Note 3 Fair Value

9 Months Ended

Dec. 31, 2011

Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]

Fair Value Disclosure Text Block

3. Fair Value

We account for certain assets and liabilities at fair value. In determining fair value, we consider its principal or most advantageous market and the assumptions that market participants would use when pricing, such as inherent risk, restrictions on sale and risk of nonperformance. The fair value hierarchy is based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

Assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of December 31, 2011and March 31, 2011 (in thousands):

			December 31, 2011 (1)						March 31, 2011 (1)
					Fair Value Measured at						Fair Value Measured at
					Reporting Date Using						Reporting Date Using
Description			Total		Level 1		Level 2		Total		Level 1		Level 2
			(unaudited)						(unaudited)
Marketable equity securities (2)			$	529	$	529	$	-	$	459	$	459	$	-
Auction rate preferred securities (2)				350		-		350		375		-		375
Derivative assets (3)				-		-		-		179		-		179
Derivative liabilities (4)				(167)		-		(167)		-		-		-
	Total		$	712	$	529	$	183	$	1,013	$	459	$	554
(1)		We did not have any recurring assets whose fair value was measured using significant unobservable inputs.
(2)		Included in "Other assets" on our unaudited condensed consolidated balance sheets.
(3)		The derivative contract as of March 31, 2011 was included in "Prepaid expenses and other current assets" on our
		unaudited condensed consolidated balance sheets.
(4)		The derivative contract as of December 31, 2011 was included in "Accrued expenses and other current liabilities"
		on our unaudited condensed consolidated balance sheets.

We measure our marketable securities and derivative contracts at fair value. Marketable securities are valued using the quoted market prices and are therefore classified as Level 1 estimates.

From time to time, we use derivative instruments to manage exposures to changes in interest rates and currency exchange rates, and the fair values of these instruments are recorded on the balance sheets. We have elected not to designate these instruments as accounting hedges. The changes in the fair value of these instruments are recorded in the current period's statement of operations and are included in other income (expense), net. All of our derivative instruments are traded on over-the-counter markets where quoted market prices are not readily available. For those derivatives, we measure fair value using prices obtained from the counterparties with whom we have traded. The counterparties price the derivatives based on models that use primarily market observable inputs, such as yield curves and option volatilities. Accordingly, we classify these derivatives as Level 2. See Note 8, “Borrowing Arrangements” for further information regarding the terms of the derivative contract.

Auction rate preferred securities, or ARPS, are stated at par value based upon observable inputs including historical redemptions received from the ARPS issuers. All of our ARPS have AAA credit ratings, are 100% collateralized and continue to pay interest in accordance with their contractual terms. Additionally, the collateralized asset value ranges exceed the value of our ARPS by approximately 300 percent. Accordingly, the remaining ARPS balance of $350,000 is categorized as Level 2 for fair value measurement in accordance with the authoritative guidance provided by FASB and was recorded at full par value on the unaudited condensed consolidated balance sheets as of December 31, 2011and March 31, 2011. We currently believe that the ARPS values are not impaired and as such, no impairment has been recognized against the investment. If future auctions fail to materialize and the credit ratings of the issuers deteriorate, we may be required to record an impairment charge against the value of our ARPS.

Cash and cash equivalents are recognized and measured at fair value in our consolidated financial statements. Accounts receivable and prepaid expenses and other current assets are financial assets with carrying values that approximate fair value. Accounts payable and accrued expenses and other current liabilities are financial liabilities with carrying values that approximate fair value.

Long term loans, which primarily consist of loans from banks, approximate fair value as the interest rates either adjust according to the market rates or the interest rates approximate the market rates at December 31, 2011. See Note 10, “Pension Plans” for a discussion of pension liabilities.