Salesforce.com 2009 Annual Report Download - page 54

Table of Contents
In January 2010, we issued $575.0 million of 0.75% convertible senior notes due January 15, 2015 (the "Notes") and concurrently entered into
convertible notes hedges (the "Note Hedges") and separate warrant transactions (the "Warrants"). The Notes will mature on January 15, 2015, unless earlier
converted. As of January 31, 2010, the Notes have not been repurchased or converted. We also have not received any shares under the Note Hedges or
delivered cash or shares under the Warrants. For further information, see Note 2 to the notes to consolidated financial statements.
Our cash, cash equivalents and marketable securities are comprised primarily of corporate notes and obligations, U.S. treasury securities, U.S. agency
obligations, time deposits, money market mutual funds.
As of January 31, 2010, we have a total of $10.6 million in letters of credit outstanding in favor of our landlords for office space in San Francisco,
California, New York City, Singapore, Sweden and Switzerland. To date, no amounts have been drawn against the letters of credit, which renew annually and
mature at various dates through October 2018.
We do not have any special purpose entities, and other than operating leases for office space and computer equipment, we do not engage in off-balance
sheet financing arrangements. Additionally, we currently do not have a bank line of credit.
Our principal commitments consist of obligations under leases for office space and co-location facilities for additional data center capacity and the
development and test data center, and computer equipment and furniture and fixtures. We also have long-term liabilities related to the issuance of the Notes.
The stated interest rate is 0.75%. At January 31, 2010, the future non-cancelable minimum payments under these commitments were as follows:
(In thousands)
Contractual Obligations
Payments Due by Period
Total
Less than
1 Year
1-3
Years 3-5 Years
More than
5 Years
(in thousands)
Capital lease obligations $ 15,583 $ 7,249 $ 8,334 $ — $ —
Operating lease obligations:
Facilities space 229,201 49,930 83,405 45,180 50,686
Computer equipment and furniture and fixtures 51,008 32,011 18,997 — —
Convertible Senior Notes, including interest 596,515 4,265 8,625 583,625 —
Contractual commitments 14,553 13,388 1,165 — —
Our lease agreements provide us with the option to renew. Our future operating lease obligations would change if we exercised these options and if we
entered into additional operating lease agreements as we expand our operations.
Purchase orders are not included in the table above. Our purchase orders represent authorizations to purchase rather than binding agreements. The
contractual commitment amounts in the table above are associated with agreements that are enforceable and legally binding and that specify all significant
terms, including: fixed or minimum services to be used; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
Obligations under contracts that we can cancel without a significant penalty are not included in the table above.
The timing of tax settlements are not included in the table above. We are unable to make a reasonable estimate of the timing of payments in individual
years beyond 12 months due to uncertainties in the timing of tax settlements. For further information, see Note 7 to the notes to consolidated financial
statements. We recorded liabilities related to uncertain tax positions.
51