Fair Value Measurements

9 Months Ended

Dec. 31, 2021

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2021 and March 31, 2021 based on the three-tier fair value hierarchy (in thousands):


	Fair Value Measurements as of December 31, 2021
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	139,891	$	—	$	—	$	139,891



Short-term investments:
Certificates of deposit	—		93,720		—		93,720
Commercial paper	—		32,049		—		32,049
Corporate notes and bonds	—		88,864		—		88,864
U.S. treasury securities	319,319		—		—		319,319

Restricted cash:
Money market funds	5,775		—		—		5,775
Total	$	464,985	$	214,633	$	—	$	679,618
Included in cash and cash equivalents							$	139,891
Included in short-term investments							$	533,952
Included in restricted cash							$	5,775

	Fair Value Measurements as of March 31, 2021
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	101,626	$	—	$	—	$	101,626



Short-term investments:
Certificates of deposit	—		48,099		—		48,099
Commercial paper	—		11,681		—		11,681
Corporate notes and bonds	—		39,873		—		39,873
U.S. treasury securities	475,601		—		—		475,601

Restricted cash:
Money market funds	5,642		—		—		5,642
Total	$	582,869	$	99,653	$	—	$	682,522
Included in cash and cash equivalents							$	101,626
Included in short-term investments							$	575,254
Included in restricted cash							$	5,642

There were no transfers between fair value measurement levels during the nine months ended December 31, 2021 and 2020.

The Company invests in certificates of deposit, commercial paper, corporate debt securities, U.S. treasury securities, and U.S. agency securities, which are classified as available-for-sale securities.

The following table presents the Company’s available-for-sale securities as of December 31, 2021 (in thousands):


	Available-for-sale Investments as of December 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value



Short-term investments:
Certificates of deposit	$	93,800	$	3	$	(83)	$	93,720
Commercial paper	32,067		2		(20)		32,049
Corporate notes and bonds	89,381		14		(531)		88,864
U.S. treasury securities	319,954		279		(914)		319,319

Total available-for-sale investments	$	535,202	$	298	$	(1,548)	$	533,952

The following table presents the Company’s available-for-sale securities as of March 31, 2021 (in thousands):


	Available-for-sale Investments as of March 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value



Short-term investments:
Certificates of deposit	$	48,100	$	18	$	(19)	$	48,099
Commercial paper	11,676		5		—		11,681
Corporate notes and bonds	39,620		261		(8)		39,873
U.S. treasury securities	474,171		1,575		(145)		475,601

Total available-for-sale investments	$	573,567	$	1,859	$	(172)	$	575,254

As of December 31, 2021 and March 31, 2021, securities that were in an unrealized loss position for more than 12 months were not significant. In addition, the Company did not consider any available-for-sale securities to be impaired as of December 31, 2021 and March 31, 2021.

The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of December 31, 2021 and March 31, 2021 (in thousands):


	December 31, 2021		March 31, 2021
Due within one year	$	357,579	$	299,032
Due after one year and within three years	176,373		276,222
Total	$	533,952	$	575,254

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, 2021, the fair value of the Notes was $541.4 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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