EMC 2007 Annual Report Download - page 75

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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
$10.7 million of non-cash stock-based compensation expense. The asset impairment charge of $29.7 million consists primarily of internal infrastructure
projects that management decided to no longer pursue. The impairment charge was equal to the amount by which the assets' carrying amount exceeded its fair
value, measured as the present value of their estimated discounted cash flows.
Approximately 190 employees remain to be terminated. Substantially all actions are expected to be completed by March 31, 2008. The remaining cash
portion owed for the 2006 restructuring is $76.5 million. The cash expenditures relating to workforce reductions are expected to be substantially paid by the
end of 2008. The cash expenditures relating to consolidation of excess facilities are expected to be paid out through 2018.
2005 Restructuring Programs
The activity for the 2005 restructuring programs for the years ended December 31, 2007, 2006 and 2005 is presented below (tables in thousands):
2007
Category
Beginning
Balance
Adjustments
to the
Provision Utilization
Ending
Balance
Workforce reductions $ 18,043 $ — $(17,582) $ 461
Consolidation of excess facilities 148 (148) — —
Total $ 18,191 $ (148) $(17,582) $ 461
2006
Category
Beginning
Balance
Adjustments
to the
Provision Utilization
Ending
Balance
Workforce reductions $ 79,783 $ (2,338) $(59,402) $18,043
Consolidation of excess facilities — 148 — 148
Total $ 79,783 $ (2,190) $(59,402) $18,191
2005
Category
Initial
Provision
Adjustments
to the
Provision Utilization
Ending
Balance
Workforce reductions $84,144 $ — $ (4,361) $79,783
Consolidation of excess facilities 423 — (423) —
Total $84,567 $ — $ (4,784) $79,783
The 2005 restructuring programs included two separate reductions in force, one that commenced in the first quarter of 2005 and a second that
commenced in the fourth quarter of 2005, aggregating approximately 1,060 employees. These actions impacted the Information Storage and Content
Management and Archiving segments across all major geographic regions. As of December 31, 2006, the restructuring programs had been substantially
completed.
The adjustment to the provision in 2006 was primarily attributable to a decrease in the original number of individuals identified for termination and lower
than expected severance benefits.
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