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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
2004 Restructuring Programs
The activity for the 2004 restructuring programs for the years ended December 31, 2006, 2005 and 2004 is presented below (tables in thousands):
2006
Category
Beginning
Balance
Adjustments to
the Provision
During 2006
Utilization
During 2006
Ending
Balance
Workforce reductions $ 5,689 $ (2,171) $ (3,053) $ 465
Consolidation of excess facilities 123 (117) (6) —
Total $ 5,812 $ (2,288) $ (3,059) $ 465
2005
Category
Beginning
Balance
Adjustments to
the Provision
During 2005
Utilization
During 2005
Ending
Balance
Workforce reductions $ 16,380 $ (1,074) $ (9,617) $ 5,689
Consolidation of excess facilities 1,662 (459) (1,080) 123
Total $ 18,042 $ (1,533) $ (10,697) $ 5,812
2004
Category
Initial
Provision
Adjustments to
the Provision
During 2004
Utilization
During 2004
Ending
Balance
Workforce reductions $ 26,849 $ (2,378) $ (8,091) $ 16,380
Consolidation of excess facilities 2,200 (66) (472) 1,662
Total $ 29,049 $ (2,444) $ (8,563) $ 18,042
The 2004 restructuring programs included two separate reductions in force, one that commenced in the first quarter of 2004 and a second that
commenced in the fourth quarter of 2004, aggregating approximately 400 employees across our major business functions and all major geographic regions. As
of December 31, 2006, substantially all of the employees have been terminated. The remaining cash expenditures relating to workforce reduction are expected
to be paid by the end of 2007. The expected cash impact of the 2004 restructuring charge is $22.9 million, of which $8.6 million was paid in 2004, $10.7
million was paid in 2005 and $3.1 million was paid in 2006.
The reversal to the provision for workforce reduction in 2006, 2005 and 2004 was primarily attributable to a decrease in the original number of
individuals identified for termination and lower than expected severance benefits.
The 2004 restructuring programs impacted the Information storage and Content management and archiving segments.
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