Fair Value Measurements

12 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories:

•Level 1 - observable inputs such as quoted prices (unadjusted) in active liquid markets for identical securities as of the reporting date;

•Level 2 - other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; or observable market prices in markets with insufficient volume and/or infrequent transactions; and

•Level 3 - significant inputs that are generally unobservable inputs for which there is little or no market data available, including our own assumptions in determining fair value.

Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):

	March 31, 2022
	Level 1		Level 2		Level 3		Total
Liabilities:
Derivatives
Foreign currency forward contracts	$	—	$	128	$	—	$	128
Total liabilities at fair value	$	—	$	128	$	—	$	128

The carrying value of our escrow account for $3.9 million contingent consideration to be paid to the former owners of VAY AG upon achievement of continued employment over an 18 month period ending on March 17, 2023 approximates its fair value and falls under Level 3 of the fair value hierarchy.

	March 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Cash Equivalents
Money market funds	$	9,679	$	—	$	—	$	9,679
Total cash equivalents	9,679		—		—		9,679
Available-for-Sale Securities
Commercial paper	—		9,994		—		9,994
Corporate bonds	—		8,227		—		8,227
U.S. government bonds	—		55,227		—		55,227
Total assets at fair value	$	9,679	$	73,448	$	—	$	83,127
Liabilities:
Derivatives
Foreign currency forward contracts	$	—	$	672	$	—	$	672
Total liabilities at fair value	$	—	$	672	$	—	$	672

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash Equivalents
Money market funds	$	14,902	$	—	$	—	$	14,902
Total cash equivalents	14,902		—		—		14,902
Available-for-Sale Securities
Commercial paper	—		5,993		—		5,993
Corporate bonds	—		2,067		—		2,067
U.S. government bonds	—		28,139		—		28,139
Total available-for-sale securities	—		36,199		—		36,199
Derivatives
Foreign currency forward contracts	—		228		—		228
Total assets at fair value	$	14,902	$	36,427	$	—	$	51,329
Liabilities:
Derivatives
Foreign currency forward contracts	$	—	$	15	$	—	$	15
Total liabilities at fair value	$	—	$	15	$	—	$	15

For our assets measured at fair value on a recurring basis, we recognize transfers between levels at the actual date of the event or change in circumstance that caused the transfer. There were no transfers between levels during fiscal 2022, the three-month transition period ended March 31, 2021 or fiscal 2020. Additionally, we did not have any changes to our valuation techniques during any of these periods.

We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Level 1 investment valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 investment valuations are obtained from inputs, other than quoted market prices in active

markets for identical assets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Unrealized holding gains and losses are excluded from earnings and are reported net of tax in comprehensive (loss) income until realized.

The fair values of our foreign currency forward contracts are calculated as the present value of estimated future cash flows using discount factors derived from relevant Level 2 market inputs, including forward curves and volatility levels.

During the year ended December 31, 2020, we recorded an impairment of our equity investment assets required to be measured at fair value on a nonrecurring basis in the amount of $2.5 million. The $2.5 million non-cash impairment charge was determined based on our assessment of the investment upon review of the most recent financial statements and third-party valuation reports, as well as a significant adverse change in the general market conditions in which the investee operates.

The carrying value of our debt approximates its fair value and falls under Level 2 of the fair value hierarchy, as the interest rate is variable and based on current market rates.