Fair Value of Financial Instruments

6 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

At March 31, 2013, the Company’s financial instruments included cash and cash equivalents, short-term investments, foreign currency forward contract, trade and notes receivables, other current assets, accounts payable and other current liabilities. Due to the short-term maturities of cash and cash equivalents, trade and other receivables, other current assets, accounts payable and other current liabilities, the carrying amounts approximate fair value on the respective balance sheet dates.

The Company measures its short-term investments and derivative instruments at fair value on a recurring basis. The fair value measurement of the Company’s short-term investments and derivative instruments was determined using the following inputs:

	As of March 31, 2013 (in thousands)
				Quoted Prices in		Significant
				Active Markets for		Other			Significant
				Identical Assets		Observable			Unobservable
	Total			(Level 1)		(Level 2)			(Level 3)
Short-term investments:
Corporate bonds	$	7,942		$	7,942	$	—		$	—
Government bonds		2,693			2,693		—			—
Foreign currency forward contract		(252	)		—		(252	)		—
Total	$	10,383		$	10,635	$	(252	)	$	—
	As of September 30, 2012 (in thousands)
				Quoted Prices in		Significant
				Active Markets for		Other			Significant
				Identical Assets		Observable			Unobservable
	Total			(Level 1)		(Level 2)			(Level 3)
Short-term investments:
Corporate bonds	$	11,109		$	11,109	$	—		$	—
Government bonds		8,851			8,851		—			—
Foreign currency forward contract		(215	)		—		(215	)		—
Total	$	19,745		$	19,960	$	(215	)	$	—

The fair value of the Company’s foreign currency forward contract at March 31, 2013 and September 30, 2012 is recorded as a current liability on the consolidated balance sheets as a component of accrued expenses and other current liabilities.