Fair Value Measurements

12 Months Ended

Sep. 30, 2013

Fair Value Measurements

C.Fair Value Measurements

We measure certain financial assets and liabilities at fair value. Fair value is defined as an “exit price” which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in valuing an asset or liability. The accounting guidance requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. As a basis for considering such assumptions and inputs, a fair value hierarchy has been established that identifies and prioritizes three levels of inputs to be used in measuring fair value.

The three levels of the fair value hierarchy are as follows:

Level1—Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level2—Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

Level3—Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions.

The following table summarizes the fair value of our assets that were accounted for at fair value on a recurring basis as of September30, 2013 (in thousands):

	FairValueMeasurementsatSeptember30,2013
	QuotedPricesinActiveMarketsfor IdenticalAssets (Level1)		SignificantOther Observable Inputs (Level2)		Significant Unobservable Inputs (Level3)		FairValueat September30, 2013
Assets
Cash equivalents	$	10,531	$	−	$	−	$	10,531
Total	$	10,531	$	−	$	−	$	10,531

The following table summarizes the fair value of our assets that were accounted for at fair value on a recurring basis as of September30, 2012 (in thousands):

	FairValueMeasurementsatSeptember30,2012
	QuotedPricesinActiveMarketsfor IdenticalAssets (Level1)		SignificantOther Observable Inputs (Level2)		Significant Unobservable Inputs (Level3)		FairValueat September30, 2012
Assets
Cash equivalents	$	45,888	$	−	$	−	$	45,888
Total	$	45,888	$	−	$	−	$	45,888

Cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Consolidated Balance Sheets.

Fair Value of Other Financial Instruments

Fair value guidance requires certain fair value disclosures, such as those on our long-term debt, to be presented in both interim and annual reports. The estimated fair value amounts of financial instruments have been determined using available market information and valuation methodologies described below.

Industrial Development Revenue Bonds – The fair value of our long-term debt depends primarily on the coupon rate of our industrial development revenue bonds. The carrying value of our long-term debt at September30, 2013, approximates fair value based on the current coupon rate of the bonds, which is reset weekly. It is classified as a Level 2 input in the fair value measurement hierarchy as there is an active market for the trading of these industrial development revenue bonds.

There were no transfers between levels with the fair value measurement hierarchy during fiscal year 2013.