EMC 2009 Annual Report Download - page 77

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
We sublet certain of our office facilities. Expected future non-cancelable sublease proceeds as of December 31, 2009 are as follows (table in
thousands):
2010 $ 6,114
2011 4,237
2012 1,887
2013 —
2014 —
Thereafter —
Total sublease proceeds $12,238
Outstanding Purchase Orders
At December 31, 2009, we had outstanding purchase orders aggregating approximately $1.6 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, 2009, 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, 2009, 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 $70.0 million as of December 31, 2009. 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.
Certain agreements in which we grant limited licenses to specific EMC-trademarks require us to indemnify the other party against third-party claims alleging
that the use of the licensed trademark infringes a third-party 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.
We have procurement or license agreements with respect to technology that is used in our products and agreements in which we obtain rights to a
product from an OEM. Under some of these agreements, we have agreed to indemnify the supplier for certain claims that may be brought against such party
with respect to our acts or omissions relating to the supplied products or technologies.
We have agreed to indemnify the directors, executive officers and certain other officers of EMC and our subsidiaries, to the extent legally permissible,
against all liabilities reasonably incurred in connection with any action in which such individual may be involved by reason of such individual being or having
been a director or officer.
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