EMC 2003 Annual Report Download - page 39

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55
EMC CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
For the Year Ended December 31,
2003 2002 2001
Net income (loss) $496,108 $(118,706) $(507,712)
Other comprehensive income (loss), net of taxes (benefit):
Foreign currency translation adjustments, net of taxes of $7,677, $2,909 and $1,940 1,068 10,565 (4,150)
Equity adjustment for minimum pension liability, net of taxes (benefit) of $53,880, $(27,466) and $(26,414) 89,800 (47,606) (42,194)
Changes in market value of investments, net of taxes (benefit) of $(20,083), $17,597 and $4,470 (35,183) 16,640 16,142
Changes in market value of derivatives, net of taxes (benefit) of $0, $(9), and $1,117 – (80) 3,077
Other comprehensive income (loss) 55,685 (20,481) (27,125)
Comprehensive income (loss) $551,793 $(139,187) $(534,837)
The accompanying notes are an integral part of the consolidated financial statements.
56
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. Summary of Significant Accounting Policies
Company
We design, manufacture, market and support a wide range of products and services for information lifecycle management. Our products and services are
designed to enable our customers to get the maximum value from their information at the lowest total cost, at every point in the information lifecycle.
Accounting Principles
The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of
America.
Principles of Consolidation
The consolidated financial statements include the accounts of EMC and its subsidiaries. All significant intercompany transactions and balances have
been eliminated.
Basis of Presentation
Certain prior year amounts have been reclassified to conform to the 2003 presentation.
Use of Accounting Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reporting period and the
disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Revenue Recognition
We derive revenue from sales of information systems, software and services. We recognize revenue when persuasive evidence of an arrangement exists,
delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. This policy is applicable to all sales, including sales to
resellers and end users. The following summarizes the major terms of our contractual relationships with our customers and the manner in which we account
for sales transactions.
Systems sales
Systems sales consist of the sale of hardware, including CLARiiON systems, Symmetrix systems, NetWin and Celerra systems, Centera systems and
Connectrix systems. Revenue for hardware is generally recognized upon shipment.
Software sales
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