Salesforce.com 2014 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2014 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 128

  • 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
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Other Fiscal 2013 Business Combinations
During fiscal 2013, the Company acquired five additional companies for $15.1 million in cash, net of cash
acquired, and has included the financial results of these companies in its consolidated financial statements from the
date of each respective acquisition. The Company accounted for these transactions as business combinations. In
allocating the purchase consideration based on fair values, the Company recorded $4.1 million of acquired intangible
assets with useful lives of one to three years, $12.4 million of goodwill, $0.3 million of net tangible liabilities and
$1.0 million of deferred tax liabilities. Some of this goodwill balance is deductible for U.S. income tax purposes.
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.
Goodwill consisted of the following (in thousands):
Balance as of January 31, 2012 ...................... $ 785,381
Rypple ..................................... 45,579
Buddy Media ................................ 640,534
GoInstant ................................... 45,295
Other acquisitions ............................ 12,410
Finalization of acquisition date fair values ......... 179
Balance as of January 31, 2013 ...................... $1,529,378
EdgeSpring ................................. 107,165
ExactTarget ................................. 1,848,653
Other acquisitions ............................ 20,646
Finalization of acquisition date fair values ......... (5,019)
Balance as of January 31, 2014 ...................... $3,500,823
There was no impairment of goodwill during fiscal 2014, 2013 or 2012.
Intangible Assets
Intangible assets acquired resulting from business combinations are as follows as of January 31, 2014
(in thousands):
Gross
Fair Value
Accumulated
Amortization
Net Book
Value
Weighted
Average
Remaining
Useful Life
Acquired developed technology ............ $ 659,770 $(281,766) $378,004 4.9
Customer relationships ................... 409,135 (53,669) 355,466 7.0
Trade name and trademark ................ 38,930 (8,721) 30,209 9.0
Territory rights and other ................. 11,125 (3,963) 7,162 3.8
Total ................................. $1,118,960 $(348,119) $770,841 6.0
90