year above. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of (table in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Work-in-process | $ | 609 | $ | 627 | ||||
Finished goods | 683 | 649 | ||||||
$ | 1,292 | $ | 1,276 | |||||
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable and Allowance for Credit Losses | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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 March 31, 2015 were as follows (table in millions): | ||||
Year | Contractual Amounts | |||
Due Under Leases | ||||
Due within one year | $ | 71 | ||
Due within two years | 49 | |||
Due within three years | 37 | |||
Thereafter | 1 | |||
Total | 158 | |||
Less: Amounts representing interest | 5 | |||
Present value | 153 | |||
Current portion (included in accounts and notes receivable) | 68 | |||
Long-term portion (included in other assets, net) | $ | 85 | ||
Subsequent to March 31, 2015, we sold $6 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 March 31, 2015, amounts from lease receivables past due for more than 90 days were not significant. | ||||
During the three months ended March 31, 2015 and 2014, there were no material changes to our allowance for credit losses related to lease receivables. | ||||
Gross lease receivables totaled $158 million and $233 million as of March 31, 2015 and December 31, 2014, 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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||
Property, plant and equipment consist of (table in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Furniture and fixtures | $ | 265 | $ | 255 | ||||
Equipment and software | 6,842 | 6,684 | ||||||
Buildings and improvements | 2,345 | 2,308 | ||||||
Land | 162 | 162 | ||||||
Building construction in progress | 114 | 134 | ||||||
9,728 | 9,543 | |||||||
Accumulated depreciation | (5,986 | ) | (5,777 | ) | ||||
$ | 3,742 | $ | 3,766 | |||||
Building construction in progress at March 31, 2015 includes $76 million for facilities not yet placed in service that we are holding for future use. |
Accrued_Expenses
Accrued Expenses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses | Accrued Expenses | |||||||
Accrued expenses consist of (table in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Salaries and benefits | $ | 942 | $ | 1,251 | ||||
Product warranties | 191 | 210 | ||||||
Dividends payable (see Note 11) | 234 | 237 | ||||||
Partner rebates | 179 | 235 | ||||||
Restructuring, current (See Note 12) | 188 | 123 | ||||||
Derivatives | 91 | 75 | ||||||
Other | 992 | 1,010 | ||||||
$ | 2,817 | $ | 3,141 | |||||
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 months ended March 31, 2015 and 2014 (table in millions): | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Balance, beginning of the period | $ | 210 | $ | 289 | ||||
Provision | 33 | 42 | ||||||
Amounts charged to the accrual | (52 | ) | (57 | ) | ||||
Balance, end of the period | $ | 191 | $ | 274 | ||||
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 | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Our effective income tax rates were 22.0% and 24.3% for the three months ended March 31, 2015 and 2014, 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 months ended March 31, 2015, 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. 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. For the three months ended March 31, 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. On December 19, 2014, the Tax Increase Prevention Act was signed into law. Some of the provisions were retroactive to January 1, 2014 including an extension of the U.S. federal tax credit for increasing research activities through December 31, 2014. Our effective income tax rates for the three months ended March 31, 2015 and March 31, 2014 do not reflect any federal tax credit for increasing research activities. | |
Our effective income tax rate decreased in the three months ended March 31, 2015 from the three months ended March 31, 2014 due primarily to lower state taxes. 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. In the third quarter of 2012, the IRS commenced a federal income tax audit for the tax years 2009 and 2010, which is expected to be completed in late 2015. In the first quarter of 2015, the IRS commenced a federal income tax audit for the tax year 2011, which is still in the early stage for information gathering. 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 2005. 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. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income attributable to EMC Corporation | $ | 252 | $ | 392 | ||||||||||||||||||||
Incremental dilution from VMware | (1 | ) | (2 | ) | ||||||||||||||||||||
Net income – dilution attributable to EMC Corporation | $ | 251 | $ | 390 | ||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares, basic | 1,974 | 2,029 | ||||||||||||||||||||||
Weighted common stock equivalents | 22 | 26 | ||||||||||||||||||||||
Assumed conversion of the 2013 Notes and associated warrants | — | 21 | ||||||||||||||||||||||
Weighted average shares, diluted | 1,996 | 2,076 | ||||||||||||||||||||||
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 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 in 2012 and the remaining 109 million warrants were exercised between February 18, 2014 and March 17, 2014 and were settled with 29 million 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 months ended March 31, 2014. | ||||||||||||||||||||||||
Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 1 million and 6 million for the three months ended March 31, 2015 and 2014, respectively, 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 and an additional 250 million shares of our common stock in December 2014. For the three months ended March 31, 2015, we spent $1.4 billion to repurchase 54 million shares of our common stock. Of the 500 million shares authorized for repurchase, we have repurchased 255 million shares at a total cost of $6.8 billion, leaving a remaining balance of 245 million shares authorized for future repurchases. | ||||||||||||||||||||||||
VMware’s Board of Directors authorized the repurchase of $1.0 billion of VMware’s Class A common stock in August 2014 and an additional $1.0 billion of VMware’s Class A common stock in January 2015. All shares repurchased under VMware’s stock repurchase programs are retired. For the three months ended March 31, 2015, VMware spent $438 million to repurchase 5 million shares of their common stock. Of the $2.0 billion authorized for repurchase, VMware has a remaining balance of $1.5 billion authorized for future repurchases. | ||||||||||||||||||||||||
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 and in April 2014, our Board of Directors increased the dividend to $0.115 per share of common stock. | ||||||||||||||||||||||||
Our Board of Directors declared the following dividends during 2015 and 2014: | ||||||||||||||||||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount (in millions) | Payment Date | ||||||||||||||||||||
2015:00:00 | ||||||||||||||||||||||||
February 27, 2015 | $ | 0.115 | April 1, 2015 | $ | 229 | April 23, 2015 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||||||||
February 6, 2014 | $ | 0.1 | April 1, 2014 | $ | 209 | April 23, 2014 | ||||||||||||||||||
April 17, 2014 | $ | 0.115 | July 1, 2014 | $ | 237 | July 23, 2014 | ||||||||||||||||||
July 30, 2014 | $ | 0.115 | October 1, 2014 | $ | 239 | October 23, 2014 | ||||||||||||||||||
December 9, 2014 | $ | 0.115 | January 2, 2015 | $ | 234 | January 23, 2015 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss), which is presented net of tax, for the three months ended March 31, 2015 and 2014 consist of the following (tables 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 2014(a) | $ | (188 | ) | $ | 49 | $ | (100 | ) | $ | (126 | ) | $ | (1 | ) | $ | (366 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (104 | ) | 19 | 14 | — | (1 | ) | (72 | ) | |||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive income | — | (8 | ) | (11 | ) | — | — | (19 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | (104 | ) | 11 | 3 | — | (1 | ) | (91 | ) | |||||||||||||||
Balance as of March 31, 2015(b) | $ | (292 | ) | $ | 60 | $ | (97 | ) | $ | (126 | ) | $ | (2 | ) | $ | (457 | ) | |||||||
__________________ | ||||||||||||||||||||||||
(a) | Net of taxes (benefits) of $31 million for unrealized net gains on investments, $(64) million for unrealized net losses on derivatives and $(70) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
(b) | Net of taxes (benefits) of $38 million for unrealized net gains on investments, $(61) million for unrealized net losses on derivatives and $(70) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
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 | ) | 24 | (1 | ) | — | (1 | ) | 18 | |||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive income | — | (5 | ) | (2 | ) | — | — | (7 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | (4 | ) | 19 | (3 | ) | — | (1 | ) | 11 | |||||||||||||||
Balance as of March 31, 2014(b) | $ | (57 | ) | $ | 50 | $ | (109 | ) | $ | (110 | ) | $ | (2 | ) | $ | (228 | ) | |||||||
__________________ | ||||||||||||||||||||||||
(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 $29 million for unrealized net gains on investments, $(67) 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 months ended March 31, 2015 and 2014 are as follows (tables in millions): | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income Components | 31-Mar-15 | 31-Mar-14 | Impacted Line Item on | |||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||
Net gain on investments: | $ | 14 | $ | 8 | Investment income | |||||||||||||||||||
(6 | ) | (3 | ) | Provision for income tax | ||||||||||||||||||||
Net of tax | $ | 8 | $ | 5 | ||||||||||||||||||||
Net gain on derivatives: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 20 | $ | 1 | Product sales revenue | |||||||||||||||||||
Foreign exchange contracts | (3 | ) | 1 | Cost of product sales | ||||||||||||||||||||
Interest rate swap | (6 | ) | — | Other interest expense | ||||||||||||||||||||
Total net gain on derivatives before tax | 11 | 2 | ||||||||||||||||||||||
— | — | Provision for income tax | ||||||||||||||||||||||
Net of tax | $ | 11 | $ | 2 | ||||||||||||||||||||
Restructuring_and_AcquisitionR
Restructuring and Acquisition-Related Charges | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Acquisition-Related Charges | Restructuring and Acquisition-Related Charges | |||||||||||||||
For the three months ended March 31, 2015 and 2014, we incurred restructuring and acquisition-related charges of $135 million and $119 million, respectively. For the three months ended March 31, 2015, EMC incurred $111 million of restructuring charges, primarily related to our current year restructuring programs, and $1 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three months ended March 31, 2015, VMware incurred $22 million of restructuring charges, primarily related to its current year restructuring program, and $1 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three months ended March 31, 2014, EMC incurred $114 million of restructuring charges, primarily related to our 2014 restructuring programs, and VMware incurred $5 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. | ||||||||||||||||
In the first quarter of 2015, EMC implemented a restructuring program to create further operational efficiencies which will result in workforce reductions of approximately 1,320 positions. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Enterprise Content Division and Pivotal segments. The program was substantially completed during the first quarter of 2015 and will be fully completed by the end of 2015. | ||||||||||||||||
In the first quarter of 2015, VMware eliminated approximately 350 positions across all major functional groups and geographies to streamline its operations. All of these actions are expected to be completed within a year of the start of the program. | ||||||||||||||||
During the first quarter of 2014, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of approximately 1,326 positions. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Enterprise Content Division segments. All of these actions were completed within a year of the start of the program. | ||||||||||||||||
For the three months ended March 31, 2015 and 2014, we recognized $6 million and $5 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. These costs are expected to be utilized by the end of 2016. | ||||||||||||||||
The activity for the restructuring programs is presented below (tables in millions): | ||||||||||||||||
Three Months Ended March 31, 2015: | ||||||||||||||||
2015 EMC Programs | ||||||||||||||||
Category | Balance as of | 2015 | Utilization | Balance as of March 31, 2015 | ||||||||||||
December 31, | Charges | |||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | — | $ | 107 | $ | (11 | ) | $ | 96 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 6 | — | 6 | ||||||||||||
Total | $ | — | $ | 113 | $ | (11 | ) | $ | 102 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of March 31, 2015 | ||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 102 | $ | (2 | ) | $ | (39 | ) | $ | 61 | ||||||
Consolidation of excess facilities and other contractual obligations | 19 | — | (5 | ) | 14 | |||||||||||
Total | $ | 121 | $ | (2 | ) | $ | (44 | ) | $ | 75 | ||||||
VMware Programs | ||||||||||||||||
Category | Balance as of | 2015 | Utilization | Balance as of March 31, 2015 | ||||||||||||
December 31, | Charges | |||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 8 | $ | 22 | $ | (14 | ) | $ | 16 | |||||||
Consolidation of excess facilities and other contractual obligations | — | — | — | — | ||||||||||||
Total | $ | 8 | $ | 22 | $ | (14 | ) | $ | 16 | |||||||
Three Months Ended March 31, 2014: | ||||||||||||||||
2014 EMC Programs | ||||||||||||||||
Category | Balance as of | 2014 | Utilization | Balance as of March 31, 2014 | ||||||||||||
December 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | — | $ | 117 | $ | (15 | ) | $ | 102 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 2 | (1 | ) | 1 | |||||||||||
Total | $ | — | $ | 119 | $ | (16 | ) | $ | 103 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of March 31, 2014 | ||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 66 | $ | (8 | ) | $ | (21 | ) | $ | 37 | ||||||
Consolidation of excess facilities and other contractual obligations | 24 | 3 | (7 | ) | 20 | |||||||||||
Total | $ | 90 | $ | (5 | ) | $ | (28 | ) | $ | 57 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Information | Segment Information | |||||||||||||||||||||||
We manage the Company as a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure and Pivotal. EMC Information Infrastructure operates in three segments: Information Storage, Enterprise Content Division and RSA Information Security, while VMware Virtual Infrastructure and Pivotal each operate as single segments. | ||||||||||||||||||||||||
Our management measures are designed to assess performance of these reporting segments excluding certain items. As a result, the corporate reconciling items are used to capture the items excluded from the segment operating performance measures, including stock-based compensation expense, intangible asset amortization expense, restructuring charges and acquisition and other related charges. Additionally, in certain instances, infrequently occurring 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 -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 months ended March 31, 2015 and 2014 is as follows (tables in millions, except percentages): | ||||||||||||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Enterprise | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Content | Information | Information | |||||||||||||||||||||
Division | Security | Infrastructure | ||||||||||||||||||||||
Three Months Ended: | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,179 | $ | 27 | $ | 100 | $ | 2,306 | $ | 16 | $ | 2,322 | ||||||||||||
Services revenues | 1,484 | 111 | 148 | 1,743 | 38 | 1,781 | ||||||||||||||||||
Total consolidated revenues | 3,663 | 138 | 248 | 4,049 | 54 | 4,103 | ||||||||||||||||||
Gross profit | $ | 1,850 | $ | 90 | $ | 165 | $ | 2,105 | $ | 22 | $ | 2,127 | ||||||||||||
Gross profit percentage | 50.5 | % | 65.2 | % | 66.6 | % | 52 | % | 40.3 | % | 51.9 | % | ||||||||||||
Research and development | 424 | 27 | 451 | |||||||||||||||||||||
Selling, general and administrative | 1,169 | 49 | 1,218 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total operating expenses | 1,593 | 76 | 1,669 | |||||||||||||||||||||
Operating income (expense) | $ | 512 | $ | (54 | ) | $ | 458 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,322 | $ | 583 | $ | — | $ | 2,905 | ||||||||||||||||
Services revenues | 1,781 | 927 | — | 2,708 | ||||||||||||||||||||
Total consolidated revenues | 4,103 | 1,510 | — | 5,613 | ||||||||||||||||||||
Gross profit | $ | 2,127 | $ | 1,311 | $ | (99 | ) | $ | 3,339 | |||||||||||||||
Gross profit percentage | 51.9 | % | 86.8 | % | — | % | 59.5 | % | ||||||||||||||||
Research and development | 451 | 247 | 90 | 788 | ||||||||||||||||||||
Selling, general and administrative | 1,218 | 604 | 215 | 2,037 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 135 | 135 | ||||||||||||||||||||
Total operating expenses | 1,669 | 851 | 440 | 2,960 | ||||||||||||||||||||
Operating income (expense) | 458 | 460 | (539 | ) | 379 | |||||||||||||||||||
Non-operating income (expense), net | (14 | ) | 8 | — | (6 | ) | ||||||||||||||||||
Income tax provision | 126 | 89 | (133 | ) | 82 | |||||||||||||||||||
Net income | 318 | 379 | (406 | ) | 291 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (74 | ) | 35 | (39 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 318 | $ | 305 | $ | (371 | ) | $ | 252 | |||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Enterprise | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Content | Information | Information | |||||||||||||||||||||
Division | Security | Infrastructure | ||||||||||||||||||||||
Three Months Ended: | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,302 | $ | 35 | $ | 104 | $ | 2,441 | $ | 11 | $ | 2,452 | ||||||||||||
Services revenues | 1,378 | 119 | 140 | 1,637 | 38 | 1,675 | ||||||||||||||||||
Total consolidated revenues | 3,680 | 154 | 244 | 4,078 | 49 | 4,127 | ||||||||||||||||||
Gross profit | $ | 1,976 | $ | 99 | $ | 162 | $ | 2,237 | $ | 19 | $ | 2,256 | ||||||||||||
Gross profit percentage | 53.7 | % | 64.7 | % | 66.2 | % | 54.9 | % | 38.1 | % | 54.7 | % | ||||||||||||
Research and development | 377 | 31 | 408 | |||||||||||||||||||||
Selling, general and administrative | 1,102 | 41 | 1,143 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total operating expenses | 1,479 | 72 | 1,551 | |||||||||||||||||||||
Operating income (expense) | $ | 758 | $ | (53 | ) | $ | 705 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,452 | $ | 556 | $ | — | $ | 3,008 | ||||||||||||||||
Services revenues | 1,675 | 796 | — | 2,471 | ||||||||||||||||||||
Total consolidated revenues | 4,127 | 1,352 | — | 5,479 | ||||||||||||||||||||
Gross profit | $ | 2,256 | $ | 1,184 | $ | (93 | ) | $ | 3,347 | |||||||||||||||
Gross profit percentage | 54.7 | % | 87.6 | % | — | % | 61.1 | % | ||||||||||||||||
Research and development | 408 | 229 | 94 | 731 | ||||||||||||||||||||
Selling, general and administrative | 1,143 | 537 | 172 | 1,852 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 119 | 119 | ||||||||||||||||||||
Total operating expenses | 1,551 | 766 | 385 | 2,702 | ||||||||||||||||||||
Operating income (expense) | 705 | 418 | (478 | ) | 645 | |||||||||||||||||||
Non-operating income (expense), net | (80 | ) | 6 | — | (74 | ) | ||||||||||||||||||
Income tax provision | 170 | 83 | (114 | ) | 139 | |||||||||||||||||||
Net income | 455 | 341 | (364 | ) | 432 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (68 | ) | 28 | (40 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 455 | $ | 273 | $ | (336 | ) | $ | 392 | |||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
United States | $ | 3,013 | $ | 2,835 | ||||||||||||||||||||
Europe, Middle East and Africa | 1,559 | 1,592 | ||||||||||||||||||||||
Asia Pacific and Japan | 729 | 722 | ||||||||||||||||||||||
Latin America, Mexico and Canada | 312 | 330 | ||||||||||||||||||||||
Total | $ | 5,613 | $ | 5,479 | ||||||||||||||||||||
No country other than the United States accounted for 10% or more of revenues during the three months ended March 31, 2015 or 2014. | ||||||||||||||||||||||||
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, in the United States were $4,383 million at March 31, 2015 and $4,380 million at December 31, 2014. Internationally, long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets, were $953 million at March 31, 2015 and $1,021 million at December 31, 2014. No country other than the United States accounted for 10% or more of total long-lived assets, excluding financial instruments and deferred tax assets, at March 31, 2015 or December 31, 2014. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company | 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 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. EMC’s Information Infrastructure business comprises three segments – Information Storage, Enterprise Content Division and RSA Information Security. | |
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 and services 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”) unites strategic technology, people and programs from EMC and VMware and has built a new platform comprising of next-generation data, agile development practices and a cloud independent platform-as-a-service (“PaaS”). These capabilities are made available through Pivotal’s three primary offerings: the Pivotal Big Data Suite, Pivotal Labs and Pivotal Cloud Foundry. | |
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, 2014 which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2015. | |
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-month periods ended March 31, 2015 and 2014. | |
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. | |
Joint Ventures | Investments in 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, equity or 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. In December 2014, EMC acquired the controlling interest in VCE and, since the date of acquisition, has consolidated VCE’s financial position and results of operations as part of EMC’s consolidated financial statements. | |
Prior to the acquisition of the controlling interest in VCE, we considered VCE a variable interest entity and accounted for the investment under the equity method with our portion of the gains and losses recognized in other expense, net in the consolidated income statements for the majority of 2014. Our consolidated share of VCE’s losses, based upon our portion of the overall funding, was approximately 63% for the three months ended March 31, 2014. We recorded $75 million in net losses and $170 million in revenue from sales of product and services to VCE during the three months ended March 31, 2014. | |
Reclassifications | Reclassifications |
Certain prior year amounts have been reclassified to conform with the current year’s presentation. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance to clarify the required presentation of debt issuance costs. The amended guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the related debt liability rather than as an asset. It is effective beginning January 1, 2016, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. We are currently evaluating the impact of the new guidance on our consolidated financial statements. | |
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. In April 2015, the FASB proposed a one-year delay in the effective date of the new standard to 2018. Under this proposal, early adoption will be allowed, but not earlier than the original effective date. The principles 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. |
Noncontrolling_Interests_Table
Non-controlling Interests (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 Three Months Ended | ||||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Net income attributable to EMC Corporation | $ | 252 | $ | 392 | ||||
Transfers (to) from the non-controlling interest in VMware, Inc.: | ||||||||
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances | 30 | 47 | ||||||
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity | (331 | ) | (171 | ) | ||||
Net transfers (to) from non-controlling interest | (301 | ) | (124 | ) | ||||
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc. | $ | (49 | ) | $ | 268 | |||
Business_Combinations_Intangib1
Business Combinations, Intangibles and Goodwill (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||
Intangible Assets, Excluding Goodwill | Intangible Assets | |||||||||||||||||||||||
Intangible assets, excluding goodwill, as of March 31, 2015 and December 31, 2014 consist of (tables in millions): | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,949 | $ | (1,728 | ) | $ | 1,221 | |||||||||||||||||
Patents | 225 | (120 | ) | 105 | ||||||||||||||||||||
Software licenses | 108 | (93 | ) | 15 | ||||||||||||||||||||
Trademarks and tradenames | 226 | (141 | ) | 85 | ||||||||||||||||||||
Customer relationships and customer lists | 1,473 | (1,003 | ) | 470 | ||||||||||||||||||||
Leasehold interest | 152 | (17 | ) | 135 | ||||||||||||||||||||
Other | 46 | (36 | ) | 10 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 5,179 | $ | (3,138 | ) | $ | 2,041 | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Gross Carrying | Accumulated | Net Book Value | ||||||||||||||||||||||
Amount | Amortization | |||||||||||||||||||||||
Purchased technology | $ | 2,935 | $ | (1,668 | ) | $ | 1,267 | |||||||||||||||||
Patents | 225 | (117 | ) | 108 | ||||||||||||||||||||
Software licenses | 108 | (93 | ) | 15 | ||||||||||||||||||||
Trademarks and tradenames | 226 | (136 | ) | 90 | ||||||||||||||||||||
Customer relationships and customer lists | 1,473 | (974 | ) | 499 | ||||||||||||||||||||
Leasehold interest | 152 | (16 | ) | 136 | ||||||||||||||||||||
Other | 44 | (34 | ) | 10 | ||||||||||||||||||||
Total intangible assets, excluding goodwill | $ | 5,163 | $ | (3,038 | ) | $ | 2,125 | |||||||||||||||||
Changes in Carrying Amount of Goodwill | Goodwill | |||||||||||||||||||||||
Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the three months ended March 31, 2015 consist of (table in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Information | Enterprise | RSA | Pivotal | VMware | Total | |||||||||||||||||||
Storage | Content Division | Information | Virtual | |||||||||||||||||||||
Security | Infrastructure | |||||||||||||||||||||||
Balance, beginning of the period | $ | 8,266 | $ | 1,486 | $ | 2,203 | $ | 171 | $ | 4,008 | $ | 16,134 | ||||||||||||
Goodwill resulting from acquisitions | 21 | — | — | — | 17 | 38 | ||||||||||||||||||
Finalization of purchase price allocations and other, net | 2 | — | — | — | — | 2 | ||||||||||||||||||
Balance, end of the period | $ | 8,289 | $ | 1,486 | $ | 2,203 | $ | 171 | $ | 4,025 | $ | 16,174 | ||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term Debt | Our long-term debt as of March 31, 2015 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 | % | 1,000 | |||||
$ | 5,495 | |||||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Composition of Investments | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 1,951 | $ | 2 | $ | (2 | ) | $ | 1,951 | |||||||||||||||
U.S. corporate debt securities | 1,998 | 1 | (4 | ) | 1,995 | |||||||||||||||||||
High yield corporate debt securities | 570 | 9 | (16 | ) | 563 | |||||||||||||||||||
Asset-backed securities | 53 | — | — | 53 | ||||||||||||||||||||
Municipal obligations | 948 | 2 | — | 950 | ||||||||||||||||||||
Auction rate securities | 29 | — | (2 | ) | 27 | |||||||||||||||||||
Foreign debt securities | 2,566 | 2 | (4 | ) | 2,564 | |||||||||||||||||||
Total fixed income securities | 8,115 | 16 | (28 | ) | 8,103 | |||||||||||||||||||
Publicly traded equity securities | 117 | 103 | (11 | ) | 209 | |||||||||||||||||||
Total | $ | 8,232 | $ | 119 | $ | (39 | ) | $ | 8,312 | |||||||||||||||
The following tables summarize the composition of our short- and long-term investments at March 31, 2015 and December 31, 2014 (tables in millions): | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | |||||||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||||||||
U.S. government and agency obligations | $ | 2,261 | $ | 5 | $ | (1 | ) | $ | 2,265 | |||||||||||||||
U.S. corporate debt securities | 2,390 | 6 | (1 | ) | 2,395 | |||||||||||||||||||
High yield corporate debt securities | 394 | 8 | (7 | ) | 395 | |||||||||||||||||||
Asset-backed securities | 87 | — | — | 87 | ||||||||||||||||||||
Municipal obligations | 960 | 2 | — | 962 | ||||||||||||||||||||
Auction rate securities | 29 | — | (2 | ) | 27 | |||||||||||||||||||
Foreign debt securities | 2,664 | 5 | (1 | ) | 2,668 | |||||||||||||||||||
Total fixed income securities | 8,785 | 26 | (12 | ) | 8,799 | |||||||||||||||||||
Publicly traded equity securities | 201 | 98 | (14 | ) | 285 | |||||||||||||||||||
Total | $ | 8,986 | $ | 124 | $ | (26 | ) | $ | 9,084 | |||||||||||||||
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 March 31, 2015 and December 31, 2014 (tables in millions): | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 2,254 | $ | — | $ | — | $ | 2,254 | ||||||||||||||||
Cash equivalents | 2,079 | 55 | — | 2,134 | ||||||||||||||||||||
U.S. government and agency obligations | 1,250 | 1,015 | — | 2,265 | ||||||||||||||||||||
U.S. corporate debt securities | — | 2,395 | — | 2,395 | ||||||||||||||||||||
High yield corporate debt securities | — | 395 | — | 395 | ||||||||||||||||||||
Asset-backed securities | — | 87 | — | 87 | ||||||||||||||||||||
Municipal obligations | — | 962 | — | 962 | ||||||||||||||||||||
Auction rate securities | — | — | 27 | 27 | ||||||||||||||||||||
Foreign debt securities | — | 2,668 | — | 2,668 | ||||||||||||||||||||
Publicly traded equity securities | 285 | — | — | 285 | ||||||||||||||||||||
Total cash and investments | $ | 5,868 | $ | 7,577 | $ | 27 | $ | 13,472 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 339 | $ | 339 | ||||||||||||||||
Investment in joint venture | — | — | 37 | 37 | ||||||||||||||||||||
Long-term debt carried at discounted cost | — | (5,614 | ) | — | (5,614 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 87 | — | 87 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (86 | ) | — | (86 | ) | ||||||||||||||||||
Commodity derivative liabilities | — | (5 | ) | — | (5 | ) | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Cash | $ | 2,022 | $ | — | $ | — | $ | 2,022 | ||||||||||||||||
Cash equivalents | 3,710 | 611 | — | 4,321 | ||||||||||||||||||||
U.S. government and agency obligations | 1,141 | 810 | — | 1,951 | ||||||||||||||||||||
U.S. corporate debt securities | — | 1,995 | — | 1,995 | ||||||||||||||||||||
High yield corporate debt securities | — | 563 | — | 563 | ||||||||||||||||||||
Asset-backed securities | — | 53 | — | 53 | ||||||||||||||||||||
Municipal obligations | — | 950 | — | 950 | ||||||||||||||||||||
Auction rate securities | — | — | 27 | 27 | ||||||||||||||||||||
Foreign debt securities | — | 2,564 | — | 2,564 | ||||||||||||||||||||
Publicly traded equity securities | 209 | — | — | 209 | ||||||||||||||||||||
Total cash and investments | $ | 7,082 | $ | 7,546 | $ | 27 | $ | 14,655 | ||||||||||||||||
Other items: | ||||||||||||||||||||||||
Strategic investments held at cost | $ | — | $ | — | $ | 333 | $ | 333 | ||||||||||||||||
Investment in joint venture | — | — | 37 | 37 | ||||||||||||||||||||
Long-term debt carried at discounted cost | — | (5,544 | ) | — | (5,544 | ) | ||||||||||||||||||
Foreign exchange derivative assets | — | 44 | — | 44 | ||||||||||||||||||||
Foreign exchange derivative liabilities | — | (71 | ) | — | (71 | ) | ||||||||||||||||||
Commodity derivative assets | — | 12 | — | 12 | ||||||||||||||||||||
Unrealized Losses on Investments by Investment Category and Length of Time in Continuous Unrealized Loss Position | Unrealized losses on investments at March 31, 2015 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 | $ | 501 | $ | (1 | ) | $ | — | $ | — | $ | 501 | $ | (1 | ) | ||||||||||
U.S. corporate debt securities | 778 | (1 | ) | — | — | 778 | (1 | ) | ||||||||||||||||
High yield corporate debt securities | 138 | (7 | ) | — | — | 138 | (7 | ) | ||||||||||||||||
Auction rate securities | — | — | 27 | (2 | ) | 27 | (2 | ) | ||||||||||||||||
Foreign debt securities | 918 | (1 | ) | — | — | 918 | (1 | ) | ||||||||||||||||
Publicly traded equity securities | 106 | (10 | ) | 9 | (4 | ) | 115 | (14 | ) | |||||||||||||||
Total | $ | 2,441 | $ | (20 | ) | $ | 36 | $ | (6 | ) | $ | 2,477 | $ | (26 | ) | |||||||||
Contractual Maturities of Investments | The contractual maturities of fixed income securities held at March 31, 2015 are as follows (table in millions): | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Amortized | Aggregate | |||||||||||||||||||||||
Cost Basis | Fair Value | |||||||||||||||||||||||
Due within one year | $ | 2,036 | $ | 2,037 | ||||||||||||||||||||
Due after 1 year through 5 years | 5,905 | 5,920 | ||||||||||||||||||||||
Due after 5 years through 10 years | 524 | 523 | ||||||||||||||||||||||
Due after 10 years | 320 | 319 | ||||||||||||||||||||||
Total | $ | 8,785 | $ | 8,799 | ||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components of Inventories | Inventories consist of (table in millions): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Work-in-process | $ | 609 | $ | 627 | ||||
Finished goods | 683 | 649 | ||||||
$ | 1,292 | $ | 1,276 | |||||
Accounts_and_Notes_Receivable_1
Accounts and Notes Receivable and Allowance for Credit Losses (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Receivables [Abstract] | ||||
Contractual Amounts Due Under Leases | The contractual amounts due under the leases we retained as of March 31, 2015 were as follows (table in millions): | |||
Year | Contractual Amounts | |||
Due Under Leases | ||||
Due within one year | $ | 71 | ||
Due within two years | 49 | |||
Due within three years | 37 | |||
Thereafter | 1 | |||
Total | 158 | |||
Less: Amounts representing interest | 5 | |||
Present value | 153 | |||
Current portion (included in accounts and notes receivable) | 68 | |||
Long-term portion (included in other assets, net) | $ | 85 | ||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Components of Property, Plant and Equipment | Property, plant and equipment consist of (table in millions): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Furniture and fixtures | $ | 265 | $ | 255 | ||||
Equipment and software | 6,842 | 6,684 | ||||||
Buildings and improvements | 2,345 | 2,308 | ||||||
Land | 162 | 162 | ||||||
Building construction in progress | 114 | 134 | ||||||
9,728 | 9,543 | |||||||
Accumulated depreciation | (5,986 | ) | (5,777 | ) | ||||
$ | 3,742 | $ | 3,766 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Components of Accrued Expenses | Accrued expenses consist of (table in millions): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Salaries and benefits | $ | 942 | $ | 1,251 | ||||
Product warranties | 191 | 210 | ||||||
Dividends payable (see Note 11) | 234 | 237 | ||||||
Partner rebates | 179 | 235 | ||||||
Restructuring, current (See Note 12) | 188 | 123 | ||||||
Derivatives | 91 | 75 | ||||||
Other | 992 | 1,010 | ||||||
$ | 2,817 | $ | 3,141 | |||||
Activity in Warranty Accrual for Product Warranty | The following represents the activity in our warranty accrual for the three months ended March 31, 2015 and 2014 (table in millions): | |||||||
March 31, | March 31, | |||||||
2015 | 2014 | |||||||
Balance, beginning of the period | $ | 210 | $ | 289 | ||||
Provision | 33 | 42 | ||||||
Amounts charged to the accrual | (52 | ) | (57 | ) | ||||
Balance, end of the period | $ | 191 | $ | 274 | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income attributable to EMC Corporation | $ | 252 | $ | 392 | ||||||||||||||||||||
Incremental dilution from VMware | (1 | ) | (2 | ) | ||||||||||||||||||||
Net income – dilution attributable to EMC Corporation | $ | 251 | $ | 390 | ||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average shares, basic | 1,974 | 2,029 | ||||||||||||||||||||||
Weighted common stock equivalents | 22 | 26 | ||||||||||||||||||||||
Assumed conversion of the 2013 Notes and associated warrants | — | 21 | ||||||||||||||||||||||
Weighted average shares, diluted | 1,996 | 2,076 | ||||||||||||||||||||||
Dividends Declared | ||||||||||||||||||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount (in millions) | Payment Date | ||||||||||||||||||||
2015:00:00 | ||||||||||||||||||||||||
February 27, 2015 | $ | 0.115 | April 1, 2015 | $ | 229 | April 23, 2015 | ||||||||||||||||||
2014:00:00 | ||||||||||||||||||||||||
February 6, 2014 | $ | 0.1 | April 1, 2014 | $ | 209 | April 23, 2014 | ||||||||||||||||||
April 17, 2014 | $ | 0.115 | July 1, 2014 | $ | 237 | July 23, 2014 | ||||||||||||||||||
July 30, 2014 | $ | 0.115 | October 1, 2014 | $ | 239 | October 23, 2014 | ||||||||||||||||||
December 9, 2014 | $ | 0.115 | January 2, 2015 | $ | 234 | January 23, 2015 | ||||||||||||||||||
Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive income (loss), which is presented net of tax, for the three months ended March 31, 2015 and 2014 consist of the following (tables 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 2014(a) | $ | (188 | ) | $ | 49 | $ | (100 | ) | $ | (126 | ) | $ | (1 | ) | $ | (366 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (104 | ) | 19 | 14 | — | (1 | ) | (72 | ) | |||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive income | — | (8 | ) | (11 | ) | — | — | (19 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | (104 | ) | 11 | 3 | — | (1 | ) | (91 | ) | |||||||||||||||
Balance as of March 31, 2015(b) | $ | (292 | ) | $ | 60 | $ | (97 | ) | $ | (126 | ) | $ | (2 | ) | $ | (457 | ) | |||||||
__________________ | ||||||||||||||||||||||||
(a) | Net of taxes (benefits) of $31 million for unrealized net gains on investments, $(64) million for unrealized net losses on derivatives and $(70) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
(b) | Net of taxes (benefits) of $38 million for unrealized net gains on investments, $(61) million for unrealized net losses on derivatives and $(70) million for actuarial net loss on pension plans. | |||||||||||||||||||||||
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 | ) | 24 | (1 | ) | — | (1 | ) | 18 | |||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive income | — | (5 | ) | (2 | ) | — | — | (7 | ) | |||||||||||||||
Net current period other comprehensive income (loss) | (4 | ) | 19 | (3 | ) | — | (1 | ) | 11 | |||||||||||||||
Balance as of March 31, 2014(b) | $ | (57 | ) | $ | 50 | $ | (109 | ) | $ | (110 | ) | $ | (2 | ) | $ | (228 | ) | |||||||
__________________ | ||||||||||||||||||||||||
(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 $29 million for unrealized net gains on investments, $(67) 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 months ended March 31, 2015 and 2014 are as follows (tables in millions): | |||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income Components | 31-Mar-15 | 31-Mar-14 | Impacted Line Item on | |||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||
Net gain on investments: | $ | 14 | $ | 8 | Investment income | |||||||||||||||||||
(6 | ) | (3 | ) | Provision for income tax | ||||||||||||||||||||
Net of tax | $ | 8 | $ | 5 | ||||||||||||||||||||
Net gain on derivatives: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | 20 | $ | 1 | Product sales revenue | |||||||||||||||||||
Foreign exchange contracts | (3 | ) | 1 | Cost of product sales | ||||||||||||||||||||
Interest rate swap | (6 | ) | — | Other interest expense | ||||||||||||||||||||
Total net gain on derivatives before tax | 11 | 2 | ||||||||||||||||||||||
— | — | Provision for income tax | ||||||||||||||||||||||
Net of tax | $ | 11 | $ | 2 | ||||||||||||||||||||
Restructuring_and_AcquisitionR1
Restructuring and Acquisition-Related Charges (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015: | ||||||||||||||||
2015 EMC Programs | ||||||||||||||||
Category | Balance as of | 2015 | Utilization | Balance as of March 31, 2015 | ||||||||||||
December 31, | Charges | |||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | — | $ | 107 | $ | (11 | ) | $ | 96 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 6 | — | 6 | ||||||||||||
Total | $ | — | $ | 113 | $ | (11 | ) | $ | 102 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of March 31, 2015 | ||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 102 | $ | (2 | ) | $ | (39 | ) | $ | 61 | ||||||
Consolidation of excess facilities and other contractual obligations | 19 | — | (5 | ) | 14 | |||||||||||
Total | $ | 121 | $ | (2 | ) | $ | (44 | ) | $ | 75 | ||||||
VMware Programs | ||||||||||||||||
Category | Balance as of | 2015 | Utilization | Balance as of March 31, 2015 | ||||||||||||
December 31, | Charges | |||||||||||||||
2014 | ||||||||||||||||
Workforce reductions | $ | 8 | $ | 22 | $ | (14 | ) | $ | 16 | |||||||
Consolidation of excess facilities and other contractual obligations | — | — | — | — | ||||||||||||
Total | $ | 8 | $ | 22 | $ | (14 | ) | $ | 16 | |||||||
Three Months Ended March 31, 2014: | ||||||||||||||||
2014 EMC Programs | ||||||||||||||||
Category | Balance as of | 2014 | Utilization | Balance as of March 31, 2014 | ||||||||||||
December 31, | Charges | |||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | — | $ | 117 | $ | (15 | ) | $ | 102 | |||||||
Consolidation of excess facilities and other contractual obligations | — | 2 | (1 | ) | 1 | |||||||||||
Total | $ | — | $ | 119 | $ | (16 | ) | $ | 103 | |||||||
Other EMC Programs | ||||||||||||||||
Category | Balance as of | Adjustments to the Provision | Utilization | Balance as of March 31, 2014 | ||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Workforce reductions | $ | 66 | $ | (8 | ) | $ | (21 | ) | $ | 37 | ||||||
Consolidation of excess facilities and other contractual obligations | 24 | 3 | (7 | ) | 20 | |||||||||||
Total | $ | 90 | $ | (5 | ) | $ | (28 | ) | $ | 57 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Information | Our segment information for the three months ended March 31, 2015 and 2014 is as follows (tables in millions, except percentages): | |||||||||||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Enterprise | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Content | Information | Information | |||||||||||||||||||||
Division | Security | Infrastructure | ||||||||||||||||||||||
Three Months Ended: | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,179 | $ | 27 | $ | 100 | $ | 2,306 | $ | 16 | $ | 2,322 | ||||||||||||
Services revenues | 1,484 | 111 | 148 | 1,743 | 38 | 1,781 | ||||||||||||||||||
Total consolidated revenues | 3,663 | 138 | 248 | 4,049 | 54 | 4,103 | ||||||||||||||||||
Gross profit | $ | 1,850 | $ | 90 | $ | 165 | $ | 2,105 | $ | 22 | $ | 2,127 | ||||||||||||
Gross profit percentage | 50.5 | % | 65.2 | % | 66.6 | % | 52 | % | 40.3 | % | 51.9 | % | ||||||||||||
Research and development | 424 | 27 | 451 | |||||||||||||||||||||
Selling, general and administrative | 1,169 | 49 | 1,218 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total operating expenses | 1,593 | 76 | 1,669 | |||||||||||||||||||||
Operating income (expense) | $ | 512 | $ | (54 | ) | $ | 458 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,322 | $ | 583 | $ | — | $ | 2,905 | ||||||||||||||||
Services revenues | 1,781 | 927 | — | 2,708 | ||||||||||||||||||||
Total consolidated revenues | 4,103 | 1,510 | — | 5,613 | ||||||||||||||||||||
Gross profit | $ | 2,127 | $ | 1,311 | $ | (99 | ) | $ | 3,339 | |||||||||||||||
Gross profit percentage | 51.9 | % | 86.8 | % | — | % | 59.5 | % | ||||||||||||||||
Research and development | 451 | 247 | 90 | 788 | ||||||||||||||||||||
Selling, general and administrative | 1,218 | 604 | 215 | 2,037 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 135 | 135 | ||||||||||||||||||||
Total operating expenses | 1,669 | 851 | 440 | 2,960 | ||||||||||||||||||||
Operating income (expense) | 458 | 460 | (539 | ) | 379 | |||||||||||||||||||
Non-operating income (expense), net | (14 | ) | 8 | — | (6 | ) | ||||||||||||||||||
Income tax provision | 126 | 89 | (133 | ) | 82 | |||||||||||||||||||
Net income | 318 | 379 | (406 | ) | 291 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (74 | ) | 35 | (39 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 318 | $ | 305 | $ | (371 | ) | $ | 252 | |||||||||||||||
EMC Information Infrastructure | ||||||||||||||||||||||||
Information | Enterprise | RSA | EMC | Pivotal | EMC Information Infrastructure plus Pivotal | |||||||||||||||||||
Storage | Content | Information | Information | |||||||||||||||||||||
Division | Security | Infrastructure | ||||||||||||||||||||||
Three Months Ended: | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,302 | $ | 35 | $ | 104 | $ | 2,441 | $ | 11 | $ | 2,452 | ||||||||||||
Services revenues | 1,378 | 119 | 140 | 1,637 | 38 | 1,675 | ||||||||||||||||||
Total consolidated revenues | 3,680 | 154 | 244 | 4,078 | 49 | 4,127 | ||||||||||||||||||
Gross profit | $ | 1,976 | $ | 99 | $ | 162 | $ | 2,237 | $ | 19 | $ | 2,256 | ||||||||||||
Gross profit percentage | 53.7 | % | 64.7 | % | 66.2 | % | 54.9 | % | 38.1 | % | 54.7 | % | ||||||||||||
Research and development | 377 | 31 | 408 | |||||||||||||||||||||
Selling, general and administrative | 1,102 | 41 | 1,143 | |||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | — | |||||||||||||||||||||
Total operating expenses | 1,479 | 72 | 1,551 | |||||||||||||||||||||
Operating income (expense) | $ | 758 | $ | (53 | ) | $ | 705 | |||||||||||||||||
EMC | VMware | Corp | Consolidated | |||||||||||||||||||||
Information | Virtual | Reconciling | ||||||||||||||||||||||
Infrastructure plus Pivotal | Infrastructure | Items | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product revenues | $ | 2,452 | $ | 556 | $ | — | $ | 3,008 | ||||||||||||||||
Services revenues | 1,675 | 796 | — | 2,471 | ||||||||||||||||||||
Total consolidated revenues | 4,127 | 1,352 | — | 5,479 | ||||||||||||||||||||
Gross profit | $ | 2,256 | $ | 1,184 | $ | (93 | ) | $ | 3,347 | |||||||||||||||
Gross profit percentage | 54.7 | % | 87.6 | % | — | % | 61.1 | % | ||||||||||||||||
Research and development | 408 | 229 | 94 | 731 | ||||||||||||||||||||
Selling, general and administrative | 1,143 | 537 | 172 | 1,852 | ||||||||||||||||||||
Restructuring and acquisition-related charges | — | — | 119 | 119 | ||||||||||||||||||||
Total operating expenses | 1,551 | 766 | 385 | 2,702 | ||||||||||||||||||||
Operating income (expense) | 705 | 418 | (478 | ) | 645 | |||||||||||||||||||
Non-operating income (expense), net | (80 | ) | 6 | — | (74 | ) | ||||||||||||||||||
Income tax provision | 170 | 83 | (114 | ) | 139 | |||||||||||||||||||
Net income | 455 | 341 | (364 | ) | 432 | |||||||||||||||||||
Net income attributable to the non-controlling interest in VMware, Inc. | — | (68 | ) | 28 | (40 | ) | ||||||||||||||||||
Net income attributable to EMC Corporation | $ | 455 | $ | 273 | $ | (336 | ) | $ | 392 | |||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
United States | $ | 3,013 | $ | 2,835 | ||||||||||||||||||||
Europe, Middle East and Africa | 1,559 | 1,592 | ||||||||||||||||||||||
Asia Pacific and Japan | 729 | 722 | ||||||||||||||||||||||
Latin America, Mexico and Canada | 312 | 330 | ||||||||||||||||||||||
Total | $ | 5,613 | $ | 5,479 | ||||||||||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (Convertible Senior Notes 2013, USD $) | 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 |
Convertible senior notes interest rate | 1.75% |
Basis_of_Presentation_Schedule
Basis of Presentation Schedule of Equity Investments (Details) (VCE Company LLC, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
VCE Company LLC | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment Share Of Gain Losses | 63.00% |
Income (Loss) from Equity Method Investments | ($75) |
Revenue from Related Parties | $170 |
Noncontrolling_Interests_Addit
Non-controlling Interests - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | $1,555 | $1,629 |
VMware | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | 1,450 | 1,524 |
Voting power of VMware's outstanding common stock | 97.00% | |
Noncontrolling Interest, Ownership Percentage by Parent | 81.00% | |
Pivotal | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | $105 | $105 |
Noncontrolling Interest, Ownership Percentage by Parent | 84.00% |
Noncontrolling_Interests_Effec
Non-controlling Interests - Effect of Changes in Ownership Interest in VMware on Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Noncontrolling Interest [Line Items] | ||
Net income attributable to EMC Corporation | $252 | $392 |
Transfers (to) from the non-controlling interest in VMware, Inc.: | ||
Net transfers (to) from non-controlling interest | -415 | -107 |
VMware | ||
Noncontrolling Interest [Line Items] | ||
Net income attributable to EMC Corporation | 252 | 392 |
Transfers (to) from the non-controlling interest in VMware, Inc.: | ||
Increase in EMC Corporation’s additional paid-in-capital for VMware’s equity issuances | 30 | 47 |
Decrease in EMC Corporation’s additional paid-in-capital for VMware’s other equity activity | -331 | -171 |
Net transfers (to) from non-controlling interest | -301 | -124 |
Change from net income attributable to EMC Corporation and transfers from the non-controlling interest in VMware, Inc. | ($49) | $268 |
Business_Combinations_Intangib2
Business Combinations, Intangibles and Goodwill - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
acquisition | |||
Business Acquisition [Line Items] | |||
Cash paid | $49 | $1,068 | |
Number of Businesses Acquired | 2 | ||
Aggregate allocation to goodwill | 16,174 | 16,134 | |
All 2015 Acquisitions | |||
Business Acquisition [Line Items] | |||
Aggregate consideration | 49 | ||
Aggregate allocation to goodwill | 38 | ||
Aggregate allocation to intangibles | 16 | ||
Aggregate allocation to net liabilities | ($5) | ||
Weighted average amortization period of intangible assets acquired | 3 years 6 months 20 days |
Business_Combinations_Intangib3
Business Combinations, Intangibles and Goodwill - Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | $5,179 | $5,163 |
Accumulated Amortization | -3,138 | -3,038 |
Net Book Value | 2,041 | 2,125 |
Purchased technology | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 2,949 | 2,935 |
Accumulated Amortization | -1,728 | -1,668 |
Net Book Value | 1,221 | 1,267 |
Patents | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 225 | 225 |
Accumulated Amortization | -120 | -117 |
Net Book Value | 105 | 108 |
Software licenses | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 108 | 108 |
Accumulated Amortization | -93 | -93 |
Net Book Value | 15 | 15 |
Trademarks and tradenames | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 226 | 226 |
Accumulated Amortization | -141 | -136 |
Net Book Value | 85 | 90 |
Customer relationships and customer lists | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 1,473 | 1,473 |
Accumulated Amortization | -1,003 | -974 |
Net Book Value | 470 | 499 |
Leasehold interest | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 152 | 152 |
Accumulated Amortization | -17 | -16 |
Net Book Value | 135 | 136 |
Other | ||
Schedule of Intangible Assets, Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | 46 | 44 |
Accumulated Amortization | -36 | -34 |
Net Book Value | $10 | $10 |
Business_Combinations_Intangib4
Business Combinations, Intangibles and Goodwill - Goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Balance, beginning of the period | $16,134 |
Goodwill resulting from acquisitions | 38 |
Finalization of purchase price allocations and other, net | 2 |
Balance, end of the period | 16,174 |
Information Storage | |
Goodwill [Roll Forward] | |
Balance, beginning of the period | 8,266 |
Goodwill resulting from acquisitions | 21 |
Finalization of purchase price allocations and other, net | 2 |
Balance, end of the period | 8,289 |
Information Intelligence Group | |
Goodwill [Roll Forward] | |
Balance, beginning of the period | 1,486 |
Goodwill resulting from acquisitions | 0 |
Finalization of purchase price allocations and other, net | 0 |
Balance, end of the period | 1,486 |
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 |
Balance, end of the period | 2,203 |
Pivotal | |
Goodwill [Roll Forward] | |
Balance, beginning of the period | 171 |
Goodwill resulting from acquisitions | 0 |
Finalization of purchase price allocations and other, net | 0 |
Balance, end of the period | 171 |
VMware Virtual Infrastructure within EMC | |
Goodwill [Roll Forward] | |
Balance, beginning of the period | 4,008 |
Goodwill resulting from acquisitions | 17 |
Finalization of purchase price allocations and other, net | 0 |
Balance, end of the period | $4,025 |
Debt_Key_Components_of_Longter
Debt - Key Components of Long-term Debt (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Carrying Value | $5,495,000,000 | $5,495,000,000 |
Long-term Notes $2.5B | ||
Debt Instrument [Line Items] | ||
Debt, face amount | 2,500,000,000 | |
Stated interest rate | 1.88% | |
Issued at Discount to Par | 99.94% | |
Carrying Value | 2,499,000,000 | |
Long-term Notes $2.0B | ||
Debt Instrument [Line Items] | ||
Debt, face amount | 2,000,000,000 | |
Stated interest rate | 2.65% | |
Issued at Discount to Par | 99.76% | |
Carrying Value | 1,996,000,000 | |
Long-term Notes $1.0B | ||
Debt Instrument [Line Items] | ||
Debt, face amount | 1,000,000,000 | |
Stated interest rate | 3.38% | |
Issued at Discount to Par | 99.93% | |
Carrying Value | 1,000,000,000 | |
Long-term Notes $5.5B | ||
Debt Instrument [Line Items] | ||
Carrying Value | $5,495,000,000 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 60 Months Ended | 1 Months Ended | ||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Jan. 07, 2014 | Nov. 30, 2006 | Mar. 17, 2014 | Mar. 31, 2015 | Feb. 27, 2020 | Apr. 30, 2015 | Feb. 27, 2015 | Jan. 07, 2013 | Nov. 13, 2006 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2010 | Mar. 23, 2015 | 4-May-15 |
Line of Credit Facility, Maximum Borrowing Capacity | $2,500,000,000 | ||||||||||||||
line of credit available increase to credit facility | 1,000,000,000 | ||||||||||||||
Convertible Senior Notes 2013 | |||||||||||||||
Senior Notes | 1,725,000,000 | ||||||||||||||
Stated interest rate | 1.75% | ||||||||||||||
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 (in shares) | 35 | ||||||||||||||
Value of the conversion value over the principal amount of converted Notes | 858,000,000 | ||||||||||||||
Observation period | 20 days | ||||||||||||||
Convertible conversion ratio | 62.6978 | ||||||||||||||
Conversion premium | 26.50% | ||||||||||||||
Conversion price per share | $15.95 | ||||||||||||||
Purchased Options | |||||||||||||||
Purchased Options Remaining | 108 | ||||||||||||||
Purchased options shares received | 35 | ||||||||||||||
Sold Warrants | |||||||||||||||
Incremental common shares attributable to call options and warrants | 215 | ||||||||||||||
Common stock at an exercise price | $19.55 | $19.31 | |||||||||||||
Proceeds from issuance of warrants | 391,000,000 | ||||||||||||||
Conversion premium based on the closing price | 53.00% | ||||||||||||||
Closing price per share | $12.61 | ||||||||||||||
Warrant | |||||||||||||||
Warrants exercised | 109,000,000 | ||||||||||||||
Exercised Warrants | |||||||||||||||
Shares issues for exercised warrants | 29 | ||||||||||||||
Long-term Debt | |||||||||||||||
Unamortized discount | 5,000,000 | ||||||||||||||
Effective interest rate | 2.55% | ||||||||||||||
Long-term Debt | |||||||||||||||
Long term debt, aggregate principal | 5,500,000,000 | ||||||||||||||
Interest Rate Swap | |||||||||||||||
Aggregate notional amount of interest rate swap contracts designated as cash flow hedges | 900,000,000 | ||||||||||||||
Losses on swaps at time of settlement, deferred | 176,000,000 | ||||||||||||||
Losses reclassified from other comprehensive income and recognized as interest expense | 6,000,000 | ||||||||||||||
Commercial Paper [Member] | |||||||||||||||
Commercial Paper Maximum Borrowing Amount | 2,500,000,000 | ||||||||||||||
Short-term Debt, Terms | The Commercial Paper will have maturities of up to 397 days from the date of issue | ||||||||||||||
Scenario, Forecast | |||||||||||||||
Line of Credit Facility, Expiration Date | 27-Feb-20 | ||||||||||||||
Line of Credit Facility, Description | At our option, subject to certain conditions, any loan under the Credit Agreement will bear interest at a rate equal to, either (i) the LIBOR Rate or (ii) the Base Rate (defined as the highest of (a) the Federal Funds rate plus 0.50%, (b) Citibank, N.A.’s “prime rate†as announced from time to time, or (c) one-month LIBOR plus 1.00%), plus, in each case the Applicable Margin, as defined in the Credit Agreement | ||||||||||||||
Subsequent Event | Commercial Paper [Member] | |||||||||||||||
Proceeds from Issuance of Commercial Paper | $950,000,000 | ||||||||||||||
Short-term Debt, Weighted Average Interest Rate | 0.16% | ||||||||||||||
Subsequent Event | Minimum | Commercial Paper [Member] | |||||||||||||||
Short-term Debt, Terms | P0Y0M21D | ||||||||||||||
Subsequent Event | Maximum | Commercial Paper [Member] | |||||||||||||||
Short-term Debt, Terms | P0Y0M59D |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities - Composition of Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
U.S. government and agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $2,261 | $1,951 |
Unrealized Gains | 5 | 2 |
Unrealized (Losses) | -1 | -2 |
Aggregate Fair Value | 2,265 | 1,951 |
U.S. corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,390 | 1,998 |
Unrealized Gains | 6 | 1 |
Unrealized (Losses) | -1 | -4 |
Aggregate Fair Value | 2,395 | 1,995 |
High yield corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 394 | 570 |
Unrealized Gains | 8 | 9 |
Unrealized (Losses) | -7 | -16 |
Aggregate Fair Value | 395 | 563 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 87 | 53 |
Unrealized Gains | 0 | 0 |
Unrealized (Losses) | 0 | 0 |
Aggregate Fair Value | 87 | 53 |
Municipal obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 960 | 948 |
Unrealized Gains | 2 | 2 |
Unrealized (Losses) | 0 | 0 |
Aggregate Fair Value | 962 | 950 |
Auction rate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29 | 29 |
Unrealized Gains | 0 | 0 |
Unrealized (Losses) | -2 | -2 |
Aggregate Fair Value | 27 | 27 |
Foreign debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,664 | 2,566 |
Unrealized Gains | 5 | 2 |
Unrealized (Losses) | -1 | -4 |
Aggregate Fair Value | 2,668 | 2,564 |
Fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,785 | 8,115 |
Unrealized Gains | 26 | 16 |
Unrealized (Losses) | -12 | -28 |
Aggregate Fair Value | 8,799 | 8,103 |
Publicly traded equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 201 | 117 |
Unrealized Gains | 98 | 103 |
Unrealized (Losses) | -14 | -11 |
Aggregate Fair Value | 285 | 209 |
Fixed income and publicly traded equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,986 | 8,232 |
Unrealized Gains | 124 | 119 |
Unrealized (Losses) | -26 | -39 |
Aggregate Fair Value | $9,084 | $8,312 |
Fair_Value_of_Financial_Assets3
Fair Value of Financial Assets and Liabilities - Fair Value Hierarchy For Financial Assets And Liabilities Measured At Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | $13,472 | $14,655 |
Investment in joint venture | 37 | 37 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 5,868 | 7,082 |
Investment in joint venture | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 7,577 | 7,546 |
Investment in joint venture | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 27 | 27 |
Investment in joint venture | 37 | 37 |
Cash | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,254 | 2,022 |
Cash | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,254 | 2,022 |
Cash | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Cash | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,134 | 4,321 |
Cash equivalents | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,079 | 3,710 |
Cash equivalents | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 55 | 611 |
Cash equivalents | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
U.S. government and agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,265 | 1,951 |
U.S. government and agency obligations | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 1,250 | 1,141 |
U.S. government and agency obligations | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 1,015 | 810 |
U.S. government and agency obligations | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
U.S. corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,395 | 1,995 |
U.S. corporate debt securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
U.S. corporate debt securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,395 | 1,995 |
U.S. corporate debt securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
High yield corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 395 | 563 |
High yield corporate debt securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
High yield corporate debt securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 395 | 563 |
High yield corporate debt securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 87 | 53 |
Asset-backed securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Asset-backed securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 87 | 53 |
Asset-backed securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Municipal obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 962 | 950 |
Municipal obligations | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Municipal obligations | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 962 | 950 |
Municipal obligations | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 27 | 27 |
Auction rate securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Auction rate securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Auction rate securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 27 | 27 |
Foreign debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,668 | 2,564 |
Foreign debt securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Foreign debt securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 2,668 | 2,564 |
Foreign debt securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Publicly traded equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 285 | 209 |
Publicly traded equity securities | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 285 | 209 |
Publicly traded equity securities | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Publicly traded equity securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total cash and investments | 0 | 0 |
Strategic investments held at cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost method strategic investments | 339 | 333 |
Strategic investments held at cost | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost method strategic investments | 0 | 0 |
Strategic investments held at cost | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost method strategic investments | 0 | 0 |
Strategic investments held at cost | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost method strategic investments | 339 | 333 |
Long-term debt carried at discounted cost | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at discounted cost | -5,614 | -5,544 |
Long-term debt carried at discounted cost | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at discounted cost | 0 | 0 |
Long-term debt carried at discounted cost | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at discounted cost | -5,614 | -5,544 |
Long-term debt carried at discounted cost | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at discounted cost | 0 | 0 |
Foreign Exchange Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 87 | 44 |
Foreign exchange derivative liabilities | -86 | -71 |
Foreign Exchange Contract | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 0 | 0 |
Foreign exchange derivative liabilities | 0 | 0 |
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 87 | 44 |
Foreign exchange derivative liabilities | -86 | -71 |
Foreign Exchange Contract | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 0 | 0 |
Foreign exchange derivative liabilities | 0 | 0 |
Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 12 | |
Foreign exchange derivative liabilities | 5 | |
Commodity Contract | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 0 | |
Foreign exchange derivative liabilities | 0 | |
Commodity Contract | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange derivative assets | 12 | |
Foreign exchange derivative liabilities | 5 | |
Commodity 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 |
Fair_Value_of_Financial_Assets4
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 $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | $2,441 |
Less than 12 Months Gross Unrealized Losses | -20 |
12 Months or Greater Fair Value | 36 |
12 Months or Greater Gross Unrealized Losses | -6 |
Total Fair Value | 2,477 |
Total, Gross Unrealized Losses | -26 |
U.S. government and agency obligations | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | 501 |
Less than 12 Months Gross Unrealized Losses | -1 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Gross Unrealized Losses | 0 |
Total Fair Value | 501 |
Total, Gross Unrealized Losses | -1 |
U.S. corporate debt securities | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | 778 |
Less than 12 Months Gross Unrealized Losses | -1 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Gross Unrealized Losses | 0 |
Total Fair Value | 778 |
Total, Gross Unrealized Losses | -1 |
High yield corporate debt securities | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | 138 |
Less than 12 Months Gross Unrealized Losses | -7 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Gross Unrealized Losses | 0 |
Total Fair Value | 138 |
Total, Gross Unrealized Losses | -7 |
Auction rate securities | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | 0 |
Less than 12 Months Gross Unrealized Losses | 0 |
12 Months or Greater Fair Value | 27 |
12 Months or Greater Gross Unrealized Losses | -2 |
Total Fair Value | 27 |
Total, Gross Unrealized Losses | -2 |
Foreign debt securities | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | 918 |
Less than 12 Months Gross Unrealized Losses | -1 |
12 Months or Greater Fair Value | 0 |
12 Months or Greater Gross Unrealized Losses | 0 |
Total Fair Value | 918 |
Total, Gross Unrealized Losses | -1 |
Publicly traded equity securities | |
Gain (Loss) on Investments [Line Items] | |
Less Than 12 Months Fair Value | 106 |
Less than 12 Months Gross Unrealized Losses | -10 |
12 Months or Greater Fair Value | 9 |
12 Months or Greater Gross Unrealized Losses | -4 |
Total Fair Value | 115 |
Total, Gross Unrealized Losses | ($14) |
Fair_Value_of_Financial_Assets5
Fair Value of Financial Assets and Liabilities - Contractual Maturities of Investments (Detail) (Fixed income securities, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fixed income securities | ||
Amortized Cost Basis | ||
Due within one year | $2,036 | |
Due after 1 year through 5 years | 5,905 | |
Due after 5 years through 10 years | 524 | |
Due after 10 years | 320 | |
Amortized Cost | 8,785 | 8,115 |
Aggregate Fair Value | ||
Due within one year | 2,037 | |
Due after 1 year through 5 years | 5,920 | |
Due after 5 years through 10 years | 523 | |
Due after 10 years | 319 | |
Aggregate Fair Value | $8,799 | $8,103 |
Fair_Value_of_Financial_Assets6
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
The rate used for the discount margin to determine the estimated fair value of investment in auction rate securities | 1.00% | |||
Short-term investments | $2,062 | $1,978 | ||
Foreign debt securities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities | 2,668 | 2,564 | ||
Average credit rating | A+ | |||
Foreign Sovereign Debt Securities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Average credit rating | AA+ | |||
Percentage of securities | 3.00% | |||
Auction rate securities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities | 27 | 27 | ||
Average credit rating | AA | |||
Change in fair value of level 3 investment | no material changes | no material changes | ||
Number of auction rate securities | 1 | |||
Auction rate securities that have partial guarantees by the U.S. government, market value | 7 | |||
Percentage of loans guaranteed | 95.00% | |||
Coupon rate used to estimate fair value of investments - Start Range | 0.00% | |||
Coupon rate used to estimate fair value of investments - End Range | 3.00% | |||
Discount rate used to estimate fair value of investments | 1.00% | |||
The rate used for the discount margin to determine the estimated fair value of investment in auction rate securities | 1.00% | |||
Fair value input, discounted cash flow, term | 5 years | |||
Variable Rate Demand Note | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term investments | $25 | |||
LenovoEMC [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in fair value of level 3 investment | no material changes | no material changes | ||
Discount rate used to estimate fair value of investments | 6.00% | |||
Ownership percentage, joint venture | 49.00% | |||
Fair value input, discounted cash flow, term | 3 years |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Work-in-process | $609 | $627 |
Finished goods | 683 | 649 |
Inventory, Net, Total | $1,292 | $1,276 |
Accounts_and_Notes_Receivable_2
Accounts and Notes Receivable and Allowance for Credit Losses - Contractual Amounts Due under Leases (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Due within one year | $71 | |
Due within two years | 49 | |
Due within three years | 37 | |
Thereafter | 1 | |
Total | 158 | 233 |
Less: Amounts representing interest | 5 | |
Present value | 153 | |
Current portion (included in accounts and notes receivable) | 68 | |
Long-term portion (included in other assets, net) | $85 |
Accounts_and_Notes_Receivable_3
Accounts and Notes Receivable and Allowance for Credit Losses - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 22, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accounts Receivable, Additional Narrative Disclosure | no material changes | no material changes | ||
Gross lease receivables | $158 | $233 | ||
Subsequent Event | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Sales of leases to third parties without recourse | $6 |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $9,728 | $9,543 |
Accumulated depreciation | -5,986 | -5,777 |
Property, plant and equipment, net | 3,742 | 3,766 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 265 | 255 |
Equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,842 | 6,684 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,345 | 2,308 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 162 | 162 |
Building construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 114 | 134 |
Facilities not yet placed in service, holding for future use | ||
Property, Plant and Equipment [Line Items] | ||
Building construction in progress | $76 |
Accrued_Expenses_Components_of
Accrued Expenses - Components of Accrued Expenses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ||||
Salaries and benefits | $942 | $1,251 | ||
Product warranties | 191 | 210 | 274 | 289 |
Dividends payable (see Note 11) | 234 | 237 | ||
Partner rebates | 179 | 235 | ||
Restructuring, current (See Note 12) | 188 | 123 | ||
Derivatives | 91 | 75 | ||
Other | 992 | 1,010 | ||
Accrued Liabilities, Current, Total | $2,817 | $3,141 |
Accrued_Expenses_Activity_in_W
Accrued Expenses - Activity in Warranty Accrual for Product Warranty (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of the period | $210 | $289 |
Provision | 33 | 42 |
Amounts charged to the accrual | -52 | -57 |
Balance, end of the period | $191 | $274 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rates | 22.00% | 24.30% |
Shareholders_Equity_Reconcilia
Shareholders' Equity - Reconciliation from Basic To Diluted Earnings Per Share for both Numerators and Denominators (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income attributable to EMC Corporation | $252 | $392 |
Incremental dilution from VMware | -1 | -2 |
Net income – dilution attributable to EMC Corporation | $251 | $390 |
Denominator: | ||
Weighted average shares, basic | 1,974 | 2,029 |
Weighted common stock equivalents | 22 | 26 |
Assumed conversion of the 2013 Notes and associated warrants | 0 | 21 |
Weighted average shares, diluted | 1,996 | 2,076 |
Shareholders_Equity_Dividends_
Shareholders' Equity - Dividends Declared (Details) (USD $) | 0 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Feb. 27, 2015 | Dec. 09, 2014 | Jul. 30, 2014 | Apr. 17, 2014 | Feb. 06, 2014 | Feb. 27, 2015 | Dec. 09, 2014 | Jul. 30, 2014 | Apr. 17, 2014 | Feb. 06, 2014 | 30-May-13 |
Stockholders' Equity Note [Abstract] | |||||||||||
Declaration Date | 27-Feb-15 | 9-Dec-14 | 30-Jul-14 | 17-Apr-14 | 6-Feb-14 | ||||||
Dividend Per Share (in usd per share) | $0.12 | $0.12 | $0.12 | $0.12 | $0.10 | $0.10 | |||||
Record Date | 1-Apr-15 | 2-Jan-15 | 1-Oct-14 | 1-Jul-14 | 1-Apr-14 | ||||||
Total Amount | $229 | $234 | $239 | $237 | $209 | ||||||
Payment Date | 23-Apr-15 | 23-Jan-15 | 23-Oct-14 | 23-Jul-14 | 23-Apr-14 |
Shareholders_Equity_Accumulate
Shareholders' Equity - Accumulated Other Comprehensive Loss, Net of Tax (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | ($366) | ($239) | ($239) | |
Other comprehensive income (loss) before reclassifications | -72 | 18 | ||
Net losses (gains) reclassified from accumulated other comprehensive income | -19 | -7 | ||
Net current period other comprehensive income (loss) | -91 | 11 | ||
Ending balance | -457 | -228 | ||
Taxes (benefits) | 82 | 139 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | -188 | -53 | -53 | |
Other comprehensive income (loss) before reclassifications | -104 | -4 | ||
Net losses (gains) reclassified from accumulated other comprehensive income | 0 | 0 | ||
Net current period other comprehensive income (loss) | -104 | -4 | ||
Ending balance | -292 | -57 | ||
Unrealized Net Gains on Investments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 49 | 31 | 31 | |
Other comprehensive income (loss) before reclassifications | 19 | 24 | ||
Net losses (gains) reclassified from accumulated other comprehensive income | -8 | -5 | ||
Net current period other comprehensive income (loss) | 11 | 19 | ||
Ending balance | 60 | 50 | 49 | 31 |
Taxes (benefits) | 38 | 29 | 31 | 18 |
Unrealized Net Losses on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | -100 | -106 | -106 | |
Other comprehensive income (loss) before reclassifications | 14 | -1 | ||
Net losses (gains) reclassified from accumulated other comprehensive income | -11 | -2 | ||
Net current period other comprehensive income (loss) | 3 | -3 | ||
Ending balance | -97 | -109 | -100 | -106 |
Taxes (benefits) | -61 | -67 | -64 | -66 |
Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | -126 | -110 | -110 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Net losses (gains) reclassified from accumulated other comprehensive income | 0 | 0 | ||
Net current period other comprehensive income (loss) | 0 | 0 | ||
Ending balance | -126 | -110 | -126 | -110 |
Taxes (benefits) | -70 | -61 | -70 | -61 |
Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc. | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | -1 | -1 | -1 | |
Other comprehensive income (loss) before reclassifications | -1 | -1 | ||
Net losses (gains) reclassified from accumulated other comprehensive income | 0 | 0 | ||
Net current period other comprehensive income (loss) | -1 | -1 | ||
Ending balance | ($2) | ($2) |
Shareholders_Equity_Reclassifi
Shareholders' Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Investment income | $24 | $36 | ||
Product sales revenue | 2,905 | 3,008 | ||
Cost of product sales | -1,329 | -1,296 | ||
Other interest expense | -40 | -34 | ||
Income (loss) before provision for income taxes | 373 | 571 | ||
Provision for income tax | -82 | -139 | ||
Net income | 291 | 432 | ||
Net gain on investments | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Provision for income tax | -38 | -29 | -31 | -18 |
Net gain on derivatives | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Provision for income tax | 61 | 67 | 64 | 66 |
Net gains from pension and other postretirement plans | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Provision for income tax | 70 | 61 | 70 | 61 |
Foreign Exchange Contract | Reclassification Out of Accumulated Other Comprehensive Income | Net gain on derivatives | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Product sales revenue | 20 | 1 | ||
Cost of product sales | -3 | 1 | ||
Income (loss) before provision for income taxes | 11 | 2 | ||
Provision for income tax | 0 | 0 | ||
Net income | 11 | 2 | ||
Interest Rate Swap | Reclassification Out of Accumulated Other Comprehensive Income | Net gain on interest rate swap | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Other interest expense | -6 | 0 | ||
Unrealized Gain on Investments | Reclassification Out of Accumulated Other Comprehensive Income | Net gain on investments | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Investment income | 14 | 8 | ||
Provision for income tax | -6 | -3 | ||
Net income | $8 | $5 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 25 Months Ended | 1 Months Ended | ||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Nov. 30, 2006 | Mar. 17, 2014 | Feb. 27, 2015 | Dec. 09, 2014 | Dec. 01, 2014 | Jul. 30, 2014 | Apr. 17, 2014 | Feb. 06, 2014 | 30-May-13 | Feb. 28, 2013 | Jan. 27, 2015 | Aug. 01, 2014 | |
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 | 1,000,000 | 6,000,000 | |||||||||||||
Repurchases of Common Stock, shares authorized to repurchase | 500,000,000 | 500,000,000 | 250,000,000 | 250,000,000 | |||||||||||
Total Repurchases of Common Stock, cost | $1,400,000,000 | $6,800,000,000 | |||||||||||||
Total Repurchases of Common Stock, shares | 54,000,000 | 255,000,000 | |||||||||||||
Shares authorized for future repurchases | 245,000,000 | 245,000,000 | |||||||||||||
Payments for Repurchase of Common Stock | 1,346,000,000 | 390,000,000 | |||||||||||||
Approved dividend (in usd per share) | $0.12 | $0.12 | $0.12 | $0.12 | $0.10 | $0.10 | |||||||||
Sold Warrants | |||||||||||||||
Sold warrants to acquire shares of our common stock | 215,000,000 | ||||||||||||||
Warrant | |||||||||||||||
Warrants exercised | 109,000,000 | ||||||||||||||
Exercised Warrants | |||||||||||||||
Conversion of Stock, Shares Issued | 29,000,000 | ||||||||||||||
VMware | |||||||||||||||
Total Repurchases of Common Stock, shares | 5,000,000 | ||||||||||||||
Payments for Repurchase of Common Stock | 438,000,000 | 169,000,000 | |||||||||||||
Stock Repurchase Program, Authorized Amount | 2,000,000,000 | 2,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $1,500,000,000 | $1,500,000,000 |
Restructuring_and_AcquisitionR2
Restructuring and Acquisition-Related Charges - Activity For Restructuring Program (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Reserve [Roll Forward] | ||
Charges/ Adjustments to the Provision | $111 | $114 |
EMC Information Infrastructure | Restructuring 2015 Programs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 113 | |
Restructuring Utilization | -11 | |
Ending Balance | 102 | |
EMC Information Infrastructure | Restructuring 2015 Programs [Member] | Workforce reductions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 107 | |
Restructuring Utilization | -11 | |
Ending Balance | 96 | |
EMC Information Infrastructure | Restructuring 2015 Programs [Member] | Consolidation of excess facilities and other contractual obligations | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 6 | |
Restructuring Utilization | 0 | |
Ending Balance | 6 | |
EMC Information Infrastructure | Restructuring Other Programs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 121 | 90 |
Charges/ Adjustments to the Provision | -2 | -5 |
Restructuring Utilization | -44 | -28 |
Ending Balance | 75 | 57 |
EMC Information Infrastructure | Restructuring Other Programs | Workforce reductions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 102 | 66 |
Charges/ Adjustments to the Provision | -2 | -8 |
Restructuring Utilization | -39 | -21 |
Ending Balance | 61 | 37 |
EMC Information Infrastructure | Restructuring Other Programs | Consolidation of excess facilities and other contractual obligations | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 19 | 24 |
Charges/ Adjustments to the Provision | 0 | 3 |
Restructuring Utilization | -5 | -7 |
Ending Balance | 14 | 20 |
EMC Information Infrastructure | Restructuring 2014 Programs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 119 | |
Restructuring Utilization | -16 | |
Ending Balance | 103 | |
EMC Information Infrastructure | Restructuring 2014 Programs | Workforce reductions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 117 | |
Restructuring Utilization | -15 | |
Ending Balance | 102 | |
EMC Information Infrastructure | Restructuring 2014 Programs | Consolidation of excess facilities and other contractual obligations | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 2 | |
Restructuring Utilization | -1 | |
Ending Balance | 1 | |
VMware | ||
Restructuring Reserve [Roll Forward] | ||
Charges/ Adjustments to the Provision | 22 | |
VMware | Restructuring 2015 Programs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 8 | |
Charges/ Adjustments to the Provision | 22 | |
Restructuring Utilization | -14 | |
Ending Balance | 16 | |
VMware | Restructuring 2015 Programs [Member] | Workforce reductions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 8 | |
Charges/ Adjustments to the Provision | 22 | |
Restructuring Utilization | -14 | |
Ending Balance | 16 | |
VMware | Restructuring 2015 Programs [Member] | Consolidation of excess facilities and other contractual obligations | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Charges/ Adjustments to the Provision | 0 | |
Restructuring Utilization | 0 | |
Ending Balance | $0 |
Restructuring_and_AcquisitionR3
Restructuring and Acquisition-Related Charges - Additional information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
position | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and acquisition-related charges | $135 | $119 | |
Restructuring charges | 111 | 114 | |
Acquisition-related charges | 1 | ||
Lease termination costs for facilities | 6 | 5 | |
VMware | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 22 | ||
Acquisition-related charges | 1 | 5 | |
Restructuring 2015 Programs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 1,320 | ||
Restructuring 2015 Programs [Member] | VMware | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $22 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 350 | ||
Restructuring 2014 Programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 1,326 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Country | Country | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets | 4,383 | $4,380 | |
International | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets, excluding financial instruments, deferred tax assets, goodwill and intangible assets | 953 | $1,021 | |
Geographic Concentration | Sales Revenue, Segment | |||
Segment Reporting Information [Line Items] | |||
Number of countries other than the US that accounted for 10% or more | 0 | 0 | |
Geographic Concentration | Long-lived Assets, Total | |||
Segment Reporting Information [Line Items] | |||
Number of countries other than the US that accounted for 10% or more | 0 | ||
EMC Information Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 |
Segment_information_Detail
Segment information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Product revenues | $2,905 | $3,008 |
Services revenues | 2,708 | 2,471 |
Total consolidated revenues | 5,613 | 5,479 |
Gross profit | 3,339 | 3,347 |
Gross profit percentage | 59.50% | 61.10% |
Research and development | 788 | 731 |
Selling, general and administrative | 2,037 | 1,852 |
Restructuring and acquisition-related charges | 135 | 119 |
Total operating expenses | 2,960 | 2,702 |
Operating income (expense) | 379 | 645 |
Non-operating income (expense), net | -6 | -74 |
Income tax provision | 82 | 139 |
Net income | 291 | 432 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -39 | -40 |
Net income attributable to EMC Corporation | 252 | 392 |
EMC Information Infrastructure | ||
Revenues: | ||
Product revenues | 2,306 | 2,441 |
Services revenues | 1,743 | 1,637 |
Total consolidated revenues | 4,049 | 4,078 |
Gross profit | 2,105 | 2,237 |
Gross profit percentage | 52.00% | 54.90% |
Research and development | 424 | 377 |
Selling, general and administrative | 1,169 | 1,102 |
Restructuring and acquisition-related charges | 0 | 0 |
Total operating expenses | 1,593 | 1,479 |
Operating income (expense) | 512 | 758 |
Pivotal | ||
Revenues: | ||
Product revenues | 16 | 11 |
Services revenues | 38 | 38 |
Total consolidated revenues | 54 | 49 |
Gross profit | 22 | 19 |
Gross profit percentage | 40.30% | 38.10% |
Research and development | 27 | 31 |
Selling, general and administrative | 49 | 41 |
Restructuring and acquisition-related charges | 0 | 0 |
Total operating expenses | 76 | 72 |
Operating income (expense) | -54 | -53 |
EMC Information Infrastructure Plus Pivotal | ||
Revenues: | ||
Product revenues | 2,322 | 2,452 |
Services revenues | 1,781 | 1,675 |
Total consolidated revenues | 4,103 | 4,127 |
Gross profit | 2,127 | 2,256 |
Gross profit percentage | 51.90% | 54.70% |
Research and development | 451 | 408 |
Selling, general and administrative | 1,218 | 1,143 |
Restructuring and acquisition-related charges | 0 | 0 |
Total operating expenses | 1,669 | 1,551 |
Operating income (expense) | 458 | 705 |
Non-operating income (expense), net | -14 | -80 |
Income tax provision | 126 | 170 |
Net income | 318 | 455 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | 0 | 0 |
Net income attributable to EMC Corporation | 318 | 455 |
VMware Virtual Infrastructure within EMC | ||
Revenues: | ||
Product revenues | 583 | 556 |
Services revenues | 927 | 796 |
Total consolidated revenues | 1,510 | 1,352 |
Gross profit | 1,311 | 1,184 |
Gross profit percentage | 86.80% | 87.60% |
Research and development | 247 | 229 |
Selling, general and administrative | 604 | 537 |
Restructuring and acquisition-related charges | 0 | 0 |
Total operating expenses | 851 | 766 |
Operating income (expense) | 460 | 418 |
Non-operating income (expense), net | 8 | 6 |
Income tax provision | 89 | 83 |
Net income | 379 | 341 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | -74 | -68 |
Net income attributable to EMC Corporation | 305 | 273 |
Corp Reconciling Items | ||
Revenues: | ||
Product revenues | 0 | 0 |
Services revenues | 0 | 0 |
Total consolidated revenues | 0 | 0 |
Gross profit | -99 | -93 |
Gross profit percentage | 0.00% | 0.00% |
Research and development | 90 | 94 |
Selling, general and administrative | 215 | 172 |
Restructuring and acquisition-related charges | 135 | 119 |
Total operating expenses | 440 | 385 |
Operating income (expense) | -539 | -478 |
Non-operating income (expense), net | 0 | 0 |
Income tax provision | -133 | -114 |
Net income | -406 | -364 |
Less: Net income attributable to the non-controlling interest in VMware, Inc. | 35 | 28 |
Net income attributable to EMC Corporation | -371 | -336 |
Information Storage | ||
Revenues: | ||
Product revenues | 2,179 | 2,302 |
Services revenues | 1,484 | 1,378 |
Total consolidated revenues | 3,663 | 3,680 |
Gross profit | 1,850 | 1,976 |
Gross profit percentage | 50.50% | 53.70% |
Information Intelligence Group | ||
Revenues: | ||
Product revenues | 27 | 35 |
Services revenues | 111 | 119 |
Total consolidated revenues | 138 | 154 |
Gross profit | 90 | 99 |
Gross profit percentage | 65.20% | 64.70% |
RSA Information Security | ||
Revenues: | ||
Product revenues | 100 | 104 |
Services revenues | 148 | 140 |
Total consolidated revenues | 248 | 244 |
Gross profit | $165 | $162 |
Gross profit percentage | 66.60% | 66.20% |
Segment_Information_Revenues_B
Segment Information - Revenues By Geographic Area (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | $5,613 | $5,479 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 3,013 | 2,835 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 1,559 | 1,592 |
Asia Pacific and Japan | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 729 | 722 |
Latin America, Mexico and Canada | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | $312 | $330 |