Snowflake Inc.SNOW
Snowflake Inc. Fair Value Disclosure
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
The following table presents the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis as of January 31, 2026 (in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | 1,752,777 | $ | — | $ | — | $ | 1,752,777 | |||||||||||||||
| Time deposits | — | 108,727 | — | 108,727 | |||||||||||||||||||
| U.S. government securities | — | 94,532 | — | 94,532 | |||||||||||||||||||
| Commercial paper | — | 40,379 | — | 40,379 | |||||||||||||||||||
| Certificates of deposit | — | 2,808 | — | 2,808 | |||||||||||||||||||
| Corporate notes and bonds | — | 75 | — | 75 | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
| Corporate notes and bonds | — | 860,872 | — | 860,872 | |||||||||||||||||||
| U.S. government and agency securities | — | 256,351 | — | 256,351 | |||||||||||||||||||
| Certificates of deposit | — | 65,689 | — | 65,689 | |||||||||||||||||||
| Commercial paper | — | 18,611 | — | 18,611 | |||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||
| Corporate notes and bonds | — | 525,964 | — | 525,964 | |||||||||||||||||||
| U.S. government and agency securities | — | 229,049 | — | 229,049 | |||||||||||||||||||
| Strategic investments—included in other assets: | |||||||||||||||||||||||
| Marketable equity securities | 6,264 | — | — | 6,264 | |||||||||||||||||||
| Non-marketable debt securities | — | — | 10,000 | 10,000 | |||||||||||||||||||
| Derivative assets—included in prepaid expenses and other current assets: | |||||||||||||||||||||||
| — | 1,779 | — | 1,779 | ||||||||||||||||||||
| Total assets | $ | 1,759,041 | $ | 2,204,836 | $ | 10,000 | $ | 3,973,877 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Derivative liabilities—included in accrued expenses and other current liabilities: | |||||||||||||||||||||||
| $ | — | $ | (2,141) | $ | — | $ | (2,141) | ||||||||||||||||
Total liabilities | $ | — | $ | (2,141) | $ | — | $ | (2,141) | |||||||||||||||
The following table presents the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis as of January 31, 2025 (in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | 1,741,089 | $ | — | $ | — | $ | 1,741,089 | |||||||||||||||
| U.S. government securities | — | 388,670 | — | 388,670 | |||||||||||||||||||
| Time deposits | — | 113,851 | — | 113,851 | |||||||||||||||||||
| Corporate notes and bonds | — | 4,466 | — | 4,466 | |||||||||||||||||||
| Commercial paper | — | 3,064 | — | 3,064 | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Corporate notes and bonds | — | 1,059,181 | — | 1,059,181 | |||||||||||||||||||
| U.S. government and agency securities | — | 456,673 | — | 456,673 | |||||||||||||||||||
| Commercial paper | — | 307,856 | — | 307,856 | |||||||||||||||||||
| Certificates of deposit | — | 185,163 | — | 185,163 | |||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||
| Corporate notes and bonds | — | 501,369 | — | 501,369 | |||||||||||||||||||
| U.S. government and agency securities | — | 153,065 | — | 153,065 | |||||||||||||||||||
| Certificates of deposit | — | 2,042 | — | 2,042 | |||||||||||||||||||
Strategic investments—included in other assets: | |||||||||||||||||||||||
| Marketable equity securities | 13,833 | — | — | 13,833 | |||||||||||||||||||
| Non-marketable debt securities | — | — | 750 | 750 | |||||||||||||||||||
| Derivative assets—included in prepaid expenses and other current assets: | |||||||||||||||||||||||
| — | 1,579 | — | 1,579 | ||||||||||||||||||||
| Total assets | $ | 1,754,922 | $ | 3,176,979 | $ | 750 | $ | 4,932,651 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Derivative liabilities—included in accrued expenses and other current liabilities: | |||||||||||||||||||||||
| $ | — | $ | (1,639) | $ | — | $ | (1,639) | ||||||||||||||||
Total liabilities | $ | — | $ | (1,639) | $ | — | $ | (1,639) | |||||||||||||||
The Company determines the fair value of its security holdings based on pricing from the Company’s service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures.
The Company’s derivative financial instruments, consisting of foreign currency forward contracts, are carried at fair value on the consolidated balance sheets. The following table summarizes the notional amounts of the Company’s outstanding derivative financial instruments (in thousands):
| January 31, 2026 | January 31, 2025 | ||||||||||
Foreign currency forward contracts not designated as hedging instruments | $ | 228,997 | $ | 222,027 | |||||||
Foreign currency forward contracts designated as cash flow hedges | 86,992 | — | |||||||||
Total derivative financial instruments | $ | 315,989 | $ | 222,027 | |||||||
These derivative financial instruments did not have a material impact on the Company’s consolidated financial statements for all periods presented. All cash flow hedges were considered effective for all periods presented.
The Company’s non-marketable equity securities accounted for using the Measurement Alternative are recorded at fair value on a non-recurring basis. When indicators of impairment exist or observable price changes of qualified transactions occur, the respective non-marketable equity security would be classified within Level 3 of the fair value hierarchy because significant unobservable inputs or data in an inactive market are used in estimating their fair value. The estimation of fair value for these assets requires the use of an observable transaction price or other unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds. See Note 4, “Cash Equivalents, Investments, and Strategic Investments,” for details regarding the Company’s strategic investments.
See Note 10, “Convertible Senior Notes,” for the fair value measurement of the Company’s convertible senior notes.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 20, 2026 | Showing above |
| 2025 | Mar 21, 2025 | |
| 2024 | Mar 26, 2024 | |
| 2023 | Mar 29, 2023 | |
| 2022 | Mar 30, 2022 | |
| 2021 | Mar 31, 2021 | |
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.