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Fair Value Measurements
 6 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 13: FAIR VALUE MEASUREMENTS
In accordance with FASB ASC 820-10, Fair Value Measurements and Disclosures, our assets and liabilities, which are carried at fair value, are classified in one of the following three categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Other observable inputs other than quoted market prices.
Level 3: Unobservable inputs that are not corroborated by market data.
The tables below present our financial assets that are measured at fair value on a recurring basis as of March 31, 2013 and 2012 and September 30, 2012:
 
 
 
March 31, 2013
 
Fair Value Measurements Using
Financial assets (liabilities):
Level 1
 
Level 2
 
Level 3
 
 
(in thousands)
Marketable equity securities
 
$
4,367

 
$
4,367

 
$
—

 
$
—

Contingent consideration
 
(23,678
)
 
—

 
—

 
(23,678
)
Net financial assets (liabilities)
 
$
(19,311
)
 
$
4,367

 
$
—

 
$
(23,678
)
 
 
 
 
 
 
 
 
 
 
 
March 31, 2012
 
Fair Value Measurements Using
Financial assets (liabilities):
Level 1
 
Level 2
 
Level 3
 
 
(in thousands)
Marketable equity securities
 
$
4,628

 
$
4,628

 
$
—

 
$
—

Contingent consideration
 
(23,000
)
 
—

 
—

 
(23,000
)
Net financial assets (liabilities)
 
$
(18,372
)
 
$
4,628

 
$
—

 
$
(23,000
)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2012
 
Fair Value Measurements Using
Financial assets (liabilities):
Level 1
 
Level 2
 
Level 3
 
 
(in thousands)
Marketable equity securities
 
$
4,631

 
$
4,631

 
$
—

 
$
—

Contingent consideration
 
(23,432
)
 
—

 
—

 
(23,432
)
Net financial assets (liabilities)
 
$
(18,801
)
 
$
4,631

 
$
—

 
$
(23,432
)


We measure the value of our marketable equity securities under a Level 1 input. These assets are publicly traded equity securities for which market prices are readily available. There were no transfers of assets in or out of Level 1 or Level 2 fair value measurements in the periods presented. At March 31, 2013 our marketable equity securities were in an unrealized loss position. The aggregate amount of unrealized losses at March 31, 2013 was less than $0.1 million and we currently believe that the fair value decline is temporary.

We used an income approach to measure the fair value of the contingent consideration using a probability-weighted discounted cash flow approach, in which all outcomes were successful. The significant inputs used for the valuation are not observable in the market, as they are specifically related to Grupo Finmart, and thus this fair value measurement represents a Level 3 measurement within the fair value hierarchy. During three and six month periods ended March 31, 2013 we recorded accretion expense of $0.1 million and $0.3 million respectively to bring the contingent consideration liability to $23.7 million at March 31, 2013. These amounts are included in administrative expenses in our consolidated statement of operations.