BOX INC Goodwill & Intangibles Disclosure
Note 7. Intangible Assets
Intangible assets are included in other long-term assets in the consolidated balance sheets. Intangible assets consisted of the following (in thousands):
|
|
January 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Internally developed software |
|
$ |
104,633 |
|
|
$ |
68,133 |
|
Acquired developed technology |
|
|
26,872 |
|
|
|
23,939 |
|
On-premises software |
|
|
22,889 |
|
|
|
17,523 |
|
Total intangible assets |
|
|
154,394 |
|
|
|
109,595 |
|
Less: accumulated amortization |
|
|
(79,884 |
) |
|
|
(62,820 |
) |
Total intangible assets, net |
|
$ |
74,510 |
|
|
$ |
46,775 |
|
Intangible assets are amortized on a straight-line basis over the useful life. Amortization expense for intangible assets was $17.1 million, $16.6 million, and $17.7 million for the years ending January 31, 2025, 2024, and 2023, respectively.
As of January 31, 2025, expected amortization expense for intangible assets was as follows (in thousands):
Years ending January 31: |
|
|
|
|
2026 |
|
$ |
19,822 |
|
2027 |
|
|
12,297 |
|
2028 |
|
|
5,184 |
|
Total |
|
$ |
37,303 |
|
As of January 31, 2025, we capitalized internally developed software of $37.2 million for numerous projects that were not yet ready for their intended use. The majority of these projects, which generally have a useful life of three years, are expected to commence amortization in fiscal year 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2025 | Showing above |
| 2024 | Mar 11, 2024 | |
| 2023 | Mar 13, 2023 | |
| 2022 | Mar 16, 2022 | |
| 2019 | Mar 20, 2019 | |
| 2018 | Mar 22, 2018 | |
| 2017 | Mar 24, 2017 | |
| 2016 | Mar 30, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.