Marketable Securities and Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2015

The Company’s marketable securities at September 30, 2015 and March 31, 2015 are invested in the following:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
	(in $000’s)
September 30, 2015:
US Treasury mutual fund securities	$	19,487	$	—	$	—		$	19,487
Short-term government-backed securities		101,588		14		(2	)		101,600

	$	121,075	$	14	$	(2	)	$	121,087


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
	(in $000’s)
March 31, 2015:
US Treasury mutual fund securities	$	19,487	$	—	$	—		$	19,487
Short-term government-backed securities		90,070		9		(9	)		90,070
Long-term government-backed securities		13,999		2		(5	)		13,996

	$	123,556	$	11	$	(14	)	$	123,553

Financial Instruments Recorded at Fair Value

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


	Level 1		Level 2		Level 3		Total
	(in $000’s)
September 30, 2015:
Assets
U.S. Treasury mutual fund securities	$	—	$	19,487	$	—	$	19,487
Short-term government-backed securities		—		101,600		—		101,600
Liabilities
Contingent consideration		—		—		6,817		6,817


	Level 1		Level 2		Level 3		Total
	(in $000’s)
March 31, 2015:
Assets
U.S. Treasury mutual fund securities	$	—	$	19,487	$	—	$	19,487
Short-term government-backed securities		—		90,070		—		90,070
Long-term government-backed securities		—		13,996		—		13,996
Liabilities
Contingent consideration		—		—		6,510		6,510

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, 2015:


	For the Six Months Ended September 30,
	2015
	(in $000’s)
Level 3 liabilities, beginning balance	$	6,510
Additions		—
Payments		—
Change in fair value		307

Level 3 liabilities, ending balance	$	6,817

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 as of September 30, 2015 classified as Level 3:


	Fair Value at
	September 30, 2015			Significant	Weighted Average (range, if
	(in $000’s)		Valuation Methodology	Unobservable Input	applicable)
Contingent consideration	$	6,817	Probability weighted income approach	Milestone dates	2018 to 2021
				Discount rate	8% to 12%
				Probability of occurrence	Probability adjusted level of 40% for the base case scenario and 5% to 25% for various upside and downside scenarios