Dell 2004 Annual Report Download - page 18

Table of Contents
ITEM 2 — PROPERTIES
As of January 28, 2005, Dell owned or leased a total of approximately 11.7 million square feet of office, manufacturing, and warehouse space worldwide,
approximately 7.3 million square feet of which is located in the U.S. and the remainder located in other countries. Dell believes that it can readily meet its
requirements for additional space at competitive rates by extending expiring leases or by finding alternative space.
Domestic Properties
Dell's principal offices are located in Round Rock, Texas (north of Austin), and its U.S. manufacturing facilities are located in Austin, Texas and Middle
Tennessee.
Dell owns approximately 340 acres of land in Round Rock, Texas, on which are located six office buildings. These buildings, comprising Dell's Round Rock
campus, contain an aggregate of approximately 2.1 million square feet of office and lab space. Dell's sales, marketing, and support staff for the Americas
region, as well as the corporate headquarters and support functions, are located on the Round Rock campus.
Dell also owns approximately 550 acres of land in Austin, Texas, referred to as the Parmer Campus. Approximately 2.0 million square feet of office, lab,
manufacturing, and distribution space are located on the campus, including office and lab buildings totaling 1.1 million square feet and manufacturing/
distribution facilities totaling 900,000 square feet. Approximately 220,000 square feet of the manufacturing/distribution space is currently leased to a third-
party.
Dell leases approximately 1.2 million square feet of space in Middle Tennessee. This includes a 355,000 square foot office building in Nashville, Tennessee
that houses sales, technical support, and administrative support; a 300,000 square foot manufacturing facility in Lebanon, Tennessee; and a 300,000 square
foot manufacturing facility in Nashville, Tennessee. Approximately 205,000 square feet of warehouse/distribution space is subleased to a third-party.
In addition to the campuses, Dell also leases approximately 1.9 million square feet of additional space, in various locations within the U.S. Approximately
790,000 square feet is used for manufacturing and distribution and 315,000 square feet houses customer-contact center and professional services sites. The
remaining 830,000 square feet of office and manufacturing space, with lease expiration dates ranging from March 2005 to December 2010, has been taken out
of service and has either been subleased or is being marketed for sale or sublease.
In November 2004, Dell announced that a new 500,000 square feet manufacturing facility would be constructed in North Carolina with production to begin in
late fiscal year 2006. In addition, Dell began operating a customer-contact center in Oklahoma City, Oklahoma in August 2004 and is currently constructing a
120,000 square feet facility in Oklahoma City on approximately 62 acres that will be operational later in fiscal year 2006.
International Properties
As of January 28, 2005, Dell's non-U.S. facilities consisted of approximately 4.4 million square feet of office and manufacturing space in approximately 43
countries. Approximately 2.5 million square feet of this space is leased property, with lease expiration dates ranging from February 2005 to June 2024. Dell
owns approximately 1.9 million square feet of space.
Dell has manufacturing and office facilities in Eldorado do Sul, Brazil; Limerick, Ireland; Penang, Malaysia; and Xiamen, China. Approximately
100,000 square feet is leased in Eldorado do Sul. Dell has approximately 865,000 square feet of office and manufacturing space in Ireland, the majority of
which is owned. Dell owns two facilities in Penang, Malaysia totaling 580,000 square feet of office and manufacturing space. Both facilities are located on
land leased from the State Authority of Penang. Dell owns approximately 367,000 square feet of office and manufacturing space in Xiamen,
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