FAIR VALUE MEASUREMENTS

3 Months Ended

Jun. 30, 2013

FAIR VALUE MEASUREMENTS

The following tables represent the Company’s fair value hierarchy for its financial assets and liabilities:

Fair Values as of June 30, 2013:



(in thousands)	Level 1		Level 2		Total
Cash and cash equivalents:
Cash	$	242,348	$	—	$	242,348
Commercial paper	—		13,995		13,995
Short-term investments:
U.S. Treasury Bills and Government Agency Securities	—		37,417		37,417
Commercial paper	—		39,758		39,758
Corporate bonds	—		24,435		24,435
Long-term investments:
U.S. Treasury Bills and Government Agency Securities	13,082		29,819		42,901
Corporate bonds	—		41,999		41,999
CDs	—		1,004		1,004
Other current assets:
Derivative assets	—		593		593
Total assets measured at fair value	$	255,430	$	189,020	$	444,450

Accrued liabilities:
Derivative liabilities	$	9	$	1,130	$	1,139

Fair Values as of March 31, 2013:



(in thousands)	Level 1		Level 2		Total
Cash and cash equivalents:
Cash	$	118,881	$	—	$	118,881
U.S. Treasury Bills	104,995		—		104,995
Commercial paper	—		4,900		4,900
Short-term investments:
U.S. Treasury Bills and Government Agency Securities	7,243		58,864		66,107
Commercial paper	—		15,679		15,679
Corporate bonds	—		34,795		34,795
Long-term investments:
U.S. Treasury Bills and Government Agency Securities	22,904		32,454		55,358
Corporate bonds	—		23,898		23,898
CDs	—		1,005		1,005
Other current assets:
Derivative assets	—		1,665		1,665
Total assets measured at fair value	$	254,023	$	173,260	$	427,283

Accrued liabilities:
Derivative liabilities	$	3	$	291	$	294

There were no transfers between fair value measurement levels during the three months ended June 30, 2013 and 2012.

Refer to Note 12, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as of June 30, 2013 and March 31, 2013.

All financial assets and liabilities and non-financial assets and liabilities are recognized or disclosed at fair value in the financial statements. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1

The Company's Level 1 financial assets consist of U.S. Treasury Bills. Level 1 financial liabilities consist of derivative contracts that have closed but have not settled. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities.

Level 2

The Company's Level 2 financial assets and liabilities consist of Government Agency Securities, Commercial Paper, Corporate Bonds, CDs, and derivative foreign currency call and put option contracts. The fair value of Level 2 investment securities is determined based on other observable inputs, including multiple non-binding quotes from independent pricing services. Non-binding quotes are based on proprietary valuation models that are prepared by the independent pricing services and use algorithms based on inputs such as observable market data, quoted market prices for similar securities, issuer spreads, and internal assumptions of the broker. The Company corroborates the reasonableness of non-binding quotes received from the independent pricing services using a variety of techniques depending on the underlying instrument, including: (i) comparing them to actual experience gained from the purchases and maturities of investment securities, (ii) comparing them to internally developed cash flow models based on observable inputs, and (iii) monitoring changes in ratings of similar securities and the related impact on fair value. The fair value of Level 2 derivative foreign currency call and put option contracts is determined using pricing models that use observable market inputs.

Level 3

The fair value of Level 3 financial instruments is determined using inputs that are unobservable and reflect the Company's estimate of assumptions that market participants would use in pricing the asset or liability. The Company had no Level 3 assets or liabilities as of June 30, 2013 or March 31, 2013.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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