Fair Values of Financial Instruments and Investments

3 Months Ended

Jun. 30, 2014

Fair Values of Financial Instruments and Investments [Abstract]

Fair Values of Financial Instruments and Investments

Fair Values of Financial Instruments and Investments

Fair value is defined by authoritative guidance as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets. As of June 30, 2014 and March 31, 2014, the Company's Level 1 assets consisted of money market funds and certificates of deposit with original maturities of three months or less. As of June 30, 2013, the Company's Level 1 assets consisted of money market funds. These assets were considered highly liquid and are stated at cost, which approximates market value.

Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument. Such inputs could be quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets with insufficient volume or infrequent transactions (less-active markets), or model-driven valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data, including market interest rate curves, referenced credit spreads and prepayment rates.

As of June 30, 2014 and 2013, the Company's Level 2 assets and liabilities consisted of outstanding foreign exchange forward contracts used to hedge its exposure to certain foreign currencies, including the British Pound, Canadian Dollar and Euro. The Company did not hold any Level 2 assets as of March 31, 2014. The Company's outstanding foreign exchange forward contracts, all with maturities of approximately one month, had notional values of $18,190 and $16,368 at June 30, 2014 and 2013, respectively. The fair market values of these instruments, based on quoted prices, were $(40) and $(19), on a net basis at June 30, 2014 and 2013, respectively. The fair value of these contracts was recorded in accrued liabilities as of June 30, 2014 and June 30, 2013.

Level 3 includes financial instruments for which fair value is derived from valuation techniques, including pricing models and discounted cash flow models, in which one or more significant inputs, including the Company's own assumptions, are unobservable. The Company did not hold any Level 3 assets as of June 30, 2014, March 31, 2014 and June 30, 2013.

The following table presents the Company's fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 30, 2014, March 31, 2014 and June 30, 2013:

	Estimated Fair Value Measurements
	Carrying Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
June 30, 2014:
Financial Assets:
Money market funds and certificate of deposit	$	111,908		$	111,908	$	-		$	-
Financial Liabilities:
Forward currency contracts	$	(40	)	$	-	$	(40	)	$	-
March 31, 2014:
Financial Assets:
Money market funds and certificate of deposit	$	118,795		$	118,795	$	-		$	-
June 30, 2013:
Financial Assets:
Money market funds	$	145,009		$	145,009	$	-		$	-
Financial Liabilities:
Forward currency contracts	$	(19	)	$	-	$	(19	)	$	-

- 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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