EMC 2010 Annual Report Download - page 71
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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
to meet their contractual obligation. We assess the credit scores for our customers each quarter. In addition, we consider our historical experience, the age of
the receivable and current market and economic conditions. Uncollectible amounts are charged against the allowance account.
In the event we determine that a lease may not be paid, we include in our allowance an amount for the outstanding balance related to the lease
receivable. As of December 31, 2010, amounts from lease receivables past due for more than 90 days was not material to notes receivable.
The following table presents the activity of our allowance for credit losses related to lease receivables for the years ended December 31, 2010 and 2009
(table in thousands):
December 31,
2010
December 31,
2009
Beginning Balance $ 40,199 $ 28,269
Recoveries (25,171) (9,801)
Provisions 29,633 21,731
Ending Balance $ 44,661 $ 40,199
Gross lease receivables totaled $278.4 million and $182.5 million in 2010 and 2009, respectively, before the allowance. The components of these
balances were individually evaluated for impairment by management.
In 2009, we entered into term loan agreements with Quantum Corporation ("Quantum"), pursuant to which Quantum borrowed $121.7 million from us.
The agreements required quarterly interest payments at a rate of 12% per annum. The scheduled maturity date of the loans was September 30, 2014, with the
exception of $21.7 million which was to be due December 31, 2011. These notes were paid in full by Quantum in the fourth quarter of 2010.
I. Property, Plant and Equipment
Property, plant and equipment consist of (table in thousands):
December 31,
2010
December 31,
2009
Furniture and fixtures $ 251,159 $ 229,006
Equipment 4,025,813 3,447,209
Buildings and improvements 1,580,595 1,427,656
Land 115,899 122,260
Building construction in progress 98,345 91,501
6,071,811 5,317,632
Accumulated depreciation (3,543,379) (3,093,286)
$ 2,528,432 $ 2,224,346
Depreciation expense was $595.3 million, $565.5 million and $561.1 million in 2010, 2009 and 2008, respectively.
J. Accrued Expenses
Accrued expenses consist of (table in thousands):
December 31,
2010
December 31,
2009
Salaries and benefits $ 861,434 $ 742,748
Standard product warranties 236,131 271,594
Restructuring (See Note P) 81,764 105,760
Other 910,706 824,108
$ 2,090,035 $ 1,944,210
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