Salesforce.com 2008 Annual Report Download - page 86

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
The allocation of the purchase price for the shares purchased in its Salesforce Japan in December 2006 is as follows (in thousands):
Customer relationships $ 235
Territory rights 1,008
Goodwill 1,851
Deferred income taxes (503)
Minority interest adjustment 186
Total purchase price consideration $ 2,777
Customer relationships have a useful life of 3 years and Japan territory rights have a useful life of 7 years. The goodwill balance is not deductible for
tax purposes. This asset is attributed to the premium paid for the territory rights and customer relationships.
Sendia Corporation
On April 10, 2006, the Company acquired 100 percent of the outstanding stock of Sendia Corporation, a privately-held company based in Santa
Monica, California, for $15.2 million in cash and $304,000 in acquisition 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 income taxes 2,650
Deferred revenue (700)
Total purchase price consideration $ 15,502
Customer relationships and developed technology have a useful life of 3 years. The goodwill balance is not deductible for tax purposes. This asset is
attributed to the premium paid for an established wireless solution.
Intangible assets acquired resulting from the acquisitions described above as of January 31, 2009 are as follows (in thousands):
Gross
Fair Value
Accumulated
Amortization
Net
Book Value
Weighted
Average Remaining
Useful Life
Territory rights $ 3,203 $ (431) $ 2,772 6.1 years
Developed technology 14,320 (6,704) 7,616 2.4 years
Customer relationships 8,794 (2,073) 6,721 2.4 years
$ 26,317 $ (9,208) $ 17,109
83