Other Balance Sheet Accounts

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):



	As of
	October 31, 2014		January 31, 2014
Deferred income taxes, net	$	45,738	$	49,279
Prepaid income taxes	20,847		23,571
Customer contract asset	28,073		77,368
Prepaid expenses and other current assets	192,954		158,962
	$	287,612	$	309,180

Customer contract asset reflects future billings of amounts that are contractually committed by ExactTarget’s existing customers as of the acquisition date that will be billed in the next 12 months. As the Company bills these customers this balance will reduce and accounts receivable will increase.

Capitalized Software, net

Capitalized software consisted of the following (in thousands):



	As of
	October 31, 2014		January 31, 2014
Capitalized internal-use software development costs, net of accumulated amortization of $127,842 and $101,687, respectively	$	89,106	$	72,915
Acquired developed technology, net of accumulated amortization of $370,535 and $294,628, respectively	358,982		409,002
	$	448,088	$	481,917

Capitalized internal-use software amortization expense totaled $9.5 million and $7.4 million for the three months ended October 31, 2014 and 2013, respectively, and totaled $26.2 million and $21.2 million for the nine months ended October 31, 2014 and 2013, respectively. Acquired developed technology amortization expense totaled $22.5 million and $35.3 million for the three months ended October 31, 2014 and 2013, respectively, and totaled $75.9 million and $81.4 million for the nine months ended October 31, 2014 and 2013, respectively.

The Company capitalized $1.5 million and $0.9 million of stock-based expenses related to capitalized internal-use software development and deferred professional services during the three months ended October 31, 2014 and 2013, respectively. The Company capitalized $3.6 million and $2.7 million of stock-based expenses related to capitalized internal-use software development and deferred professional services during the nine months ended October 31, 2014 and 2013, respectively.

Other Assets, net

Other assets consisted of the following (in thousands):



	As of
	October 31, 2014		January 31, 2014
Deferred income taxes, noncurrent, net	$	8,128	$	9,691
Long-term deposits	19,597		17,970
Purchased intangible assets, net of accumulated amortization of $111,273 and $66,399, respectively	349,665		416,119
Acquired intellectual property, net of accumulated amortization of $14,216 and $11,304, respectively	10,844		11,957
Strategic investments	132,150		92,489
Customer contract asset	3,747		18,182
Other	71,032		47,082
	$	595,163	$	613,490

Customer contract asset reflects the noncurrent portion of future billings that are contractually committed by ExactTarget’s existing customers as of the acquisition date.

In November 2010, the Company recorded $23.3 million of perpetual parking rights associated with an existing parking garage situated on the Company's undeveloped real estate to purchased intangible assets. During the nine months ended October 31, 2014, the Company sold a portion of these perpetual parking rights and reclassified the remaining parking rights to assets held for sale. The Company has entered into an agreement to sell the remaining portion of the perpetual parking rights and expects the sale to close within twelve months, subject to certain closing conditions.

Purchased intangible assets amortization expense for the three months ended October 31, 2014 and 2013 was $14.9 million and $15.4 million, respectively, and for the nine months ended October 31, 2014 and 2013 was $44.9 million and $22.4 million, respectively. Acquired intellectual property amortization expense for the three months ended October 31, 2014 and 2013 was $1.2 million and $1.0 million, respectively, and for the nine months ended October 31, 2014 and 2013 was $3.6 million and $3.1 million, respectively.

Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands):



	As of
	October 31, 2014		January 31, 2014
Accounts payable	$	88,794	$	64,988
Accrued compensation	339,982		397,002
Accrued other liabilities	314,311		235,543
Accrued income and other taxes payable	141,388		153,026
Accrued professional costs	17,597		15,864
Customer liability, current	19,737		53,957
Accrued rent	14,133		13,944
	$	935,942	$	934,324

Customer liability reflects the legal obligation to provide future services that are contractually committed by ExactTarget’s existing customers but unbilled as of the acquisition date. As these services are invoiced, this balance will reduce and deferred revenue will increase.

Other Noncurrent Liabilities

Other noncurrent liabilities consisted of the following (in thousands):



	As of
	October 31, 2014		January 31, 2014
Deferred income taxes and income taxes payable	$	106,759	$	108,760
Customer liability, noncurrent	2,546		13,953
Financing obligation, building in progress-leased facility	102,975		40,171
Long-term lease liabilities and other	703,530		594,303
	$	915,810	$	757,187

Customer liability, noncurrent reflects the noncurrent fair value of the legal obligation to provide future services that are contractually committed by ExactTarget’s existing customers but unbilled as of the acquisition date.