Salesforce.com 2007 Annual Report Download - page 79

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
costs. Approximately $1.8 million of the purchase price was attributed to assumed debt that was repaid immediately following the close of the transaction.
The Company acquired Sendia because it had an established wireless solution technology.
The following table summarizes the allocation of the purchase price for the Sendia Corporation acquisition, (in thousands):
Net tangible assets $ 447
Developed technology 5,710
Customer relationships 690
Goodwill 6,705
Deferred taxes 2,650
Deferred revenue (700)
Total purchase price consideration $ 15,502
The goodwill balance of $6.7 million is not deductible for tax purposes. This asset is attributed to the premium paid for an established wireless solution.
Salesforce Japan
In December 2006, the Company acquired additional shares of its joint venture in Salesforce Japan for $2.8 million in cash. The acquisition of the
additional shares was accounted for as a step acquisition and as such an allocation of the purchase was required.
During fiscal 2008, management finalized the allocation of the purchase price for the additional shares purchased in its Salesforce Japan joint venture as
follows (in thousands):
Customer relationships $ 235
Territory rights 1,008
Goodwill 1,851
Deferred taxes (503)
Minority interest adjustment 186
Total purchase price consideration $ 2,777
The goodwill balance of $1.9 million is not deductible for tax purposes. This asset is attributed to the premium paid for the territory rights and customer
relationships.
Intangible assets acquired resulting from the acquisitions described above as of January 31, 2008 are as follows (in thousands):
Gross
Fair Value
Accumulated
Amortization
Net
Book Value
Useful
Life
Territory rights $ 1,008 $ (156) $ 852 7 years
Developed technology 5,710 (3,458) 2,252 3 years
Customer relationships 925 (503) 422 3 years
$ 7,643 $ (4,117) $ 3,526
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