Salesforce.com 2016 Annual Report Download - page 102

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3. Property and Equipment
Property and equipment, net consisted of the following (in thousands):
As of January 31,
2016 2015
Land ............................................... $ 183,888 $ 0
Buildings ........................................... 614,081 125,289
Computers, equipment and software ...................... 1,281,766 1,171,762
Furniture and fixtures ................................. 82,242 71,881
Leasehold improvements ............................... 473,688 376,761
2,635,665 1,745,693
Less accumulated depreciation and amortization ............ (919,837) (619,827)
$1,715,828 $1,125,866
Depreciation and amortization expense totaled $302.0 million, $246.6 million and $185.9 million during
fiscal 2016, 2015 and 2014, respectively.
Computers, equipment and software at January 31, 2016 and 2015 included a total of $747.1 million and
$734.7 million acquired under capital lease agreements, respectively. Accumulated amortization relating to
computers, equipment and software under capital leases totaled $310.3 million and $206.7 million, respectively,
at January 31, 2016 and 2015. Amortization of assets under capital leases is included in depreciation and
amortization expense.
Land
In August 2014, the Company sold approximately 3.7 net acres of its undeveloped real estate, which had
been classified as held for sale, for a total of $72.5 million. The Company recognized a gain of $7.8 million, net
of closing costs, on the sale of this portion of the Company’s land and building improvements.
Separately, in September 2014, the Company sold approximately 1.5 net acres of its remaining undeveloped
real estate, which had been classified as held for sale, and the remaining portion of the perpetual parking rights,
for a total of $125.0 million. The Company recognized a gain of $7.8 million, net of closing costs, on the sale of
this portion of the Company’s land, building improvements and perpetual parking rights.
In October 2015, the Company sold approximately 8.8 net acres of undeveloped real estate and the
associated perpetual parking rights in San Francisco, California, which were classified as held for sale. The total
proceeds from the sale were $157.1 million, of which the Company received $127.1 million in October 2015 and
previously received a nonrefundable deposit in the amount of $30.0 million during April 2014. The Company
recognized a gain of $21.8 million, net of closing costs, on the sale of this portion of the Company’s land and
building improvements and perpetual parking rights.
Building
In December 2013, the Company entered into a lease agreement for approximately 445,000 rentable square
feet of office space at 350 Mission Street in San Francisco, California. The space rented is for the total office space
available in the building, which is in the process of being constructed. As a result of the Company’s involvement
during the construction period, the Company is considered for accounting purposes to be the owner of the
construction project. As of January 31, 2016, the Company had capitalized $174.6 million of construction costs,
based on the construction costs incurred to date by the landlord, and recorded a corresponding current and
noncurrent financing obligation liability of $15.4 million and $196.7 million, respectively. As of January 31, 2015,
95