EMC 2005 Annual Report Download - page 86

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Our future lease commitments are as follows (table in thousands):
2006 $162,676
2007 119,526
2008 77,599
2009 59,224
2010 43,391
Thereafter 91,550
Total minimum lease payments $553,966
We have sublet certain of our office facilities. Non-cancelable sublease proceeds are as follows (table in thousands):
2006 $7,802
2007 4,638
2008 3,032
2009 2,771
2010 2,800
Thereafter 1,356
Total sublease proceeds $22,399
Outstanding Purchase Orders
At December 31, 2005 we had outstanding purchase orders aggregating approximately $1.1 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.
Line of Credit
We have available for use a credit line of $50.0 million in the United States. As of December 31, 2005, we had no borrowings outstanding on the line of
credit. The credit line bears interest at the bank's base rate and requires us, upon utilization of the credit line, to meet certain financial covenants with respect
to limitations on losses. In the event the covenants are not met, the lender may require us to provide collateral to secure the outstanding balance. At
December 31, 2005, we were in compliance with the covenants.
Guarantees and Indemnification Obligations
EMC's subsidiaries have entered into arrangements with financial institutions for such institutions to provide guarantees for rent, taxes, insurance,
leases, performance bonds, bid bonds and customs duties aggregating $61.9 million as of December 31, 2005. The guarantees vary in length of time. In
connection with these arrangements, we have agreed to guarantee substantially all of the guarantees provided by these financial institutions.
We enter into agreements in the ordinary course of business with, among others, customers, resellers, OEMs, systems integrators and distributors. Most
of these agreements require us to indemnify the other party against third party claims alleging that an EMC product infringes a patent and/or copyright. Most
of these agreements in which we license our trademarks to another party require us to indemnify the other party against third party claims alleging that an
EMC product infringes a trademark. Certain of these agreements require us to indemnify the other party against certain claims relating to property damage,
personal injury or the acts or omissions of EMC, its employees, agents or representatives. In addition, from time to time we have made certain guarantees
regarding the performance of our systems to our customers.
We have agreements with certain vendors, financial institutions, lessors and service providers pursuant to which we have agreed to indemnify the other
party for specified matters, such as acts and omissions of EMC, its employees, agents or representatives.
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