8. Investments

We invest in certificates of deposit, time deposits, commercial paper and other fixed income securities. All investments meeting the U.S. GAAP definition of a security were classified as available-for-sale as of March 31, 2017, and September 30, 2016. Unrealized gains and losses on available-for-sale investments are included in our Condensed Consolidated Balance Sheet as a component of accumulated other comprehensive income, net of any deferred taxes. Realized gains and losses are included in net income.

Our investments consist of (in millions):



	March 31, 2017		September 30, 2016
Certificates of deposit and time deposits	$	999.4	$	902.8
Commercial paper	14.2		—
Corporate debt securities	76.3		—
Government securities	114.2		—
Total	$	1,204.1	$	902.8

Pre-tax gross unrealized gains and losses on available-for-sale investments were not material at March 31, 2017. Pre-tax gross realized gains and losses on available-for-sale investments were not material for the three and six months ended March 31, 2017 and 2016. At March 31, 2017, there were $12.4 million of outstanding purchases of investments recorded in accounts payable that did not settle until April 2017.

We evaluated all investments for which the fair value was less than amortized cost for impairment on an individual security basis at March 31, 2017. This assessment included consideration of our intent and ability to hold the security and the credit risks specific to each security. We determined that the declines in fair value of these investments were not other than temporary as of March 31, 2017, and accordingly we did not recognize any impairment charges in net income.

The table below summarizes the contractual maturities of our investments as of March 31, 2017 (in millions). Actual maturities may differ from the contractual maturities below as borrowers may have the right to prepay certain obligations.



	Fair Value
Less than one year	$	1,092.7
Due in one to three years	111.4
Total	$	1,204.1

Classification of our investments as current or noncurrent is based on the nature of the investment and when the investment is reasonably expected to be realized. These investments were included in the following line items within the Condensed Consolidated Balance Sheet (in millions):



	March 31, 2017		September 30, 2016
Short-term investments	$	1,092.7	$	902.8
Other assets	111.4		—
Total	$	1,204.1	$	902.8

8. Investments (continued)

Fair Value of Investments

U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. U.S. GAAP also classifies the inputs used to measure fair value into the following hierarchy:



Level 1:		Quoted prices in active markets for identical assets or liabilities.



Level 2:		Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.



Level 3:		Unobservable inputs for the asset or liability.

We recognize all available-for-sale investments at fair value in the Condensed Consolidated Balance Sheet. The valuation methodologies used for our investments measured at fair value are described as follows.

Certificates of deposit and time deposits — These investments are stated at cost, which approximates fair value.

Commercial paper — These investments are stated at amortized cost, which approximates fair value.

Government securities — Valued at the most recent closing price on the active market on which the individual securities are traded or, absent an active market, utilizing observable inputs such as closing prices in less frequently traded markets.

Corporate debt securities — Valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. We did not hold any Level 3 investments or have any transfers between levels of fair value measurements during the periods presented.

Fair values of our investments were (in millions):



	March 31, 2017
	Level 1		Level 2		Level 3		Total
Certificates of deposit and time deposits	$	—	$	999.4	$	—	$	999.4
Commercial paper	—		14.2		—		14.2
Corporate debt securities	—		76.3		—		76.3
Government securities	96.8		17.4		—		114.2
Total	$	96.8	$	1,107.3	$	—	$	1,204.1



	September 30, 2016
	Level 1		Level 2		Level 3		Total
Certificates of deposit and time deposits	$	—	$	902.8	$	—	$	902.8
Commercial paper	—		—		—		—
Corporate debt securities	—		—		—		—
Government securities	—		—		—		—
Total	$	—	$	902.8	$	—	$	902.8