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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The activity for the 2001 restructuring program for the years ended December 31, 2004, 2003 and 2002 is presented below (tables in thousands):
Adjustment
2004 to the
Beginning Provision Utilization Ending
Category Balance During 2004 During 2004 Balance
Other contractual obligations $ 826 $ – $ (55) $ 771
Consolidation of excess facilities 60,379 16,008 (19,700) 56,687
Total $ 61,205 $ 16,008 $ (19,755) $ 57,458
Adjustment
2003 to the
Beginning Provision Utilization Ending
Category Balance During 2003 During 2003 Balance
Other contractual obligations $ 3,063 $ – $ (2,237) $ 826
Consolidation of excess facilities 97,397 (10,196) (26,822) 60,379
Total $ 100,460 $ (10,196) $ (29,059) $ 61,205
Adjustment
2002 to the
Beginning Provision Utilization Ending
Category Balance During 2002 During 2002 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
The adjustment to the consolidation of excess facilities in 2004 related to additional rent expected to be paid for vacated facilities. The adjustment to the
consolidation of excess facilities in 2003 related to the reactivation of a previously vacated facility. The adjustment to the provision for workforce reduction in
2002 was primarily attributable to the finalization of severance payments associated with reductions in force in foreign jurisdictions. The adjustment to the
provision for other contractual obligations in 2002 resulted from favorable settlements.
2001 Inventory Provision
In connection with our restructuring program, in 2001, we recognized a $310.0 million provision for excess and obsolete inventory. The amounts charged
and adjusted against the 2001 established provisions for excess and obsolete inventory is set forth below (tables in thousands).
Reduction in
Cost of Sales
Inventory
2004 Scrapped and Favorable
Beginning Charged Against Inventory Vendor Ending
Category Balance the Reserve Sold Settlements Balance
Excess and obsolete EMC owned inventory $ 888 $ (888) $ – $ – $ –
73