Restructuring and Acquisition-Related Charges

For the three and six months ended June 30, 2015, we incurred restructuring and acquisition-related charges of $23 million and $158 million, respectively. 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, 2015, EMC incurred $23 million and $133 million, respectively, of restructuring charges, primarily related to our current year restructuring programs, and $2 million and $3 million, respectively, of charges in connection with acquisitions for financial, advisory, legal and accounting services. For the three months ended June 30, 2015, VMware recognized an immaterial credit of $2 million related to its restructuring program, and for the six months ended June 30, 2015, VMware incurred $21 million of restructuring charges, primarily related to its current year restructuring program. For the six months ended June 30, 2015, VMware incurred $1 million of charges in connection with acquisitions for financial, advisory, legal and accounting services. 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 2014 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 both the three and six months ended June 30, 2014, VMware recognized a recovery of $1 million related to its restructuring programs. 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.

In the first and second quarters of 2015, EMC implemented restructuring programs to create further operational efficiencies which will result in workforce reductions of 1,320 and 160 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.

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 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 and 210 positions were identified in the first and second 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.

For the three and six months ended June 30, 2015, we recognized $10 million and $16 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, 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. 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 June 30, 2015:



2015 EMC Programs
Category	Balance as of March 31, 2015		2015 Charges		Utilization			Balance as of June 30, 2015
Workforce reductions	$	96	$	17	$	(24	)	$	89
Consolidation of excess facilities and other contractual obligations	6		10		(4		)	12
Total	$	102	$	27	$	(28	)	$	101



Other EMC Programs
Category	Balance as of March 31, 2015		Adjustments to the Provision			Utilization			Balance as of June 30, 2015
Workforce reductions	$	61	$	(4	)	$	(14	)	$	43
Consolidation of excess facilities and other contractual obligations	14		—			(1		)	13
Total	$	75	$	(4	)	$	(15	)	$	56



VMware Programs
Category	Balance as of March 31, 2015		Adjustments to the Provision			Utilization			Balance as of June 30, 2015
Workforce reductions	$	16	$	(2	)	$	(12	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—			—			—
Total	$	16	$	(2	)	$	(12	)	$	2

Six Months Ended June 30, 2015:



2015 EMC Programs
Category	Balance as of December 31, 2014		2015 Charges		Utilization			Balance as of June 30, 2015
Workforce reductions	$	—	$	123	$	(34	)	$	89
Consolidation of excess facilities and other contractual obligations	—		16		(4		)	12
Total	$	—	$	139	$	(38	)	$	101



Other EMC Programs
Category	Balance as of December 31, 2014		Adjustments to the Provision			Utilization			Balance as of June 30, 2015
Workforce reductions	$	102	$	(6	)	$	(53	)	$	43
Consolidation of excess facilities and other contractual obligations	19		—			(6		)	13
Total	$	121	$	(6	)	$	(59	)	$	56



VMware Programs
Category	Balance as of December 31, 2014		2015 Charges		Utilization			Balance as of June 30, 2015
Workforce reductions	$	8	$	21	$	(27	)	$	2
Consolidation of excess facilities and other contractual obligations	—		—		—			—
Total	$	8	$	21	$	(27	)	$	2

Three Months Ended June 30, 2014:



2014 EMC Programs
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 Programs
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