Salesforce.com 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 Salesforce.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

2011 annual report
The year of the cloud

Table of contents

  • Page 1
    The year of the cloud 2011 annual report

  • Page 2
    Cloud 2: social, mobile, open

  • Page 3
    ..." value proposition has already attracted more than 300,000 developers-a community that has created more than 200,000 custom applications on Force.com. And with new services like Heroku, VMforce, and Database.com, developers of all kinds will soon be able to leverage the Force.com platform to...

  • Page 4
    ... Rule 13a-14 in its Annual Report on Form 10-K for the fiscal year ended January 31, 2011. Salesforce.com, inc. also submitted to the New York Stock Exchange ("NYSE") a certification by its Chief Executive Officer that he was not aware of any violation of the NYSE's corporate governance standards.

  • Page 5
    ... number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, par value $0.001 per share New York Stock Exchange, Inc. Securities registered pursuant to section 12(g) of the Act: Not applicable...

  • Page 6
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 7
    ... Officers of the Registrant and Corporate Governance Matters ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions and Director Independence ...Principal Accounting Fees and...

  • Page 8
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 9
    ... Chatter, a collaboration application for the enterprise to connect and share information securely and in real-time. Our principal executive offices are located in San Francisco, California and our principal website address is www.salesforce.com. Our office address is The Landmark @ One Market...

  • Page 10
    ... secure, scalable and highly available application, without the cost and complexity of managing the hardware or software infrastructure. Our vision of enterprise cloud computing is based on a multi-tenant technology architecture and a subscription service business model. With multi-tenancy, multiple...

  • Page 11
    ... openness and choice. Our Solution Our CRM applications help companies better record, track, manage, analyze and share information regarding sales, customer service and support, and marketing operations. In 2010 we introduced Salesforce Chatter, a private social network for businesses. Our Force.com...

  • Page 12
    ... we implement all upgrades on our servers, new features and functionality automatically become part of our service on the release date and therefore benefit all of our customers immediately. High levels of user adoption. We have designed our service to be intuitive and easy to use. Since our service...

  • Page 13
    ... benefits of our service, we aim to either upgrade our customers to higher priced editions or sell more subscriptions by targeting additional functional areas and business units within the customer organization and ultimately pursuing enterprise-wide deployments. We aim to have our customers renew...

  • Page 14
    ... centers with phone, email, and chat; Web portals for self-service and customer collaboration; and community interactions within social networks. • As of January 31, 2011, we offered five principal service editions: Contact Manager Edition, Group Edition, Professional Edition, Enterprise Edition...

  • Page 15
    ...our service, particularly to enterprise customers. The Force.com platform provides a feature set and technology environment for building business applications, including data models and objects to manage data, a workflow engine for managing collaboration of data between users, a user interface model...

  • Page 16
    ... tools and platforms best suited to serve our customers. Performance, functional depth and the usability of our service drive our technology decisions and product direction. We built our service as a highly scalable, multi-tenant application. We use commercially available hardware and a combination...

  • Page 17
    ... as well as developing new proprietary services such as Force.com and Salesforce Chatter. In addition, from time to time we supplement our internal research and development activities with outside development resources and acquired technology. Because of our multi-tenant architecture, we are able...

  • Page 18
    .... The network includes consulting firms, other technology vendors, systems integrators and partners in markets where we do not have a large direct sales presence. In return, we typically pay these partners a fee based on the first-year subscription revenue generated by the customers they refer...

  • Page 19
    ... Management's Discussion and Analysis. Competition The market for enterprise CRM business applications and development platforms is highly competitive, rapidly evolving and fragmented, and subject to changing technology, shifting customer needs and frequent introductions of new products and services...

  • Page 20
    ... demonstrable cost-effective benefits for customers; performance, security, scalability, flexibility and reliability of the service; ease of integration with existing applications; quality of customer support; availability and quality of implementation, consulting and training services; and vendor...

  • Page 21
    ...incorporated a variety of new computer hardware and software which is developed in-house and acquired from third party vendors, our service may have errors or defects that users identify after they begin using it that could result in unanticipated downtime for our subscribers and harm our reputation...

  • Page 22
    ... not to renew. In addition, our customers may renew for fewer subscriptions, renew for shorter contract lengths, or renew for lower cost editions of our service. We cannot accurately predict renewal rates, particularly for our enterprise customers who purchase a large number of subscriptions under...

  • Page 23
    ... forecast our rate of growth. We plan our expense levels and investment on estimates of future revenue and future anticipated rate of growth. We may not be able to adjust our spending quickly enough if the addition of new subscriptions or the renewal rate for existing subscriptions falls short...

  • Page 24
    ... to purchase additional subscriptions or upgrade their service, or delay a prospective customers' purchasing decision, or reduce the value of new subscription contracts, or affect renewal rates; timing of additional investments in our enterprise cloud computing application and platform services and...

  • Page 25
    ... to purchase our enterprise cloud computing services, delay prospective customers' purchasing decisions, reduce the value or duration of their subscription contracts, or affect renewal rates, all of which could adversely affect our operating results. As we acquire companies or technologies, they...

  • Page 26
    ...The market for enterprise CRM business applications and development platforms is highly competitive, rapidly evolving and fragmented, and subject to changing technology, shifting customer needs and frequent introductions of new products and services. We compete primarily with vendors of packaged CRM...

  • Page 27
    ... the timely completion, introduction and market acceptance of the feature or edition. Failure in this regard may significantly impair our revenue growth. In addition, because our service is designed to operate on a variety of network hardware and software platforms using a standard browser, we...

  • Page 28
    ...cycles and less predictability in completing some of our sales. In this market segment, the customer's decision to use our service may be an enterprise-wide decision and, if so, these types of sales would require us to provide greater levels of education regarding the use and benefits of our service...

  • Page 29
    ... 2010, we purchased approximately 14 acres of undeveloped real estate in San Francisco, California, including entitlements and improvements associated with the land, which we plan to develop into our global headquarters. We may not realize the anticipated benefits with respect to the purchase...

  • Page 30
    ... of personal information obtained from consumers and individuals. The costs of compliance with, and other burdens imposed by, such laws and regulations that are applicable to the businesses of our customers may limit the use and adoption of our service and reduce overall demand for it, or lead to...

  • Page 31
    ... or more of our key employees or groups could seriously harm our business. In the technology industry, there is substantial and continuous competition for engineers with high levels of experience in designing, developing and managing software and Internet-related services, as well as competition for...

  • Page 32
    ... additions and customer cancellations or delays in customer purchases; recruitment or departure of key personnel; disruptions in our service due to computer hardware, software or network problems; the economy as a whole, market conditions in our industry, and the industries of our customers; trading...

  • Page 33
    ... that have experienced volatility in the trading price of their stock have been the subject of securities class action litigation. If we are the subject of such litigation, it could result in substantial costs and a diversion of management's attention and resources. Provisions in our amended and...

  • Page 34
    ... to our common stock, and/or by purchasing or selling shares of our common stock or the Notes in privately negotiated transactions and/ or open market transactions, their activities could adversely affect the market price of our common stock and the trading price of the Notes. In addition, the hedge...

  • Page 35
    ... sales and professional services personnel. In November 2010, we purchased approximately 14 acres of undeveloped land in San Francisco, California including entitlements and improvements associated with the land, and perpetual parking rights in an existing garage. We plan to use the land to build...

  • Page 36
    ... Financial Officer Designate from December 2007 to March 2008. Prior to salesforce.com, Mr. Smith was at Advent Software Inc. and served as its Chief Financial Officer from January 2003 to December 2007. In addition to Advent Software, he served as Chief Financial Officer of Vitria Technology and...

  • Page 37
    ... PURCHASES OF EQUITY SECURITIES Market Information for Common Stock Our common stock has been quoted on the New York Stock Exchange under the symbol "CRM." The following table sets forth for the indicated periods the high and low closing sales prices of our common stock as reported by the New York...

  • Page 38
    ... 2004 (the date our common stock commenced trading on the New York Stock Exchange) through January 31, 2011, assuming an initial investment of $100. Data for the Standard & Poor's 500 Index and the Nasdaq Computer & Data Processing Index assume reinvestment of dividends. The comparisons in the graph...

  • Page 39
    ... of Operations: Revenues: Subscription and support ...Professional services and other ...Total revenues ...Cost of revenues (1): Subscription and support ...Professional services and other ...Total cost of revenues ...Gross profit ...Operating expenses (1): Research and development ...Marketing and...

  • Page 40
    (1) Cost of revenues and operating expenses include stock-based expenses, consisting of: 2011 Fiscal Year Ended January 31, 2010 2009 2008 2007 Cost of revenues ...Research and development ...Marketing and sales ...General and administrative ... $12,158 18,897 56,451 32,923 2011 $12,570 13,129 39,...

  • Page 41
    ...subscriptions, upgrade our customers to fully featured versions such as our Unlimited Edition, provide high quality technical support to our customers and encourage the development of third-party applications on our Force.com platform. We plan to invest for future growth by expanding our data center...

  • Page 42
    ... in San Francisco, California, including entitlements and improvements associated with the land, and perpetual parking rights in an existing garage, which we plan to develop into our global headquarters. During fiscal 2011 we acquired several companies to strengthen and extend our service offerings...

  • Page 43
    ... service period. Professional services and other revenues consist of fees associated with consulting and implementation services and training. Our consulting and implementation engagements are typically billed on a time and materials basis. We also offer a number of classes on implementing, using...

  • Page 44
    ... our research and development efforts on adding new features and services, integrating acquired technologies, increasing the functionality and enhancing the ease of use of our enterprise cloud computing application service. Our proprietary, scalable and secure multi-tenant architecture enables us to...

  • Page 45
    ... of salaries and related expenses, including stock-based expenses, for our sales and marketing staff, including commissions, payments to partners, marketing programs and allocated overhead. Marketing programs consist of advertising, events, corporate communications and brand building and product...

  • Page 46
    ... each contract. Support revenues from customers who purchase our premium support offerings are recognized similarly over the term of the support contract. As part of their subscription agreements, customers generally benefit from new features and functionality with each release at no additional cost...

  • Page 47
    ... employees, the total number of stock awards granted, the fair value of the stock awards at the time of grant, changes in estimated forfeiture assumption rates and the tax benefit that we may or may not receive from stock-based expenses. Additionally, we are required to use an option-pricing model...

  • Page 48
    ... 31, 2011 2010 2009 (1) Revenues: Subscription and support ...Professional services and other ...Total revenues ...Cost of revenues: Subscription and support ...Professional services and other ...Total cost of revenues ...Gross profit ...Operating expenses: Research and development ...Marketing and...

  • Page 49
    ... 31, 2011 2010 2009 Revenues: Subscription and support ...Professional services and other ...Total revenues ...Cost of revenues: Subscription and support ...Professional services and other ...Total cost of revenues ...Gross profit ...Operating expenses: Research and development ...Marketing and...

  • Page 50
    ... and support revenues was due primarily to new customers, upgrades and additional subscriptions from existing customers and improved renewal rates as compared to a year ago. The price per user per month for our three primary offerings, Professional Edition, Enterprise Edition and Unlimited Edition...

  • Page 51
    ...31, 2010 in order to upgrade and extend our service offerings and develop new technologies. Some of the increase in headcount was due to acquired businesses. Marketing and Sales. (In thousands) Fiscal Year Ended January 31, 2011 2010 Variance Dollars Marketing and sales ...Percent of total revenues...

  • Page 52
    ... employee-related costs, $9.5 million in stock-based expenses, and increases in depreciation and amortization, service delivery costs, and professional and outside service costs. Our general and administrative headcount increased by 30 percent since January 31, 2010 as we added personnel to support...

  • Page 53
    ... and capital leases associated with equipment acquired to expand our data center capacity. During fiscal 2011, we capitalized $4.0 million of interest costs related to major construction projects, specifically our campus project and our capitalized internal-use software development costs. We will...

  • Page 54
    ... in employee-related costs, an increase of $3.3 million in stock-based expenses, and an increase of $3.5 million in allocated overhead. We increased our research and development headcount by 24 percent between January 31, 2009 and January 31, 2010 in order to upgrade and extend our service offerings...

  • Page 55
    ... in stock-based expenses, $4.7 million in infrastructure-related costs, and $10.1 million in professional and outside service costs. Our general and administrative headcount increased by 12 percent between January 31, 2009 and January 31, 2010 as we added personnel to support our growth. Income...

  • Page 56
    ... fiscal 2011, we purchased approximately 14 acres of undeveloped land in San Francisco, California, including entitlements and improvements associated with the land, and perpetual parking rights in an existing garage for approximately $278.0 million in cash. We plan to use the land to build our new...

  • Page 57
    ... from the exercise of employee stock options and $36.0 million of excess tax benefits from employee stock plans, offset by the $172.0 million in purchases of Salesforce Japan shares held by others and $10.4 million of principal payments on capital leases. In January 2010, we issued $575.0 million...

  • Page 58
    ...use of the relative selling price method to allocate the entire arrangement consideration. In addition, the guidance also expands the disclosure requirements for revenue recognition. ASU 2009-13 will be effective for us at the start of fiscal 2012. We believe the future impact of this new accounting...

  • Page 59
    ...months. Additionally, by policy, we do not enter into any hedging contracts for trading or speculative purposes. Interest rate sensitivity We had cash, cash equivalents and marketable securities totaling $1.4 billion at January 31, 2011. This amount was invested primarily in money market funds, time...

  • Page 60
    ... rate risk. Generally, the fair market value of our fixed interest rate Notes will increase as interest rates fall and decrease as interest rates rise. In addition, the fair value of our Notes is affected by our stock price. The carrying value of our Notes was $472.5 million as of January 31, 2011...

  • Page 61
    ... TO CONSOLIDATED FINANCIAL STATEMENTS The following financial statements are filed as part of this Annual Report on Form 10-K: Page No. Reports of Ernst & Young LLP, Independent Registered Public Accounting Firm ...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated...

  • Page 62
    ... fairly in all material respects the information set forth therein. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), salesforce.com, inc.'s internal control over financial reporting as of January 31, 2011, based on criteria...

  • Page 63
    ... 2011 and 2010, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended January 31, 2011 of salesforce.com, inc. and our report dated March 23, 2011 expressed an unqualified opinion thereon. /s/ ERNST & YOUNG LLP San...

  • Page 64
    salesforce.com, inc. Consolidated Balance Sheets (in thousands, except share and per share data) January 31, 2011 January 31, 2010 Assets Current assets: Cash and cash equivalents ...Short-term marketable securities ...Accounts receivable, net of allowance for doubtful accounts of $1,711 and $1,050...

  • Page 65
    ... 2011 2010 2009 Revenues: Subscription and support ...Professional services and other ...Total revenues ...Cost of revenues (1): Subscription and support ...Professional services and other ...Total cost of revenues ...Gross profit ...Operating expenses (1): Research and development ...Marketing and...

  • Page 66
    ... 31, 2010 ...127,152,449 127 Exercise of stock options and stock grants to board members for board services ...4,697,518 5 Vested restricted stock units converted to shares ...1,071,180 1 Tax benefits from employee stock plans ...0 0 Stock-based expenses ...0 0 Purchase of subsidiary stock, net...

  • Page 67
    ... benefits from employee stock plans ...Loss on securities ...Changes in assets and liabilities: ...Accounts receivable, net ...Deferred commissions ...Prepaid expenses and other current assets ...Other assets ...Accounts payable ...Accrued expenses and other current liabilities ...Deferred revenue...

  • Page 68
    ... a technology platform for customers and developers to build and run applications. The Company offers its services on a subscription basis. Fiscal Year The Company's fiscal year ends on January 31. References to fiscal 2011, for example, refer to the fiscal year ending January 31, 2011. Use of...

  • Page 69
    ...loss associated with delinquent accounts. No customer accounted for more than 5 percent of accounts receivable at January 31, 2011 and 2010. No single customer accounted for 5 percent or more of total revenue during fiscal 2011, 2010, and 2009. As of January 31, 2011 and 2010, assets located outside...

  • Page 70
    ...are classified within Level 1 or Level 2, which are described below. This is because the Company's cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The...

  • Page 71
    ...the Company's contingent considerations related to acquisitions. During fiscal 2011, the Company recorded the fair value of the Company's contingent considerations using a discounted cash flow model (in thousands): Balance at February 1, 2010 ...Additions ...Balance at January 31, 2011 ...$ 0 17,138...

  • Page 72
    ... are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company's program is not designated for trading or speculative purposes. As of January 31, 2011 and 2010 the foreign currency derivative contracts that were not settled are recorded at...

  • Page 73
    ... over the useful life of the related asset. Interest costs of $3.7 million related to the buildings and improvements and $0.3 million related to the Company's capitalized internal-use software development efforts were capitalized in fiscal 2011. No interest costs were capitalized in fiscal 2010. 65

  • Page 74
    ... during fiscal 2011, 2010, and 2009. Capitalized Software Costs For its website development costs and the development costs related to its enterprise cloud computing services, the company capitalizes costs incurred during the application development stage. Costs related to preliminary project...

  • Page 75
    ... of subscription fees from customers accessing its enterprise cloud computing application service, and from customers purchasing additional support beyond the standard support that is included in the basic subscription fee; and (2) related professional services and other revenue. "Other revenue...

  • Page 76
    ... is recorded as noncurrent. Approximately 6 percent of total deferred revenue as of both January 31, 2011 and 2010, related to deferred professional services revenue. Deferred Commissions Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription...

  • Page 77
    ... estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share: 2011 2010 2009 Volatility ...Estimated life ...Weighted-average risk-free interest rate ...Dividend yield ...Weighted-average fair value per share of grants ... 45...

  • Page 78
    ... grants. During fiscal 2011 and 2010, the Company capitalized $2.6 million and $2.4 million, respectively, of stock based expenses related to capitalized internal-use software development and deferred professional services costs. During fiscal 2011, the Company recognized stock-based expense of...

  • Page 79
    ... of accounting, and 2) requires the use of the relative selling price method to allocate the entire arrangement consideration. In addition, the guidance also expands the disclosure requirements for revenue recognition. ASU 2009-13 will be effective for the Company at the start of fiscal 2012. The...

  • Page 80
    ... on all of these marketable securities. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): As of January 31, 2011 2010 Deferred professional services costs ...Prepaid expenses and other current assets ... $17,908 37,813...

  • Page 81
    ... in San Francisco, California, including entitlements and improvements associated with the land, and perpetual parking rights in an existing garage for approximately $278.0 million in cash. The Company plans to use the land to build a new global headquarters. During fiscal 2011, the Company recorded...

  • Page 82
    ...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 2011 and 2010. Goodwill...

  • Page 83
    ...is less than 98% of the product of the sale price of the Company's common stock and the conversion rate; upon the occurrence of specified corporate transactions described under the Notes Indenture, such as a consolidation, merger or binding share exchange; or at any time on or after October 15, 2014...

  • Page 84
    ... table sets forth total interest expense recognized related to the Notes prior to capitalization of interest (in thousands): Fiscal Year Ended January 31, 2011 2010 Contractual interest expense ...Amortization of debt issuance costs ...Amortization of debt discount ...Effective interest rate of...

  • Page 85
    ... fiscal 2010 did not affect awards outstanding, which continue to be governed by the terms and conditions of the 1999 Plan. On February 1, 2011, 3.5 million additional shares were reserved under the 2004 Equity Incentive Plan pursuant to the automatic increase. The 2004 Employee Stock Purchase Plan...

  • Page 86
    ... intrinsic value is the difference of the current market value of the stock and the exercise price of the stock option. The weighted-average remaining contractual life of vested and expected to vest options is approximately 3.3 years. As of January 31, 2011, options to purchase 4,340,782 shares were...

  • Page 87
    ...6,735,953 33,566,628 During fiscal year 2011 and 2010, certain board members received stock grants totaling 48,000 shares of common stock, respectively for board services pursuant to the terms described in the 2004 Outside Directors Stock Plan. The expense related to these awards, which was expensed...

  • Page 88
    ... its terms. The purchase transaction, including transaction-related fees totaling $1.1 million, were accounted for as a reduction to additional paid-in capital and noncontrolling interest. 6. Acquisitions in fiscal year 2011 Jigsaw Data Corporation In May 2010 the Company acquired for cash the stock...

  • Page 89
    ... forth the components of intangible assets acquired in connection with the Jigsaw acquisition: (in thousands) Fair value Useful Life Developed service technology and database ...Customer relationships ...Trade name and trademark ...Total intangible assets subject to amortization ... $23,560 2,440...

  • Page 90
    ...and the Company's ability to now access a large community of developers and independent software vendors ("ISVs") who are building applications in the cloud using the Ruby language. Additionally, the goodwill balance also reflects the value of expanded market share opportunities that are expected to...

  • Page 91
    ... assets acquired resulting from the acquisitions described above as of January 31, 2011 are as follows (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life Acquired developed technology ...Customer relationships ...Trade name and trademark...

  • Page 92
    ... tax benefits associated with stock option exercises are recorded directly to stockholders' equity controlling interest only when realized. As a result, the excess tax benefits included in net operating loss carryforwards but not reflected in deferred tax assets for fiscal year 2011 and 2010 are...

  • Page 93
    ...Kingdom and Australia, remain open for examinations, while Japan is open for examinations only for years after 2004. During the fiscal year ended January 31, 2011, the National Tax Agency of Japan completed the examination of the Company's fiscal 2010 tax return for Japan. No material adjustment was...

  • Page 94
    ... letters of credit renew annually and mature at various dates through September 2021. Leases The Company leases office space and equipment under non-cancelable operating and capital leases with various expiration dates. As of January 31, 2011, the future minimum lease payments under non-cancelable...

  • Page 95
    ... August 2002 to purchase shares of the Company's common stock. All of the warrants were exercised in prior years. As of January 31, 2011, the Foundation held 121,000 shares of salesforce.com common stock. Additionally, the Company has donated subscriptions to the Company's service to other qualified...

  • Page 96
    ... 2011 Revenues ...Gross profit ...Income (loss) from operations ...Net income attributable to salesforce.com ...Basic net income per share attributable to salesforce.com common shareholders ...Diluted net income per share attributable to salesforce.com common shareholders ...Fiscal 2010 Revenues...

  • Page 97
    ...that our disclosure controls and procedures are designed to, and are effective to, provide assurance at a reasonable level that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods...

  • Page 98
    ... potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and...

  • Page 99
    ...Smith, and all other executive officers. The Code of Conduct is available on our Web site at http://www.salesforce.com/company/ investor/governance/. A copy may also be obtained without charge by contacting Investor Relations, salesforce.com, inc., The Landmark @ One Market, Suite 300, San Francisco...

  • Page 100
    ...part of this Annual Report on Form 10-K. (c) Financial Statement Schedules. salesforce.com, inc. Schedule II Valuation and Qualifying Accounts Balance at Beginning of Year Deductions Write-offs Balance at End of Year Description Additions Fiscal year ended January 31, 2011 Allowance for doubtful...

  • Page 101
    ... to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: March 23, 2011 salesforce.com, inc. /s/ GRAHAM SMITH Graham Smith Chief Financial Officer...

  • Page 102
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 103
    ... Equity Incentive Plan, as amended 2004 Employee Stock Purchase Plan 2004 Outside Directors Stock Plan, as amended 2006 Inducement Equity Incentive Plan Mahalo Bonus Plan Master Service Agreement dated May 17, 2005 between salesforce.com, inc. and Equinix, Inc. Resource Sharing Agreement dated as of...

  • Page 104
    Exhibit 10.20** Agreement of Purchase and Sale and Joint Escrow Instructions dated as of October 21, 2010 by and between ARE-San Francisco No. 19, LLC and Bay Jacaranda No. 2627, LLC List of Subsidiaries Consent of Independent Registered Public Accounting Firm Power of Attorney. (See page 93) ...

  • Page 105
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 106
    Success in the cloud starts here

  • Page 107
    ... Veenendaal President Worldwide Sales and Services Investor Relations [email protected] +1-415-536-6250 Stock Listing Salesforce.com trades on the New York Stock Exchange under the ticker symbol "CRM." Note on Forward-Looking Statements This annual report contains forward-looking statements...

  • Page 108
    Corporate Headquarters The Landmark @ One Market Suite 300 San Francisco, CA 94105 United States 1-800-NO-SOFTWARE www.salesforce.com Global Offices Latin America +1-415-536-4606 Japan +81-3-5785-8201 Asia/Pacific +65-6302-5700 EMEA +4121-6953700 Copyright ©2011, salesforce.com, inc. All rights ...