Salesforce.com 2014 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2014 Salesforce.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

As of January 31, 2014, the following marketable securities 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 ........ $ 95,011 $(168) $ 1,324 $ (2) $ 96,335 $(170)
Mortgage backed obligations .......... 7,212 (60) 2,863 (33) 10,075 (93)
Asset backed securities ............... 10,345 (31) 1,924 (4) 12,269 (35)
Municipal securities ................. 997 (3) 0 0 997 (3)
Foreign government obligations ........ 2,999 (1) 6,498 (1) 9,497 (2)
U.S. agency obligations ............... 7,219 (10) 0 0 7,219 (10)
Covered bonds ...................... 2,032 (1) 0 0 2,032 (1)
$125,815 $(274) $12,609 $(40) $138,424 $(314)
The unrealized loss for each of these fixed rate marketable securities ranged from less than $1,000 to
$18,000. The Company 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, 2014. The Company expects to
receive the full principal and interest on all of these marketable securities.
Fair Value Measurement
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are
classified within Level 1 or Level 2 because the Company’s cash equivalents, marketable securities and foreign
currency derivative contracts are valued using quoted market prices or alternative pricing sources and models
utilizing observable market inputs.
During fiscal 2014, the Company transferred certain amounts within the fair value hierarchy. U.S. treasury
securities and Foreign government obligations at January 31, 2014 are now reported as Level 2 fair value
instruments rather than Level 1 based on market activity.
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation
methodologies in measuring fair value:
Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2. Other inputs that are directly or indirectly observable in the marketplace.
Level 3. Unobservable inputs which are supported by little or no market activity.
78