XML 77 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Restructuring and Acquisition-Related Charges
6 Months Ended
Jun. 30, 2014
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
For the three and six months ended June 30, 2014, we incurred restructuring and acquisition-related charges of $30 million and $149 million, respectively. For the three and six months ended June 30, 2013, we incurred restructuring and acquisition-related charges of $7 million and $155 million, respectively. For the three and six months ended June 30, 2014, EMC incurred $29 million and $144 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and during both the three and six months ended June 30, 2014, EMC incurred $2 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For each of the three and six months ended June 30, 2014, VMware recognized a recovery of $1 million related to its restructuring program. For the six months ended June 30, 2014, VMware incurred $4 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three and six months ended June 30, 2013, EMC incurred $4 million and $85 million, respectively, of restructuring charges, primarily related to our 2013 restructuring programs. For the three and six months ended June 30, 2013, VMware incurred $2 million and $56 million, respectively, of restructuring charges, primarily related to the 2013 restructuring program. For the six months ended June 30, 2013, EMC incurred $3 million and VMware incurred $1 million of costs for financial, advisory, legal and accounting services in connection with acquisitions. Additionally, during the three and six months ended June 30, 2013, VMware incurred $1 million and $10 million, respectively, of impairment charges related to its business realignment.

In the first and second quarters of 2014, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of approximately 1,326 and 210 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Information Intelligence Group and Pivotal segments. All of these actions are expected to be completed within a year of the start of the program.

During 2013, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of 1,917 positions, of which 1,004 positions were identified in the first and second quarters of 2013. 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 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 and six months ended June 30, 2014, we recognized $4 million and $8 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. For the three and six months ended June 30, 2013, we recognized $5 million and $12 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. 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 June 30, 2014:
2014 EMC Program
 
 
 
 
 
 
 
Category
Balance as of
March 31,
2014
 
2014
Charges
 
Utilization
 
Balance as of June 30, 2014
Workforce reductions
$
102

 
$
32

 
$
(36
)
 
$
98

Consolidation of excess facilities and other contractual obligations
1

 
4

 
(2
)
 
3

Total
$
103

 
$
36

 
$
(38
)
 
$
101

Other EMC Programs
 
 
 
 
 
 
 
Category
Balance as of
March 31,
2014
 
Adjustments to the Provision
 
Utilization
 
Balance as of June 30, 2014
Workforce reductions
$
37

 
$
(7
)
 
$
(13
)
 
$
17

Consolidation of excess facilities and other contractual obligations
20

 

 
(2
)
 
18

Total
$
57

 
$
(7
)
 
$
(15
)
 
$
35


Six Months Ended June 30, 2014:
2014 EMC Program
 
 
 
 
 
 
 
Category
Balance as of
December 31,
2013
 
2014
Charges
 
Utilization
 
Balance as of June 30, 2014
Workforce reductions
$

 
$
149

 
$
(51
)
 
$
98

Consolidation of excess facilities and other contractual obligations

 
6

 
(3
)
 
3

Total
$

 
$
155

 
$
(54
)
 
$
101

Other EMC Programs
 
 
 
 
 
 
 
Category
Balance as of
December 31,
2013
 
Adjustments to the Provision
 
Utilization
 
Balance as of June 30, 2014
Workforce reductions
$
66

 
$
(13
)
 
$
(36
)
 
$
17

Consolidation of excess facilities and other contractual obligations
24

 
2

 
(8
)
 
18

Total
$
90

 
$
(11
)
 
$
(44
)
 
$
35

Three Months Ended June 30, 2013:
2013 EMC Programs
 
 
 
 
 
 
 
Category
Balance as of
March 31,
2013
 
2013
Charges
 
Utilization
 
Balance as of June 30, 2013
Workforce reductions
$
66

 
$
2

 
$
(23
)
 
$
45

Consolidation of excess facilities and other contractual obligations

 
3

 
(1
)
 
2

Total
$
66

 
$
5

 
$
(24
)
 
$
47

2013 VMware Programs
 
 
 
 
 
 
 
Category
Balance as of
March 31,
2013
 
2013
Charges
 
Utilization
 
Balance as of June 30, 2013
Workforce reductions
$
26

 
$
2

 
$
(26
)
 
$
2

Consolidation of excess facilities and other contractual obligations

 

 

 

Total
$
26

 
$
2

 
$
(26
)
 
$
2

Other EMC Programs
 
 
 
 
 
 
 
Category
Balance as of
March 31,
2013
 
Adjustments to the Provision
 
Utilization
 
Balance as of June 30, 2013
Workforce reductions
$
46

 
$
(3
)
 
$
(14
)
 
$
29

Consolidation of excess facilities and other contractual obligations
30

 
2

 
(5
)
 
27

Total
$
76

 
$
(1
)
 
$
(19
)
 
$
56


Six Months Ended June 30, 2013:
2013 EMC Programs
 
 
 
 
 
 
 
Category
Balance as of
December 31,
2012
 
2013
Charges
 
Utilization
 
Balance as of June 30, 2013
Workforce reductions
$

 
$
81

 
$
(36
)
 
$
45

Consolidation of excess facilities and other contractual obligations

 
3

 
(1
)
 
2

Total
$

 
$
84

 
$
(37
)
 
$
47

2013 VMware Programs
 
 
 
 
 
 
 
Category
Balance as of
December 31,
2012
 
2013
Charges
 
Utilization
 
Balance as of June 30, 2013
Workforce reductions
$

 
$
56

 
$
(54
)
 
$
2

Consolidation of excess facilities and other contractual obligations

 

 

 

Total
$

 
$
56

 
$
(54
)
 
$
2

Other EMC Programs
 
 
 
 
 
 
 
Category
Balance as of
December 31,
2012
 
Adjustments to the Provision
 
Utilization
 
Balance as of June 30, 2013
Workforce reductions
$
63

 
$
(8
)
 
$
(26
)
 
$
29

Consolidation of excess facilities and other contractual obligations
28

 
9

 
(10
)
 
27

Total
$
91

 
$
1

 
$
(36
)
 
$
56