Salesforce.com 2013 Annual Report Download - page 104

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of legal counsel and other information and events pertaining to a particular matter. In management’s opinion,
resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated
results of operations, cash flows or financial position. However, depending on the nature and timing of any such
dispute, an unfavorable resolution of a matter could materially affect the Company’s future results of operations
or cash flows, or both, of a particular quarter.
13. Related-Party Transactions
In January 1999, the salesforce.com/foundation, also referred to as the Foundation, a non-profit public
charity, was chartered to build philanthropic programs that are focused on youth and technology. The Company’s
chairman is the chairman of the Foundation. He, two of the Company’s employees and one of the Company’s
board members hold four of the Foundation’s ten board seats. The Company does not control the Foundation’s
activities, and accordingly, the Company does not consolidate the Foundation’s statement of activities with its
financial results.
Since the Foundation’s inception, the Company has provided at no charge certain resources to Foundation
employees such as office space. The value of these items was in excess of $150,000 per quarter during fiscal
2013.
In addition to the resource sharing with the Foundation, the Company issued the Foundation warrants in
August 2002 to purchase shares of the Company’s common stock. All of the warrants were exercised in prior
years. As of January 31, 2013, the Foundation held 76,000 shares of salesforce.com common stock. Additionally,
the Company has donated subscriptions to the Company’s service to other qualified non-profit organizations. The
Company also allows an affiliate of the Foundation to resell the Company’s service to large non-profit
organizations. The Company does not charge the affiliate for the subscriptions and plans to continue these
programs.
14. Subsequent Events
The Company evaluated subsequent events through the date this Annual Report on Form 10-K was filed
with the SEC.
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