Fair Value Measurements

12 Months Ended

Sep. 30, 2022

Note 5 — Fair Value Measurements

The Company accounts for certain assets and liabilities at fair value. Fair value is the price that would be received from selling an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety.

The three levels of inputs that may be used to measure fair value are as follows:

Level 1:

Quoted prices in active markets for identical assets or liabilities;

Level 2:

Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets), or other inputs that are observable (model-derived valuations in which significant inputs are observable) or can be derived principally from, or corroborated by, observable market data; and

Level 3:

Unobservable inputs that are supported by little or no market activity that is significant to the fair value of the assets or liabilities.

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and 2021:


	As of September 30, 2022
	Level 1		Level 2			Level 3			Total
Available-for-sale securities:

Money market funds	$	266,362	$	—		$	—		$	266,362
Corporate bonds		—		168,308			—			168,308
U.S. government treasuries		40,229		—			—			40,229
Municipal b onds		—		16,125			—			16,125
Supranational and sovereign debt		—		10,594			—			10,594
Asset backed obligations		—		9,347			—			9,347

Total available-for-sale securities		306,591		204,374			—			510,965

Equity Investments		—		—			46,015			46,015
Derivative financial instruments, net		—		(48,901	)		—			(48,901	)
Other liabilities		—		—			(23,390	)		(23,390	)

Total	$	306,591	$	155,473		$	22,625		$	484,689


	As of September 30, 2021
	Level 1		Level 2		Level 3			Total
Available-for-sale securities:
Money market funds	$	209,026	$	—	$	—		$	209,026
Corporate bonds		—		190,437		—			190,437
U.S. government treasuries		54,752		—		—			54,752
Supranational and sovereign debt		—		7,453		—			7,453
Asset backed obligations		—		3,885		—			3,885

Total available-for-sale securities		263,778		201,775		—			465,553

Equity Investments		—		—		37,581			37,581
Derivative financial instruments, net		—		10,979		—			10,979
Other liabilities		—		—		(51,590	)		(51,590	)

Total	$	263,778	$	212,754	$	(14,009	)	$	462,523

Available-for-sale

securities that are classified as Level 2 assets are priced using observable data that may include quoted market prices for similar instruments, market dealer quotes, market spreads,

non-binding

market prices that are corroborated by observable market data and other observable market information. The Company’s derivative instruments are classified as Level 2 as they represent foreign currency forward and option contracts valued primarily based on observable inputs including forward rates and yield curves. The Company did not have

any transfers between Level 1 and Level 2 fair value measurements during fiscal year 2022. Level 3 liabilities relate to certain acquisition-related liabilities, which were generally valued using a Monte-Carlo simulation model and based on estimates of potential

pay-out

scenarios, valued during fiscal years 2022 and 2021. These liabilities were included in both accrued expenses and other current liabilities and other noncurrent liabilities as of September 30, 2022 and 2021. The decrease in Level 3 liabilities was primarily attributable to payments of certain acquisition-related liabilities, changes in the fair value recorded in the consolidated statement of income in fiscal year 2022, partially offset by changes recorded against goodwill in connection with recent acquisitions. Level 3 assets relate to equity investments, which were valued based on price changes in orderly transactions for similar private investments of the same issuer. The increase in Level 3 assets is a result of equity investments made during fiscal year 2022, as well as changes in the fair value was recorded in the consolidated statement of income.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, accrued personnel costs approximate their fair value because of the relatively short maturity of these items, for the fair value of the Senior Notes, please see Note 12.