Fair Value Measurements and Investments (Tables)

12 Months Ended

Sep. 30, 2019

Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis



	Fair Value Measurements at September 30 Using Inputs Considered as
	Level 1				Level 2
	2019		2018		2019		2018
	(in millions)
Assets
Cash equivalents and restricted cash equivalents:
Money market funds	$	6,494	$	6,252
U.S. government-sponsored debt securities					$	150	$	1,048
Investment securities:
Marketable equity securities	126		113
U.S. government-sponsored debt securities					5,592		5,008
U.S. Treasury securities	675		2,508
Other current and non-current assets:
Derivative instruments					437		78
Total	$	7,295	$	8,873	$	6,179	$	6,134
Liabilities
Accrued compensation and benefits:
Deferred compensation liability	$	113	$	96
Accrued and other liabilities:
Derivative instruments					$	52	$	22
Total	$	113	$	96	$	52	$	22

Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Value of Debt Securities

The amortized cost, unrealized gains and losses and fair value of debt securities are as follows:



	September 30, 2019										September 30, 2018
	Amortized Cost		Gross Unrealized					Fair Value			Amortized Cost		Gross Unrealized					Fair Value
	Amortized Cost		Gains		Losses			Fair Value			Amortized Cost		Gains		Losses			Fair Value
	(in millions)
U.S. government-sponsored debt securities	$	5,590	$	4	$	(2	)	$	5,592		$	5,016	$	—	$	(8	)	$	5,008
U.S. Treasury securities	672		3		—			675			2,516		—		(8		)	2,508
Total	$	6,262	$	7	$	(2	)	$	6,267		$	7,532	$	—	$	(16	)	$	7,516
Less: current portion								$	(4,110	)								$	(3,434	)
Long-term debt securities								$	2,157									$	4,082

Debt Security Investments Classified by Contractual Maturity Date



	Fair Value
	(in millions)
September 30, 2019:
Due within one year	$	4,110
Due after 1 year through 5 years	2,157
Total	$	6,267

Schedule of Non-marketable Equity Securities

The following table summarizes the total carrying value of our non-marketable equity securities held as of September 30, 2019 including unrealized gains and losses since the adoption of ASU 2016-01:



	For the Year Ended
	September 30, 2019
	(in millions)
Carrying amount, beginning of period	$	137
Adjustments related to non-marketable equity securities:
Net additions (reductions)⁽¹⁾	475
Upward adjustments	110
Downward adjustments⁽²⁾	(4		)
Carrying amount, end of period	$	718


⁽¹⁾	Net reductions include transfers to marketable equity securities upon investments becoming a public company.

⁽²⁾

There were no significant impairment charges of non-marketable equity securities during fiscal 2019, 2018 and 2017.

Investment Income

Investment income is recorded as non-operating income in the Company’s consolidated statements of operations and consisted of the following:



	For the Years Ended September 30,
	2019		2018		2017
	(in millions)
Interest and dividend income on cash and investments	$	247	$	173	$	92
Realized gains (losses), net on debt securities	1		—		(1		)
Equity securities:
Unrealized gains (losses), net	117		2		6
Realized gains (losses), net from donation	—		193		—
Realized gains (losses), net	18		102		8
Investment income	$	383	$	470	$	105