Basis of Presentation (Policies)

6 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Recent Accounting Pronouncements

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which is a part of FASB’s Simplification initiative. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment awards issued by entities to their employees, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted the provisions of ASU 2016-09 during the quarter ended March 31, 2017 with no material impact on the Company’s financial position, results of operations or cash flows.

Fair Value Measurements

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 marketable equity securities, exchange-traded funds, mutual funds, government securities and cash and money funds are substantially based on quoted market prices (Level 1). Corporate and municipal bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments, if any, are provided by the Company’s professional investment management firm.

The following table sets forth, by level, within the fair value hierarchy, the Company’s assets measured at fair value as of March 31, 2017:


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	9,182,000	$	—	$	—	$	9,182,000
Mutual Funds		5,411,000		—		—		5,411,000
Exchange-Traded Funds		1,372,000		—		—		1,372,000
Government Securities		69,712,000		—		—		69,712,000
Cash and Money Funds		1,527,000		—		—		1,527,000

Total	$	87,204,000	$	—	$	—	$	87,204,000

Net unrealized gains included in the Condensed Consolidated Statements of Income for the quarter and six months ended March 31, 2017, on trading securities still held as of March 31, 2017, were $311,000 and $465,000, respectively. There were no transfers of investments between Level 1 and Level 2 during the six months ended March 31, 2017.

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


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	2,408,000	$	—	$	—	$	2,408,000
Mutual Funds		5,212,000		—		—		5,212,000
Exchange-Traded Funds		510,000		—		—		510,000
Government Securities		69,583,000		—		—		69,583,000
Cash and Money Funds		8,225,000		—		—		8,225,000

Total	$	85,938,000	$	—	$	—	$	85,938,000

Net unrealized gains included in the Condensed Consolidated Statements of Income for the quarter and six months ended March 31, 2016, on trading securities still held as of March 31, 2016, were $647,000 and $1,590,000, respectively. There were no transfers of investments between Level 1 and Level 2 during the six months ended March 31, 2016.

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.