Salesforce.com 2005 Annual Report Download - page 73

Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
The unrealized losses are attributable to changes in interest rates. As of January 31, 2006, the following investments were in an unrealized loss position
(in thousands):
Less than 12 Months 12 Months or Greater Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
Corporate notes and obligations $ 51,449 $ (252) $ 46,488 $ (497) $ 97,937 $ (749)
Municipal bonds — — 1,863 (52) 1,863 (52)
US government and agency obligations 56,274 (144) 40,876 (627) 97,150 (771)
$ 107,723 $ (396) $ 89,227 $ (1,176) $ 196,950 $ (1,572)
The unrealized loss for each of these fixed rate investments ranged from $25 to $90,850. The Company has the ability to hold these investments to
maturity and does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of
January 31, 2006. The Company expects to receive the full principal and interest on all of these investment securities.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
January 31,
2006
January 31,
2005
Deferred professional services costs $ 1,200 $ 874
Prepaid expenses and other current assets 5,138 2,593
$ 6,338 $ 3,467
Fixed Assets
Fixed assets consisted of the following (in thousands):
January 31,
2006
January 31,
2005
Computers, equipment and software $ 24,029 $ 12,703
Furniture and fixtures 2,831 1,755
Leasehold improvements 12,355 2,708
39,215 17,166
Less accumulated depreciation and amortization (14,999) (9,529)
$ 24,216 $ 7,637
Depreciation and amortization expense totaled $5,584,000, $2,751,000 and $2,314,000 for fiscal 2006, 2005 and 2004, respectively.
Fixed assets at January 31, 2006 and 2005 included a total of $3,616,000 and $3,487,000, respectively, acquired under capital lease agreements.
Accumulated amortization relating to equipment and software under capital leases totaled $2,765,000 and $2,142,000, respectively, at January 31, 2006 and
2005. Amortization of assets under capital leases is included in depreciation and amortization expense.
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