Investments

The Company classifies its short-term investments as “available-for-sale” and records such assets at the estimated fair value with unrealized gains and losses excluded from net loss and reported, net of tax, in comprehensive loss. The portion of such unrealized losses that are deemed to be other-than-temporary in nature are charged to the Consolidated Statements of Operations. The basis for computing realized gains or losses is by specific identification. In addition, the Company had approximately $1.1 million and $1.0 million in restricted cash related to its voluntary disability insurance as of March 31, 2014 and 2013, respectively, and included in cash and cash equivalents on the Consolidated Balance Sheets.

The following is a summary of cash, cash equivalents and available-for-sale investments by type of instrument (in thousands):



	March 31, 2014									March 31, 2013
	Amortized Cost		Gross Unrealized					Estimated Fair Value		Amortized Cost		Gross Unrealized					Estimated Fair Value
	Amortized Cost		Gains		Losses			Estimated Fair Value		Amortized Cost		Gains		Losses			Estimated Fair Value
Cash	$	65,867	$	—	$	—		$	65,867	$	8,529	$	—	$	—		$	8,529
Cash equivalents	5,672		—		—			5,672		10,536		—		—			10,536
U.S. Treasury securities and agency bonds	2,838		—		—			2,838		12,363		10		—			12,373
Corporate bonds	10,599		30		(2		)	10,627		15,567		63		(2		)	15,628
Mortgage-backed and asset-backed securities*	1,793		297		(16		)	2,074		3,655		355		(7		)	4,003
Closed-end bond funds	14,373		2,392		(402		)	16,363		21,914		5,340		(39		)	27,215
Preferred stock	2,406		736		—			3,142		4,878		2,314		—			7,192
	$	103,548	$	3,455	$	(420	)	$	106,583	$	77,442	$	8,082	$	(48	)	$	85,476
Reported as:
Cash and cash equivalents								$	71,539								$	19,065
Short-term investments available-for-sale								35,044									66,411
								$	106,583								$	85,476


*	At March 31, 2014 and 2013, approximately $1.1 million and $1.4 million of the estimated fair value presented were mortgage-backed securities, respectively.

The established guidelines for measuring fair value and expanded disclosures regarding fair value measurements are defined as a three-level valuation hierarchy for disclosure of fair value measurements as follows:



Level 1 —		Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 —		Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level 3 —		Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.

The following is a summary of cash, cash equivalents and available-for-sale investments by type of instruments measured at fair value on a recurring basis (in thousands):



	March 31, 2014								March 31, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Level 1
Cash	$	65,867	$	—	$	—	$	65,867	$	8,529	$	—	$	—	$	8,529
Cash equivalents	5,672		—		—		5,672		9,508		1,028		—		10,536
U.S. Treasury securities and agency bonds	2,838		—		—		2,838		12,373		—		—		12,373
Corporate bonds	—		10,627		—		10,627		—		15,628		—		15,628
Mortgage-backed and asset-backed securities	—		2,074		—		2,074		—		4,003		—		4,003
Closed-end bond funds	16,363		—		—		16,363		27,215		—		—		27,215
Preferred stock	—		3,142		—		3,142		—		7,192		—		7,192
	$	90,740	$	15,843	$	—	$	106,583	$	57,625	$	27,851	$	—	$	85,476

There were no significant transfers in and out of Level 1 and Level 2 fair value measurements during the fiscal year ended March 31, 2014.

The following is a summary of the cost and estimated fair values of available-for-sale securities with stated maturities, which include U.S. Treasury securities and agency bonds, corporate bonds and mortgage-backed and asset-backed securities, by contractual maturity as of March 31, 2014 (in thousands):



	March 31, 2014
	Cost		Estimated Fair Value
Less than 1 year	$	6,888	$	7,024
Mature in 1 – 2 years	6,580		6,618
Mature in 3 – 5 years	529		542
Mature after 5 years	1,233		1,355
	$	15,230	$	15,539

The following is a summary of gross unrealized losses (in thousands):



	Less Than 12 Months of Unrealized Losses					12 Months or More of Unrealized Losses					Total
As of March 31, 2014	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury securities and agency bonds	$	—	$	—		$	—	$	—		$	—	$	—
Corporate bonds	992		(2		)	—		—			992		(2		)
Mortgage-backed and asset-backed securities	431		(16		)	—		—			431		(16		)
Closed-end bond funds	4,819		(333		)	405		(69		)	5,224		(402		)
	$	6,242	$	(351	)	$	405	$	(69	)	$	6,647	$	(420	)



	Less Than 12 Months of Unrealized Losses					12 Months or More of Unrealized Losses					Total
As of March 31, 2013	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury securities and agency bonds	$	300	$	—		$	—	$	—		$	300	$	—
Corporate bonds	2,276		(2		)	113		—			2,389		(2		)
Mortgage-backed and asset-backed securities	647		(3		)	—		(4		)	647		(7		)
Closed-end bond funds	—		—			6,991		(39		)	6,991		(39		)
	$	3,223	$	(5	)	$	7,104	$	(43	)	$	10,327	$	(48	)

Other-Than-Temporary Impairment

Based on an evaluation of securities that have been in a loss position, the Company recognized other-than-temporary impairment charge of its short-term investments and marketable securities of $1.1 million during the fiscal year ended March 31, 2013. During the fiscal years ended March 31, 2014 and 2012, the Company did not recognize any other-than-temporary impairment charges. The Company considered various factors which included a credit and liquidity assessment of the underlying securities and the Company’s intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost. As of March 31, 2014 and 2013, the Company also had $3.5 million and $8.1 million in gross unrealized gains, respectively. The basis for computing realized gains or losses is by specific identification.