Salesforce.com 2015 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2015 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 134

  • 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
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

Capitalized Software, net
Capitalized software consisted of the following (in thousands):
As of
January 31,
2015
January 31,
2014
Capitalized internal-use software development costs,
net of accumulated amortization of $136,314 and
$101,687, respectively ........................ $ 96,617 $ 72,915
Acquired developed technology, net of accumulated
amortization of $392,736 and $294,628,
respectively ................................. 336,781 409,002
$433,398 $481,917
Capitalized internal-use software amortization expense totaled $35.7 million, $29.2 million and $22.1
million for fiscal 2015, 2014 and 2013, respectively. Acquired developed technology amortization expense
totaled $98.4 million, $114.7 million and $80.0 million for fiscal 2015, 2014 and 2013, respectively.
The Company capitalized $5.3 million, $3.5 million and $3.4 million of stock-based expenses related to
capitalized internal-use software development and deferred professional services during fiscal 2015, 2014 and
2013, respectively.
Other Assets, net
Other assets consisted of the following (in thousands):
As of
January 31,
2015
January 31,
2014
Deferred income taxes, noncurrent, net ............. $ 9,275 $ 9,691
Long-term deposits ............................. 19,715 17,970
Purchased intangible assets, net of accumulated
amortization of $130,968 and $66,399,
respectively ................................. 329,971 416,119
Acquired intellectual property, net of accumulated
amortization of $15,695 and $11,304, respectively . . 15,879 11,957
Strategic investments ........................... 175,774 92,489
Customer contract asset ......................... 1,447 18,182
Other ........................................ 76,259 47,082
$628,320 $613,490
Customer contract asset reflects the noncurrent portion of future billings that are contractually committed by
ExactTarget’s existing customers as of the acquisition date.
In November 2010, the Company recorded $23.3 million of perpetual parking rights associated with an
existing parking garage situated on the Company’s undeveloped real estate to purchased intangible assets. During
fiscal 2015, the Company sold a portion of these perpetual parking rights and reclassified the remaining parking
rights to assets held for sale. The Company has entered into an agreement to sell the remaining portion of the
perpetual parking rights and expects the sale to close within twelve months, subject to certain closing conditions.
100