Fair Value Measurements

12 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

4.    Fair Value Measurements

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, 2012 and March 31, 2011:

	Balance at March 31, 2012		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)	$	134,444	$	134,444	$	—	$	—
Restricted cash		1,962		1,962		—		—
Marketable securities(2)		4,987		4,987		—		—
	$	141,393	$	141,393	$	—	$	—
LIABILITIES
Contingent consideration related to acquisitions	$	6,556		—	$	—	$	6,556
	$	6,556	$	—	$	—	$	6,556

	Balance at March 31, 2011		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)	$	116,617	$	116,617	$	—	$	—
Restricted cash		3,787		3,787		—		—
Marketable securities(2)		1,120		1,120		—		—
	$	121,524	$	121,524	$	—	$	—
LIABILITIES
Contingent consideration related to acquisitions	$	13,658	$	—	$	12,743	$	915
	$	13,658	$	—	$	12,743	$	915

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

(2) Marketable securities consists of fixed-income 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. 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 for Sphere, IntraNexus, CQI, and ViaTrack were estimated based on the probability of achieving certain business milestones and management’s forecast of expected revenues. See Note 5.

The following table presents activity in the Company’s financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as March 31, 2012:

	Total Assets			Total Liabilities
Balance at March 31, 2010	$	7,706		$	12,590
Transfer out of Level 3 (Note 5)		—			(12,743	)
Earnout payments		—			(253	)
Goodwill adjustment (Note 5)		—			532
Fair value adjustments, net		—			789
Proceeds from sale at par		(7,700	)		—
Recognized loss		(6	)		—
Balance at March 31, 2011	$	—		$	915
Acquisitions (Note 5)		—			6,104
Earnout payments		—			(463	)
Fair value adjustments, net		—			—
Balance at March 31, 2012		—			6,556

Fair Value of Financial Instruments

The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. However, considerable judgment is necessary in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts. The Company’s financial instruments, other than those presented in the disclosures above, accounts receivables, accounts payable and accrued liabilities. The carrying value of these assets and liabilities approximates fair value because of the short-term nature of these instruments.

Interest income related to cash and cash equivalents and marketable securities for years ended March 31, 2012, 2011 and 2010 was $0.2 million, $0.3 million and $0.2 million, respectively.

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, 2012, there were no adjustments to fair value of such assets, except for the intangible assets acquired from IntraNexus, CQI and ViaTrack as discussed below in Note 5.