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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
related unrecognized tax benefits could change from those recorded in the statement of financial position. It is possible that one or more of these
audits may be finalized within the next twelve months. However, based on the status of examinations, and the protocol of finalizing audits, it is
not possible to estimate the impact of such changes, if any, to the previously recorded uncertain tax positions.
L. Commitments and Contingencies
Litigation
From time to time, VMware is subject to legal, administrative and regulatory proceedings, claims, demands and investigations in the
is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. These accruals are
reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information
and events pertaining to a particular matter. As of December 31, 2011 , 2010 and 2009 , the amounts accrued were not material. To the extent
there is a reasonable possibility that the losses could exceed the amounts already accrued, management believes that the amount of any such
additional loss would also be immaterial to VMware’s consolidated financial position and results of operations.
Operating Lease Commitments
VMware leases office facilities and equipment under various operating leases. Facility leases generally include renewal options. Rent
expense for the years ended December 31, 2011 , 2010 and 2009 was $56.4 million , $46.4 million and $41.2 million , respectively. VMware’s
future lease commitments at December 31, 2011 were as follows (table in thousands):
The amount of the future lease commitments after 2016 is primarily for the ground lease on VMware’s Palo Alto, California headquarter
facilities, which expire in 2046 . As several of VMware’s operating leases are payable in foreign currencies, the operating lease payments may
fluctuate in response to changes in the exchange rate between the U.S. Dollar and the foreign currencies in which the commitments are payable .
Outstanding Obligations
At December 31, 2011 , VMware had various contractual commitments aggregating $56.5 million , primarily relating to VMware’s
Washington data center facility.
Guarantees and Indemnification Obligations
VMware enters into agreements in the ordinary course of business with, among others, customers, distributors, resellers, system vendors and
systems integrators. Most of these agreements require VMware to indemnify the other party against third-party claims alleging that a VMware
product infringes or misappropriates a patent, copyright, trademark, trade secret, and/or other intellectual property right. Certain of these
agreements require VMware to indemnify the other party against certain claims relating to property damage, personal injury, or the acts or
omissions of VMware, its employees, agents, or representatives.
VMware has agreements with certain vendors, financial institutions, lessors and service providers pursuant to which VMware has agreed to
indemnify the other party for specified matters, such as acts and omissions of VMware, its employees, agents, or representatives.
VMware has procurement or license agreements with respect to technology that it has obtained the right to use in VMware’s products and
agreements. Under some of these agreements, VMware has agreed to indemnify the supplier for certain claims that may be brought against such
party with respect to VMware’s acts or omissions relating to the supplied products or technologies.
83
2012
$
56,235
2013
49,871
2014
35,943
2015
25,500
2016
22,208
Thereafter
544,963
Total minimum lease payments
$
734,720