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Fair Value Measurements
 9 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables show the fair value of the Company’s financial instruments that are required to be measured at fair value as of June 30, 2024 and September 30, 2023.
Fair Value Measurements as of June 30, 2024
(Level 1)(Level 2)(Level 3)Total
(in millions)
Other Current Assets:
Foreign Currency Forward Exchange Contracts (a)$— $1 $— $1 
Other noncurrent assets:
Equity investments with readily determinable fair value (c)
10 — — 10 
Other noncurrent liabilities:
Contractual obligations (b)
— — (1)(1)

Fair Value Measurements as of September 30, 2023
(Level 1)(Level 2)(Level 3)Total
(in millions)
Other current assets:
Interest rate swap (d)
$— $2 $— $2 
Other noncurrent assets:
Equity investment with readily determinable fair value (c)
15 — — 15 
Other noncurrent liabilities:
Contractual obligations (b)
— — (1)(1)
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(a)The fair value of foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay at their maturity dates for contracts involving the same currencies and maturity dates.
(b)This represents contingent consideration related to acquisitions. This is based on a probability weighted performance approach and it is adjusted to fair value on a recurring basis and any adjustments are typically included as a component of operating income in the condensed consolidated statements of operations. This amount was primarily calculated using unobservable inputs such as future earnings performance of the acquiree and the expected timing of payments.
(c)These represent equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance with ASC 321, Investments—Equity Securities, based on quoted prices in active markets.
(d)The fair value of the interest rate swaps is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay as of each reporting period for contracts involving the same attributes and maturity dates.
The following table reconciles the beginning and ending balances of net liabilities classified as Level 3:
Total
(in millions)
Balance at September 30, 2023$(1)
Additions— 
Reductions— 
Payments— 
Balance at June 30, 2024$(1)
The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the asset is written down to its fair value. In addition, an impairment analysis is performed at least annually for goodwill and indefinite-lived intangible assets.
Equity Investments Without Readily Determinable Fair Value
The Company evaluates its equity investments without readily determinable fair values for impairment if factors indicate that a significant decrease in value has occurred. The Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. The Company did not
record any impairment charges on these investments during the three months ended June 30, 2024 and recorded approximately $1 million of impairment charges on these investments during the nine months ended June 30, 2024. The Company did not record any impairment charges on these investments during the three and nine months ended June 30, 2023. In addition, there were no observable price changes events that were completed during the three and nine months ended June 30, 2024 and 2023.
Fair Value of Debt
Based on the level of interest rates prevailing at June 30, 2024, the fair value of the Company’s debt was $3.715 billion. Based on the level of interest rates prevailing at September 30, 2023, the fair value of the Company’s debt was $3.525 billion. The fair value of the Company’s debt instruments is determined using quoted market prices from less active markets or by using quoted market prices for instruments with identical terms and maturities; both approaches are considered a Level 2 measurement.