EMC 2007 Annual Report Download - page 76

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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Prior Year Restructuring Programs
Prior to 2005, we had instituted several restructuring programs. The activity for these 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 reduction $ 1,176 $ (41) $ (345) $ 790
Consolidation of excess facilities 40,085 (3,148) (11,227) 25,710
Other contractual obligations 1,916 152 (1,238) 830
Total $ 43,177 $ (3,037) $(12,810) $27,330
2006
Category
Beginning
Balance
Adjustments to
the Provision Utilization
Ending
Balance
Workforce reduction $ 7,038 $ (2,677) $ (3,185) $ 1,176
Consolidation of excess facilities 65,414 (8,498) (16,831) 40,085
Other contractual obligations 2,378 278 (740) 1,916
Total $ 74,830 $ (10,897) $(20,756) $43,177
2005
Category
Beginning
Balance
Adjustments to
the Provision Utilization
Ending
Balance
Workforce reduction $ 19,680 $ (1,725) $(10,917) $ 7,038
Consolidation of excess facilities 92,943 1,623 (29,152) 65,414
Other contractual obligations 2,639 (244) (17) 2,378
Total $115,262 $ (346) $(40,086) $74,830
The reductions to the provisions in 2007 and 2006 for excess facilities were a result of lower than expected costs associated with vacating leased
facilities. The prior year restructuring programs impacted the Information Storage and Content Management and Archiving segments. The remaining liability
for the consolidation of excess facilities is expected to be paid through 2015.
As we continue to refine our business model, we will reassess our cost structure and asset deployment to assess whether additional changes are
necessary. Should we determine that additional restructuring programs will benefit our business, we may incur additional charges. If customer demands for
product changes, we may be required to write down the value of assets. Additionally, changes in our business model or market conditions could cause
goodwill or other assets to be impaired.
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