Salesforce.com 2015 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2015 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 134

  • 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
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

assembled workforce and expanded market opportunities when integrating RelateIQ’s relationship intelligence
technology with the Company’s other offerings. The goodwill balance is not deductible for U.S. income tax
purposes.
The Company assumed unvested equity awards for shares of RelateIQ’s common stock with a fair value of
$33.9 million. Of the total consideration, $1.1 million was allocated to the purchase consideration and $32.8
million was allocated to future services and will be expensed over the remaining service periods on a straight-line
basis.
Fiscal Year 2014
ExactTarget
On July 12, 2013, the Company acquired for cash the outstanding stock of ExactTarget, a leading global
provider of cross-channel, digital marketing solutions that empower organizations of all sizes to communicate
with their customers through the digital channels they use most. The Company acquired ExactTarget to, among
other things, create a world-class marketing platform across the channels of email, social, mobile and the web.
The Company has included the financial results of ExactTarget in the consolidated financial statements from the
date of acquisition. The acquisition date fair value of the consideration transferred for ExactTarget was
approximately $2.6 billion, including the proceeds from the Term Loan of $300.0 million (see Note 5 “Debt”),
which consisted of the following (in thousands):
Fair value
Cash ........................................... $2,567,098
Fair value of equity awards assumed ................. 17,428
Total .......................................... $2,584,526
The estimated fair value of the stock options assumed by the Company was determined using the Black-
Scholes option pricing model. The share conversion ratio of 0.84 was applied to convert ExactTarget’s
outstanding equity awards for ExactTarget’s common stock into equity awards for shares of the Company’s
common stock.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the
date of acquisition (in thousands):
Fair Value
Cash, cash equivalents and marketable securities ........ $ 91,549
Accounts receivable .............................. 63,320
Other current assets ............................... 20,355
Customer contract asset, current and noncurrent ........ 205,033
Property and equipment ........................... 64,782
Other noncurrent assets ............................ 4,379
Intangible assets ................................. 706,064
Goodwill ....................................... 1,848,653
Accounts payable, accrued expenses and other
liabilities ..................................... (65,636)
Deferred revenue, current and noncurrent ............. (46,615)
Customer liability, current and noncurrent ............. (144,792)
Other liabilities, noncurrent ........................ (3,104)
Deferred tax liability .............................. (159,462)
Net assets acquired ............................... $2,584,526
91