Salesforce, Inc.CRM
Salesforce, Inc. Fair Value Disclosure
Fair Value Measurement
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.
Level 3. Significant unobservable inputs which are supported by little or no market activity.
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.
The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2026 and indicates the fair value hierarchy of the valuation (in millions):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | |||||||||||||||||||
| Cash equivalents (1): | |||||||||||||||||||||||
| Time deposits | $ | 0 | $ | 1,393 | $ | 0 | $ | 1,393 | |||||||||||||||
| Money market mutual funds | 3,204 | 0 | 0 | 3,204 | |||||||||||||||||||
| Cash equivalent securities | 0 | 567 | 0 | 567 | |||||||||||||||||||
| Marketable securities: | |||||||||||||||||||||||
| Corporate notes and obligations | 0 | 1,353 | 0 | 1,353 | |||||||||||||||||||
| U.S. treasury securities | 0 | 170 | 0 | 170 | |||||||||||||||||||
| Mortgage-backed obligations | 0 | 31 | 0 | 31 | |||||||||||||||||||
| Asset-backed securities | 0 | 622 | 0 | 622 | |||||||||||||||||||
| Municipal securities | 0 | 17 | 0 | 17 | |||||||||||||||||||
| Commercial paper | 0 | 30 | 0 | 30 | |||||||||||||||||||
| Covered bonds | 0 | 1 | 0 | 1 | |||||||||||||||||||
| Other | 0 | 14 | 0 | 14 | |||||||||||||||||||
| Strategic investments: | |||||||||||||||||||||||
| Equity securities | 5 | 0 | 0 | 5 | |||||||||||||||||||
| Total assets | $ | 3,209 | $ | 4,198 | $ | 0 | $ | 7,407 | |||||||||||||||
(1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets in addition to $2.2 billion of cash, as of January 31, 2026.
The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2025 and indicates the fair value hierarchy of the valuation (in millions):
| Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | |||||||||||||||||||
| Cash equivalents (1): | |||||||||||||||||||||||
| Time deposits | $ | 0 | $ | 1,698 | $ | 0 | $ | 1,698 | |||||||||||||||
| Money market mutual funds | 4,373 | 0 | 0 | 4,373 | |||||||||||||||||||
| Cash equivalent securities | 0 | 686 | 0 | 686 | |||||||||||||||||||
| Marketable securities: | |||||||||||||||||||||||
| Corporate notes and obligations | 0 | 2,557 | 0 | 2,557 | |||||||||||||||||||
| U.S. treasury securities | 0 | 542 | 0 | 542 | |||||||||||||||||||
| Mortgage-backed obligations | 0 | 122 | 0 | 122 | |||||||||||||||||||
| Asset-backed securities | 0 | 1,217 | 0 | 1,217 | |||||||||||||||||||
| Municipal securities | 0 | 107 | 0 | 107 | |||||||||||||||||||
| Commercial paper | 0 | 506 | 0 | 506 | |||||||||||||||||||
| Covered bonds | 0 | 27 | 0 | 27 | |||||||||||||||||||
| Other | 0 | 106 | 0 | 106 | |||||||||||||||||||
| Strategic investments: | |||||||||||||||||||||||
| Equity securities | 69 | 0 | 0 | 69 | |||||||||||||||||||
| Total assets | $ | 4,442 | $ | 7,568 | $ | 0 | $ | 12,010 | |||||||||||||||
(1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets in addition to $2.1 billion of cash, as of January 31, 2025.
Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis
Substantially all of the Company's privately held equity securities and other investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company deems these assets as Level 3 within the fair value measurement framework. For privately held equity investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach, the common stock equivalent (“CSE”) method, and option pricing models (“OPM”). Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the privately held equity investments. An OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company. Such information, available to the Company from investee companies, is supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds. When indicators of impairment are observed for privately held equity securities, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds. The Company's privately held equity securities and other investments amounted to $7.6 billion and $4.8 billion as of January 31, 2026 and January 31, 2025, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 2, 2026 | Showing above |
| 2025 | Mar 5, 2025 | |
| 2024 | Mar 6, 2024 | |
| 2023 | Mar 8, 2023 | |
| 2022 | Mar 11, 2022 | |
| 2021 | Mar 17, 2021 | |
| 2020 | Mar 5, 2020 | |
| 2019 | Mar 8, 2019 | |
| 2018 | Mar 9, 2018 | |
| 2017 | Mar 6, 2017 | |
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.