Restructuring and Acquisition-Related Charges

For the three months ended March 31, 2014 and 2013, we incurred restructuring and acquisition-related charges of $119 million and $148 million, respectively. For the three months ended March 31, 2014, EMC incurred $114 million of restructuring charges, primarily related to our current year restructuring programs and VMware incurred $5 million of charges for financial, advisory, legal and accounting services in connection with acquisitions. For the three months ended March 31, 2013, EMC incurred $82 million of restructuring charges, primarily related to our 2013 restructuring programs, and $2 million of costs for financial, advisory, legal and accounting services in connection with acquisitions. For the three months ended March 31, 2013, VMware incurred $54 million of restructuring charges, primarily related to the 2013 restructuring program, $1 million of costs for financial, advisory, legal and accounting services in connection with acquisitions and $9 million of impairment charges related to its business realignment.

In the first quarter of 2014, EMC implemented a restructuring program to create further operational efficiencies which will result in workforce reductions of approximately 1,326 positions. The actions will impact positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments, and is expected to result in a total charge of approximately $126 million, with total cash payments associated with the plan expected to be approximately $118 million. All of these actions are expected to be completed within a year of the start of the program.

During the first quarter of 2013, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of 1,004 positions. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Information Intelligence Group segments. All of these actions were completed within a year of the start of the program.

During the first quarter of 2013, VMware approved and initiated a business realignment plan to streamline its operations. The plan included the elimination of approximately 710 positions across all major functional groups and geographies. All of these actions were completed within a year of the start of the program.

For the three months ended March 31, 2014 and 2013, we recognized $5 million and $7 million, respectively, of lease termination costs for facilities vacated in the period in accordance with our plan as part of all of our restructuring programs and for costs associated with terminating other contractual obligations. These costs are expected to be utilized by the end of 2015.

The activity for the restructuring programs is presented below (tables in millions):

Three Months Ended March 31, 2014:



2014 EMC Program
Category	Balance as of December 31, 2013		2014 Charges		Utilization			Balance as of March 31, 2014
Workforce reductions	$	—	$	117	$	(15	)	$	102
Consolidation of excess facilities and other contractual obligations	—		2		(1		)	1
Total	$	—	$	119	$	(16	)	$	103



Other EMC Programs
Category	Balance as of December 31, 2013		Adjustments to the Provision			Utilization			Balance as of March 31, 2014
Workforce reductions	$	66	$	(8	)	$	(21	)	$	37
Consolidation of excess facilities and other contractual obligations	24		3			(7		)	20
Total	$	90	$	(5	)	$	(28	)	$	57

Three Months Ended March 31, 2013:



2013 EMC Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of March 31, 2013
Workforce reductions	$	—	$	79	$	(13	)	$	66
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	—	$	79	$	(13	)	$	66



2013 VMware Programs
Category	Balance as of December 31, 2012		2013 Charges		Utilization			Balance as of March 31, 2013
Workforce reductions	$	—	$	54	$	(28	)	$	26
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	—	$	54	$	(28	)	$	26



Other EMC Programs
Category	Balance as of December 31, 2012		Adjustments to the Provision			Utilization			Balance as of March 31, 2013
Workforce reductions	$	63	$	(4	)	$	(12	)	$	47
Consolidation of excess facilities and other contractual obligations	28		7			(5		)	30
Total	$	91	$	3		$	(17	)	$	77