Cash Equivalents, Marketable Securities and Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Cash Equivalents and Marketable Securities by Balance Sheet Classification

The Company’s cash equivalents and marketable securities at June 30, 2019 and March 31, 2019 are classified on the balance sheet as follows:

	June 30, 2019		March 31, 2019
	(in $000's)
Cash equivalents	$	46,433	$	80,089
Short-term marketable securities		385,624		370,677
Long-term marketable securities		40,032		21,718
	$	472,089	$	472,484

Cash Equivalents and Marketable Securities

The Company’s cash equivalents and marketable securities at June 30, 2019 and March 31, 2019 are invested in the following:

	Amortized		Gross Unrealized		Gross Unrealized			Fair Market
	Cost		Gains		Losses			Value
June 30, 2019:	(in $000's)
Money market funds	$	26,433	$	—	$	—		$	26,433
Repurchase agreements		20,000		—		—			20,000
Short-term U.S. Treasury mutual fund securities		47,166		57		—			47,223
Short-term government-backed securities		152,317		191		—			152,508
Short-term corporate debt securities		127,268		234		(1	)		127,501
Short-term commercial paper		58,319		73		—			58,392
Long-term government-backed securities		3,982		5		—			3,987
Long-term corporate debt securities		35,666		379		—			36,045
	$	471,151	$	939	$	(1	)	$	472,089

	Amortized		Gross Unrealized		Gross Unrealized			Fair Market
	Cost		Gains		Losses			Value
March 31, 2019:	(in $000's)
Money market funds	$	60,089	$	—	$	—		$	60,089
Repurchase agreements		20,000		—		—			20,000
Short-term U.S. Treasury mutual fund securities		58,786		13		(12	)		58,787
Short-term government-backed securities		126,336		60		(15	)		126,381
Short-term corporate debt securities		128,626		97		(9	)		128,714
Short-term commercial paper		56,780		16		(1	)		56,795
Long-term corporate debt securities		21,529		189		—			21,718
	$	472,146	$	375	$	(37	)	$	472,484

Financial Instruments Measured at Fair Value

The following tables presents the Company’s fair value hierarchy for its financial instruments measured at fair value as of June 30, 2019 and March 31, 2019:

	Level 1		Level 2		Level 3		Total
June 30, 2019:	(in $000's)
Assets
Money market funds	$	26,433	$	—	$	—	$	26,433
Repurchase agreements		—		20,000		—		20,000
Short-term U.S. Treasury mutual fund securities		—		47,223		—		47,223
Short-term government-backed securities		—		152,508		—		152,508
Short-term corporate debt securities		—		127,501		—		127,501
Short-term commercial paper		—		58,392		—		58,392
Long-term government-backed securities		—		3,987		—		3,987
Long-term corporate debt securities		—		36,045		—		36,045
Investment in Shockwave Medical		95,849		—		—		95,849
Liabilities
Contingent consideration		—		—		9,931		9,931

	Level 1		Level 2		Level 3		Total
March 31, 2019:	(in $000's)
Assets
Money market funds	$	60,089	$	—	$	—	$	60,089
Repurchase agreements		—		20,000		—		20,000
Short-term U.S. Treasury mutual fund securities		—		58,787		—		58,787
Short-term government-backed securities		—		126,381		—		126,381
Short-term corporate debt securities		—		128,714		—		128,714
Short-term commercial paper		—		56,795		—		56,795
Long-term corporate debt securities		—		21,718		—		21,718
Investment in Shockwave Medical		56,195		—		—		56,195
Liabilities
Contingent consideration		—		—		9,575		9,575

Valuation Method Used to Calculate Level 3 Liabilities Measured at Estimated Fair Value of Contingent Consideration Related to Acquisition

This liability is reported as Level 3 as the estimated fair value of the contingent consideration related to the acquisition of ECP requires significant management judgment or estimation and is calculated using the following valuation methods:

	Milestone Payment		Fair Value at June 30, 2019		Valuation Methodology	Significant Unobservable Input	Weighted Average (range, if applicable)
	(in $000's)
Clinical and regulatory milestone	$	7,000	$	5,495	Probability weighted income approach	Projected fiscal year of milestone payments	2021 to 2023
						Discount rate	3.2% to 3.4%
						Probability of occurrence	Probability adjusted level of 40% for the base case scenario and 15% to 40% for various downside and upside scenarios
Revenue-based milestone		8,000		4,436	Monte Carlo simulation model	Projected fiscal year of milestone payments	2025 to 2035
						Discount rate	17%
						Expected volatility for forecasted revenues	50%
						Probability of payment (risk-neutral)	71%
	$	15,000	$	9,931

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, 2019 and 2018:

	For the Three Months Ended June 30,
		2019		2018
	(in $000's)
Beginning balance	$	9,575	$	10,490
Additions		—		—
Payments		—		—
Change in fair value		356		(159	)
Ending balance	$	9,931	$	10,331