EMC 2002 Annual Report Download - page 62

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The amounts charged and adjusted against the provisions established in 2001 are as follows (tables in thousands):
2002
Category Beginning Balance
Adjustment to the
Provision
Current
Year
Utilization Ending Balance
Workforce reduction $ 48,149 $ 19,277 $ (67,426) $ —
Other contractual obligations 23,645 (7,268) (13,314) 3,063
Consolidation of excess facilities 127,487 (183) (29,907) 97,397
Total $ 199,281 $ 11,826 $ (110,647) $ 100,460
2001
Category Beginning Balance Provision
Adjustment to the
Provision
Current
Year
Utilization Ending Balance
Workforce reduction $ — $ 111,459 $ (18,280) $ (45,030) $ 48,149
Impairment of goodwill, purchased intangibles and other long-lived assets — 104,511 — (104,511) —
Other contractual obligations — 34,468 (8,032) (2,791) 23,645
Consolidation of excess facilities — 158,137 26,312 (56,962) 127,487
Total $ — $ 408,575 $ — $ (209,294) $ 199,281
The 2001 restructuring program included a reduction in force of approximately 4,000 employees across all business functions and geographic regions.
As of June 30, 2002, all identified personnel had been terminated.
The adjustment to the provision for workforce reduction in 2002 was primarily attributable to the finalization of the severance payments associated with
reductions in force in certain foreign jurisdictions. The adjustment to the provision for other contractual obligations in 2002 resulted from favorable
settlements.
The adjustment to the provision for the workforce reduction in 2001 primarily related to voluntary employee resignations. The adjustment to the
provision for other contractual obligations in 2001 relating primarily to a favorable settlement of an estimated liability for the closure of an information
storage services business. The adjustment to the provision for the consolidation of excess facilities in 2001 primarily related to additional leased facilities
being vacated.
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