FAIR VALUE MEASUREMENTS

9 Months Ended

Dec. 31, 2011

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

6.   FAIR VALUE MEASUREMENTS

The Company has categorized its financial assets, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. If the inputs used to measure a financial instrument fall within different levels of the hierarchy, the categorization of such financial asset is based on the lowest level input that is significant to the fair value measurement of such instrument.

Financial assets recorded on the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1 - Financial assets whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access at the measurement date (examples include actively exchange-traded equity securities, listed derivatives, and most U.S. government and agency securities).

Level 2 - Financial assets whose values are based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.  Level 2 inputs include the following:

·Quoted prices for identical or similar assets or liabilities in non-active markets;

·Inputs other than quoted prices that are observable for substantially the full term of the asset or liability; and

·Inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 - Financial assets whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company currently does not have any Level 3 financial assets or liabilities.

The following table presents the financial assets and liabilities the Company measures at fair value on a recurring basis, based on the fair value hierarchy as of December 31, 2011 and March 31, 2011:

(In thousands)	December 31, 2011		March 31, 2011
Level 1 — Financial Assets
U.S. Treasury bills	$	27,546	$	20,120
Level 2 — Financial Assets
Corporate debentures/bonds	64,392		44,586
Government agency bonds	47,462		13,099
Commercial paper	30,652		57,512
Money market funds	10,259		10,249
Certificates of deposit	4,000		4,000
Total Level 2 Financial Assets	156,765		129,446
Total cash equivalents and short-term investments	$	184,311	$	149,566

These investments are classified as available-for-sale and are recorded at their fair market values using the specific identification method. As of December 31, 2011, all of the Company’s available-for-sale securities had contractual maturities of fifteen months or less. The Company had no material realized gains or losses on its available-for-sale securities for the three and nine months ended December 31, 2011 and December 31, 2010, respectively. The unrealized holding gains or losses on these securities are included as a component of other comprehensive income, as disclosed in Note 1.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2011
Short-term investments:
Corporate debentures/bonds	$	64,454	$	6	$	(68	)	$	64,392
Government agency bonds	47,449		14		(1		)	47,462
Commercial paper	30,651		2		(1		)	30,652
U.S. Treasury bills	27,507		39		—			27,546
Certificates of deposit	4,000		—		—			4,000
Total short-term investments	$	174,061	$	61	$	(70	)	$	174 052
Cash equivalents:
Money market funds	$	10,259	$	—	$	—		$	10,259

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2011:
Short-term investments:
Corporate debentures/bonds	$	44,585	$	13	$	(12	)	$	44,586
Government agency bonds	6,593		7		—			6,600
Commercial paper	34,834		1		—			34,835
U.S. Treasury bills	20,095		25		—			20,120
Certificates of deposit	4,000		—		—			4,000
Total short-term investments	$	110,107	$	46	$	(12	)	$	110,141
Cash equivalents:
Money market funds	10,249		—		—			10,249
Government agency bonds	6,500		—		(1		)	6,499
Commercial paper	22,677		—		—			22,677
Total cash equivalents	$	39,426	$	—	$	(1	)	$	39,425