Salesforce.com 2013 Annual Report Download - page 56

Our cash, cash equivalents and marketable securities are comprised primarily of corporate notes and other
obligations, U.S. treasury securities, U.S. agency obligations, government obligations, collateralized mortgage
obligations, mortgage backed securities, time deposits, money market mutual funds and municipal securities.
As of January 31, 2013, we have a total of $60.8 million in letters of credit outstanding in favor of certain
landlords for office space. To date, no amounts have been drawn against the letters of credit, which renew
annually and mature at various dates through December 2030.
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
data center capacity and our development and test data center, and computer equipment and furniture and
fixtures. At January 31, 2013, the future non-cancelable minimum payments under these commitments were as
follows (in thousands):
(In thousands)
Contractual Obligations
Payments Due by Period
Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
Capital lease obligations ...................... $ 66,853 $ 31,694 $ 22,400 $ 12,759 $ 0
Operating lease obligations:
Facilities space ......................... 1,505,059 108,301 233,378 250,428 912,952
Computer equipment and furniture and
fixtures .............................. 81,356 43,046 38,310 0 0
Convertible Senior Notes, including interest ...... 583,626 4,313 579,313 0 0
Contractual commitments ..................... 7,072 3,472 3,600 0 0
Total ..................................... $2,243,966 $190,826 $877,001 $263,187 $912,952
The majority of our operating 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.
During fiscal 2014 and future fiscal years, we expect to make additional investments in our infrastructure to
scale our operations and increase productivity. We plan to upgrade and/or replace various internal systems to
scale with the overall growth of the Company. Additionally, we expect capital expenditures to be higher in
absolute dollars in fiscal 2014 than in fiscal 2013 as a result of continued office build-outs, other leasehold
improvements and data center investments.
In the future, we may enter into arrangements to acquire or invest in complementary businesses or joint
ventures, services and technologies, and intellectual property rights. We may be required to seek additional
equity or debt financing. Additional funds may not be available on terms favorable to us or at all.
We believe our existing cash, cash equivalents and short-term marketable securities and cash provided by
operating activities will be sufficient to meet our working capital and capital expenditure needs over the next
12 months.
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