4. Fair Value

Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy consisted of the following (in thousands):


	September 30,				June 30,
	2013				2013
	Level 1		Level 3		Level 1		Level 3
Assets:
Money market	$	326,066	$	—	$	350,521	$	—
Auction rate securities		—		17,536		—		16,969

Total available-for-sale securities	$	326,066	$	17,536	$	350,521	$	16,969

Liabilities:
Contingent consideration liability recorded for business combination	$	—	$	8,505	$	—	$	8,247

In our condensed consolidated balance sheets as of September 30, 2013 and June 30, 2013, money market balances are included in cash and cash equivalents; auction rate securities, or ARS investments, are included in non-current investments. The contingent consideration liability recorded for a business combination is included in other liabilities; of which $8.3 million and $8.1 million is included in the non-current portion of other liabilities as of September 30, 2013 and June 30, 2013, respectively, and $196,000 has been included in other current liabilities as of both periods.

Changes in fair value of our Level 3 financial assets as of September 30, 2013 were as follows (in thousands):


Balance as of June 30, 2013	$	16,969
Net unrealized gain		567

Balance as of September 30, 2013	$	17,536

Changes in fair value of our Level 3 contingent consideration liability as of September 30, 2013 were as follows (in thousands):


Balance as of June 30, 2013	$	8,247
Accretion and remeasurement		258

Balance as of September 30, 2013	$	8,505

In connection with the acquisition of Pacinian in June 2012, we entered into a contingent consideration arrangement, and subsequently paid $5.0 million of additional consideration to the former Pacinian stockholders upon customer acceptance of a ThinTouch product. As of September 30, 2013, we may owe up to $10.0 million of additional consideration to the former Pacinian stockholders based on sales of products utilizing ThinTouch technology through June 2016.

There were no transfers in or out of our Level 1 or 3 assets or liabilities during the three months ended September 30, 2013.

The fair values of our accounts receivable and accounts payable approximate their carrying values because of the short-term nature of those instruments. The fair value of our notes payable approximates their carrying value in all material respects. Intangible assets, property and equipment, and goodwill are measured at fair value on a non-recurring basis if impairment is indicated.