Fair Value Measurements

The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The fair value of the Company’s Level 1 investments, including marketable equity securities, exchange-traded funds, mutual funds and government securities are substantially based on quoted market prices. The Company does not currently have any Level 2 or Level 3 investments.

The following table sets forth, by level, within the fair value hierarchy, the Company’s marketable securities measured at fair value as of June 30, 2016:


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	7,908,000	$	—	$	—	$	7,908,000
Mutual Funds		6,689,000		—		—		6,689,000
Exchange-Traded Funds		1,060,000		—		—		1,060,000
Government Securities		42,539,000		—		—		42,539,000
Cash and Money Funds		27,416,000		—		—		27,416,000

Total	$	85,612,000	$	—	$	—	$	85,612,000

Net unrealized gains included in the consolidated statements of income for the quarter and nine months ended June 30, 2016, on trading securities still held as of June 30, 2016, were $698,000 and $2,288,000, respectively. There were no transfers of investments between Level 1 and Level 2 during the nine months ended June 30, 2016.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2015:


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	20,915,000	$	—	$	—	$	20,915,000
Mutual Funds		11,885,000		—		—		11,885,000
Exchange-Traded Funds		4,086,000		—		—		4,086,000
Government Securities		43,883,000		—		—		43,883,000
Cash and Money Funds		3,588,000		—		—		3,588,000

Total	$	84,357,000	$	—	$	—	$	84,357,000

Net unrealized losses included in the consolidated statements of income for the quarter and nine months ended June 30, 2015, on trading securities still held as of June 30, 2015, were $(647,000) and $(1,466,000), respectively. There were no transfers of investments between Level 1 and Level 2 during the nine months ended June 30, 2015.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these items.