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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 thousands):
2006
2005
2004
United States $ 6,319,689 $ 5,468,644 $ 4,631,340
Europe, Middle East and Africa 3,232,610 2,743,810 2,355,874
Asia Pacific 1,126,214 1,061,198 925,990
Latin America, Mexico and Canada 476,577 390,303 316,284
Total $ 11,155,090 $ 9,663,955 $ 8,229,488
No country other than the United States accounted for 10% or more of revenues in 2006, 2005 or 2004.
Long-lived assets, excluding financial instruments and deferred tax assets in the United States, were $9,352.9 million at December 31, 2006 and
$6,527.8 million at December 31, 2005. No country other than the United States accounted for 10% or more of these assets at December 31, 2006 or 2005.
Long-lived assets, excluding financial instruments and deferred tax assets, internationally were $342.0 million at December 31, 2006 and $271.0 million at
December 31, 2005.
For 2006 and 2005, Dell, Inc. accounted for 14.5% and 11.6%, respectively, of our total revenues. Dell, Inc. also accounted for 10.2% of our accounts
receivable at December 31, 2006. Revenues from Dell, Inc. are classified within all segments, except for RSA information security.
R. Subsequent Event
On February 7, 2007, we announced our intention to sell approximately 10% of VMware via an initial public offering of newly-issued VMware stock.
We will retain ownership of the remaining shares of VMware.
S. Selected Quarterly Financial Data (unaudited)
Quarterly financial data for 2006 and 2005 is as follows (tables in thousands, except per share amounts):
2006
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Revenues $ 2,550,687 $ 2,574,523 $ 2,815,306 $ 3,214,574
Gross profit 1,333,343 1,357,992 1,483,739 1,738,125
Net income 272,456 279,093 283,664 388,769
Net income per share, diluted $ 0.11 $ 0.12 $ 0.13 $ 0.18
2005
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Revenues $ 2,243,131 $ 2,344,815 $ 2,365,742 $ 2,710,267
Gross profit 1,174,221 1,256,642 1,277,617 1,484,339
Net income 269,834 293,364 421,672 148,295
Net income per share, diluted $ 0.11 $ 0.12 $ 0.17 $ 0.06
Quarterly financial data for the fourth quarter of 2006 includes an after-tax restructuring charge which reduced net income by $129.0 million or
$0.06 per diluted share and income tax benefits consisting primarily of favorable audit resolutions which increased net income by $111.6 million or $0.05 per
diluted share.
Quarterly financial data for the fourth quarter of 2005 includes an after-tax restructuring charge which reduced net income by $65.8 million or $0.03 per
diluted share and an income tax charge to repatriate income abroad which reduced net income by $180.2 million or $0.08 per diluted share.
Quarterly financial data for the third quarter of 2005 includes an income tax adjustment decreasing income tax expense resulting from the favorable
resolution of certain income tax audits and expiration of statutes of limitations which increased net income by $105.7 million or $0.04 per diluted share.
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