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## 4. BUSINESS COMBINATIONS (Continued) 

fiscal 2017. 

• The estimated tax impact of the above adjustments. 

## 5. FAIR VALUES 

## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

## COHERENT, INC. AND SUBSIDIARIES 

We measure our cash equivalents and marketable securities at fair value. The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We recognize transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. As of September 28, 2019, we had one investment carried on a cost basis. See Note 9, "Balance Sheet Details." If we were to fair value this investment, it would be based upon Level 3 inputs. This investment is not considered material to our consolidated financial statements. At September 29, 2018, we did not have any assets or liabilities valued based on Level 3 valuations. 

We measure the fair value of outstanding debt obligations for disclosure purposes on a recurring basis. As of September 28, 2019, the current and long-term portion of long-term obligations of $14.9 million and $392.2 million, respectively, are reported at amortized cost. As of September 29, 2018, the current and long-term portion of long-term obligations of $5.1 million and $420.7 million, respectively, are reported at amortized cost. These outstanding obligations are classified as Level 2 as they are not actively traded and are valued using a discounted cash flow model that uses observable market inputs. Based on the discounted cash flow model, the fair value of the outstanding debt approximates amortized cost. 

Financial assets and liabilities measured at fair value as of September 28, 2019 and September 29, 2018 are summarized below (in thousands): 

<img src='content_image/1042443.jpg'>

