Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - EMC CORP | d8k.htm |
EMC CORPORATION
Consolidated Income Statements
(in thousands, except per share amounts)
Unaudited
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2009 |
December 31, 2008 |
December 31, 2009 |
December 31, 2008 |
|||||||||||||
| (As Adjusted) | (As Adjusted) | |||||||||||||||
| Revenues: |
||||||||||||||||
| Product sales |
$ | 2,653,174 | $ | 2,776,794 | $ | 8,828,145 | $ | 10,071,816 | ||||||||
| Services |
1,446,992 | 1,239,844 | 5,197,765 | 4,804,347 | ||||||||||||
| 4,100,166 | 4,016,638 | 14,025,910 | 14,876,163 | |||||||||||||
| Cost and expenses: |
||||||||||||||||
| Cost of product sales |
1,228,252 | 1,313,468 | 4,406,187 | 4,663,667 | ||||||||||||
| Cost of services |
494,265 | 477,486 | 1,874,824 | 1,990,127 | ||||||||||||
| Research and development |
424,243 | 434,521 | 1,627,509 | 1,721,330 | ||||||||||||
| Selling, general and administrative |
1,341,873 | 1,211,120 | 4,595,625 | 4,601,588 | ||||||||||||
| In-process research and development |
— | 6,576 | — | 85,780 | ||||||||||||
| Restructuring and acquisition-related charges |
23,903 | 240,694 | 107,490 | 244,735 | ||||||||||||
| Operating income |
587,630 | 332,773 | 1,414,275 | 1,568,936 | ||||||||||||
| Non-operating income (expense): |
||||||||||||||||
| Investment income |
31,137 | 54,462 | 140,430 | 247,049 | ||||||||||||
| Interest expense |
(46,571 | ) | (44,741 | ) | (182,499 | ) | (176,355 | ) | ||||||||
| Other income (expense), net |
(14,911 | ) | (18,518 | ) | 2,370 | (39,405 | ) | |||||||||
| Total non-operating income (expense) |
(30,345 | ) | (8,797 | ) | (39,699 | ) | 31,289 | |||||||||
| Income before provision for income taxes |
557,285 | 323,976 | 1,374,576 | 1,600,225 | ||||||||||||
| Income tax provision |
156,313 | 36,336 | 252,775 | 280,396 | ||||||||||||
| Net income |
400,972 | 287,640 | 1,121,801 | 1,319,829 | ||||||||||||
| Less: Net income attributable to the non-controlling interest in VMware, Inc. |
(10,376 | ) | (17,718 | ) | (33,724 | ) | (44,725 | ) | ||||||||
| Net income attributable to EMC Corporation |
$ | 390,596 | $ | 269,922 | $ | 1,088,077 | $ | 1,275,104 | ||||||||
| Net income per weighted average share, basic attributable to EMC Corporation common shareholders |
$ | 0.19 | $ | 0.13 | $ | 0.54 | $ | 0.62 | ||||||||
| Net income per weighted average share, diluted attributable to EMC Corporation common shareholders |
$ | 0.19 | $ | 0.13 | $ | 0.53 | $ | 0.61 | ||||||||
| Weighted average shares, basic |
2,041,601 | 2,012,389 | 2,022,371 | 2,048,506 | ||||||||||||
| Weighted average shares, diluted |
2,103,569 | 2,028,635 | 2,055,146 | 2,079,853 | ||||||||||||
Reconciliation of GAAP to Non-GAAP
For the Three Months Ended December 31, 2009
(in thousands, except per share amounts)
Unaudited
| Revenue | Cost of Revenue |
Research and Development |
Selling, General and Administrative |
Restructuring and Acquisition- Related Charges |
Operating Income |
Other Expense, net |
Income Before Taxes |
Income Tax Provision |
Net Income |
Net Income Attributable to VMware |
Net Income Attributable to EMC |
Net Income per Weighted Average Share, Basic |
Net Income per Weighted Average Share, Diluted |
||||||||||||||||||||||||||||||||||||||||||
| EMC Consolidated GAAP |
$ | 4,100,166 | $ | 1,722,517 | $ | 424,243 | $ | 1,341,873 | $ | 23,903 | $ | 587,630 | $ | (30,345 | ) | $ | 557,285 | $ | 156,313 | $ | 400,972 | $ | (10,376 | ) | $ | 390,596 | $ | 0.191 | $ | 0.185 | |||||||||||||||||||||||||
| Provision for litigation |
— | — | — | (57,500 | ) | — | 57,500 | — | 57,500 | 5,156 | 52,344 | — | 52,344 | $ | 0.026 | $ | 0.025 | ||||||||||||||||||||||||||||||||||||||
| Restructuring and acquistion-related charges |
— | — | — | — | (23,903 | ) | 23,903 | — | 23,903 | 9,130 | 14,773 | (152 | ) | 14,621 | $ | 0.007 | $ | 0.007 | |||||||||||||||||||||||||||||||||||||
| Special income tax charge |
— | — | — | — | — | — | — | — | (60,718 | ) | 60,718 | — | 60,718 | $ | 0.030 | $ | 0.029 | ||||||||||||||||||||||||||||||||||||||
| EMC Consolidated Adjusted (1) |
4,100,166 | 1,722,517 | 424,243 | 1,284,373 | — | 669,033 | (30,345 | ) | 638,688 | 109,881 | 528,807 | (10,528 | ) | 518,279 | $ | 0.254 | $ | 0.246 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | (30,136 | ) | (67,040 | ) | (84,421 | ) | — | 181,597 | — | 181,597 | 36,849 | 144,748 | (11,554 | ) | 133,194 | $ | 0.065 | $ | 0.063 | |||||||||||||||||||||||||||||||||||
| Intangible amortization |
— | (36,488 | ) | (3,191 | ) | (26,224 | ) | — | 65,903 | — | 65,903 | 21,443 | 44,460 | (468 | ) | 43,992 | $ | 0.022 | $ | 0.021 | |||||||||||||||||||||||||||||||||||
| EMC Consolidated Non-GAAP (2) |
$ | 4,100,166 | $ | 1,655,893 | $ | 354,012 | $ | 1,173,728 | $ | — | $ | 916,533 | $ | (30,345 | ) | $ | 886,188 | $ | 168,173 | $ | 718,015 | $ | (22,550 | ) | $ | 695,465 | $ | 0.341 | $ | 0.330 | |||||||||||||||||||||||||
| EMC Information Infrastructure GAAP |
$ | 3,493,623 | $ | 1,614,231 | $ | 290,130 | $ | 1,051,889 | $ | 23,075 | $ | 514,298 | $ | (24,067 | ) | $ | 490,231 | $ | 145,535 | $ | 344,696 | $ | — | $ | 344,696 | $ | 0.169 | $ | 0.164 | ||||||||||||||||||||||||||
| Provision for litigation |
— | — | — | (57,500 | ) | — | 57,500 | — | 57,500 | 5,156 | 52,344 | — | 52,344 | $ | 0.026 | $ | 0.025 | ||||||||||||||||||||||||||||||||||||||
| Restructuring and acquistion-related charges |
— | — | — | — | (23,075 | ) | 23,075 | — | 23,075 | 9,130 | 13,945 | — | 13,945 | $ | 0.007 | $ | 0.007 | ||||||||||||||||||||||||||||||||||||||
| Special income tax charge |
— | — | — | — | — | — | — | — | (60,718 | ) | 60,718 | — | 60,718 | $ | 0.030 | $ | 0.029 | ||||||||||||||||||||||||||||||||||||||
| EMC Information Infrastructure Adjusted (3) |
3,493,623 | 1,614,231 | 290,130 | 994,389 | — | 594,873 | (24,067 | ) | 570,806 | 99,103 | 471,703 | — | 471,703 | $ | 0.231 | $ | 0.224 | ||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | (20,633 | ) | (29,880 | ) | (58,024 | ) | — | 108,537 | — | 108,537 | 26,614 | 81,923 | — | 81,923 | $ | 0.040 | $ | 0.039 | ||||||||||||||||||||||||||||||||||||
| Intangible amortization |
— | (32,960 | ) | (3,124 | ) | (25,710 | ) | — | 61,794 | — | 61,794 | 19,881 | 41,913 | — | 41,913 | $ | 0.021 | $ | 0.020 | ||||||||||||||||||||||||||||||||||||
| EMC Information Infrastructure Non-GAAP (4) |
$ | 3,493,623 | $ | 1,560,638 | $ | 257,126 | $ | 910,655 | $ | — | $ | 765,204 | $ | (24,067 | ) | $ | 741,137 | $ | 145,598 | $ | 595,539 | $ | — | $ | 595,539 | $ | 0.292 | $ | 0.283 | ||||||||||||||||||||||||||
| VMware standalone GAAP |
$ | 608,201 | $ | 107,506 | $ | 136,262 | $ | 293,276 | $ | — | $ | 71,157 | $ | (3,920 | ) | $ | 67,237 | $ | 10,828 | $ | 56,409 | $ | — | $ | 56,409 | $ | 0.028 | $ | 0.027 | ||||||||||||||||||||||||||
| GAAP adjustments and eliminations |
(1,658 | ) | 780 | (2,149 | ) | (3,292 | ) | 828 | 2,175 | (2,358 | ) | (183 | ) | (50 | ) | (133 | ) | (10,376 | ) | (10,509 | ) | $ | (0.005 | ) | $ | (0.006 | ) | ||||||||||||||||||||||||||||
| VMware within EMC GAAP (5) |
606,543 | 108,286 | 134,113 | 289,984 | 828 | 73,332 | (6,278 | ) | 67,054 | 10,778 | 56,276 | (10,376 | ) | 45,900 | $ | 0.022 | $ | 0.021 | |||||||||||||||||||||||||||||||||||||
| Acquistion-related charges |
— | — | — | — | (828 | ) | 828 | — | 828 | — | 828 | (152 | ) | 676 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||
| VMware within EMC Adjusted (6) |
606,543 | 108,286 | 134,113 | 289,984 | — | 74,160 | (6,278 | ) | 67,882 | 10,778 | 57,104 | (10,528 | ) | 46,576 | $ | 0.023 | $ | 0.022 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | (9,503 | ) | (37,160 | ) | (26,397 | ) | — | 73,060 | — | 73,060 | 10,235 | 62,825 | (11,554 | ) | 51,271 | $ | 0.025 | $ | 0.024 | |||||||||||||||||||||||||||||||||||
| Intangible amortization |
— | (3,528 | ) | (67 | ) | (514 | ) | — | 4,109 | — | 4,109 | 1,562 | 2,547 | (468 | ) | 2,079 | $ | 0.001 | $ | 0.001 | |||||||||||||||||||||||||||||||||||
| VMware within EMC Non-GAAP (7) |
$ | 606,543 | $ | 95,255 | $ | 96,886 | $ | 263,073 | $ | — | $ | 151,329 | $ | (6,278 | ) | $ | 145,051 | $ | 22,575 | $ | 122,476 | $ | (22,550 | ) | $ | 99,926 | $ | 0.049 | $ | 0.047 | |||||||||||||||||||||||||
| Wtd. Average Share O/S | 2,041,601 | 2,103,569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Incremental VMware dilution | $ | 1,150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP
For the Three Months Ended December 31, 2009
(in thousands, except per share amounts)
Unaudited
(Continued)
The following costs are included in EMC Consolidated Non-GAAP and EMC Information Infrastructure Non-GAAP results
| Revenue | Cost of Revenue |
Research and Development |
Selling, General and Administrative |
Restructuring and Acquisition- Related Charges |
Operating Income |
Other Expense, net |
Income Before Taxes |
Income Tax Provision |
Net Income |
Net Income Attributable to VMware |
Net Income Attributable to EMC |
Net Income per Weighted Average Share, Basic |
Net Income per Weighted Average Share, Diluted |
|||||||||||||||||||||||||||||||||||||
| Non-cash interest expense on convertible debt (8) |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (27,785 | ) | $ | (27,785 | ) | $ | (9,253 | ) | $ | (18,532 | ) | $ | — | $ | (18,532 | ) | $ | (0.009 | ) | $ | (0.009 | ) | |||||||||||||||
| Transition costs (9) |
— | 167 | 3,243 | 15,921 | — | (19,331 | ) | — | (19,331 | ) | (5,053 | ) | (14,278 | ) | — | (14,278 | ) | $ | (0.007 | ) | $ | (0.007 | ) | |||||||||||||||||||||||||||
| $ | — | $ | 167 | $ | 3,243 | $ | 15,921 | $ | — | $ | (19,331 | ) | $ | (27,785 | ) | $ | (47,116 | ) | $ | (14,306 | ) | $ | (32,810 | ) | $ | — | $ | (32,810 | ) | $ | (0.016 | ) | $ | (0.016 | ) | |||||||||||||||
| (1) | Represents EMC Consolidated GAAP excluding provision for litigation, restructuring and acquisition-related charges and a special income tax charge. |
| (2) | Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization. |
| (3) | Represents EMC Information Infrastructure GAAP excluding provision for litigation, restructuring and acquisition-related charges and a special income tax charge. |
| (4) | Represents EMC Information Infrastructure Adjusted excluding stock-based compensation expense and intangible amortization. |
| (5) | Represents VMware within EMC GAAP. |
| (6) | Represents VMware within EMC GAAP excluding acquisition-related charges. |
| (7) | Represents VMware within EMC Adjusted excluding stock-based compensation expense and intangible amortization. |
| (8) | Represents the non-cash interest charge associated with our convertible senior notes due 2011 and 2013 totaling $3,450 million. |
| (9) | Represents incremental costs incurred to transform our current cost structure to a more streamlined cost structure. |
Note: schedule may not add due to rounding
Reconciliation of GAAP to Non-GAAP
For the Twelve Months Ended December 31, 2009
(in thousands, except per share amounts)
Unaudited
| Revenue | Cost of Revenue |
Research and Development |
Selling, General and Administrative |
Restructuring and Acquisition- Related Charges |
Operating Income |
Other Income (Expense), net |
Income Before Taxes |
Income Tax Provision |
Net Income |
Net Income Attributable to VMware |
Net Income Attributable to EMC |
Net Income per Weighted Average Share, Basic |
Net Income per Weighted Average Share, Diluted |
||||||||||||||||||||||||||||||||||||||||||
| EMC Consolidated GAAP |
$ | 14,025,910 | $ | 6,281,011 | $ | 1,627,509 | $ | 4,595,625 | $ | 107,490 | $ | 1,414,275 | $ | (39,699 | ) | $ | 1,374,576 | $ | 252,775 | $ | 1,121,801 | $ | (33,724 | ) | $ | 1,088,077 | $ | 0.538 | $ | 0.528 | |||||||||||||||||||||||||
| Provision for litigation |
— | — | — | (57,500 | ) | — | 57,500 | — | 57,500 | 5,156 | 52,344 | — | 52,344 | $ | 0.026 | $ | 0.025 | ||||||||||||||||||||||||||||||||||||||
| Gain on Data Domain and SpringSource common stock |
— | — | — | — | — | — | (25,822 | ) | (25,822 | ) | — | (25,822 | ) | 1,025 | (24,797 | ) | $ | (0.012 | ) | $ | (0.012 | ) | |||||||||||||||||||||||||||||||||
| Restructuring and acquistion-related charges |
— | (12,485 | ) | — | — | (107,490 | ) | 119,975 | — | 119,975 | 35,884 | 84,091 | (287 | ) | 83,804 | $ | 0.041 | $ | 0.041 | ||||||||||||||||||||||||||||||||||||
| Special income tax charge |
— | — | — | — | — | — | — | — | (60,718 | ) | 60,718 | — | 60,718 | $ | 0.030 | $ | 0.030 | ||||||||||||||||||||||||||||||||||||||
| EMC Consolidated Adjusted (1) |
14,025,910 | 6,268,526 | 1,627,509 | 4,538,125 | — | 1,591,750 | (65,521 | ) | 1,526,229 | 233,097 | 1,293,132 | (32,986 | ) | 1,260,146 | $ | 0.623 | $ | 0.612 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | (99,393 | ) | (214,554 | ) | (291,759 | ) | — | 605,706 | — | 605,706 | 135,130 | 470,576 | (34,731 | ) | 435,845 | $ | 0.216 | $ | 0.212 | |||||||||||||||||||||||||||||||||||
| Intangible amortization |
— | (131,754 | ) | (12,883 | ) | (103,151 | ) | — | 247,788 | — | 247,788 | 83,842 | 163,946 | (1,568 | ) | 162,378 | $ | 0.080 | $ | 0.079 | |||||||||||||||||||||||||||||||||||
| EMC Consolidated Non-GAAP (2) |
$ | 14,025,910 | $ | 6,037,379 | $ | 1,400,072 | $ | 4,143,215 | $ | — | $ | 2,445,244 | $ | (65,521 | ) | $ | 2,379,723 | $ | 452,069 | $ | 1,927,654 | $ | (69,285 | ) | $ | 1,858,369 | $ | 0.919 | $ | 0.903 | |||||||||||||||||||||||||
| EMC Information Infrastructure GAAP |
$ | 12,004,948 | $ | 5,921,103 | $ | 1,136,100 | $ | 3,657,916 | $ | 105,889 | $ | 1,183,940 | $ | (36,059 | ) | $ | 1,147,881 | $ | 225,799 | $ | 922,082 | $ | — | $ | 922,082 | $ | 0.456 | $ | 0.449 | ||||||||||||||||||||||||||
| Provision for litigation |
— | — | — | (57,500 | ) | — | 57,500 | — | 57,500 | 5,156 | 52,344 | — | 52,344 | $ | 0.026 | $ | 0.025 | ||||||||||||||||||||||||||||||||||||||
| Gain on Data Domain common stock |
— | — | — | — | — | — | (19,963 | ) | (19,963 | ) | — | (19,963 | ) | — | (19,963 | ) | $ | (0.010 | ) | $ | (0.010 | ) | |||||||||||||||||||||||||||||||||
| Restructuring and acquistion-related charges |
— | (12,485 | ) | — | — | (105,889 | ) | 118,374 | — | 118,374 | 35,884 | 82,490 | — | 82,490 | $ | 0.041 | $ | 0.040 | |||||||||||||||||||||||||||||||||||||
| Special income tax charge |
— | — | — | — | — | — | — | — | (60,718 | ) | 60,718 | — | 60,718 | $ | 0.030 | $ | 0.030 | ||||||||||||||||||||||||||||||||||||||
| EMC Information Infrastructure Adjusted (3) |
12,004,948 | 5,908,618 | 1,136,100 | 3,600,416 | — | 1,359,814 | (56,022 | ) | 1,303,792 | 206,121 | 1,097,671 | — | 1,097,671 | $ | 0.543 | $ | 0.534 | ||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | (67,698 | ) | (92,766 | ) | (198,239 | ) | — | 358,703 | — | 358,703 | 89,055 | 269,648 | — | 269,648 | $ | 0.133 | $ | 0.131 | ||||||||||||||||||||||||||||||||||||
| Intangible amortization |
— | (119,819 | ) | (12,776 | ) | (101,059 | ) | — | 233,654 | — | 233,654 | 78,824 | 154,830 | — | 154,830 | $ | 0.077 | $ | 0.075 | ||||||||||||||||||||||||||||||||||||
| EMC Information Infrastructure Non-GAAP (4) |
$ | 12,004,948 | $ | 5,721,101 | $ | 1,030,558 | $ | 3,301,118 | $ | — | $ | 1,952,171 | $ | (56,022 | ) | $ | 1,896,149 | $ | 374,000 | $ | 1,522,149 | $ | — | $ | 1,522,149 | $ | 0.753 | $ | 0.741 | ||||||||||||||||||||||||||
| VMware standalone GAAP |
$ | 2,023,937 | $ | 359,728 | $ | 496,552 | $ | 948,362 | $ | — | $ | 219,295 | $ | 4,154 | $ | 223,449 | $ | 26,351 | $ | 197,098 | $ | — | $ | 197,098 | $ | 0.097 | $ | 0.096 | |||||||||||||||||||||||||||
| GAAP adjustments and eliminations |
(2,975 | ) | 180 | (5,143 | ) | (10,653 | ) | 1,601 | 11,040 | (7,794 | ) | 3,246 | 625 | 2,621 | (33,724 | ) | (31,103 | ) | $ | (0.015 | ) | $ | (0.016 | ) | |||||||||||||||||||||||||||||||
| VMware within EMC GAAP (5) |
2,020,962 | 359,908 | 491,409 | 937,709 | 1,601 | 230,335 | (3,640 | ) | 226,695 | 26,976 | 199,719 | (33,724 | ) | 165,995 | $ | 0.082 | $ | 0.080 | |||||||||||||||||||||||||||||||||||||
| Gain on SpringSource common stock |
— | — | — | — | — | — | (5,859 | ) | (5,859 | ) | — | (5,859 | ) | 1,025 | (4,834 | ) | $ | (0.002 | ) | $ | (0.002 | ) | |||||||||||||||||||||||||||||||||
| Acquistion-related charges |
— | — | — | — | (1,601 | ) | 1,601 | — | 1,601 | — | 1,601 | (287 | ) | 1,314 | $ | 0.001 | $ | 0.001 | |||||||||||||||||||||||||||||||||||||
| VMware within EMC Adjusted (6) |
2,020,962 | 359,908 | 491,409 | 937,709 | — | 231,936 | (9,499 | ) | 222,437 | 26,976 | 195,461 | (32,986 | ) | 162,475 | $ | 0.080 | $ | 0.078 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | (31,695 | ) | (121,788 | ) | (93,520 | ) | — | 247,003 | — | 247,003 | 46,075 | 200,928 | (34,731 | ) | 166,197 | $ | 0.082 | $ | 0.081 | |||||||||||||||||||||||||||||||||||
| Intangible amortization |
— | (11,935 | ) | (107 | ) | (2,092 | ) | — | 14,134 | — | 14,134 | 5,018 | 9,116 | (1,568 | ) | 7,548 | $ | 0.004 | $ | 0.004 | |||||||||||||||||||||||||||||||||||
| VMware within EMC Non-GAAP (7) |
$ | 2,020,962 | $ | 316,278 | $ | 369,514 | $ | 842,097 | $ | — | $ | 493,073 | $ | (9,499 | ) | $ | 483,574 | $ | 78,069 | $ | 405,505 | $ | (69,285 | ) | $ | 336,220 | $ | 0.166 | $ | 0.163 | |||||||||||||||||||||||||
| Wtd. Average Share O/S | 2,022,371 | 2,055,146 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Incremental VMware dilution | $ | 2,252 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP
For the Twelve Months Ended December 31, 2009
(in thousands, except per share amounts)
Unaudited
(Continued)
The following costs are included in EMC Consolidated Non-GAAP and EMC Information Infrastructure Non-GAAP results
| Revenue | Cost of Revenue |
Research and Development |
Selling, General and Administrative |
Restructuring and Acquisition- Related Charges |
Operating Income |
Other Income (Expense), net |
Income Before Taxes |
Income Tax Provision |
Net Income |
Net Income Attributable to VMware |
Net Income Attributable to EMC |
Net Income per Weighted Average Share, Basic |
Net Income per Weighted Average Share, Diluted |
|||||||||||||||||||||||||||||||||||||
| Non-cash interest expense on convertible debt (8) |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (108,347 | ) | $ | (108,347 | ) | $ | (35,025 | ) | $ | (73,322 | ) | $ | — | $ | (73,322 | ) | $ | (0.036 | ) | $ | (0.036 | ) | |||||||||||||||
| Transition costs (9) |
— | 3,194 | 8,411 | 43,063 | — | (54,668 | ) | — | (54,668 | ) | (15,683 | ) | (38,985 | ) | — | (38,985 | ) | $ | (0.019 | ) | $ | (0.019 | ) | |||||||||||||||||||||||||||
| $ | — | $ | 3,194 | $ | 8,411 | $ | 43,063 | $ | — | $ | (54,668 | ) | $ | (108,347 | ) | $ | (163,015 | ) | $ | (50,708 | ) | $ | (112,307 | ) | $ | — | $ | (112,307 | ) | $ | (0.056 | ) | $ | (0.055 | ) | |||||||||||||||
| (1) | Represents EMC Consolidated GAAP excluding provision for litigation, gain on Data Domain and SpringSource common stock, restructuring and acquisition-related charges and a special income tax charge. |
| (2) | Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization. |
| (3) | Represents EMC Information Infrastructure GAAP excluding provision for litigation, gain on Data Domain common stock, restructuring and acquisition-related charges and a special income tax charge. |
| (4) | Represents EMC Information Infrastructure Adjusted excluding stock-based compensation expense and intangible amortization. |
| (5) | Represents VMware within EMC GAAP. |
| (6) | Represents VMware within EMC GAAP excluding gain on SpringSource common stock and acquisition-related charges. |
| (7) | Represents VMware within EMC Adjusted excluding stock-based compensation expense and intangible amortization. |
| (8) | Represents the non-cash interest charge associated with our convertible senior notes due 2011 and 2013 totaling $3,450 million. |
| (9) | Represents incremental costs incurred to transform our current cost structure to a more streamlined cost structure. |
Note: schedule may not add due to rounding
EMC CORPORATION
Consolidated Balance Sheets
(in thousands, except per share amounts)
Unaudited
| December 31, 2009 |
December 31, 2008 |
|||||||
| (As Adjusted) | ||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 6,302,499 | $ | 5,843,685 | ||||
| Short-term investments |
392,839 | 963,292 | ||||||
| Accounts and notes receivable, less allowance for doubtful accounts of $47,414 and $48,080 |
2,108,575 | 2,252,640 | ||||||
| Inventories |
886,289 | 842,803 | ||||||
| Deferred income taxes |
564,174 | 477,101 | ||||||
| Other current assets |
283,926 | 285,508 | ||||||
| Total current assets |
10,538,302 | 10,665,029 | ||||||
| Long-term investments |
2,692,323 | 2,370,493 | ||||||
| Property, plant and equipment, net |
2,224,346 | 2,223,007 | ||||||
| Intangible assets, net |
1,185,632 | 795,616 | ||||||
| Goodwill |
9,210,376 | 7,046,799 | ||||||
| Other assets, net |
961,024 | 773,631 | ||||||
| Total assets |
$ | 26,812,003 | $ | 23,874,575 | ||||
| LIABILITIES & SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 899,298 | $ | 757,405 | ||||
| Accrued expenses |
1,944,210 | 1,901,884 | ||||||
| Securities lending payable |
— | 412,321 | ||||||
| Income taxes payable |
41,691 | 136,802 | ||||||
| Deferred revenue |
2,262,968 | 2,010,024 | ||||||
| Total current liabilities |
5,148,167 | 5,218,436 | ||||||
| Income taxes payable |
235,976 | 255,182 | ||||||
| Deferred revenue |
1,373,798 | 1,182,360 | ||||||
| Deferred income taxes |
708,378 | 389,787 | ||||||
| Long-term convertible debt |
3,100,290 | 2,991,943 | ||||||
| Other liabilities |
184,920 | 180,917 | ||||||
| Total liabilities |
10,751,529 | 10,218,625 | ||||||
| Commitments and contingencies |
||||||||
| Shareholders’ equity: |
||||||||
| Preferred stock, par value $.01; authorized 25,000 shares; none outstanding |
— | — | ||||||
| Common stock, par value $.01; authorized 6,000,000 shares; issued 2,052,441 and 2,012,938 shares |
20,524 | 20,129 | ||||||
| Additional paid-in capital |
3,875,791 | 2,817,054 | ||||||
| Retained earnings |
11,759,289 | 10,671,212 | ||||||
| Accumulated other comprehensive loss, net |
(105,722 | ) | (179,952 | ) | ||||
| Total EMC Corporation’s shareholders’ equity |
15,549,882 | 13,328,443 | ||||||
| Non-controlling interest in VMware, Inc. |
510,592 | 327,507 | ||||||
| Total shareholders’ equity |
16,060,474 | 13,655,950 | ||||||
| Total liabilities and shareholders’ equity |
$ | 26,812,003 | $ | 23,874,575 | ||||
EMC CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
Unaudited
| Twelve Months Ended | ||||||||
| December 31, 2009 |
December 31, 2008 |
|||||||
| (As Adjusted) | ||||||||
| Cash flows from operating activities: |
||||||||
| Cash received from customers |
$ | 14,647,691 | $ | 15,378,081 | ||||
| Cash paid to suppliers and employees |
(11,032,859 | ) | (11,747,031 | ) | ||||
| Dividends and interest received |
109,525 | 240,031 | ||||||
| Interest paid |
(73,430 | ) | (73,695 | ) | ||||
| Income taxes paid |
(316,542 | ) | (232,298 | ) | ||||
| Net cash provided by operating activities |
3,334,385 | 3,565,088 | ||||||
| Cash flows from investing activities: |
||||||||
| Additions to property, plant and equipment |
(411,579 | ) | (695,899 | ) | ||||
| Capitalized software development costs |
(304,520 | ) | (294,973 | ) | ||||
| Purchases of short and long-term available-for-sale securities |
(5,409,540 | ) | (3,318,545 | ) | ||||
| Sales of short and long-term available-for-sale securities |
5,171,449 | 3,189,547 | ||||||
| Maturities of short and long-term available-for-sale securities |
704,653 | 204,091 | ||||||
| Business acquisitions, net of cash acquired |
(2,664,141 | ) | (725,521 | ) | ||||
| Increase in strategic and other related investments |
(182,994 | ) | (5,510 | ) | ||||
| Other |
1,184 | 31,878 | ||||||
| Net cash used in investing activities |
(3,095,488 | ) | (1,614,932 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Issuance of EMC’s common stock |
366,361 | 241,060 | ||||||
| Issuance of VMware’s common stock from the exercise of stock options |
227,666 | 190,107 | ||||||
| Purchase of VMware’s common stock |
— | (13,259 | ) | |||||
| Proceeds from securities lending |
— | 412,321 | ||||||
| Repayments of proceeds from securities lending |
|
(412,321 |
) |
— | ||||
| Repurchase of EMC’s common stock |
— | (1,489,501 | ) | |||||
| Excess tax benefits from stock-based compensation |
46,082 | 97,705 | ||||||
| Payment of long-term and short-term obligations |
(20,835 | ) | (6,151 | ) | ||||
| Proceeds from long-term and short-term obligations |
4,969 | 33,707 | ||||||
| Net cash provided by (used in) financing activities |
211,922 | (534,011 | ) | |||||
| Effect of exchange rate changes on cash |
7,995 | (54,671 | ) | |||||
| Net increase in cash and cash equivalents |
458,814 | 1,361,474 | ||||||
| Cash and cash equivalents at beginning of period |
5,843,685 | 4,482,211 | ||||||
| Cash and cash equivalents at end of period |
$ | 6,302,499 | $ | 5,843,685 | ||||
| Reconciliation of net income to net cash provided by operating activities: |
||||||||
| Net income |
$ | 1,121,801 | $ | 1,319,829 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
1,073,135 | 1,057,511 | ||||||
| Non-cash interest expense on convertible debt |
108,347 | 102,581 | ||||||
| Non-cash restructuring and other special charges |
25,050 | 139,193 | ||||||
| Stock-based compensation expense |
600,537 | 501,439 | ||||||
| Provision for doubtful accounts |
14,351 | 34,667 | ||||||
| Deferred income taxes, net |
27,198 | 4,629 | ||||||
| Excess tax benefits from stock-based compensation |
(46,082 | ) | (97,705 | ) | ||||
| Gain on Data Domain and SpringSource common stock |
(25,822 | ) | — | |||||
| Other |
(13,906 | ) | (13,471 | ) | ||||
| Changes in assets and liabilities, net of acquisitions: |
||||||||
| Accounts and notes receivable |
241,069 | 73,184 | ||||||
| Inventories |
(158,482 | ) | 165,813 | |||||
| Other assets |
3,600 | (16,178 | ) | |||||
| Accounts payable |
140,376 | (148,821 | ) | |||||
| Accrued expenses |
(80,642 | ) | 8,688 | |||||
| Income taxes payable |
(91,142 | ) | 44,821 | |||||
| Deferred revenue |
366,361 | 394,067 | ||||||
| Other liabilities |
28,636 | (5,159 | ) | |||||
| Net cash provided by operating activities |
$ | 3,334,385 | $ | 3,565,088 | ||||