v3.25.2
Fair Value Measurements and Investments
 9 Months Ended
Jun. 30, 2025
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
Using Inputs Considered as
 Level 1Level 2
 June 30,
2025		September 30,
2024		June 30,
2025		September 30,
2024
 (in millions)
Assets
Cash equivalents and restricted cash equivalents:
Money market funds
$13,412 $10,403 $— $— 
U.S. Treasury securities
7 7 — — 
Investment securities:
Marketable equity securities
318 301 — — 
U.S. government-sponsored debt securities
— — 304 496 
U.S. Treasury securities
2,669 4,948 — — 
Other current and non-current assets:
Money market funds
27 25 — — 
Derivative instruments
— — 89 103 
Total $16,433 $15,684 $393 $599 
Liabilities
Accrued compensation and benefits:
Deferred compensation liability
$254 $238 $— $— 
Accrued and other liabilities:
Derivative instruments
— — 435 226 
Total $254 $238 $435 $226 
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:
June 30, 2025
Amortized
Cost		Gross UnrealizedFair
Value
GainsLosses
(in millions)
U.S. government-sponsored debt securities$303 $1 $— $304 
U.S. Treasury securities2,661 15 — 2,676 
Total$2,964 $16 $— $2,980 
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 
The stated maturities of debt securities were as follows:
June 30,
2025
 (in millions)
Due within one year$1,840 
Due after one year through five years
1,140 
Total$2,980 
Equity Securities
For the three months ended June 30, 2025 and 2024, the Company recognized net unrealized losses of $7 million and $16 million, respectively, on marketable and non-marketable equity securities held as of period end. For the nine months ended June 30, 2025 and 2024, the Company recognized net unrealized losses of $40 million and $3 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:
June 30,
2025		September 30,
2024
(in millions)
Initial cost basis
$709 $711 
Adjustments:
Upward adjustments
854 910 
Downward adjustments, including impairment
(495)(465)
Carrying amount
$1,068 $1,156 
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:
Three Months Ended
June 30,		Nine Months Ended
June 30,
2025202420252024
(in millions)
Upward adjustments$4 $— $11 $9 
Downward adjustments, including impairment
$(2)$(13)$(51)$(28)
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, instruments. If measured at fair value in the financial statements, these instruments would be classified as Level 2 in the fair value hierarchy. As of June 30, 2025, the carrying value and estimated fair value of debt was $25.1 billion and $23.2 billion, respectively. As of September 30, 2024, the carrying value and estimated fair value of debt was $20.8 billion and $19.2 billion, respectively.
Other financial instruments not measured at fair value. As of June 30, 2025, 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 instruments would be classified as Level 2 in the fair value hierarchy.
Non-financial assets. Certain non-financial assets such as goodwill, intangible assets and property, equipment and technology are subject to non-recurring fair value measurements if they are deemed to be impaired. The Company performed an annual impairment review of its indefinite-lived intangible assets and goodwill as of February 1, 2025, and concluded there was no impairment as of that date. No recent events or changes in circumstances indicated that impairment existed as of June 30, 2025.