Salesforce.com 2016 Annual Report Download - page 106

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Intangible Assets
Intangible assets acquired resulting from business combinations are as follows as of January 31, 2016
(in thousands):
Gross
Fair Value
Accumulated
Amortization
Net Book
Value
Weighted
Average
Remaining
Useful Life
Acquired developed technology ............ $ 684,260 $(451,889) $232,371 3.4
Customer relationships ................... 410,763 (160,866) 249,897 5.2
Trade name and trademark ................ 38,980 (38,980) 0 0.0
Territory rights and other ................. 12,372 (8,585) 3,787 2.6
50 Fremont lease intangibles .............. 7,713 (3,762) 3,951 2.3
Total ................................. $1,154,088 $(664,082) $490,006 4.3
Intangible assets acquired resulting from business combinations were as follows as of January 31, 2015
(in thousands):
Gross
Fair Value
Accumulated
Amortization
Net Book
Value
Weighted
Average
Remaining
Useful Life
Acquired developed technology ............ $ 674,160 $(371,997) $302,163 4.3
Customer relationships ................... 409,603 (107,245) 302,358 6.1
Trade name and trademark ................ 38,980 (17,142) 21,838 1.0
Territory rights ......................... 12,355 (6,522) 5,833 3.1
Total ................................. $1,135,098 $(502,906) $632,192 5.0
The expected future amortization expense for purchased intangible assets as of January 31, 2016 is as
follows (in thousands):
Fiscal Period:
Fiscal 2017 ....................................... $131,491
Fiscal 2018 ....................................... 118,762
Fiscal 2019 ....................................... 101,425
Fiscal 2020 ....................................... 73,268
Fiscal 2021 ....................................... 45,859
Thereafter ........................................ 19,201
Total amortization expense .......................... $490,006
5. Debt
Convertible Senior Notes
(in thousands)
Par Value
Outstanding
Equity
Component
Recorded
at Issuance
Liability Component of Par
Value as of January 31,
2016 2015
0.25% Convertible Senior Notes due April 1,
2018 .............................. $1,150,000 $122,421(1) $1,095,059 $1,070,692
(1) This amount represents the equity component recorded at the initial issuance of the 0.25% convertible senior
notes.
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