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Note 8 - Fair Value of Financial Instruments
9 Months Ended
Jun. 30, 2011
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Text Block

Current fair value accounting guidance includes a hierarchy that is intended to increase consistency and comparability in fair value measurements and disclosures. This hierarchy prioritizes inputs to valuation techniques based on observable and unobservable data. The guidance categorizes these inputs used in measuring fair value into three levels which include the following:

  • Level 1 – observable inputs such as quoted prices in active markets;
  • Level 2 – inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and
  • Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial instruments include cash and cash equivalents, receivables and accounts payable, and the fair values approximate book values due to their short maturities. The majority of our capital leases have lease terms of three years and their fair values approximate book values due to their short maturities.

In August 2010, we amended our revolving credit facility. Because this amendment was done recently and includes interest rates based on current market conditions, we believe that the estimated fair value of our long-term debt (including current maturities) was materially the same as our carrying value.

In November 2010, we refinanced our sterling revolving credit facility. Because this amendment was done recently and includes interest rates based on current market conditions, we believe that the estimated fair value of our long-term debt (including current maturities) was materially the same as our carrying value.