Fair Value Measurements

12 Months Ended

Mar. 31, 2020

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

We measure fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a three‑tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

We did not have any material financial assets or liabilities measured at fair value on a recurring basis using Level 3 inputs as of March 31, 2020 or 2019. Our non-financial assets, such as goodwill, intangible assets, property and equipment, and acquired assets and liabilities assumed are measured at fair value on a non-recurring basis, generally when there is a transaction involving those assets such as a purchase transaction, a business combination or an adjustment for impairment. In Fiscal 2020, Fiscal 2019 and Fiscal 2018, Level 3 inputs were used to evaluate the fair value of our goodwill in our two reporting units that had goodwill balances. No other non-financial assets were measured at fair value during the fiscal years ended March 31, 2020, March 31, 2019 and March 31, 2018.

The following tables present the Company’s financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy:

		As of March 31, 2020
		(In thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated Fair
	Cost		Loss		Gain		Value
Level 1:
Money market funds	$	10,576	$	(1)	$	—	$	10,575
Subtotal		10,576		(1)		—		10,575
Level 2:
Commercial paper		1,495		(1)		—		1,494
Corporate notes and bonds		6,044		(22)		—		6,022
US Treasuries		3,013		—		20		3,033
US Government agencies		1,007		—		—		1,007
Subtotal		11,559		(23)		20		11,556
Total	$	22,135	$	(24)	$	20	$	22,131

	As of March 31, 2019
	(In thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated Fair
	Cost		Loss		Gain		Value
Level 1:
Money market funds	$	3,338	$	—	$	—	$	3,338
Subtotal		3,338		—		—		3,338
Level 2:
Commercial paper				—		—		—
Corporate notes and bonds		1,434		(1)		—		1,433
US Treasuries		502		—		—		502
Subtotal		1,936		(1)		—		1,935
Total	$	5,274	$	(1)	$	—	$	5,273

Unrealized losses related to these investments are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell, and it is not more likely than not that we would be required to sell, these investments before recovery of their cost basis. As a result, there is no other-than-temporary impairment for these investments as of March 31, 2020.