Analysis of Reportable Segments
EMC Corp. operates in 5 segments: Information Storage; Enterprise Content Division; RSA Information Security; Pivotal; and VMware Virtual Infrastructure.
Segment Profit Margin
EMC Corp., profit margin by reportable segment
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Information Storage | 52.25% | 55.50% | 56.30% | 57.38% | 56.46% |
| Enterprise Content Division | 67.95% | 65.16% | 64.76% | 67.50% | 64.30% |
| RSA Information Security | 66.80% | 67.44% | 66.36% | 67.94% | 56.76% |
| Pivotal | 38.95% | 46.70% | 38.19% | 56.67% | 58.46% |
| VMware Virtual Infrastructure | 87.25% | 87.41% | 89.16% | 88.85% | 86.07% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Information Storage | Information Storage segment profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Enterprise Content Division | Enterprise Content Division segment profit margin ratio improved from 2013 to 2014 and from 2014 to 2015. | |
| RSA Information Security | RSA Information Security segment profit margin ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. | |
| Pivotal | Pivotal segment profit margin ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. | |
| VMware Virtual Infrastructure | VMware Virtual Infrastructure segment profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Segment Profit Margin: Information Storage
EMC Corp.; Information Storage; segment profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 8,518) | 9,180) | 9,082) | 8,860) | 8,291) |
| Revenues | 16,301) | 16,542) | 16,132) | 15,440) | 14,684) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 52.25% | 55.50% | 56.30% | 57.38% | 56.46% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenues
= 100 × 8,518 ÷ 16,301 = 52.25%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Information Storage | Information Storage segment profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Segment Profit Margin: Enterprise Content Division
EMC Corp.; Enterprise Content Division; segment profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 407) | 417) | 419) | 432) | 425) |
| Revenues | 599) | 640) | 647) | 640) | 661) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 67.95% | 65.16% | 64.76% | 67.50% | 64.30% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenues
= 100 × 407 ÷ 599 = 67.95%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Enterprise Content Division | Enterprise Content Division segment profit margin ratio improved from 2013 to 2014 and from 2014 to 2015. |
Segment Profit Margin: RSA Information Security
EMC Corp.; RSA Information Security; segment profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 660) | 698) | 655) | 604) | 470) |
| Revenues | 988) | 1,035) | 987) | 889) | 828) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 66.80% | 67.44% | 66.36% | 67.94% | 56.76% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenues
= 100 × 660 ÷ 988 = 66.80%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | RSA Information Security | RSA Information Security segment profit margin ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
Segment Profit Margin: Pivotal
EMC Corp.; Pivotal; segment profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 104) | 106) | 118) | 153) | 76) |
| Revenues | 267) | 227) | 309) | 270) | 130) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 38.95% | 46.70% | 38.19% | 56.67% | 58.46% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenues
= 100 × 104 ÷ 267 = 38.95%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pivotal | Pivotal segment profit margin ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015 not reaching 2013 level. |
Segment Profit Margin: VMware Virtual Infrastructure
EMC Corp.; VMware Virtual Infrastructure; segment profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 5,780) | 5,241) | 4,589) | 3,976) | 3,189) |
| Revenues | 6,625) | 5,996) | 5,147) | 4,475) | 3,705) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 87.25% | 87.41% | 89.16% | 88.85% | 86.07% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Segment profit margin = 100 × Gross profit ÷ Revenues
= 100 × 5,780 ÷ 6,625 = 87.25%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | VMware Virtual Infrastructure | VMware Virtual Infrastructure segment profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Revenues
EMC Corp., revenues by reportable segment
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Information Storage | 16,301) | 16,542) | 16,132) | 15,440) | 14,684) |
| Enterprise Content Division | 599) | 640) | 647) | 640) | 661) |
| RSA Information Security | 988) | 1,035) | 987) | 889) | 828) |
| EMC Information Infrastructure | 17,888) | 18,217) | 17,766) | 16,969) | 16,173) |
| Pivotal | 267) | 227) | 309) | 270) | 130) |
| EMC Information Infrastructure plus Pivotal | 18,155) | 18,444) | 18,075) | 17,239) | 16,303) |
| VMware Virtual Infrastructure | 6,625) | 5,996) | 5,147) | 4,475) | 3,705) |
| Corp Reconciling Items | (76) | —) | —) | —) | —) |
| Consolidated | 24,704) | 24,440) | 23,222) | 21,714) | 20,008) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
Gross profit
EMC Corp., gross profit by reportable segment
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Information Storage | 8,518) | 9,180) | 9,082) | 8,860) | 8,291) |
| Enterprise Content Division | 407) | 417) | 419) | 432) | 425) |
| RSA Information Security | 660) | 698) | 655) | 604) | 470) |
| EMC Information Infrastructure | 9,585) | 10,295) | 10,156) | 9,896) | 9,186) |
| Pivotal | 104) | 106) | 118) | 153) | 76) |
| EMC Information Infrastructure plus Pivotal | 9,689) | 10,401) | 10,274) | 10,049) | 9,262) |
| VMware Virtual Infrastructure | 5,780) | 5,241) | 4,589) | 3,976) | 3,189) |
| Corp Reconciling Items | (478) | (393) | (390) | (387) | (282) |
| Consolidated | 14,991) | 15,249) | 14,473) | 13,638) | 12,169) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).