Salesforce.com 2005 Annual Report Download - page 61

Table of Contents
salesforce.com, inc.
Consolidated Statements of Cash Flows
(in thousands)
Fiscal Year Ended January 31,
2006
2005 2004
Operating activities
Net income $ 28,474 $ 7,346 $ 3,514
Adjustments to reconcile net income to net cash provided by operating activities:
Minority interest in consolidated joint venture 1,034 590 184
Depreciation and amortization 6,027 3,147 2,591
Loss on retirement of fixed assets 48 223 68
Amortization of deferred commissions 14,606 15,598 8,599
Lease recovery (285) — (3,445)
Change in the deferred income tax valuation allowance (7,225) — —
Accrued interest on stockholder notes receivable — (96) (100)
Expense related to stock-based awards 3,448 3,614 4,359
Tax benefits from employee stock plans 3,662 798 —
Changes in assets and liabilities:
Accounts receivable (27,254) (22,338) (16,955)
Deferred commissions (22,068) (14,055) (16,320)
Prepaid expenses and other current assets (2,871) 65 (2,216)
Other assets (1,620) (216) (723)
Accounts payable 7,687 490 1,429
Accrued expenses and other current liabilities 16,521 14,801 9,756
Income taxes 2,434 (318) 534
Deferred revenue 73,275 46,223 30,506
Net cash provided by operating activities 95,893 55,872 21,781
Investing activities
Restricted cash 3,191 721 (179)
Purchases of marketable securities (193,165) (282,220) (39,900)
Sales and maturities of marketable securities 165,603 136,608 21,851
Capital expenditures (23,434) (4,308) (2,916)
Net cash used in investing activities (47,805) (149,199) (21,144)
Financing activities
Proceeds from the issuance of common stock, net of issuance costs incurred — 113,768 —
Proceeds from the exercise of stock options and warrants 15,735 4,746 1,480
Collection of notes receivables from stockholders 727 1,043 —
Principal payments on capital lease obligations (614) (493) (531)
Repurchase of unvested shares (28) (254) (17)
Proceeds from subsidiary stock offerings — 40 167
Net cash provided by financing activities 15,820 118,850 1,099
Effect of exchange rate changes 203 (255) 18
Net increase in cash and cash equivalents 64,111 25,268 1,754
Cash and cash equivalents at beginning of year 35,731 10,463 8,709
Cash and cash equivalents at end of year $ 99,842 $ 35,731 $ 10,463
Supplemental cash flow disclosure:
Cash paid during the period for:
Interest $ 69 $ 37 $ 22
Income taxes, net of tax refunds $ (169) $ 730 $ 7
Noncash financing and investing activities
Fixed assets acquired under capital lease $ 129 $ 1,699 $ —
Conversion of preferred stock into common $ — $ 61,137 $ —
Net exercise of warrants $ 287 $ 15 $ —