BOX INC Fair Value Disclosure
Note 4. Fair Value of Financial Instruments
Fair Value Measurements of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities subject to the fair value disclosure requirements were as follows (in thousands):
|
|
January 31, 2026 |
|
|||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Total |
|
|||
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|||
Money market funds |
|
$ |
68,169 |
|
|
$ |
— |
|
|
$ |
68,169 |
|
Short-term investments: |
|
|
|
|
|
|
|
|
||||
U.S. treasury securities |
|
|
102,932 |
|
|
— |
|
|
|
102,932 |
|
|
Other current assets: |
|
|
|
|
|
|
|
|
||||
Forward contracts designated as cash flow hedges |
|
— |
|
|
|
6,150 |
|
|
|
6,150 |
|
|
Total current assets |
|
|
171,101 |
|
|
|
6,150 |
|
|
|
177,251 |
|
Other assets, non-current: |
|
|
|
|
|
|
|
|
|
|||
Forward contracts designated as cash flow hedges |
|
— |
|
|
|
855 |
|
|
|
855 |
|
|
Total assets |
|
$ |
171,101 |
|
|
$ |
7,005 |
|
|
$ |
178,106 |
|
|
|
|
|
|
|
|
|
|
|
|||
Other current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Forward contracts designated as cash flow hedges |
|
$ |
— |
|
|
$ |
802 |
|
|
$ |
802 |
|
Forward contracts not designated as cash flow hedges |
|
|
— |
|
|
|
906 |
|
|
|
906 |
|
Total current liabilities |
|
|
— |
|
|
|
1,708 |
|
|
|
1,708 |
|
Other liabilities, non-current: |
|
|
|
|
|
|
|
|
|
|||
Forward contracts designated as cash flow hedges |
|
|
— |
|
|
|
185 |
|
|
|
185 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
1,893 |
|
|
$ |
1,893 |
|
|
|
January 31, 2025 |
|
|||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Total |
|
|||
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|||
Money market funds |
|
$ |
188,307 |
|
|
$ |
— |
|
|
$ |
188,307 |
|
Short-term investments: |
|
|
|
|
|
|
|
|
|
|||
U.S. treasury securities |
|
|
98,241 |
|
|
|
— |
|
|
|
98,241 |
|
Total cash equivalents and short-term investments |
|
$ |
286,548 |
|
|
$ |
— |
|
|
$ |
286,548 |
|
As of January 31, 2025, forward contracts were not material.
There were no material differences between the estimated fair value and amortized cost of our cash equivalents and short-term investments.
As of January 31, 2026, remaining contractual maturities of our cash equivalents and short-term investments were as follows (in thousands):
|
|
January 31, 2026 |
|
|
Due within one year |
|
$ |
144,730 |
|
Due between one to five years |
|
|
26,371 |
|
Total |
|
$ |
171,101 |
|
As of January 31, 2026, we do not consider any portion of the unrealized losses to be credit losses.
Fair Value Measurements of Other Financial Instruments
The Convertible Notes are recorded at principal less unamortized issuance costs in the consolidated balance sheets but are measured at fair value on a quarterly basis for disclosure purposes. The estimated fair values of the Convertible Notes, which we have classified as Level 2 financial instruments, were determined using observable market prices. The net carrying amounts and estimated fair values of the Convertible Notes were as follows (in thousands):
|
|
January 31, |
|
|||||||||||||
|
|
2026 |
|
|
2025 |
|
||||||||||
|
|
Net Carrying Amount |
|
|
Estimated Fair Value |
|
|
Net Carrying Amount |
|
|
Estimated Fair Value |
|
||||
2026 Convertible Notes |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
203,907 |
|
|
$ |
260,248 |
|
2029 Convertible Notes |
|
|
451,011 |
|
|
|
434,378 |
|
|
|
448,638 |
|
|
|
458,103 |
|
Total |
|
$ |
451,011 |
|
|
$ |
434,378 |
|
|
$ |
652,545 |
|
|
$ |
718,351 |
|
Refer to Note 9 for detailed calculations of the net carrying amounts of the Convertible Notes. We settled the 2026 Convertible Notes in full at maturity.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 9, 2026 | Showing above |
| 2025 | Mar 10, 2025 | |
| 2024 | Mar 11, 2024 | |
| 2023 | Mar 13, 2023 | |
| 2022 | Mar 16, 2022 | |
| 2021 | Mar 19, 2021 | |
| 2020 | Mar 19, 2020 | |
| 2019 | Mar 20, 2019 | |
| 2018 | Mar 22, 2018 | |
| 2017 | Mar 24, 2017 | |
| 2016 | Mar 30, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.