Marketable Securities and Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2016

The Company’s marketable securities at June 30, 2016 and March 31, 2016 are invested in the following:


	Amortized		Gross Unrealized		Gross Unrealized			Fair Market
	Cost		Gains		Losses			Value
	(in $000's)
June 30, 2016:
US Treasury mutual fund securities	$	45,595	$	23	$	—		$	45,618
Short-term government-backed securities		112,642		73		(1	)		112,714
Short-term corporate debt securities		26,449		119		-			26,568
	$	184,686	$	215	$	(1	)	$	184,900


	Amortized		Gross Unrealized		Gross Unrealized			Fair Market
	Cost		Gains		Losses			Value
	(in $000's)
March 31, 2016:
US Treasury mutual fund securities	$	45,635	$	21	$	—		$	45,656
Short-term government-backed securities		118,125		45		(4	)		118,166
Long-term government-backed securities		999		1		-			1,000
	$	164,759	$	67	$	(4	)	$	164,822

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
June 30, 2016:	(in $000's)
Assets
U.S. Treasury mutual fund securities	$	—	$	45,618	$	—	$	45,618
Short-term government-backed securities		—		112,714		—		112,714
Short-term corporate debt securities		—		26,568		—		26,568
Liabilities
Contingent consideration		—		—		7,739		7,739

	Level 1		Level 2		Level 3		Total
March 31, 2016:	(in $000's)
Assets
U.S. Treasury mutual fund securities	$	—	$	45,656	$	—	$	45,656
Short-term government-backed securities		—		118,166		—		118,166
Long-term government-backed securities		—		1,000		—		1,000
Liabilities
Contingent consideration		—		—		7,563		7,563

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 three months ended June 30, 2016:

	For the Three Months Ended June 30,
		2016		2015
	(in $000's)
Level 3 liabilities, beginning balance	$	7,563	$	6,510
Additions		—		—
Payments		—		—
Change in fair value		176		151
Level 3 liabilities, ending balance	$	7,739	$	6,661

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 June 30, 2016 classified as Level 3:

	Fair Value at				Weighted Average
	June 30, 2016			Significant	(range, if
	(in $000's)		Valuation Methodology	Unobservable Input	applicable)
Contingent consideration	$	7,739	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