Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.22.0.1
Fair Value
 3 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value FAIR VALUE
The Company had two assets recorded at fair value on a recurring basis as of December 31, 2021, the deferred compensation asset, related to the portion invested in mutual funds and the interest rate swap. For the deferred compensation asset, the mutual funds prices are quoted in active markets and therefore are classified as Level 1. For the interest rate swap, the Company obtains its Level 2 pricing inputs from its counterparty for the interest rate swap. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. As of December 31, 2021, the Company had one liability recorded at fair value on a recurring basis for contingent consideration related to acquisitions. The contingent consideration liability is considered Level 3, as the inputs are not observable and based on internal assumptions about forecasted revenues, margins, volumes, and probability of contract extensions on businesses acquired.
The fair values of receivables, prepaids, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of debt was $1.59 billion and $1.51 billion as of December 31, 2021 and September 30, 2021, respectively, approximates the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs).
Table 9: Fair Value
As of December 31, 2021
Level 1 Level 2 Level 3 Balance
(in thousands)
Assets:
Deferred compensation assets - Rabbi Trust $ 30,065  $ —  $ —  $ 30,065 
Interest rate swap —  3,233  —  3,233 
Total assets $ 30,065  $ 3,233  $ —  $ 33,298 
Liabilities:
Contingent consideration $ —  $ —  $ 15,602  $ 15,602 
Total liabilities $ —  $ —  $ 15,602  $ 15,602