Salesforce.com 2011 Annual Report Download - page 35

ITEM 2. PROPERTIES
Our executive offices and principal office for domestic marketing, sales, professional services and
development occupy over 625,000 square feet in the San Francisco Bay Area under leases that expire at various
times through July 2020. We also lease space in various locations throughout the United States for local sales and
professional services personnel. Our foreign subsidiaries lease office space for their operations including local
sales and professional services personnel. In November 2010, we purchased approximately 14 acres of
undeveloped land in San Francisco, California including entitlements and improvements associated with the land,
and perpetual parking rights in an existing garage. We plan to use the land to build a facility that will become our
new global headquarters.
We believe that our existing facilities and offices are adequate to meet our current requirements. See Note 8,
“Commitments,” in the Notes to the Consolidated Financial Statements for more information about our lease
commitments. If we require additional space, we believe that we will be able to obtain such space on acceptable,
commercially reasonable terms.
ITEM 3. LEGAL PROCEEDINGS
We are involved in various legal proceedings arising from the normal course of business activities,
including claims of alleged infringement of third-party patents and other intellectual property rights, commercial,
employment and other matters. We make a provision for a liability relating to legal proceedings when it is both
probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These
provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings,
advice of legal counsel and other information and events pertaining to a particular case. In management’s
opinion, resolution of these matters is not expected to have a material adverse impact on our consolidated results
of operations, cash flows or financial position. However, depending on the nature and timing of any such dispute,
an unfavorable resolution of a matter could materially affect our future results of operations or cash flows or
both.
Many of our subscription agreements require us to indemnify our customers for third-party intellectual
property infringement claims, which could increase the cost to us of an adverse ruling on such a claim. Any
adverse determination related to intellectual property claims or litigation could prevent us from offering our
service to others, could be material to our net income or cash flows or both or could otherwise adversely affect
our operating results.
ITEM 4. RESERVED
ITEM 4A. EXECUTIVE OFFICERS OF THE REGISTRANT
The following sets forth certain information regarding our current executive officers (in alphabetical order):
Name Age Position
Marc Benioff .................. 46 Chairman of the Board of Directors and Chief Executive Officer
Parker Harris .................. 44 Executive Vice President, Technology
George Hu .................... 36 Executive Vice President, Platform and Marketing
David Schellhase ............... 47 Executive Vice President, Legal
Graham Smith ................. 51 Executive Vice President and Chief Financial Officer
Frank van Veenendaal ........... 51 President, Worldwide Sales and Services
Marc Benioff co-founded salesforce.com in February 1999 and has served as Chairman of the Board of
Directors since inception. He has served as Chief Executive Officer since November 2001. From 1986 to 1999,
Mr. Benioff was employed at Oracle Corporation where he held a number of positions in sales, marketing and
product development, lastly as a Senior Vice President. Mr. Benioff also serves as Chairman of the Board of
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