Fair Value Measurements

3 Months Ended

Jun. 30, 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):

	June 30, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Derivatives
Foreign currency forward contracts	$	—	$	5	$	—	$	5
Total assets measured at fair value	$	—	$	5	$	—	$	5
Liabilities:
Derivatives
Foreign currency forward contracts	$	—	$	34	$	—	$	34
Total liabilities measured at fair value	$	—	$	34	$	—	$	34

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

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 the three-month period ended June 30, 2022, nor for the fiscal year ended March 31, 2022 ("fiscal 2022"). Additionally, we did not have any changes to our valuation techniques during either of these periods.

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.

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.

During the quarter ended June 30, 2022, we evaluated the fair value of our goodwill and intangible assets because triggering events were identified. See Note 7 for additional information.