Fair Value Measurement

6 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2012:

	Fair Value at Reporting Date Using:
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Cash Equivalents and Short-Term investments:
US government treasuries and agencies securities	$	145,836	$	—	$	—	$	145,836
Money market funds	61,841		—		—		61,841
Corporate bonds	—		13,696		—		13,696
International government bonds	—		4,605		—		4,605
Corporate commercial paper	—		1,000		—		1,000
Bank deposits	—		11,441		—		11,441
Total assets measured at fair value	$	207,677	$	30,742	$	—	$	238,419
Liabilities:
Fair value of contingent consideration	—		—		6,000		6,000
Total liabilities measured at fair value	$	—	$	—	$	6,000	$	6,000

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of April 1, 2012:

	Fair Value at Reporting Date Using
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash Equivalents and Short-Term investments:
US government treasuries and agencies securities	$	156,315	$	—	$	—	$	156,315
Money market funds	104,596		—		—		104,596
Corporate bonds	—		21,538		—		21,538
International government bonds	—		4,648		—		4,648
Corporate commercial paper	—		3,148		—		3,148
Bank deposits	—		11,633		—		11,633
Municipal bonds	—		653		—		653
Total assets measured at fair value	$	260,911	$	41,620	$	—	$	302,531

U.S. government treasuries and U.S. government agency securities as of September 30, 2012 and April 1, 2012 do not include any U.S. government guaranteed bank issued paper. Corporate bonds include bank-issued securities that are guaranteed by the Federal Deposit Insurance Corporation (FDIC).

The securities in Level 1 are highly liquid and actively traded in exchange markets or over-the-counter markets. Level 2 fixed income securities are priced using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data.

In connection with the acquisition of Fox Enterprises and Alvand Technologies (See "Note 4- Business Combinations"), a liability was recognized for the Company’s estimate of the fair value of contingent consideration on the acquisition date based on probability-based forecasted revenue.  This liability was remeasured at fair value as of September 30, 2012. This fair value measurement is based on significant inputs not observed in the market and thus represents a Level 3 measurement. This fair value measurement is valued based on unobservable inputs that are supported by little or no market activity and reflect the Company’s own assumptions concerning future revenue of the acquired business in measuring fair value.

The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) for the six months ended September 30, 2012:

(in thousands)	Estimated Fair Value
Balance as of April 1, 2012	$	—
Additions	6,000
Deletions	—
Balance as of September 30, 2012	$	6,000

All of the Company’s available-for-sale investments are subject to a periodic impairment review. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company did not record any impairment charges related to its available-for-sale investments in six months ended September 30, 2012 and October 2, 2011.