Salesforce.com 2008 Annual Report Download - page 64

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Table of Contents
salesforce.com, inc.
Consolidated Statements of Cash Flows
(in thousands)
Fiscal Year Ended January 31,
2009 2008 2007
Operating activities
Net income $ 43,428 $ 18,356 $ 481
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of investment — (1,272) —
Loss on securities 1,783 — —
Minority interest in consolidated joint venture 4,607 4,472 2,220
Depreciation and amortization 35,971 24,219 12,504
Amortization of deferred commissions 58,732 42,195 23,381
Change in the deferred income tax valuation allowance — (970) —
Expense related to stock-based awards 77,366 55,207 39,205
Excess tax benefits from employee stock plans (54,597) (31,978) (16,574)
Changes in assets and liabilities:
Accounts receivable (44,798) (91,368) (52,523)
Deferred commissions (63,701) (62,759) (37,856)
Prepaid expenses and other current assets (4,746) (11,376) (8,157)
Other assets (1,292) (7,669) (1,709)
Accounts payable 8,512 (1,392) (1,764)
Accrued expenses and other current liabilities 28,602 48,950 27,926
Income taxes 26,838 22,829 9,590
Deferred revenue 112,852 196,831 114,500
Net cash provided by operating activities 229,557 204,275 111,224
Investing activities
Business combinations, net of cash acquired (27,907) — (15,502)
Purchase of subsidiary stock (21,622) — (2,777)
Purchases of marketable securities (449,035) (447,296) (336,878)
Sales of marketable securities 154,287 19,608 13,012
Maturities of marketable securities 284,339 366,872 195,672
Capital expenditures (61,059) (43,552) (22,123)
Proceeds from sale of investment — 1,659 —
Net cash used in investing activities (120,997) (102,709) (168,596)
Financing activities
Proceeds from the exercise of stock options and warrants 43,311 60,910 29,082
Excess tax benefits from employee stock plans 54,597 31,978 16,574
Principal payments on capital lease obligations (997) (175) (617)
Repurchase of unvested shares — — (12)
Net cash provided by financing activities 96,911 92,713 45,027
Effect of exchange rate changes (732) (1,792) (889)
Net increase (decrease) in cash and cash equivalents 204,739 192,487 (13,234)
Cash and cash equivalents at beginning of year 279,095 86,608 99,842
Cash and cash equivalents at end of year $ 483,834 $ 279,095 $ 86,608
Supplemental cash flow disclosure:
Cash paid during the period for:
Interest $ 107 $ 46 $ 193
Income taxes, net of tax refunds $ 9,600 $ 1,564 $ 273
Noncash financing and investing activities
Fixed assets acquired under capital lease $ 6,406 $ — $ —
See accompanying Notes to Consolidated Financial Statements.
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