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 non-performance. 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

— Quoted prices for identical instruments in active markets.

Level

— 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

— Model-derived valuations in which

one

or more significant inputs or significant value drivers are unobservable.

Fair Value Measurements on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of

June 30, 2017

and

March 31, 2017 (

in thousands):

	June 30, 2017 (1)						March 31, 2017 (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)
Money market funds (2)	$	98,303	$	98,303	$	-	$	90,752	$	90,752	$	-
Marketable equity securities (3)		1,821		1,821		-		1,771		1,771		-
Auction rate preferred securities (3)		350		-		350		350		-		350
Total assets measured at fair value	$	100,474	$	100,124	$	350	$	92,873	$	92,523	$	350

(

)

We did

not

have any recurring fair value measurements of assets or liabilities whose fair value was measured using significant unobservable inputs.

(

)

Included in "Cash and cash equivalents" on our unaudited condensed consolidated balance sheets.

(

)

Included in "Other assets" on our unaudited condensed consolidated balance sheets.

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

estimates. All of the marketable equity securities are subject to a periodic impairment review. We review any impairment to determine whether it is other than temporarily impaired. This review is based on factors such as length of time of impairment, extent to which

the fair value is below the cost basis, financial conditions of the issuer of the security, our expectations of futur

e recoveries and our ability and intent to hold or sell the securities. Based on our review, we recognized other than temporary impairment losses of $

and

$151,000

in marketable equity securities during the

three

months ended

June 30, 2017

and

June 30, 2016

respectively.

From time to time, we use derivative instruments to manage exposure 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

We held

derivative instruments at

June 30, 2017

and

March 31, 2017.

Auction rate preferred securities, or ARPS, are stated at par value based upon observable inputs, including historical redemptions received from the ARPS issuers, and are therefore categorized as Level

estimates.

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.

Our indebtedness for borrowed money and our installment payment obligations approximated fair value, as the interest rates either adjusted according to the market rates or the interest rates approximated the market rates. The estimated fair value of these items was approximately

$78.0

million and

$77.8

million as of

June 30, 2017

and

March 31, 2017,

respectively.

Our equity method investments, cost method investments and non-financial assets, such as acquired intangible assets and property, plant and equipment, are recorded at fair value only if impairment is recognized.

impairment losses on the investments accounted for under the equity method or the cost method were recognized as of

June 30, 2017

and

June 30, 2016

, as there have

not

been any events or changes in circumstances that we believe would have had a significant adverse effect on the fair value of those investments.

Our acquisition-related intangible assets were initially recorded at fair value. The valuation of the acquisition-related intangible assets was classified as a Level

measurement because the valuation was based on significant unobservable inputs and involved management judgement and assumptions about market participants and pricing. We review our intangible assets for impairment whenever events and circumstances indicate that the carrying value of an asset might

not

be recoverable, based upon estimated undiscounted future cash flows. When we are required to determine the fair value of intangible assets other than goodwill, we use the income approach. We start with a forecast of all the expected net cash flows associated with the asset and then we apply an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows on the projections and the selection of a long-term growth rate and the discount rate. Based on our review, the intangible assets resulting from the RadioPulse acquisition were determined to be fully impaired and an impairment charge of

$1.4

million was recognized during the quarter ended

December

31,

2016.