EMC 2008 Annual Report Download - page 35

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Table of Contents
2006
Category Initial
Provision Utilization Ending Balance
Non-Cash
Portion of the
Provision
Workforce reductions $ 129.4 $ (1.5) $ 127.8 $ 10.7
Asset impairment 29.7 (29.7) — 29.7
Consolidation of excess facilities 5.7 (0.2) 5.5 —
Contractual and other obligations 10.9 (6.1) 4.8 —
Total $ 175.7 $ (37.5) $ 138.2 $ 40.4
The adjustment to the provision in 2008 and 2007 includes changes for finalizing severance agreements, particularly in international locations and
estimated changes in severance amounts for employees that had not yet been terminated.
The remaining cash portion owed for the 2007 and 2006 restructuring programs is $10.8. The cash expenditures relating to workforce reductions are
expected to be substantially paid by the end of 2009. The cash expenditures relating to consolidation of excess facilities are expected to be paid out through
2018.
Prior Year Restructuring Programs
Prior to 2006, we had instituted several restructuring programs. The activity for these programs for the years ended December 31, 2008, 2007 and 2006 is
presented below:
2008
Category Beginning
Balance Adjustments to
the Provision Utilization Ending Balance
Workforce reduction $ 1.3 $ (2.1) $ 2.7 $ 1.8
Consolidation of excess facilities 25.7 2.6 (9.7) 18.6
Other contractual obligations 0.8 — — 0.9
Total $ 27.8 $ 0.5 $ (7.1) $ 21.2
2007
Category Beginning
Balance Adjustments to
the Provision Utilization Ending Balance
Workforce reduction $ 19.2 $ — $ (17.9) $ 1.3
Consolidation of excess facilities 40.2 (3.3) (11.2) 25.7
Other contractual obligations 1.9 0.2 (1.2) 0.8
Total $ 61.4 $ (3.2) $ (30.4) $ 27.8
2006
Category Beginning
Balance Adjustments to
the Provision Utilization Ending Balance
Workforce reduction $ 86.8 $ (5.0) $ (62.6) $ 19.2
Consolidation of excess facilities 65.4 (8.4) (16.8) 40.2
Other contractual obligations 2.4 0.3 (0.7) 1.9
Total $ 154.6 $ (13.1) $ (80.2) $ 61.4
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. These 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.
31