Fair Value Measurements

9 Months Ended

Dec. 31, 2019

Fair Value Measurements

Fair Value Measurements

3.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, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities or prices quoted in inactive markets; and Level 3, defined as unobservable inputs that are significant to the fair value of the asset or liability, and for which little or no market data exists, therefore requiring management to utilize its own assumptions to provide its best estimate of what market participants would use in valuing 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 December 31, 2019 or March 31, 2019. Our non-financial assets, such as goodwill, intangible assets and property and equipment, are measured at fair value on a nonrecurring basis, generally when there is a transaction involving those assets such as a purchase transaction, a business combination or an adjustment for impairment. No non-financial assets were measured at fair value at December 31, 2019 and March 31, 2019. 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 December 31, 2019
			Gross		Gross		Estimated Fair		Cash and cash		Short-term
	Amortized Cost		Unrealized Loss		Unrealized Gain		Value		equivalents		investments
	(In thousands)
Level 1:
Money market funds	$	4,926	$	—	$	—	$	4,926	$	4,926	$	—
Subtotal		4,926		—		—		4,926		4,926		—
Level 2:
Commercial paper		2,246		—		1		2,247		—		2,247
Corporate notes and bonds		7,862		(2)		—		7,860		—		7,860
US Treasuries		3,515		—		2		3,517		—		3,517
US Government agencies		3,500		—		—		3,500		—		3,500
Subtotal		17,123		(2)		3		17,124		—		17,124
Total	$	22,049	$	(2)	$	3	$	22,050	$	4,926	$	17,124

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

Unrealized losses related to 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, any of our investments before recovery of their cost basis. As a result, there is no other-than-temporary impairment for these investments as of December 31, 2019.