Fair Value Measurements

3 Months Ended

Dec. 31, 2012

Fair Value Measurements

Note 9.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company categorizes its assets and liabilities recorded at fair value based upon the following fair value hierarchy established by the Financial Accounting Standards Board:

Level 1:	Quoted market prices in active markets for identical assets and liabilities.
Level 2:	Observable inputs other than defined in Level 1, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	Unobservable inputs that are not corroborated by observable market data.

The following table summarizes financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2012:

Level 2:
Interest Rate Swap liability:
Balance at September 30, 2012	$7,000
Balance at December 31, 2012	$        0
Net change	$7,000

The unrealized gains for the three month periods ending December 31, 2012 and December 31, 2011 of $0 and $7,000, respectively, are reported in the Condensed Consolidated Statement of Operations. We paid off the interest rate swap liability of $7,000 in October 2012.