Salesforce (CRM) paid an even larger premium for Slack than previously reported.

The deal closed in July 2021. Originally, goodwill accounted for 78.2% of the $27.1 billion transaction. In its latest quarterly filing, Salesforce increased the goodwill paid for Slack by $249 million, or 1.2%.

The update, though immaterial, reveals Salesforce paid an even larger premium for Slack than originally communicated to investors.

Goodwill now comprises 79.1% of the acquisition price.

Separately, Salesfore disclosed a subtly but potentially important change in a useful life estimate that will increase D&A expense going forward. In the latest filing, Salesforce disclosed it will now depreciate its computers, equipment, and software over 3-5 years, faster than the previous treatment of 3-9 years.

The company currently carries $3.37 billion in property and equipment on its balance sheet. Per the latest annual report, computers, equipment, and software accounted for 48.1% or property and equipment. Using the same ratio, Salesforce currently has approximately $1.62 billion in computers, equipment, and software on the balance sheet.

Using the midpoint of the new useful life estimate, annual depreciation expense for computers, equipment, and software is now approximately $405 million, or 50% higher than the estimated $270 million in annual depreciation expense under the previous estimate.

Though relatively small as a percentage of revenue, the change will have a significant impact on Salesforce’s GAAP earnings due to the company’s thin margins. The $135 million in added depreciation expense is the equivalent of 9.3% of the company’s FY22 net income.

Based on the company’s current guidance— a GAAP operating margin of 3.8%— the change is approximately 11.2% of Salesforce’s FY23 operating income forecast of $1.2 billion. Based on the company’s non-GAAP guidance, the change is the equivalent of 2.1% of Salesforce’s $6.47 billion in adjusted operating income.