C. FAIR VALUE MEASUREMENTS 31 Level 3 — Unobservable inputs that are supported by little or no  market data and require the reporting entity to develop its own  assumptions. Level 2 — Inputs other than the quoted prices in active markets that  are observable either directly or indirectly, including: quoted prices  for similar assets and liabilities in active markets; quoted prices  for identical or similar assets and liabilities in markets that are not  active or other inputs that are observable or can be corroborated  by observable market data. Level 1 — Observable inputs such as quoted prices (unadjusted) in  active markets for identical assets or liabilities. The three levels of the fair value hierarchy are as follows:  In July 2013, the FASB issued accounting guidance on the  presentation of an unrecognized tax benefit when a net operating loss  carryforward, a similar tax loss, or a tax credit carryforward exists.  The guidance states that an unrecognized tax benefit, or a portion  In March 2013, the FASB issued accounting guidance to resolve the  diversity in practice for accounting for the release of the cumulative  translation adjustment into net income when a parent either sells a  part or all of its investment in a foreign entity or no longer holds a  controlling financial interest in a subsidiary or group of assets that  is a nonprofit activity or a business (other than a sale of real estate  or conveyance of oil and gas mineral rights) within a foreign entity.  This guidance is effective prospectively for fiscal years (and interim  reporting periods within those years) beginning after December 15,  2013, our fiscal year ending September 30, 2015. We do not expect  this guidance to have a material impact on our consolidated financial  position or results of operations.  We measure certain financial assets and liabilities at fair value. Fair  value is defined as an “exit price” which represents the amount  that would be received to sell an asset or paid to transfer a  liability in an orderly transaction between market participants as  of the measurement date. As such, fair value is a market-based  measurement that should be determined based on assumptions  that market participants would use in valuing an asset or liability.  The accounting guidance requires the use of valuation techniques  to measure fair value that maximize the use of observable inputs  and minimize the use of unobservable inputs. As a basis for  considering such assumptions and inputs, a fair value hierarchy  has been established that identifies and prioritizes three levels of  inputs to be used in measuring fair value. of an unrecognized tax benefit, should be presented in the financial  statements as a reduction to a deferred tax asset for a net operating  loss carryforward, a similar tax loss, or a tax credit carryforward. To  the extent a net operating loss carryforward, a similar tax loss, or a  tax credit carryforward is not available at the reporting date under  the tax law of the applicable jurisdiction to settle any additional  income taxes that would result from the disallowance of a tax  position or the tax law of the applicable jurisdiction does not require  the entity to use, and the entity does not intend to use, the deferred  tax asset for such purpose, the unrecognized tax benefit should be  presented in the financial statements as a liability and should not be  combined with deferred tax assets. This guidance is effective for  fiscal years, and interim periods within those years, beginning after  December 15, 2013, our fiscal year ended September 30, 2015.  This guidance should be applied prospectively to all unrecognized  tax benefits that exist at the effective date. Retrospective application  is permitted. The adoption of this guidance is not expected to have  a significant impact on our consolidated financial position or results  of operations. In February 2013, the FASB issued accounting guidance that  requires companies to provide information regarding the amounts  reclassified out of accumulated other comprehensive income by  component. A company will be required to present, either on the  face of the statement where net income is presented or in the  notes, significant amounts reclassified out of accumulated other  comprehensive income by the respective line items of net income,  but only if the amount reclassified is required by U.S. generally  accepted accounting principles (U.S. GAAP) to be reclassified to net  income in its entirety in the same reporting period. For other amounts  that are not required under U.S. GAAP to be reclassified in their  entirety to net income, a company is required to cross-reference to  other disclosures required under U.S. GAAP that provide additional  detail regarding those amounts. This accounting guidance was  effective for fiscal years beginning after December 15, 2012, on a  prospective basis. We are evaluating the impact of this guidance  on our consolidated financial statements, but since the guidance  only affects presentation and disclosure of amounts reclassified out  of accumulated other comprehensive income, the adoption of this  guidance in the first quarter of fiscal year 2014 is not expected to  have a significant impact on our consolidated financial position or  results of operations.  of conflict minerals that originate in the Democratic Republic of the  Congo or an adjoining country. The final rule applies to a company  that uses minerals including tantalum, tin, gold or tungsten. The  final rule requires companies to provide disclosure on a new form  filed with the SEC, with the first specialized disclosure report due on  May 31, 2014, for the 2013 calendar year, and annually on May 31  each year thereafter. We are implementing the processes and  procedures to comply with this rule.