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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The amounts charged against the established provisions for the 1999 and 1998 restructuring programs for each of the three years ended December 31, is
as follows (table in thousands):
Beginning balance Current year utilization Ending balance
2002
Workforce reduction $ 19,265 $ (107) $ 19,158
Consolidation of excess facilities 14,607 — 14,607
Total $ 33,872 $ (107) $ 33,765
2001
Workforce reduction $ 23,374 $ (4,109) $ 19,265
Asset disposal and other exit costs 2,820 (2,820) —
Consolidation of excess facilities 15,552 (945) 14,607
Total $ 41,746 $ (7,874) $ 33,872
2000
Workforce reduction $ 75,481 $ (52,107) $ 23,374
Asset disposal and other exit costs 15,311 (12,491) 2,820
Consolidation of excess facilities 18,655 (3,103) 15,552
Total $ 109,447 $ (67,701) $ 41,746
The remaining balance as of December 31, 2002 relates primarily to executive severance as well as a remaining lease obligation that will be paid
through 2015. EMC was not required to make any lease payments in 2002 because it sublet the leased facility at a rate equal to its rental obligation.
D. Derivatives
At December 31, 2002 and 2001, the fair value of the derivatives resulted in a liability for both net assets and cash flow hedges of $14.2 million and
$0.4 million, respectively. As of December 31, 2002, net unrealized gains and (losses) of $3.2 million and $(17.4) million were classified in other current
assets and accrued expenses, respectively, within the consolidated balance sheet. At December 31, 2001, net unrealized gains and (losses) of $14.1 million
and $(14.5) million were classified in other current assets within the consolidated balance sheet.
The following table summarizes activity in other comprehensive income (loss) related to derivatives held by EMC for 2002, 2001 and 2000 (table in
thousands):
2002 2001 2000
Unrealized gains (losses) on derivative instruments, beginning of year $ 89 $ (4,105) $ 1,616
Add: increase (decrease) in fair value of derivatives (10,630) 34,601 14,335
Less: gains (losses) reclassified into revenue or expenses (10,541) 30,407 20,056
Unrealized gains (losses) on derivative instruments, end of year $ — $ 89 $ (4,105)
60