Salesforce.com 2005 Annual Report Download - page 74

Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
Other Assets
Other assets consisted of the following (in thousands):
January 31,
2006
January 31,
2005
Capitalized internal-use software development costs, net of accumulated amortization of $1,400 and $957, respectively $ 1,550 $ 641
Deferred professional service costs, noncurrent portion 486 —
Long-term deposits 1,542 1,138
Other 206 —
$ 3,784 $ 1,779
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
January 31,
2006
January 31,
2005
Accrued compensation $ 24,465 $ 16,836
Accrued other liabilities 10,844 6,560
Current portion of lease abandonment liability 186 278
Liability for early exercise of unvested employee stock options 229 591
Accrued non-income taxes payable 7,463 5,146
Accrued professional costs 1,911 2,241
Accrued rent 3,684 815
$ 48,782 $ 32,467
4. Initial Public Offering
In June 2004, the Company completed the sale of 11,500,000 shares of common stock, which included the underwriters' exercise of an over-allotment
option, at a price of $11.00 per share. A total of $126,500,000 in gross proceeds was raised in this initial public offering. After deducting the underwriting
discount of $8,855,000 and offering expenses of $3,877,000, net proceeds were $113,768,000. To date, the Company has not spent any of the net proceeds
from the public offering.
Upon the closing of the Company's initial public offering, the 58,024,345 shares of the Company's outstanding convertible preferred stock converted,
on a one-for-one basis, into shares of common stock.
5. Income Taxes
The domestic and foreign components of income (loss) before provisions for income taxes and minority interest were as follows (in thousands):
Fiscal Year Ended January 31,
2006
2005 2004
Domestic $ 31,240 $ 12,509 $ 9,550
Foreign (3,042) (3,356) (5,311)
$ 28,198 $ 9,153 $ 4,239
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