VMware 2012 Annual Report Download - page 37

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Table of Contents
____________________________
In 2011, VMware purchased all of the right, title and interest in a ground lease covering the property and improvements located adjacent to
VMware’s existing Palo Alto, California campus for $225.0 million . Concurrent with the closing of the transaction, VMware entered into an
amended and restated ground lease for the new property which expires in 2046 . VMware will possess the title to the interest and buildings
during the duration of the lease. Upon termination of the lease, all title will revert to the lessor. As of December 31, 2012 , 544,000 square feet
remained under construction at this campus. See Note G to the consolidated financial statements for further information.
We believe that our current facilities, including those under construction at our expanded headquarters, are suitable for our current employee
headcount and will sustain us through 2013, 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.
See Note L to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for a description of legal
proceedings. See also the risk factor entitled “We may become involved in litigation that may adversely affect us” in Part I, Item 1A of this
Annual Report on Form 10-K for a discussion of potential risks to our results of operations and financial condition that may arise from legal
proceedings.
Not Applicable.
35
(1) Of the total square feet owned or leased, approximately 1,016,000 square feet were under construction as of December 31, 2012
.
(2) Represents all of the right, title and interest purchased in a ground lease covering the property and improvements located at VMware’s Palo
Alto, California campus.
(3)
Includes leased space for a Washington data center facility, for which VMware is considered to be the owner for accounting purposes.
ITEM 3.
LEGAL PROCEEDINGS
ITEM 4.
MINE SAFETY DISCLOSURES