Fair Value Measurements

9 Months Ended

Dec. 31, 2014

Notes To Financial Statements [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of financial assets and liabilities using available market information and generally accepted valuation methodologies. The inputs used to measure fair value are classified into three tiers. These tiers include Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the entity to develop its own assumptions. The following table shows the fair value of our financial assets and liabilities at December 31, 2014 and March 31, 2014:

					Fair Value Measurements at December 31, 2014 and March 31, 2014 Using
	Carrying Value				Quoted Prices in Active Markets for Identical Assets				Significant Other Observable Inputs				Significant Unobservable Inputs
					Level 1				Level 2				Level 3
	December 31		March 31		December 31		March 31		December 31		March 31		December 31		March 31
Assets:
Cash and cash equivalents (1)	$	144,512	$	152,802	$	125,768	$	137,189	$	18,744	$	15,613	$	—	$	—
Forward and swap contracts (2)	9		167		—		—		9		167		—		—
Investments (3)	7,322		3,397		7,322		3,397		—		—		—		—
Liabilities:
Forward and swap contracts (2)	$	88	$	67	$	—	$	—	$	88	$	67	$	—	$	—
Deferred compensation plans (3)	3,688		3,495		3,688		3,495		—		—		—		—
Long term debt (4)	610,680		493,480		—		—		633,079		511,690		—		—
Contingent consideration obligations (5)	6,545		9,887		—		—		—		—		6,545		9,887

(1) Money market fund holdings are classified as level two as active market quoted prices are not available.

(2) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates.

(3) We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allowed for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Changes in the value of the investment accounts are recognized each period based on the fair value of the underlying investments. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). We also hold an investment in the common stock of Servizi Italia, S.p.A, a leading provider of integrated linen washing and outsourced sterile processing services to hospital Customers. Changes in the value of the investment are recognized each period based on the fair value of the investment.

(4) We estimate the fair value of our long-term debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements.

(5) Contingent consideration obligations arise from prior business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates.

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2014 are summarized as follows:

	Contingent Consideration
Balance at March 31, 2014	$	9,887
Deductions	(5,061		)
(Gains)/Losses	2,040
Foreign currency translation adjustments (1)	(321		)
Balance at December 31, 2014	$	6,545

(1) Reported in other comprehensive income (loss).

Information regarding our investments is as follows:

					Investments at December 31, 2014 and March 31, 2014
	Cost				Unrealized Gains				Unrealized Losses (2)					Fair Value
	December 31		March 31		December 31		March 31		December 31			March 31		December 31		March 31
Available-for-sale securities:
Marketable equity securities (1)	$	4,681	$	—	$	—	$	—	$	(946	)	$	—	$	3,735	$	—
Mutual funds	2,656		2,608		931		789		—			—		3,587		3,397
Total available-for-sale securities	$	7,337	$	2,608	$	931	$	789	$	(946	)	$	—	$	7,322	$	3,397

(1) Our marketable equity securities have been in a unrealized loss position for less than 12 months.

(2) Amounts reported include the impact of foreign currency movements relative to the U.S. dollar.