Restructuring and Acquisition-Related Charges

For the three and nine months ended September 30, 2015, we incurred restructuring and acquisition-related charges of $68 million and $226 million, respectively. For the three and nine months ended September 30, 2014, we incurred restructuring and acquisition-related charges of $39 million and $187 million, respectively. For the three and nine months ended September 30, 2015, EMC incurred $66 million and $200 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and $1 million and $4 million, respectively, of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the nine months ended September 30, 2015, VMware incurred $20 million of restructuring charges, primarily related to its current year restructuring program. For the three and nine months ended September 30, 2015, VMware incurred $1 million and $2 million, respectively, of charges in connection with acquisitions for financial, advisory, legal and accounting services.

For the three and nine months ended September 30, 2014, EMC incurred $31 million and $175 million, respectively, of restructuring charges, primarily related to our 2014 restructuring programs, and during the three and nine months ended September 30, 2014, EMC incurred $2 million and $3 million, respectively, of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three and nine months ended September 30, 2014, VMware incurred $6 million and $4 million, respectively, of restructuring charges, primarily related to its 2014 restructuring programs. For the nine months ended September 30, 2014, VMware incurred $5 million of charges in connection with acquisitions for financial, advisory, legal and accounting services.

In the first, second and third quarters of 2015, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of approximately 1,320, 160 and 680 positions, respectively. The actions will impact positions around the globe covering our Information Storage, RSA Information Security, Enterprise Content Division and Pivotal segments. All of these actions are expected to be completed within a year of the start of the program.

During 2014, EMC implemented restructuring programs to create further operational efficiencies which resulted in a workforce reduction of approximately 2,100 positions, of which 1,320, 210 and 240 positions were identified in the first, second and third quarters of 2014, respectively. 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.

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 third quarter of 2014, VMware eliminated approximately 90 positions across all major functional groups and geographies to streamline its operations.

For the three and nine months ended September 30, 2015, we recognized $5 million and $22 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 nine months ended September 30, 2014, we recognized $2 million and $10 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 September 30, 2015:



2015 EMC Programs
Category	Balance as of June 30, 2015		2015 Charges		Utilization			Balance as of September 30, 2015
Workforce reductions	$	89	$	62	$	(33	)	$	118
Consolidation of excess facilities and other contractual obligations	12		6		(3		)	15
Total	$	101	$	68	$	(36	)	$	133



Other EMC Programs
Category	Balance as of June 30, 2015		Adjustments to the Provision			Utilization			Balance as of September 30, 2015
Workforce reductions	$	43	$	(1	)	$	(14	)	$	28
Consolidation of excess facilities and other contractual obligations	13		(1		)	(1		)	11
Total	$	56	$	(2	)	$	(15	)	$	39

Nine Months Ended September 30, 2015:



2015 EMC Programs
Category	Balance as of December 31, 2014		2015 Charges		Utilization			Balance as of September 30, 2015
Workforce reductions	$	—	$	185	$	(67	)	$	118
Consolidation of excess facilities and other contractual obligations	—		23		(8		)	15
Total	$	—	$	208	$	(75	)	$	133



Other EMC Programs
Category	Balance as of December 31, 2014		Adjustments to the Provision			Utilization			Balance as of September 30, 2015
Workforce reductions	$	102	$	(7	)	$	(67	)	$	28
Consolidation of excess facilities and other contractual obligations	19		(1		)	(7		)	11
Total	$	121	$	(8	)	$	(74	)	$	39



VMware Programs
Category	Balance as of December 31, 2014		2015 Charges		Utilization			Balance as of September 30, 2015
Workforce reductions	$	8	$	20	$	(27	)	$	1
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	8	$	20	$	(27	)	$	1

Three Months Ended September 30, 2014:



2014 EMC Programs
Category	Balance as of June 30, 2014		2014 Charges		Utilization			Balance as of September 30, 2014
Workforce reductions	$	98	$	30	$	(33	)	$	95
Consolidation of excess facilities and other contractual obligations	3		2		(2		)	3
Total	$	101	$	32	$	(35	)	$	98



Other EMC Programs
Category	Balance as of June 30, 2014		Adjustments to the Provision			Utilization			Balance as of September 30, 2014
Workforce reductions	$	17	$	(1	)	$	(6	)	$	10
Consolidation of excess facilities and other contractual obligations	18		—			(1		)	17
Total	$	35	$	(1	)	$	(7	)	$	27

Nine Months Ended September 30, 2014:



2014 EMC Programs
Category	Balance as of December 31, 2013		2014 Charges		Utilization			Balance as of September 30, 2014
Workforce reductions	$	—	$	179	$	(84	)	$	95
Consolidation of excess facilities and other contractual obligations	—		7		(4		)	3
Total	$	—	$	186	$	(88	)	$	98



Other EMC Programs
Category	Balance as of December 31, 2013		Adjustments to the Provision			Utilization			Balance as of September 30, 2014
Workforce reductions	$	66	$	(14	)	$	(42	)	$	10
Consolidation of excess facilities and other contractual obligations	24		3			(10		)	17
Total	$	90	$	(11	)	$	(52	)	$	27