EMC 2008 Annual Report Download - page 21

Table of Contents
ITEM 2. PROPERTIES
As of December 31, 2008, we owned or leased the facilities described below:
Location Approximate Sq. Ft.* Principal Use(s) Principal Segment(s)
Hopkinton, MA owned: 1,681,000 executive and administrative offices, R&D, customer
service and sales
Information Storage, Content
Mgmt. & Archiving
Franklin, MA owned:
leased:
922,000
96,000
manufacturing Information Storage
Bedford, MA leased: 328,000 R&D, customer service, sales and administrative offices RSA Information Security
Apex, NC owned: 391,000 manufacturing Information Storage
Palo Alto, CA owned:
leased:
462,000
371,000
executive and administrative offices, R&D and sales VMware Virtual Infrastructure
Other North American Locations owned:
leased:
854,000
3,941,000
executive and administrative offices, sales, customer
service and R&D
**
Asia Pacific leased: 1,230,000 sales, customer service and R&D **
Cork, Ireland owned:
leased:
578,000
75,000
manufacturing, customer service, R&D and administrative
offices
**
Europe, Middle East and Africa
(excluding Cork, Ireland)
owned:
leased:
32,000
1,446,000
sales, manufacturing, customer service and R&D **
Latin American leased: 95,000 sales and customer service **
Of the total square feet owned and leased, approximately 619,000 square feet was vacant and 710,000 square feet was leased or subleased to non-EMC
businesses.
All segments of our business generally utilize these facilities.
We also own land in Massachusetts and Ireland for possible future expansion purposes. We believe our existing facilities are suitable and adequate for
our present purposes. For further information regarding our lease obligations, see Note M to our Consolidated Financial Statements.
ITEM 3. LEGAL PROCEEDINGS
We are a party to litigation which we consider routine and incidental to our business. Management does not expect the results of any of these actions to
have a material adverse effect on our business, results of operations or financial condition.
We have learned that the Civil Division of the United States Department of Justice (the "DoJ") is investigating allegations concerning (i) EMC's fee
arrangements with systems integrators and other partners in federal government transactions, and (ii) EMC's compliance with the terms and conditions of
certain agreements pursuant to which we sold products and services to the federal government, including potential violations of the False Claims Act. The
subject matter of this investigation also overlaps with that of a previous audit by the U.S. General Services Administration ("GSA") concerning our
recordkeeping and pricing practices under a schedule agreement we entered into with GSA in November 1999 which, following several extensions, expired in
June 2007. We have cooperated with both the audit and the DoJ investigation, voluntarily providing documents and information, and have engaged in
discussions aimed at resolving this matter without any admission or finding of liability on the part of EMC. We believe that we have meritorious factual and
legal defenses to the allegations raised and, if the matter is not resolved and proceeds to litigation, we intend to defend vigorously. If the matter proceeds to
litigation, possible sanctions include an award of damages, including treble damages, fines, penalties and other sanctions, including suspension or debarment
from sales to the federal government.
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