FAIR VALUE MEASUREMENTS

9 Months Ended

Dec. 31, 2020

Recurring fair value measurements

The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, prepaid expenses and other, accounts payable, and accrued expenses and other current liabilities, approximate fair value because of their short maturities.

We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows:

•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.

•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

The table below segregates all assets and liabilities that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.


	December 31, 2020		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Balance Sheet Classification
Money market funds	$	745,564	$	745,564	$	—	$	—	Cash and cash equivalents
Bank-time deposits	471,688		471,688		—		—		Cash and cash equivalents
Commercial paper	37,005		—		37,005		—		Cash and cash equivalents

Corporate bonds	300		—		300		—		Cash and cash equivalents
Corporate bonds	509,949		—		509,949		—		Short-term investments
Bank-time deposits	118,000		118,000		—		—		Short-term investments
US Treasuries	45,041		45,041		—		—		Short-term investments
Asset-backed securities	699		—		699		—		Short-term investments
Commercial paper	98,994		—		98,994		—		Short-term investments
Money market funds	469,988		469,988		—		—		Restricted cash and cash equivalents
Bank-time deposits	560		560		—		—		Restricted cash and cash equivalents
Money market funds	98,538		98,538		—		—		Long-term restricted cash and cash equivalents
Private equity	6,178		—		—		6,178		Other assets
Foreign currency forward contracts	(128)		—		(128)		—		Accrued expenses and other current liabilities
Total recurring fair value measurements, net	$	2,602,376	$	1,949,379	$	646,819	$	6,178


	March 31, 2020		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Balance Sheet Classification
Money market funds	$	497,861	$	497,861	$	—	$	—	Cash and cash equivalents
Bank-time deposits	313,757		313,757		—		—		Cash and cash equivalents
Commercial paper	97,544		—		97,544		—		Cash and cash equivalents
Corporate bonds	9,888		—		9,888		—		Cash and cash equivalents
Money market funds	546,604		546,604		—		—		Restricted cash and cash equivalents
Corporate bonds	334,631		—		334,631		—		Short-term investments
Bank-time deposits	191,000		191,000		—		—		Short-term investments
US Treasuries	30,819		30,819		—		—		Short-term investments
Commercial paper	87,553		—		87,553		—		Short-term investments
Cross-currency swap	11,275		—		11,275		—		Prepaid expenses and other
Money market funds	89,124		89,124		—		—		Long-term restricted cash and cash equivalents
Private equity	2,759		—		—		2,759		Other assets
Foreign currency forward contracts	(11)		—		(11)		—		Accrued and other current liabilities
Total recurring fair value measurements, net	$	2,212,804	$	1,669,165	$	540,880	$	2,759

We did not have any transfers between Level 1 and Level 2 fair value measurements, nor did we have any transfers into or out of Level 3 during the nine months ended December 31, 2020.

Nonrecurring fair value measurements

We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the privately-held affiliates, and we do not maintain power over or control of the entities. We have elected the practical expedient in Topic 321, Investments-Equity Securities, to measure these investments at cost less any impairment, adjusted for observable price changes, if any. Based on these considerations, we estimate that the carrying value of the acquired shares represents the fair value of the investment. At December 31, 2020, we held $45,000 of such investments in Other assets within our Condensed Consolidated Balance Sheet.

During the three and nine months ended December 31, 2020, we recognized a gain on the sale of a portion of one of these investments of $19,791 and an unrealized gain based on our sale constituting an observable price change of $20,797 related to the same investment. Both gains are reflected in Gain on long-term investments, net within our Condensed Consolidated Statements of Operations.

- 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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