VMware 2007 Annual Report Download - page 35

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Table of Contents
As of December 31, 2007, we owned or leased the facilities described below:
In August 2007, we used a portion of the net proceeds from our initial public offering of our Class A common stock to purchase our new
corporate headquarters facilities in Palo Alto from EMC for $132.6 million which is equal to the cost expended by EMC in the construction of
those facilities through the date of purchase. As of December 31, 2007, approximately 105,000 square feet remain under construction. Although
we own the building and improvements, the land is leased. The ground lease relating to our new corporate headquarters expires in 2057.
We believe that our current facilities, including our new headquarter facilities, are suitable for our current employee headcount, but we
intend to add new facilities or expand existing facilities as we add employees and expand our operations. We believe that suitable additional or
substitute space will be available as needed to accommodate expansion of our operations.
For further information regarding our lease obligations, see Note I to our Consolidated Financial Statements.
VMware is named from time to time as a party to lawsuits in the normal course of its business. In such cases it is our policy to defend
against such claims, or if considered appropriate, negotiate a settlement on commercially reasonable terms. However, no assurance can be given
that we will be able to negotiate settlements on commercially reasonable terms, or at all, or that any litigation resulting from such claims would
not have a material adverse effect on our consolidated financial position, liquidity, operating results, or our consolidated financial statements
taken as a whole.
No matter was submitted to a vote of our stockholders during the fourth quarter of 2007.
31
ITEM 2.
PROPERTIES
Location
Approximate
Sq. Ft*
Principal Use(s)
Palo Alto, CA
owned:
462,000
Executive and administrative offices, sales and marketing, and R&D
leased:
410,000
North and Latin American region
(excluding Palo Alto, CA)
leased:
244,000
Administrative offices, R&D, sales and marketing
Europe, Middle East and Africa region
leased:
196,000
Administrative offices, R&D, marketing
Asia Pacific region
leased:
129,000
R&D, marketing
*
Of the total square feet leased, approximately 320,000 square feet were under construction (primarily improvements to existing structures
prior to occupancy) as of December 31, 2007.
ITEM 3.
LEGAL PROCEEDINGS
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS