Restructuring and Acquisition-Related Charges

For the three months ended March 31, 2015 and 2014, we incurred restructuring and acquisition-related charges of $135 million and $119 million, respectively. For the three months ended March 31, 2015, EMC incurred $111 million of restructuring charges, primarily related to our current year restructuring programs, and $1 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three months ended March 31, 2015, VMware incurred $22 million of restructuring charges, primarily related to its current year restructuring program, and $1 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three months ended March 31, 2014, EMC incurred $114 million of restructuring charges, primarily related to our 2014 restructuring programs, and VMware incurred $5 million of charges in connection with acquisitions for financial, advisory, legal and accounting services.

In the first quarter of 2015, EMC implemented a restructuring program to create further operational efficiencies which will result in workforce reductions of approximately 1,320 positions. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Enterprise Content Division and Pivotal segments. The program was substantially completed during the first quarter of 2015 and will be fully completed by the end of 2015.

In the first quarter of 2015, VMware eliminated approximately 350 positions across all major functional groups and geographies to streamline its operations. All of these actions are expected to be completed within a year of the start of the program.

During the first quarter of 2014, EMC implemented a restructuring program to create further operational efficiencies which resulted in a workforce reduction of approximately 1,326 positions. The actions impacted positions around the globe covering our Information Storage, RSA Information Security and Enterprise Content Division segments. All of these actions were completed within a year of the start of the program.

For the three months ended March 31, 2015 and 2014, we recognized $6 million and $5 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 2016.

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

Three Months Ended March 31, 2015:



2015 EMC Programs
Category	Balance as of December 31, 2014		2015 Charges		Utilization			Balance as of March 31, 2015
Workforce reductions	$	—	$	107	$	(11	)	$	96
Consolidation of excess facilities and other contractual obligations	—		6		—			6
Total	$	—	$	113	$	(11	)	$	102



Other EMC Programs
Category	Balance as of December 31, 2014		Adjustments to the Provision			Utilization			Balance as of March 31, 2015
Workforce reductions	$	102	$	(2	)	$	(39	)	$	61
Consolidation of excess facilities and other contractual obligations	19		—			(5		)	14
Total	$	121	$	(2	)	$	(44	)	$	75



VMware Programs
Category	Balance as of December 31, 2014		2015 Charges		Utilization			Balance as of March 31, 2015
Workforce reductions	$	8	$	22	$	(14	)	$	16
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	8	$	22	$	(14	)	$	16

Three Months Ended March 31, 2014:



2014 EMC Programs
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