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FAIR VALUE MEASUREMENTS
 12 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, we consider the principal or most advantageous market in which the asset or liability would transact, and if necessary, consider assumptions that market participants would use when pricing the asset or liability.
The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3).
A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The financial instruments measured at fair value in the accompanying consolidated balance sheets consist of the following:
Recurring Fair Value Measurements
as of March 31, 2022
Level 1Level 2Level 3Total
Assets:
Long term deferred compensation plan asset (1)16,512 — — 16,512 
Long-term derivative instruments (3)— 4,088 — 4,088 
Total Assets$16,512 $4,088 $— $20,600 
Liabilities:
Current derivative instruments (3)— 4,324 — 4,324 
Long-term derivative instruments (3)— 39 — 39 
Long term deferred compensation plan liability (1)16,512 — — 16,512 
Total Liabilities$16,512 $4,363 $— $20,875 
Recurring Fair Value Measurements
as of March 31, 2021
Level 1Level 2Level 3Total
Assets:
Long term deferred compensation plan asset (1)$14,142 $— $— $14,142 
Total Assets$14,142 $— $— $14,142 
Liabilities:
Contingent consideration liability (2)$— $— $1,223 $1,223 
Current derivative instruments (3)$— $17,163 $— $17,163 
Long-term derivative instruments (3)$— $20,999 $— $20,999 
Long term deferred compensation plan liability (1)$14,142 $— $— $14,142 
Total liabilities$14,142 $38,162 $1,223 $53,527 

(1) Investments in this category consist of primarily of mutual funds whose fair values are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. These assets represent investments held in a consolidated trust to fund the Company's non-qualified deferred compensation plan and are recorded in other long-term assets and other long-term liabilities on our consolidated balance sheets.

(2) The Company recognized a contingent consideration liability of $3.6 million in connection with the acquisition of Aquilent in fiscal 2017. As of March 31, 2021, the estimated fair value of the contingent consideration liability was $1.2 million, and was valued using probability-weighted cash flows, which is based on the use of Level 3 fair value measurement inputs. As of March 31, 2022 the relevant statute of limitations pertaining to the contingent liability expired at which point the Company wrote off the existing liability balance.

(3) The Company’s interest rate swaps are considered over-the-counter derivatives and fair value is estimated based on the present value of future cash flows using a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. See Note 11 to the consolidated financial statements for further discussion on the Company’s derivative instruments designated as cash flow hedges.
We did not have any material items that were measured at fair value on a non-recurring basis as of March 31, 2022, with the exception of the assets and liabilities acquired through the acquisitions of Liberty and Tracepoint (see Note 5).
The fair value of the Company's cash and cash equivalents, which are Level 1 inputs, approximated its carrying values at March 31, 2022 and 2021. The fair value of the Company's debt instruments approximated its carrying value at March 31, 2022 and 2021. The fair value of debt is determined using quoted prices or other market information obtained from recent trading activity of each debt tranche in markets that are not active (Level 2 inputs). The fair value is corroborated by prices derived from the interest rate spreads of recently completed leveraged loan transactions of a similar credit profile, industry, and terms to that of the Company. The fair value of the Senior Notes due 2029 and Senior Notes due 2028 are determined using quoted prices or other market information obtained from recent trading activity in the high-yield bond market (Level 2 inputs).