EMC 2008 Annual Report Download - page 110

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
2007
Category Beginning
Balance Adjustment to
the Provision Utilization Ending Balance
Workforce reductions $127,820 $ 21,503 $(66,168) $ 83,155
Consolidation of excess facilities 5,536 (270) (2,703) 2,563
Contractual and other obligations 4,814 — (4,814) —
Total $138,170 $ 21,233 $(73,685) $ 85,718
2006
Category Initial
Provision Utilization Ending Balance
Non-Cash
Portion of the
Provision
Workforce reductions $129,369 $ (1,549) $ 127,820 $ 10,720
Asset impairment 29,659 (29,659) — 29,659
Consolidation of excess facilities 5,698 (162) 5,536 —
Contractual and other obligations 10,925 (6,111) 4,814 —
Total $175,651 $(37,481) $ 138,170 $ 40,379
The adjustment to the provision in 2008 and 2007 includes changes for finalizing severance agreements, particularly in international locations and
estimated changes in severance amounts for employees that had not yet been terminated.
The remaining cash portion owed for the 2007 and 2006 restructuring programs is $10.8 million. The cash expenditures relating to workforce reductions
are expected to be substantially paid by the end of 2009. The cash expenditures relating to consolidation of excess facilities are expected to be paid out
through 2018.
Prior Year Restructuring Programs
Prior to 2006, we had instituted several restructuring programs. The activity for these programs for the years ended December 31, 2008, 2007 and 2006 is
presented below (tables in thousands):
2008
Category Beginning
Balance Adjustments to
the Provision Utilization Ending Balance
Workforce reduction $ 1,251 $ (2,144) $ 2,669 $ 1,776
Consolidation of excess facilities 25,710 2,565 (9,688) 18,587
Other contractual obligations 830 75 (35) 870
Total $27,791 $ 496 $ (7,054) $ 21,233
2007
Category Beginning
Balance Adjustments to
the Provision Utilization Ending Balance
Workforce reduction $19,219 $ (41)$(17,927) $ 1,251
Consolidation of excess facilities 40,233 (3,296) (11,227) 25,710
Other contractual obligations 1,916 152 (1,238) 830
Total $61,368 $ (3,185)$(30,392) $ 27,791
104