FAIR VALUE MEASUREMENTS

12 Months Ended

Mar. 31, 2011

The following table represents the Company's fair value hierarchy for its financial assets and liabilities as of March 31, 2011 and 2010:



March 31, 2011 (in thousands)	Level 1		Level 2		Level 3		Total

Cash	$	136,804	$	—	$	—	$	136,804
U.S. Treasury Bills, Government Agency Securities and Money Market Accounts	192,703		43,543		—		236,246
Commercial Paper, U.S. Corporate Bonds and CDs	—		96,238		—		96,238
Derivative assets	—		360		—		360
Total assets measured at fair value	$	329,507	$	140,141	$	—	$	469,648

Derivative liabilities	$	600	$	4,174	$	—	$	4,774



March 31, 2010 (in thousands)	Level 1		Level 2		Level 3		Total

Cash	$	69,918	$	—	$	—	$	69,918
U.S. Treasury Bills and Money Market Accounts	280,043		—		—		280,043
Derivative assets	232		2,845		—		3,077
Auction rate securities - trading securities	—		—		19,231		19,231
Derivative - UBS Rights Agreement	—		—		3,985		3,985
Total assets measured at fair value	$	350,193	$	2,845	$	23,216	$	376,254

Derivative liabilities	$	29	$	74	$	—	$	103

Level 1 financial assets consist of cash, money market funds, U.S. Treasury Bills, and derivative foreign currency forward contracts that are traded in an active market with sufficient volume and frequency of transactions. Level 1 financial liabilities consist of derivative contracts that have closed but have not settled. The fair value of Level 1 financial instruments is measured based on the quoted market price of identical securities.

Level 2 financial assets and liabilities consist of Government Agency Securities, Commercial Paper, U.S. Corporate Bonds, CDs, and derivative foreign currency call and put option contracts. Fair value is determined using inputs that are observable, either directly or indirectly, such as quoted market prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations, such as the Black Scholes valuation model, in which all significant inputs are observable or can be derived principally from or corroborated with observable market data covering substantially the full term of the assets or liabilities. During the year ended March 31, 2011, the Company did not have any transfers between Level 1 and Level 2 fair value instruments.

The Company had no Level 3 financial assets or liabilities as of March 31, 2011. Level 3 financial assets as of March 31, 2010 consisted of ARS, composed primarily of interest bearing state sponsored student loan revenue bonds guaranteed by the Department of Education. The Company exercised its option under the UBS Rights Agreement and sold all of the remaining ARS to UBS at par value in June 2010.

The following table provides a summary of changes in fair value of the Company's Level 3 financial assets for fiscal 2011 and 2010:



	Year ended March 31,
(in thousands)	2011			2010

Balance at beginning of period	$	23,216		$	28,060
Unrealized gain on ARS included in Interest and other income (expense), net	34			68
Proceeds from sales of ARS	(23,250		)	(4,750		)
Distributions received from Reserve Primary Fund	—			(162		)
Balance at end of period	$	—		$	23,216

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

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