Atlassian CorpTEAM

Atlassian Corp Fair Value Disclosure

10-KFiled Aug 15, 20253 min read
3. Fair Value Measurements
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025, by level within the fair value hierarchy (in thousands):
Level 1Level 2Total
Assets measured at fair value
Cash and cash equivalents:
Money market funds$1,774,138 $— $1,774,138 
Corporate debt securities— 382 382 
Marketable securities:
U.S. treasury securities— 176,661 176,661 
Agency securities— 3,216 3,216 
Certificates of deposit and time deposits— 10,000 10,000 
Commercial paper— 19,697 19,697 
Corporate debt securities— 214,694 214,694 
Derivative financial instruments— 23,234 23,234 
Total assets measured at fair value$1,774,138 $447,884 $2,222,022 
Liabilities measured at fair value
Derivative financial instruments$— $2,445 $2,445 
Total liabilities measured at fair value$— $2,445 $2,445 
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024, by level within the fair value hierarchy (in thousands):
Level 1Level 2Total
Assets measured at fair value
Cash and cash equivalents:
Money market funds$1,563,234 $— $1,563,234 
Marketable securities:
U.S. treasury securities— 52,517 52,517 
Agency securities— 3,199 3,199 
Certificates of deposit and time deposits— 10,000 10,000 
Commercial paper— 20,010 20,010 
Corporate debt securities— 76,247 76,247 
Derivative financial instruments— 9,292 9,292 
Total assets measured at fair value$1,563,234 $171,265 $1,734,499 
Liabilities measured at fair value
Derivative financial instruments$— $1,701 $1,701 
Total liabilities measured at fair value$— $1,701 $1,701 
Due to the short-term nature of accounts receivables, net, contract assets, accounts payable, accrued expenses, and other current liabilities, their carrying amount is assumed to approximate their fair value.
Determination of Fair Value
The Company uses quoted prices in active markets for identical assets to determine the fair value of the Company’s Level 1 investments. The fair value of the Company’s Level 2 investments is determined based on quoted market prices or alternative market observable inputs.
Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis
The Company’s investments in privately held companies are not included in the tables above and are discussed in Note 4, “Investments.” The carrying value of the Company’s privately held equity securities are adjusted on a non-recurring basis upon observable price changes in orderly transactions for identical or similar investments of the same issuer, or impairment (referred to as the measurement alternative). Privately held equity securities that have been remeasured during the period based on observable price changes in orderly transactions are classified within Level 2 or Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights and preferences of the investments, and obligations of the securities the Company holds. The fair value of privately held equity securities that have been remeasured due to impairment are classified within Level 3. The Company’s privately held debt and equity securities amounted to $168.8 million and $148.7 million as of June 30, 2025 and June 30, 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Aug 15, 2025Showing above
2024Aug 16, 2024
2023Aug 18, 2023

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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