VMware 2009 Annual Report Download - page 38

Table of Contents
None.
As of December 31, 2009, we owned or leased the facilities described below:
In April 2008, VMware entered into an agreement to lease space for a Washington data center facility. The lease has a term of 16 years
with a termination option at the end of the tenth year and the option to take over additional building space. As of December 31, 2009,
construction of the portions previously under construction had been completed, while as of December 31, 2008, approximately 30,000 square
feet remained under construction. For accounting purposes, VMware is considered to be the owner of the data center. See Note E to our
consolidated financial statements.
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, California from EMC Corporation (“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, 2009 construction had been
completed, while as of December 31, 2008, approximately 18,000 square feet remained 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 are suitable for our current employee headcount and will sustain us through 2010, 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.
VMware is named from time to time as a party to lawsuits in the normal course of 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 results of operations, financial position, and cash flows, or consolidated financial statements taken
as a whole.
On December 22, 2009, our sole Class B common stockholder, EMC, authorized the aggregate size of our equity grants for January and
February 2010 in accordance with our Amended and Restated Certificate of Incorporation, in an action by written consent pursuant to
Section 228 of the Delaware General Corporation Law.
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ITEM 1B.
UNRESOLVED STAFF COMMENTS
ITEM 2.
PROPERTIES
Location
Approximate
Sq. Ft.*
Principal Use(s)
Palo Alto, CA
owned:
462,000
Executive and administrative offices, sales and
leased:
371,000
marketing, R&D, and data center
North and Latin American region
(excluding Palo Alto, CA)
leased:
425,000
Administrative offices, sales and marketing, R&D, and data
center
Europe, Middle East and Africa region
leased:
294,000
Administrative offices, sales and marketing, and
R&D
Asia Pacific region
leased:
267,000
Administrative offices, sales and marketing, and
R&D
*
Of the total square feet leased, approximately 161,000 square feet were under construction as of December 31, 2009.
ITEM 3.
LEGAL PROCEEDINGS
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS