Salesforce.com 2012 Annual Report Download - page 85

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computers, equipment and software under capital leases totaled $31.7 million and $18.5 million, respectively, at
January 31, 2012 and 2011. Amortization of assets under capital leases is included in depreciation and
amortization expense.
Land and buildings and improvements
During the fourth quarter of fiscal 2011, the Company 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. During fiscal 2011, the
Company recorded $248.3 million to the undeveloped land and $6.4 million to buildings and improvements. The
Company recorded $23.3 million for the perpetual parking rights as a purchased intangible asset in other assets
on the consolidated balance sheet.
Pre-construction costs capitalized related to the development of the land including interest costs and
property taxes were $33.8 million in fiscal 2012.
Capitalized Software
Capitalized software consisted of the following (in thousands):
As of January 31,
2012 2011
Capitalized internal-use software development costs, net of accumulated
amortization of $50,300 and $34,513, respectively ................... $ 41,442 $ 29,154
Acquired developed technology, net of accumulated amortization of $99,886
and $37,818, respectively ....................................... 146,970 98,833
$188,412 $127,987
Capitalized internal-use software amortization expense totaled $15.8 million and $13.1 million for the years
ended January 31, 2012 and 2011, respectively. Acquired developed technology amortization expense totaled
$62.1 million and $16.9 million for the years ended January 31, 2012 and 2011, respectively.
As described in Note 5 “Business Combinations” the Company acquired Radian6 in May 2011.
Approximately $84.2 million of the purchase consideration was allocated to acquired developed technology.
Other Assets, net
Other assets consisted of the following (in thousands):
As of January 31,
2012 2011
Deferred professional services costs, noncurrent portion ................. $ 3,935 $ 10,201
Long-term deposits .............................................. 13,941 12,114
Purchased intangible assets, net of accumulated amortization of $17,868 and
$9,868, respectively ............................................ 46,110 31,660
Acquired intellectual property, net of accumulated amortization of $3,139
and $746, respectively. ......................................... 15,020 5,874
Strategic investments ............................................ 53,949 27,065
Other ......................................................... 22,194 17,457
$155,149 $104,371
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