Salesforce.com 2015 Annual Report Download - page 96
Download and view the complete annual report
Please find page 96 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.-
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
 |
 |
4. Business Combinations
RelateIQ, Inc.
On August 1, 2014, the Company acquired the outstanding stock of RelateIQ, Inc. (“RelateIQ”), a
relationship intelligence platform company that uses data science and machine learning to automatically capture
data from email, calendars and smartphone calls and provide data science-driven insights in real time. The
Company acquired RelateIQ for the assembled workforce and expected synergies with the Company’s current
offerings. The Company has included the financial results of RelateIQ in the consolidated financial statements
from the date of acquisition, which have not been material to date. The acquisition date fair value of the
consideration transferred for RelateIQ was approximately $340.2 million, which consisted of the following (in
thousands, except share data):
Fair Value
Cash .................................................... $ 1,123
Common stock (6,320,735 shares) ............................. 338,033
Fair value of stock options and restricted stock awards assumed ..... 1,050
Total .................................................... $340,206
The fair value of the stock options assumed by the Company was determined using the Black-Scholes
option pricing model. The share conversion ratio of 0.12 was applied to convert RelateIQ’s outstanding equity
awards for RelateIQ’s common stock into equity awards for shares of the Company’s common stock.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the
date of acquisition (in thousands):
Fair Value
Cash ............................................ $ 39,194
Intangible assets ................................... 16,200
Goodwill ......................................... 289,857
Current and noncurrent liabilities ...................... (4,700)
Deferred tax liability ............................... (345)
Net assets acquired ................................. $340,206
The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets
acquired was recorded as goodwill. The fair values assigned to tangible assets acquired, liabilities assumed and
identifiable intangible assets are based on management’s estimates and assumptions.
The following table sets forth the components of identifiable intangible assets acquired (in thousands) and
their estimated useful lives as of the date of acquisition:
Fair
Value Useful Life
Developed technology ..................... $14,470 7 years
Customer relationships and other purchased
intangible assets ........................ 1,730 1-3 years
Total .................................. $16,200
The amount recorded for developed technology represents the estimated fair value of RelateIQ’s
relationship intelligence technology. The amount recorded for customer relationships represent the fair values of
the underlying relationships with RelateIQ customers. The goodwill balance is primarily attributed to the
90