FAIR VALUE MEASUREMENTS - Note 2

9 Months Ended

Dec. 31, 2016

Cash and Cash Equivalents [Abstract]

FAIR VALUE MEASUREMENTS - Note 2

2. FAIR VALUE MEASUREMENTS

Cash, cash equivalents, and available-for-sale investments, and contingent consideration were (in thousands):

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of December 31, 2016		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	27,382	$	-	$	-	$	27,382	$	27,382	$	-
Level 1:
Money market funds		6,075		-		-		6,075		6,075		-
Mutual funds		2,000		-		(202)		1,798		-		1,798
Subtotal		35,457		-		(202)		35,255		33,457		1,798
Level 2:
Commercial paper		20,945		4		(2)		20,947		-		20,947
Corporate debt		90,469		57		(65)		90,461		-		90,461
Asset backed securities		22,630		7		(15)		22,622		-		22,622
Mortgage backed securities		367		-		(2)		365		-		365
Agency bond		2,000		1		-		2,001		-		2,001
International government securities		1,000		-		-		1,000		-		1,000
Subtotal		137,411		69		(84)		137,396		-		137,396
Total assets	$	172,868	$	69	$	(286)	$	172,651	$	33,457	$	139,194
Level 3:
Contingent consideration	$	-	$	-	$	-	$	148	$	-	$	-
Total liabilities	$	-	$	-	$	-	$	148	$	-	$	-

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2016		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	18,596	$	-	$	-	$	18,596	$	18,596	$	-
Level 1:
Money market funds		14,980		-		-		14,980		14,980		-
Mutual funds		2,000		-		(187)		1,813		-		1,813
Subtotal		35,576		-		(187)		35,389		33,576		1,813
Level 2:
Commercial paper		6,794		2		-		6,796		-		6,796
Corporate debt		85,164		78		(28)		85,214		-		85,214
Municipal securities		1,007		-		(1)		1,006		-		1,006
Asset backed securities		24,614		7		(11)		24,610		-		24,610
Mortgage backed securities		2,045		-		(17)		2,028		-		2,028
Agency bond		6,805		1		-		6,806		-		6,806
International government securities		1,000		1		-		1,001		-		1,001
Subtotal		127,429		89		(57)		127,461		-		127,461
Total assets	$	163,005	$	89	$	(244)	$	162,850	$	33,576	$	129,274
Level 3:
Contingent consideration	$	-	$	-	$	-	$	148	$	-	$	-
Total liabilities	$	-	$	-	$	-	$	148	$	-	$	-

Contractual maturities of investments as of December 31, 2016, are set forth below (in thousands):

		Estimated
		Fair Value
Due within one year	$	86,842
Due after one year		52,352
Total	$	139,194

Contingent Consideration and Escrow Liability

The Company's contingent consideration liability and escrow liability, included in other accrued liabilities and noncurrent liabilities on the consolidated balance sheets, was associated with the Quality Software Corporation (QSC) acquisition made in the first quarter of fiscal 2016. Amounts held in escrow were measured at fair value using present value computations. The contingent consideration was measured at fair value using a probability weighted average of the potential payment outcomes that would occur should certain contract milestones be reached. There is no market data available to use in valuing the contingent consideration; therefore, the Company developed its own assumptions related to the achievement of the milestones to evaluate the fair value of the liability. As such, the contingent consideration is classified within Level 3 as described below.

The items are classified as Level 3 within the valuation hierarchy, consisting of contingent consideration and escrow liability related to the QSC acquisition, were valued based on an estimate of the probability of success of the milestones being achieved and present value computations, respectively. The table below presents a roll-forward of the contingent consideration and escrow liability valued using a Level 3 input (in thousands):

		Three Months Ended				Nine Months Ended
		December 31,				December 31,
		2016		2015		2016		2015
Balance at beginning of period	$	216	$	391	$	341	$	-
Purchase price contingent consideration		-		-		-		541
Fair value adjustment		107		-		107		-
Contingent consideration payments		(175)		(50)		(300)		(200)
Balance at end of period	$	148	$	341	$	148	$	341