Salesforce.com 2007 Annual Report Download - page 62

Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
Concentrations of Credit Risk and Significant Customers and Suppliers
The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable
securities and trade accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed
federally insured limits. Collateral is not required for accounts receivable. The Company maintains an allowance for doubtful accounts receivable balances.
The allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated
with delinquent accounts.
No customer accounted for more than 5 percent of accounts receivable at January 31, 2008 and 2007. No single customer accounted for 5 percent or
more of total revenue during fiscal 2008, 2007 and 2006.
As of January 31, 2008 and 2007, assets located outside the Americas were 14 percent and 12 percent of total assets, respectively. Revenues by
geographical region are as follows (in thousands):
Fiscal Year Ended January 31,
2008 2007 2006
Revenues by geography:
Americas $ 557,976 $ 387,570 $ 247,009
Europe 127,010 75,026 43,577
Asia Pacific 63,714 34,502 19,271
$ 748,700 $ 497,098 $ 309,857
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash
equivalents, which primarily consist of cash on deposit with banks and money market funds, are stated at cost, which approximates fair value.
Marketable Securities
Management determines the appropriate classification of investments in marketable securities at the time of purchase in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 115, Accounting for Certain Investments in Debt and Equity Securities and reevaluates such determination at
each balance sheet date. Marketable securities, which are classified as available for sale as of January 31, 2008 and 2007, are carried at fair value, with the
unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Fair value is determined based on quoted market rates.
Realized gains and losses and declines in value judged to be other-than-temporary on securities available for sale are included as a component of interest
income. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a
component of interest income.
Gross realized gains and losses on the sale of available for sale securities were less than 1 percent of interest income in fiscal year 2008, 2007 and 2006.
We monitor our investment in our marketable securities portfolio for impairment on a periodic basis. In the event that the carrying value of an
investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for
the investment is established. The Company did not record any impairment adjustments in fiscal 2008, 2007 or 2006.
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