4.	SIGNIFICANT ACCOUNTING POLICIES

Following are certain significant accounting principles and disclosures.

Fair Value Accounting

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels.

GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

	⋅	Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

	⋅	Level 2 – Include other inputs that are directly or indirectly observable in the marketplace.

	⋅	Level 3 – Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

We classify our marketable securities as available-for-sale, which are reported at fair value. Unrealized holding gains and losses, net of the related income tax effect, if any, on available-for-sale securities are excluded from income and are reported as accumulated other comprehensive income in stockholders’ equity. Realized gains and losses from securities classified as available for-sale are included in comprehensive income. We measure the fair value of our marketable securities based on quoted prices for identical securities in active markets, or Level 1 inputs. As of March 31, 2016, we reported no available-for-sale securities.

In accordance with GAAP, we review our marketable securities to determine whether a decline in fair value of a security below the cost basis is other than temporary. Should the decline be considered other than temporary, we write down the cost basis of the security and include the loss in current earnings as opposed to an unrealized holding loss. No losses for other than temporary impairments in our marketable securities portfolio were recognized during the quarter ended March 31, 2016.

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis – continued

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

(in thousands)

Carrying

March 31, 2016,

Amount

Level 1

Level 2

Level 3

Marketable securities

(in thousands)	Carrying
September 30, 2015	Amount		Level 1		Level 2		Level 3
Marketable securities	$	614	$	614	$	-	$	-

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value in the Consolidated Balance Sheets. For these assets, the Company does not periodically adjust carrying value to fair value except in the event of impairment. If it is determined that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within income before interest, other income (expense) and income taxes in the consolidated statements of income.

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
(in thousands)	March 31		Identical Asset		Observable Inputs		Inputs
Description	2016		(Level 1)		(Level 2)		(Level 3)
Goodwill	$	52,641	$	-	$	-	$	52,641
Property and equipment, net		144,454		-		-		144,454
Indefinite lived intangibles		55,728		-		-		55,728
Definite lived intangibles, net		4,626		-		-		4,626

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
(in thousands)	September 30		Identical Asset		Observable Inputs		Inputs
Description	2015		(Level 1)		(Level 2)		(Level 3)
Goodwill	$	52,641	$	-	$	-	$	52,641
Property and equipment, net		134,150		-		-		134,150
Indefinite lived intangibles		55,828		-		-		55,828
Definite lived intangibles, net		5,021		-		-		5,021

	Total Gains (Losses)
(in thousands)	Quarters Ended March 31,
Description	2016		2015
Goodwill	$	-	$	-
Property and equipment, net		-		-
Indefinite lived intangibles		(100)		-
Definite lived intangibles, net		-		-