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Fair Value Measurements and Investments
 12 Months Ended
Sep. 30, 2023
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
2023202220232022
(in millions)
Assets
Cash equivalents and restricted cash equivalents:
Money market funds$13,504 $11,736 $— $— 
U.S. Treasury securities301 799 — — 
Investment securities:
Marketable equity securities339 437 — — 
U.S. government-sponsored debt securities— — 1,108 457 
U.S. Treasury securities4,316 4,005 — — 
Other current and non-current assets:
Money market funds23 22 — — 
Derivative instruments— — 293 1,131 
Total$18,483 $16,999 $1,401 $1,588 
Liabilities
Accrued compensation and benefits:
Deferred compensation liability$175 $146 $— $— 
Accrued and other liabilities:
Derivative instruments— — 396 418 
Total$175 $146 $396 $418 
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, 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 
September 30, 2022
Amortized
Cost		Gross UnrealizedFair
Value
GainsLosses
(in millions)
U.S. government-sponsored debt securities$458 $— $(1)$457 
U.S. Treasury securities4,937 — (133)4,804 
Total$5,395 $— $(134)$5,261 
Debt securities with unrealized losses for less than 12 months and 12 months or greater were as follows:
September 30, 2023
Less Than 12 Months
12 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)
September 30, 2022
Less Than 12 Months
Fair ValueGross Unrealized Losses
(in millions)
U.S. government-sponsored debt securities$408 $(1)
U.S. Treasury securities3,507 (133)
Total$3,915 $(134)
The unrealized losses were primarily attributable to changes in interest rates.
The stated maturities of debt securities were as follows:
September 30,
2023
 (in millions)
Due within one year$3,804 
Due after one year through five years
1,921 
Total$5,725 
Equity Securities
The Company’s non-marketable equity securities include investments in privately held companies without 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 total carrying value of the Company’s non-marketable equity securities that were accounted for using the fair value measurement alternative and held as of September 30, 2023, including cumulative unrealized gains and losses:
September 30,
2023
(in millions)
Initial cost basis$719 
Adjustments:
Upward adjustments899 
Downward adjustments (including impairment)(445)
Carrying amount
$1,173 
Unrealized gains and losses recognized during fiscal 2023 and 2022 that were included in the carrying value of the Company’s non-marketable equity securities accounted for using the fair value measurement alternative and still held as of September 30, 2023 and 2022, respectively, were as follows:
For the Years Ended
September 30,
20232022
(in millions)
Upward adjustments$94 $231 
Downward adjustments (including impairment)$(99)$(341)
Investment Income (Expense)
Investment income (expense) consisted of the following:
 For the Years Ended
September 30,
 202320222021
 (in millions)
Interest and dividend income on cash and investments$745 $69 $(16)
Equity securities:
Unrealized gains (losses), net(84)(364)721 
Realized gains (losses), net2 68 26 
Investment income (expense)$663 $(227)$731 
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, 2023, the carrying value and estimated fair value of debt was $20.5 billion and $17.7 billion, respectively. As of September 30, 2022, the carrying value and estimated fair value of debt was $22.5 billion and $19.9 billion, respectively.
Other financial instruments not measured at fair value. As of September 30, 2023, 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.