EMC 2008 Annual Report Download - page 115

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
EMC Information Infrastructure VMware
Virtual
Infrastructure
within EMC
Information
Storage
Content
Management
and Archiving
RSA
Information
Security
EMC
Information
Infrastructure
Corp
Reconciling
Items Consolidated
2006:
Revenues:
Systems revenues $5,124,780 $ 8,621 $ 7,225 $ 5,140,626 $ — $ — $ 5,140,626
Software revenues:
Software license 2,015,257 323,593 103,919 2,442,769 494,647 — 2,937,416
Software maintenance 925,972 218,996 23,394 1,168,362 166,842 — 1,335,204
Total software revenues 2,941,229 542,589 127,313 3,611,131 661,489 — 4,272,620
Other services revenues 1,542,568 134,581 17,148 1,694,297 47,547 — 1,741,844
Total revenues 9,608,577 685,791 151,686 10,446,054 709,036 — 11,155,090
Cost of sales 4,714,654 225,819 37,671 4,978,144 103,126 160,621 5,241,891
Gross profit $4,893,923 $ 459,972 $ 114,015 5,467,910 605,910 (160,621) 5,913,199
Gross profit percentage 50.9% 67.1% 75.2% 52.3% 85.5% — 53.0%
Research and development 1,016,922 117,190 120,081 1,254,193
Selling, general and administrative 2,703,945 278,320 271,009 3,253,274
In-process research and development — — 35,410 35,410
Restructuring charge (credit) (3,973) — 166,537 162,564
Total costs and expenses 3,716,894 395,510 593,037 4,705,441
Operating income 1,751,016 210,400 (753,658) 1,207,758
Investment income, interest expense and other expense, net 180,352 1,908 — 182,260
Income before taxes and cumulative effect of change in
accounting principle 1,931,368 212,308 (753,658) 1,390,018
Income tax provision 427,783 60,899 (326,018) 162,664
Income before cumulative effect of change in accounting
principle $ 1,503,585 $ 151,409 $(427,640)$ 1,227,354
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):
2008 2007 2006
United States $ 7,990,762 $ 7,343,042 $ 6,319,689
Europe, Middle East and Africa 4,555,004 3,921,078 3,232,610
Asia Pacific 1,640,065 1,400,007 1,126,214
Latin America, Mexico and Canada 690,332 566,078 476,577
Total $14,876,163 $13,230,205 $11,155,090
No country other than the United States accounted for 10% or more of revenues in 2008, 2007 and 2006.
Long-lived assets, excluding financial instruments and deferred tax assets in the United States, were $9,902.8 million at December 31, 2008 and
$9,006.5 million at December 31, 2007. Long-lived assets, excluding financial instruments and deferred tax assets, internationally were $936.3 million at
December 31, 2008 and $1,379.5 million at December 31, 2007. 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 December 31, 2008 or 2007.
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