Marketable Securities and Fair Value Measurements (Tables)

9 Months Ended

Dec. 31, 2015

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


	Amortized		Gross Unrealized		Gross Unrealized			Fair Market
	Cost		Gains		Losses			Value
	(in $000's)
December 31, 2015:
US Treasury mutual fund securities	$	19,488	$	—	$	—		$	19,488
Short-term government-backed securities		123,499		16		(35	)		123,480
	$	142,987	$	16	$	(35	)	$	142,968


	Amortized		Gross Unrealized		Gross Unrealized			Fair Market
	Cost		Gains		Losses			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
December 31, 2015:	(in $000's)
Assets
U.S. Treasury mutual fund securities	$	—	$	19,488	$	—	$	19,488
Short-term government-backed securities		—		123,480		—		123,480
Liabilities
Contingent consideration		—		—		7,392		7,392

	Level 1		Level 2		Level 3		Total
March 31, 2015:	(in $000's)
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 nine months ended December 31, 2015:

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
		2015		2014		2015		2014
	(in $000's)				(in $000's)
Level 3 liabilities, beginning balance	$	6,817	$	5,797	$	6,510	$	—
Additions		—		—		—		6,000
Payments		—		—		—		—
Change in fair value		575		568		882		365
Level 3 liabilities, ending balance	$	7,392	$	6,365	$	7,392	$	6,365

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 December 31, 2015 classified as Level 3:

	Fair Value at				Weighted Average
	December 31, 2015			Significant	(range, if
	(in $000's)		Valuation Methodology	Unobservable Input	applicable)
Contingent consideration	$	7,392	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 30% for various upside and downside scenarios