FAIR VALUE MEASUREMENT

6 Months Ended

Sep. 30, 2012

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

NOTE 5 — FAIR VALUE MEASUREMENT

We account for certain assets and liabilities at fair value. The hierarchy below lists the three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

·Level 1—inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

·Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (such as a Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

·Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We measure certain assets, such as film costs and intangible assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the unamortized cost of the asset exceeds its fair value. The following table presents our assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2012 (in thousands):

	Level 1		Level 2		Level 3		Net Fair Value
Other long-lived assets (1)	$	—	$	—	$	72	$	72

(1)Measurement relates to the Transactional TV segment’s other long-lived assets. The recorded carrying value of an asset was reduced to its estimated fair value based on management’s estimates of assumptions that market participants would use in pricing the asset. As a result, we recorded an immaterial impairment charge within the charge for asset impairments line item in the condensed consolidated statements of operations.

The following table presents our assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2012 (in thousands):

	Level 1		Level 2		Level 3			Net Fair Value
Goodwill (2)	$	—	$	—	$	—	*	$	—
Film costs (3)		—		—		6			6
Other long-lived assets (4)		—		—		100			100

*Fair values were measured using level 3 inputs, and the fair values were zero.

(2)Measurement relates to the Transactional TV segment’s goodwill impairment analysis. We recorded a $3.7 million goodwill impairment charge to reduce the goodwill balance from $3.7 million to the implied fair value of goodwill of zero during fiscal year 2012.

(3)Measurement relates to the Film Production segment’s film cost impairment analysis. We adjusted downward the estimated future revenue for several films due to a continuation of underperformance relative to expectations, which caused the estimated fair value of the films to be less than the unamortized film cost. As a result, we recorded a $0.2 million film cost impairment charge.

(4)Measurement relates to the Transactional TV segment’s other long-lived assets. The recorded carrying value of an asset was reduced to its estimated fair value based on management’s estimates of assumptions that market participants would use in pricing the asset. As a result, we recorded a $0.1 million asset impairment charge in fiscal year 2012.