v3.24.3
Fair Value Measurements and Investments
 12 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments
Note 6—Fair Value Measurements and Investments
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair Value Measurements as of September 30
Using Inputs Considered as
Level 1Level 2
2024202320242023
(in millions)
Assets
Cash equivalents and restricted cash equivalents:
Money market funds$10,403 $13,504 $— $— 
U.S. Treasury securities7 301 — — 
Investment securities:
Marketable equity securities301 339 — — 
U.S. government-sponsored debt securities— — 496 1,108 
U.S. Treasury securities4,948 4,316 — — 
Other current and non-current assets:
Money market funds25 23 — — 
Derivative instruments— — 103 293 
Total $15,684 $18,483 $599 $1,401 
Liabilities
Accrued compensation and benefits:
Deferred compensation liability$238 $175 $— $— 
Accrued and other liabilities:
Derivative instruments— — 226 396 
Total $238 $175 $226 $396 
Level 1 assets and liabilities. Money market funds, U.S. Treasury securities and marketable equity securities are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. The Company’s deferred compensation liability is measured at fair value based on marketable equity securities held under the deferred compensation plan.
Level 2 assets and liabilities. The fair value of U.S. government-sponsored debt securities, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. Derivative instruments are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
U.S. Government-sponsored Debt Securities and U.S. Treasury Securities
The amortized cost, unrealized gains and losses and fair value of debt securities were as follows:
September 30, 2024
Amortized
Cost		Gross UnrealizedFair
Value
GainsLosses
(in millions)
U.S. government-sponsored debt securities$492 $4 $— $496 
U.S. Treasury securities4,920 40 (5)4,955 
Total$5,412 $44 $(5)$5,451 
September 30, 2023
Amortized
Cost		Gross UnrealizedFair
Value
GainsLosses
(in millions)
U.S. government-sponsored debt securities$1,109 $1 $(2)$1,108 
U.S. Treasury securities4,697 — (80)4,617 
Total$5,806 $1 $(82)$5,725 
Debt securities with unrealized losses for less than 12 months and 12 months or greater were as follows:
September 30, 2024
Less Than 12 Months12 Months or Greater
Fair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
U.S. government-sponsored debt securities$— $— $164 $— 
U.S. Treasury securities— — 1,019 (5)
Total$— $— $1,183 $(5)
September 30, 2023
Less Than 12 Months12 Months or Greater
Fair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
U.S. government-sponsored debt securities$412 $(2)$50 $— 
U.S. Treasury securities1,360 (12)2,128 (68)
Total$1,772 $(14)$2,178 $(68)
The unrealized losses were primarily attributable to changes in interest rates.
The stated maturities of debt securities were as follows:
September 30,
2024
 (in millions)
Due within one year$2,968 
Due after one year through five years
2,483 
Total$5,451 
Equity Securities
For fiscal 2024, 2023 and 2022, the Company recognized net unrealized gains of $12 million and net unrealized losses of $102 million and $393 million, respectively, on marketable and non-marketable equity securities held as of period end.
Fair value measurement alternative. The Company’s investments in privately held companies do not have readily determinable fair values. These investments are measured at fair value on a non-recurring basis and are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity and the fact that significant inputs used to measure fair value are unobservable and require management’s judgment.
The following table summarizes the Company’s non-marketable equity securities held as of period end that were accounted for using the fair value measurement alternative:
September 30,
20242023
(in millions)
Initial cost basis$711 $719 
Adjustments:
Upward adjustments910 899 
Downward adjustments, including impairment(465)(445)
Carrying amount$1,156 $1,173 
Unrealized gains and losses of the Company’s non-marketable equity securities held as of period end that were accounted for using the fair value measurement alternative were as follows:
For the Years Ended
September 30,
202420232022
(in millions)
Upward adjustments$10 $94 $231 
Downward adjustments, including impairment
$(35)$(99)$(341)
Investment Income (Expense)
Investment income (expense) consisted of the following:
 For the Years Ended
September 30,
 202420232022
 (in millions)
Interest and dividend income on cash and investments$992 $745 $69 
Gains (losses) on investments, net
(44)(82)(296)
Investment income (expense)$948 $663 $(227)
Other Fair Value Disclosures
Debt. Debt instruments are measured at amortized cost on the Company’s consolidated balance sheets. The fair value of the debt instruments, as provided by third-party pricing vendors, is based on quoted prices in active markets for similar, not identical, assets. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of September 30, 2024, the carrying value and estimated fair value of debt was $20.8 billion and $19.2 billion, respectively. As of September 30, 2023, the carrying value and estimated fair value of debt was $20.5 billion and $17.7 billion, respectively.
Other financial instruments not measured at fair value. As of September 30, 2024, the carrying values of settlement receivable and payable and customer collateral are an approximate fair value due to their generally short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 in the fair value hierarchy.