Salesforce.com 2008 Annual Report Download - page 78

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
Fixed Assets
Fixed assets consisted of the following (in thousands):
As of January 31,
2009 2008
Computers, equipment and software $ 65,864 $ 34,197
Furniture and fixtures 13,096 8,354
Leasehold improvements 54,032 36,279
132,992 78,830
Less accumulated depreciation and amortization (55,965) (37,450)
$ 77,027 $ 41,380
Depreciation and amortization expense totaled $21.0 million, $16.8 million and $9.9 million during fiscal 2009, 2008 and 2007, respectively.
Fixed assets at January 31, 2009 and January 31, 2008 included a total of $10.1 million and $3.6 million, respectively, acquired under capital lease
agreements. Accumulated amortization relating to equipment and software under capital leases totaled $4.5 million and $3.6 million, respectively, at
January 31, 2009 and January 31, 2008. Amortization of assets under capital leases is included in depreciation and amortization expense.
Capitalized Software
Capitalized software consisted of the following (in thousands):
As of January 31,
2009 2008
Capitalized internal-use software development costs, net of accumulated amortization of $11,540 and $4,898, respectively $ 17,450 $ 13,932
Acquired developed technology, net of accumulated amortization of $13,522 and $6,542, respectively 12,539 9,129
$ 29,989 $ 23,061
Capitalized internal use software amortization expense totaled $6.6 million and $2.7 million for the years ended January 31, 2009 and 2008,
respectively. Acquired developed technology amortization expense totaled $7.0 million and $4.9 million for the years ended January 31, 2009 and 2008,
respectively.
In August 2008, the Company acquired InStranet, Inc. Of the $32.3 million purchase price consideration, $8.6 million was allocated to acquired
developed technology.
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