Salesforce.com 2016 Annual Report Download - page 100

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Details on outstanding foreign currency derivative contracts related primarily to intercompany receivables
and payables are presented below (in thousands):
As of January 31,
2016 2015
Notional amount of foreign currency derivative contracts ............ $1,274,515 $942,086
Fair value of foreign currency derivative contracts ................. $ (9,294) $ 4,917
The fair value of the Company’s outstanding derivative instruments are summarized below (in thousands):
Fair Value of Derivative Instruments
As of January 31,
Balance Sheet Location 2016 2015
Derivative Assets
Derivatives not designated as hedging
instruments:
Foreign currency derivative
contracts .....................
Prepaid expenses and
other current assets $ 4,731 $10,611
Derivative Liabilities
Derivatives not designated as hedging
instruments:
Foreign currency derivative
contracts .....................
Accounts payable,
accrued expenses
and other liabilities $14,025 $ 5,694
The effect of the derivative instruments not designated as hedging instruments on the consolidated
statements of operations during fiscal 2016, 2015 and 2014, respectively, are summarized below (in thousands):
Derivatives Not Designated as Hedging
Instruments
Gains (losses) on Derivative Instruments
Recognized in Income
Fiscal Year Ended January 31,
Location 2016 2015 2014
Foreign currency derivative contracts ............ Other expense $(25,786) $(1,186) $108
Strategic Investments
The Company’s strategic investments are comprised of marketable equity securities and non-marketable
debt and equity securities. Marketable equity securities are measured using quoted prices in their respective
active markets and the non-marketable equity and debt securities are recorded at cost. These investments are
presented on the consolidated balance sheets within strategic investments.
As of January 31, 2016, the Company had six investments in marketable equity securities with a fair value
of $16.2 million, which includes an unrealized gain of $8.5 million. As of January 31, 2015, the Company had four
investments in marketable equity securities with a fair value of $17.8 million, which included an unrealized gain
of $13.1 million. The change in the fair value of the investments in publicly held companies is recorded in the
consolidated balance sheets within strategic investments and accumulated other comprehensive loss.
The Company’s interest in non-marketable debt and equity securities consists of noncontrolling debt and
equity investments in privately held companies. The Company’s investments in these privately held companies are
reported at cost or marked down to fair value when an event or circumstance indicates an other-than-temporary
93