Fair Value Measurements

12 Months Ended

Mar. 31, 2014

The following tables set forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2014 and March 31, 2013:



	Balance at March 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
ASSETS
Cash and cash equivalents (1)	$	103,145	$	103,145	$	—	$	—
Restricted cash	4,351		4,351		—		—
Marketable securities (2)	10,656		10,656		—		—
	$	118,152	$	118,152	$	—	$	—
LIABILITIES
Contingent consideration related to acquisitions	$	14,913	—		$	—	$	14,913
	$	14,913	$	—	$	—	$	14,913



	Balance at March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
ASSETS
Cash and cash equivalents (1)	$	105,999	$	105,999	$	—	$	—
Restricted cash	5,488		5,488		—		—
Marketable securities (2)	12,012		12,012		—		—
	$	123,499	$	123,499	$	—	$	—
LIABILITIES
Contingent consideration related to acquisitions	$	5,336	$	—	$	—	$	5,336
	$	5,336	$	—	$	—	$	5,336

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(1)	Cash and cash equivalents consists of money market funds.


(2)	Marketable securities consists of fixed-income securities, including certificates of deposit and municipal securities.

The Company's contingent consideration liability is accounted for at fair value on a recurring basis and is adjusted to fair value when the carrying value differs from fair value. Key assumptions include discount rates and probability-adjusted achievement of revenue and strategic targets that are not observable in the market. The categorization of the framework used to measure fair value of the contingent consideration liability is considered Level 3 due to the subjective nature of the unobservable inputs used. The fair values of the contingent consideration liability related to the acquisitions of Sphere Health Systems, Inc., IntraNexus, Inc., and Mirth were estimated based on the probability of achieving certain business milestones and/or management's forecast of expected revenues.

The following table presents activity in the Company's financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of March 31, 2014:



	Total Liabilities
Balance at March 31, 2012	$	6,556
Acquisitions (Note 5)	2,862
Earnout payments (1)	(5,354		)
Fair value adjustments	1,272
Balance at March 31, 2013	$	5,336
Acquisitions (Note 5)	13,307
Earnout payments (2)	(3,831		)
Fair value adjustments	101
Balance at March 31, 2014	$	14,913

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(1) Comprised of $2,354 in cash and $3,000 in common stock

(2) Comprised of cash payments only

Non-Recurring Fair Value Measurements

The Company has certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered Level 3 due to the subjective nature of the unobservable inputs used. During the year ended March 31, 2014, there were no adjustments to fair value of such assets, except for the impairment charge related to the Hospital Solutions Division's goodwill and other assets (see Note 6) and the intangible assets acquired from Mirth (see Note 5).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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