Salesforce.com 2009 Annual Report Download - page 77

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
During fiscal 2010, the Company acquired two privately-held companies for $12.0 million in cash. The Company accounted for these transactions as
business combinations. Of the $12.0 million, the Company allocated $7.6 million to acquired developed technology with a useful lives of 3 years and $4.1
million to goodwill. The Company does not believe that these transactions were material.
Other Assets, net
Other assets consisted of the following (in thousands):
As of January 31,
2010 2009
Deferred professional services costs, noncurrent portion $ 5,639 $ 4,185
Long-term deposits 11,084 8,447
Purchased intangible assets, net of accumulated amortization of $5,815 and $2,573, respectively 6,746 9,679
Investments in privately-held companies 6,288 2,400
Other 10,008 5,416
$ 39,765 $ 30,127
Goodwill
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired.
Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter. There was no impairment of goodwill during
fiscal 2010 and 2009.
Goodwill consists of the following (in thousands):
Total
Balance as of January 31, 2008 $ 8,556
Salesforce Japan (See Note 6) 16,340
InStranet, Inc. (See Note 6) 19,976
Balance as of January 31, 2009 44,872
Other acquisitions 4,083
Balance as of January 31, 2010 $48,955
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of January 31,
2010 2009
Accrued compensation $ 90,223 $ 74,355
Accrued other liabilities 46,188 39,886
Accrued other taxes payable 27,757 27,596
Accrued professional costs 10,740 3,950
Accrued rent 19,830 17,418
$ 194,738 $ 163,205
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