EMC 2010 Annual Report Download - page 90

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The activity for each charge is as follows:
Restructuring Programs
The activity for the restructuring programs is presented below (table in thousands):
2010
Fourth Quarter 2010 Program Beginning
Balance
2010
Charges Utilization
Ending
Balance
Category
Workforce reductions $ — $ 37,848 $ (1,903) $ 35,945
Total $ — $ 37,848 $ (1,903) $ 35,945
Other Programs Beginning
Balance
2010
Charges Utilization
Ending
Balance
Category
Workforce reductions $ 87,238 $ 7,207 $ (76,444) $ 18,001
Consolidation of excess facilities and other contractual obligations 18,522 31,607 (22,311) 27,818
Total $ 105,760 $ 38,814 $ (98,755) $ 45,819
2009 Beginning
Balance
2009
Charges Utilization
Ending
Balance
Category
Workforce reductions $ 200,599 $ 55,090 $ (168,451) $ 87,238
Abandoned and impaired assets — 6,203 (6,203) —
Consolidation of excess facilities and other contractual obligations 24,105 27,131 (32,714) 18,522
Total $ 224,704 $ 88,424 $ (207,368) $ 105,760
The remaining cash portion owed for these programs in 2011 is approximately $62.9 million, plus an additional $34.9 million over the period from
2012 and beyond. In connection with our restructuring program approved in the fourth quarter of 2008, we established a plan to exit facilities in future years.
As we exit the facilities, we will recognize the related restructuring cost which will be $21.2 million in 2011 and $8.0 million over the period from 2012 to
2015.
Q. Related Party Transactions
In 2010, 2009 and 2008, we leased certain real estate from a company owned by a member of our Board of Directors and such Director's siblings, for
which payments aggregated approximately $4.8 million, $4.8 million and $4.1 million, respectively. Such lease was initially assumed by us as a result of our
acquisition of Data General in 1999 and renewed in 2003 for a ten-year term. We are currently in the process of vacating the facility and do not intend to
renew the lease upon its expiration.
In accordance with its written policy and procedures relating to related person transactions, EMC's Audit Committee has approved each of the above
transactions occurring since the policy's adoption.
EMC is a large global organization which engages in thousands of purchase, sales and other transactions annually. We enter into purchase and sales
transactions with other publicly- and privately-held companies, universities, hospitals and not-for-profit organizations with which members of our Board of
Directors or executive officers are affiliated. We enter into these arrangements in the ordinary course of our business.
From time to time, we make strategic investments in privately-held companies that develop software, hardware and other technologies or provide
services supporting our technologies. We may purchase from or make sales to these organizations.
We believe that the terms of each of these arrangements described above were fair and not less favorable to us than could have been obtained from
unaffiliated parties.
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