EMC 2008 Annual Report Download - page 95

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Our future lease commitments as of December 31, 2008 are as follows (table in thousands):
2009 $171,057
2010 129,295
2011 100,628
2012 74,182
2013 56,220
Thereafter 363,005
Total minimum lease payments $894,387
We sublet certain of our office facilities. Expected future non-cancelable sublease proceeds as of December 31, 2008 are as follows (table in thousands):
2009 $ 9,042
2010 5,766
2011 4,212
2012 1,879
2013 —
Thereafter —
Total sublease proceeds $20,899
Outstanding Purchase Orders
At December 31, 2008, we had outstanding purchase orders aggregating approximately $1.4 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, 2008, 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, 2008, 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 $67.7 million as of December 31, 2008. 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.
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