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):


	March 31, 2014				June 30, 2013
	Level 1		Level 3		Level 1		Level 3
Assets:
Money market	$	380,977	$	—	$	350,521	$	—
Auction rate securities		—		18,566		—		16,969

Total available-for-sale securities	$	380,977	$	18,566	$	350,521	$	16,969

Liabilities:
Contingent consideration liability recorded for business combination	$	—	$	102,444	$	—	$	8,247

In our condensed consolidated balance sheets as of March 31, 2014 and June 30, 2013, money market balances were included in cash and cash equivalents and auction rate securities, or ARS investments, were included in non-current investments. The contingent consideration liability recorded for business combinations was included in other liabilities of which $60.8 million and $8.1 million was included in the non-current portion of other liabilities as of March 31, 2014 and June 30, 2013, respectively, and $41.6 million and $196,000 was included in other current liabilities as of March 31, 2014 and June 30, 2013, respectively.

Changes in fair value of our Level 3 financial assets as of March 31, 2014 were as follows (in thousands):


Balance as of June 30, 2013	$	16,969
Net unrealized gain		1,597

Balance as of March 31, 2014	$	18,566

Changes in fair value of our Level 3 contingent consideration liability as of March 31, 2014 were as follows (in thousands):


Balance as of June 30, 2013	$	8,247
Contingent consideration liability incurred		37,499
Accretion and remeasurement		56,731
Issuance of common stock in settlement of liability		(33	)

Balance as of March 31, 2014	$	102,444

In connection with the acquisition of Validity Sensors, Inc., or Validity (see Note 15), we entered into a contingent consideration arrangement and may owe up to $162.5 million of additional consideration to the former Validity stockholders and option holders based on sales of products utilizing Validity technology through March 2016.

In connection with the acquisition of Pacinian 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 March 31, 2014, 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 and nine months ended March 31, 2014 and 2013.

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