EMC 2006 Annual Report Download - page 91
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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The target allocation of the assets in the plan as of December 31, 2006 was 70% equity securities and 30% debt securities.
The plan assets are managed by outside investment managers. Our investment strategy with respect to the plan is to maximize returns while preserving
principal.
The benefit payments are expected to be paid in the following years (table in thousands):
2007 $1,039
2008 910
2009 812
2010 636
2011 557
2012 - 2016 1,723
M. Commitments and Contingencies
Operating Lease Commitments
We lease office and warehouse facilities and equipment under various operating leases. Facility leases generally include renewal options. Rent expense
for 2006, 2005 and 2004 was as follows (table in thousands):
2006
2005
2004
Rent expense $ 234,341 $ 214,303 $ 207,111
Sublease proceeds (9,430) (7,940) (7,195)
Net rent expense $ 224,911 $ 206,363 $ 199,916
Our future lease commitments are as follows (table in thousands):
2007 $193,365
2008 152,895
2009 117,478
2010 74,943
2011 52,771
Thereafter 160,648
Total minimum lease payments $752,100
We have sublet certain of our office facilities. Non-cancelable sublease proceeds are as follows (table in thousands):
2007 $ 12,398
2008 10,026
2009 8,218
2010 5,201
2011 3,411
Thereafter 1,098
Total sublease proceeds $ 40,352
Outstanding Purchase Orders
At December 31, 2006 we had outstanding purchase orders aggregating approximately $1.5 billion. The purchase orders are for manufacturing and non-
manufacturing related goods and services. While the purchase orders are generally cancelable without penalty, certain vendor agreements provide for
percentage-based cancellation fees or minimum restocking charges based on the nature of the product or service.
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