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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The 2005 charge consisted of $84.1 million for employee termination benefits associated with workforce rebalancing and reductions in force efforts and
$0.4 million of costs associated with vacating excess facilities. Partially offsetting these amounts were net adjustments of $0.3 million associated with prior
years' restructuring programs.
The activity for each charge is explained in the following sections.
2007 Restructuring Program
The activity for the 2007 restructuring program is presented below (table in thousands):
2007
Category
Initial
Provision Utilization Ending Balance
Non-Cash
Portion of the
Provision
Workforce reductions $13,262 $(847) $ 12,415 $ 920
Total $13,262 $(847) $ 12,415 $ 920
The 2007 restructuring program commenced in the fourth quarter of 2007 and included approximately 450 employees, of which approximately
185 employees remain to be terminated. These actions impacted the Information Storage, Content Management and Archiving and RSA Information Security
segments. Approximately 72% of the affected employees are or were based in North America, excluding Mexico and 28% are or were based in Europe, Latin
America, Mexico and the Asia Pacific region.
2006 Restructuring Programs
The activity for the 2006 restructuring programs for the year ended December 31, 2007 and 2006 is presented below (tables in thousands):
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 2006 restructuring programs included a workforce reduction and covered approximately 1,350 employees worldwide. The workforce reduction's
objective was to further integrate EMC and the majority of the businesses we have acquired over the prior three years. These actions impacted the Information
Storage and Content Management and Archiving segments across all major geographic regions.
The adjustment to the provision in 2007 includes changes for finalizing severance agreements, particularly in international locations and estimated
changes in severance amounts for employees yet to be terminated. The workforce reductions include
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