Fair Value Measurements

9 Months Ended

Dec. 31, 2019

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2019 and March 31, 2019 based on the three-tier fair value hierarchy (in thousands):


	Fair Value Measurements as of December 31, 2019
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	101,431	$	—	$	—	$	101,431
Commercial paper	—		5,647		—		5,647


Short-term investments:
Certificates of deposit	—		30,066		—		30,066
Commercial paper	—		13,224		—		13,224
Corporate notes and bonds	—		48,421		—		48,421
U.S. treasury securities	456,340		—		—		456,340
U.S. government agencies	—		9,611		—		9,611
Restricted cash:
Money market funds	5,639		—		—		5,639
Total	$	563,410	$	106,969	$	—	$	670,379
Included in cash and cash equivalents							$	107,078
Included in short-term investments							$	557,662
Included in restricted cash							$	5,639

	Fair Value Measurements as of March 31, 2019
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	133,239	$	—	$	—	$	133,239
Commercial paper	—		9,973		—		9,973


Short-term investments:
Certificates of deposit	—		24,726		—		24,726
Commercial paper	—		37,071		—		37,071
Corporate notes and bonds	—		27,259		—		27,259
U.S. treasury securities	402,091		—		—		402,091
U.S. government agencies	—		19,225		—		19,225
Restricted cash:
Money market funds	8,805		—		—		8,805
Total	$	544,135	$	118,254	$	—	$	662,389
Included in cash and cash equivalents							$	143,212
Included in short-term investments							$	510,372
Included in restricted cash							$	8,805

There were no transfers between fair value measurement levels during the nine months ended December 31, 2019 and 2018.

Gross unrealized gains or losses for cash equivalents and short-term investments as of December 31, 2019 and March 31, 2019 were not significant. As of December 31, 2019 and March 31, 2019, there were no securities that were in an unrealized loss position for more than 12 months.

The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of December 31, 2019 and March 31, 2019 (in thousands):


	December 31, 2019		March 31, 2019
Due within one year	$	316,984	$	346,768
Due after one year and within three years	240,678		163,604
Total	$	557,662	$	510,372

For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.

Convertible Senior Notes

As of December 31, 2019, the fair value of the 0.50% convertible senior notes due 2023 (the “Notes”) was $442.8 million. The fair value was determined based on the quoted price of the Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy.

- 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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