FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Investments consist of the following:



	As of March 31, 2014				As of June 30, 2013
(in thousands)	Amortized Cost Basis		Aggregate Fair Value		Amortized Cost Basis		Aggregate Fair Value
Time deposit – U.S.	$	111	$	111	$	53,862	$	53,862
Time deposit - international	70,236		70,236		28,832		28,832
U.S. government debt securities	5,135		5,135		65,352		65,352
Total investments	$	75,482	$	75,482	$	148,046	$	148,046

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The following hierarchy prioritizes the inputs (generally, assumptions that market participants use in pricing an asset or liability) used to measure fair value based on the quality and reliability of the information provided by the inputs:


•	Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.


•	Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; inputs that are derived principally from or corroborated by observable market data or other means.


•	Level 3 - Measured based on prices or valuation models using unobservable inputs to the extent relevant observable inputs are not available (i.e., where there is little or no market activity for the asset or liability).

The following table provides information regarding the financial assets accounted for at fair value and the type of inputs used to value the assets:



(in thousands)	Level 1		Level 2		Total
Balance, March 31, 2014:
Short-term investments:
Time deposit – U.S.	$	—	$	111	$	111
Time deposit - international	—		70,236		70,236
U.S. government debt securities	5,135		—		5,135
Total investments	$	5,135	$	70,347	$	75,482

Balance, June 30, 2013:
Short-term investments:
Time deposit – U.S.	$	—	$	53,862	$	53,862
Time deposit - international	—		28,832		28,832
U.S. government debt securities	60,352		5,000		65,352
Total investments	$	60,352	$	87,694	$	148,046

At March 31, 2014 and June 30, 2013, the Company’s investments were recognized at fair value determined based upon observable input information provided by the Company’s pricing service vendors for identical or similar assets. For these investments, cost approximated fair value. During the nine months ended March 31, 2014, the Company did not hold any level 3 investments or recognize any gains or losses on its investments. During the nine months ended March 31, 2013, the Company sold auction rate securities having a cost basis of approximately $52.6 million and a carrying value of approximately $38.0 million. As a result of the transaction, the Company recognized a gain of approximately $4.1 million.