Fair Value Measurements

Accounting rules for fair value clarify that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:


Level 1-	Observable inputs such as quoted prices in active markets;


Level 2-	Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and


Level 3-	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Marketable Debt Instruments

Marketable debt instruments include instruments such as corporate bonds and debt, government agency bonds, bank deposits, municipal bonds, and money market mutual funds. When the Company uses observable market prices for identical securities that are traded in less active markets, the Company classifies its marketable debt instruments as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. The Company corroborates non-binding market consensus prices with observable market data using statistical models when observable market data exists. The discounted cash flow model uses observable market inputs, such as LIBOR-based yield curves, currency spot and forward rates, and credit ratings.

Assets Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis at March 31, 2018 are as follows (amounts in millions):



	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Total Balance
Assets
Cash and cash equivalents:
Money market mutual funds	$	121.0	$	—	$	121.0
Deposit accounts	—		641.6		641.6
Commercial Paper	—		118.7		118.7
Government agency bonds	—		20.0		20.0
Short-term investments:
Marketable equity securities	2.8		—		2.8
Corporate bonds and debt	—		542.9		542.9
Time deposits	—		11.5		11.5
Government agency bonds	—		723.2		723.2
Municipal bonds - taxable	—		14.9		14.9
Total assets measured at fair value	$	123.8	$	2,072.8	$	2,196.6

Assets measured at fair value on a recurring basis at March 31, 2017 are as follows (amounts in millions):



	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Total Balance
Assets
Cash and cash equivalents:
Money market mutual funds	$	343.8	$	—	$	343.8
Deposit accounts	—		564.9		564.9
Short-term investments:
Marketable equity securities	1.6		—		1.6
Corporate bonds and debt	—		165.2		165.2
Government agency bonds	—		162.0		162.0
Municipal bonds - tax-exempt	—		55.3		55.3
Municipal bonds - taxable	—		10.0		10.0
Long-term Investments:
Corporate bonds and debt	—		42.6		42.6
Government agency bonds	—		64.9		64.9
Total assets measured at fair value	$	345.4	$	1,064.9	$	1,410.3

There were no transfers between Level 1 or Level 2 during fiscal 2018 or fiscal 2017. There were no assets measured on a recurring basis during fiscal 2018 or fiscal 2017 using significant unobservable inputs (Level 3).

Assets and Liabilities Measured and Recorded at Fair Value on a Non-Recurring Basis

The Company's non-marketable equity, cost method investments, certain acquired liabilities and non-financial assets, such as intangible assets, assets held for sale and property, plant and equipment, are recorded at fair value on a non-recurring basis. These assets are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment.

The Company's non-marketable and cost method investments are monitored on a quarterly basis for impairment charges. The fair values of these investments have been determined as Level 3 fair value measurements because the valuations use unobservable inputs that require management's judgment due to the absence of quoted market prices. There were no impairment charges recognized on these investments during the years ended March 31, 2018, 2017 and 2016. These investments are included in other assets on the consolidated balance sheets.

The fair value measurements related to the Company's non-financial assets, such as intangible assets, assets held for sale and property, plant and equipment are based on available market prices at the measurement date based on transactions of similar assets and third-party independent appraisals, less costs to sell where appropriate. The Company classifies these measurements as Level 2.