Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

Fair Value Measurements
9 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
The Company had two assets recorded at fair value on a recurring basis as of June 30, 2022, 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 June 30, 2022, the Company had liabilities 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 our debt is consistent with 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 8.1: Fair Value Measurements
As of June 30, 2022
Level 1 Level 2 Level 3 Balance
(in thousands)
Deferred compensation assets - Rabbi Trust $ 23,970  $ —  $ —  $ 23,970 
Interest rate swap —  21,864  —  21,864 
Total assets $ 23,970  $ 21,864  $ —  $ 45,834 
Contingent consideration $ —  $ —  $ 18,892  $ 18,892 
Total liabilities $ —  $ —  $ 18,892  $ 18,892 
The following table presents a reconciliation of the contingent consideration which is measured and recorded at fair value on a recurring basis using Level 3 inputs:
Table 8.2: Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
Contingent Consideration
(in thousands)
Balance as of September 30, 2021 $ 270 
Contingent consideration from current year acquisitions
Adjustments to fair value recorded in the current year
Foreign currency translations
Balance as of June 30, 2022 $ 18,892