FAIR VALUE MEASUREMENTS - Note 2

3 Months Ended

Jun. 30, 2017

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 June 30, 2017		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	31,482	$	-	$	-	$	31,482	$	31,482	$	-
Level 1:
Money market funds		21,693		-		-		21,693		21,693		-
Mutual funds		2,000		-		(185)		1,815		-		1,815
Subtotal		55,175		-		(185)		54,990		53,175		1,815
Level 2:
Commercial paper		7,894		-		-		7,894		-		7,894
Corporate debt		86,835		63		(40)		86,858		-		86,858
Asset backed securities		28,078		2		(17)		28,063		-		28,063
Subtotal		122,807		65		(57)		122,815		-		122,815
Total assets	$	177,982	$	65	$	(242)	$	177,805	$	53,175	$	124,630
Level 3:
Contingent consideration	$	-	$	-	$	-	$	148	$	-	$	-
Total liabilities	$	-	$	-	$	-	$	148	$	-	$	-

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2017		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	29,122	$	-	$	-	$	29,122	$	29,122	$	-
Level 1:
Money market funds		11,908		-		-		11,908		11,908		-
Mutual funds		2,000		-		(194)		1,806		-		1,806
Subtotal		43,030		-		(194)		42,836		41,030		1,806
Level 2:
Commercial paper		19,144		8		-		19,152		-		19,152
Corporate debt		83,995		61		(58)		83,998		-		83,998
Asset backed securities		26,906		4		(22)		26,888		-		26,888
Mortgage backed securities		116		-		(1)		115		-		115
Agency bond		2,000		-		-		2,000		-		2,000
Subtotal		132,161		73		(81)		132,153		-		132,153
Total assets	$	175,191	$	73	$	(275)	$	174,989	$	41,030	$	133,959
Level 3:
Contingent consideration	$	-	$	-	$	-	$	148	$	-	$	-
Total liabilities	$	-	$	-	$	-	$	148	$	-	$	-

Contractual maturities of investments as of June 30, 2017 are set forth below (in thousands):

		Estimated
		Fair Value
Due within one year	$	63,526
Due after one year		61,104
Total	$	124,630

Contingent Consideration and Escrow Liability

The Company's contingent consideration 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. The remaining liability of $0.1 million was settled and paid during the Company's second quarter of fiscal year 2018. 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.