Marketable Securities and Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2014

The Company’s marketable securities at September 30, 2014 and March 31, 2014 are invested in the following:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
	(in $000’s)
At September 30, 2014:
US Treasury securities	$	19,487	$	—	$	—		$	19,487
Short-term government-backed securities		58,480		17		(3	)		58,494
Long-term government-backed securities		16,498		3		(28	)		16,473

	$	94,465	$	20	$	(31	)	$	94,454


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
	(in $000’s)
At March 31, 2014:
US Treasury securities	$	31,487	$	—	$	—		$	31,487
Short-term government-backed securities		24,174		6		(4	)		24,176
Long-term government-backed securities		41,779		8		(26	)		41,761

	$	97,440	$	14	$	(30	)	$	97,424

Financial Instruments Recorded at Fair Value

The following table presents the Company’s financial instruments recorded at fair value in the consolidated balance sheet, classified according to the three categories described above:


	Level 1		Level 2		Level 3		Fair Value
	(in $000’s)
At September 30, 2014:
Assets
U.S. Treasury securities	$	—	$	19,487	$	—	$	19,487
Short-term government-backed securities		—		58,494		—		58,494
Long-term government-backed securities		—		16,473		—		16,473
Liabilities
Contingent consideration		—		—		5,797		5,797

	Level 1		Level 2		Level 3		Fair Value
	(in $000’s)
At March 31, 2014:
U.S. Treasury securities	$	—	$	31,487	$	—	$	31,487
Short-term government-backed securities		—		24,176		—		24,176
Long-term government-backed securities		—		41,761		—		41,761

Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs

The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the six months ended September 30, 2014:


	September 30,
	2014
	(in $000’s)
Beginning balance	$	—
Additions		6,000
Payments		—
Change in fair value		219
Foreign currency translation impact		(422	)

Ending balance	$	5,797

Quantitative Information about Inputs and Valuation Methodologies Used for Fair Value Measurements Classified in Level 3

The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements classified in Level 3 as of September 30, 2014:


	Fair Value at September 30, 2014 ( in $000’s)			Significant Unobservable Input	Weighted Average (range, if applicable)
Contingent consideration	$	5,797	Probability weighted income approach	Milestone dates	2018 to 2021
				Discount rate Probability of occurrence	8% to 12% 0% to 100%

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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