Salesforce.com 2015 Annual Report Download - page 94

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As of January 31, 2015 and 2014, the carrying value of the Company’s investments in privately-held
companies was $158.0 million and $77.0 million, respectively. These investments are recorded in other assets,
net on the consolidated balance sheets. The estimated fair value of the Company’s investments in privately-held
companies was $280.0 million as of January 31, 2015.
Investment Income
Investment income consists of interest income, realized gains, and realized losses on the Company’s cash,
cash equivalents and marketable securities. The components of investment income are presented below (in
thousands):
Fiscal Year Ended January 31,
2015 2014 2013
Interest income .................................. $10,129 $ 9,512 $17,903
Realized gains ................................... 517 5,952 5,007
Realized losses .................................. (608) (5,246) (3,348)
Total investment income ........................... $10,038 $10,218 $19,562
Reclassification adjustments out of accumulated other comprehensive loss into net income (loss) were
immaterial for fiscal 2015, 2014 and 2013, respectively.
3. Property and Equipment
Property and equipment consisted of the following (in thousands):
As of January 31,
2015 2014
Land and building improvements .................... $ 0 $ 297,835
Computers, equipment and software ................. 1,171,762 931,171
Furniture and fixtures ............................. 71,881 58,956
Leasehold improvements .......................... 376,761 296,390
Building in progress—leased facility ................. 125,289 40,171
1,745,693 1,624,523
Less accumulated depreciation and amortization ........ (619,827) (383,777)
$1,125,866 $1,240,746
Depreciation and amortization expense totaled $246.6 million, $185.9 million and $101.1 million during
fiscal 2015, 2014 and 2013, respectively.
Computers, equipment and software at January 31, 2015 and 2014 included a total of $734.7 million and
$612.0 million acquired under capital lease agreements, respectively. Accumulated amortization relating to
computers, equipment and software under capital leases totaled $206.7 million and $109.1 million, respectively,
at January 31, 2015 and 2014. Amortization of assets under capital leases is included in depreciation and
amortization expense.
In November 2010, the Company purchased approximately 14 net acres of undeveloped real estate in
San Francisco, California, including entitlements and improvements associated with the land. In addition to the
amounts reflected in the table above, the Company recorded $23.3 million in purchased intangible assets related
to perpetual parking rights associated with an existing parking garage situated on the land. The Company
capitalized pre-construction activities related to the development of the land, including interest costs and property
taxes since the November 2010 purchase. During the first quarter of fiscal 2013, the Company suspended pre-
construction activity.
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