Restructuring and Acquisition-Related Charges

For the three months ended March 31, 2016 and 2015, we incurred restructuring and acquisition-related charges of $49 million and $135 million, respectively. For the three months ended March 31, 2016, EMC incurred a $5 million credit related to our prior restructuring programs. For the three months ended March 31, 2016, VMware incurred $53 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, 2015, EMC incurred $111 million of restructuring charges, primarily related to our 2015 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 2015 restructuring programs, and $1 million of charges in connection with acquisitions for financial, advisory, legal and accounting services.

In the first quarter of 2016, EMC did not commence any new restructuring programs. In the first quarter of 2016, VMware approved a plan to streamline its operations, with plans to reinvest the associated savings in field, technical and support resources associated with growth products. As a result, approximately 800 positions at VMware were eliminated during the three months ended March 31, 2016. All actions relating to VMware’s plan are expected to be completed within a year of the start of the program.

In the first quarter of 2015, EMC implemented restructuring programs to create further operational efficiencies which resulted in a workforce reduction of approximately 1,320 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. 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 were completed within a year of the start of the program.

For the three months ended March 31, 2016 and 2015, we recognized $5 million and $6 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 accruals are expected to be utilized by the end of 2018.

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

Three Months Ended March 31, 2016:



Other EMC Programs
Category	Balance as of December 31, 2015		2016 Charges			Utilization			Balance as of March 31, 2016
Workforce reductions	$	322	$	(10	)	$	(99	)	$	213
Consolidation of excess facilities and other contractual obligations	20		5			(3		)	22
Total	$	342	$	(5	)	$	(102	)	$	235



VMware Programs
Category	Balance as of December 31, 2015		2016 Charges		Utilization			Balance as of March 31, 2016
Workforce reductions	$	3	$	50	$	(26	)	$	27
Consolidation of excess facilities and other contractual obligations	—		3		—			3
Total	$	3	$	53	$	(26	)	$	30

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