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CASH, CASH EQUIVALENTS, INVESTMENTS AND FAIR VALUE MEASUREMENTS - Note 2
 9 Months Ended
Dec. 31, 2015
Cash and Cash Equivalents [Abstract]  
CASH, CASH EQUIVALENTS, INVESTMENTS AND FAIR VALUE MEASUREMENTS - Note 2

2. CASH, CASH EQUIVALENTS, INVESTMENTS AND FAIR VALUE MEASUREMENTS

Cash, cash equivalents, available-for-sale investments and fair value measurements were (in thousands):

            Gross     Gross           Cash and      
      Amortized     Unrealized     Unrealized     Estimated     Cash     Short-Term
As of December 31, 2015     Costs     Gain     Loss     Fair Value     Equivalents     Investments
Assets:                                
     Cash   $ 10,996    $ -    $ -    $ 10,996    $ 10,996    $ - 
Level 1:                                    
     Money market funds     12,870      -      -      12,870      12,870      - 
     Mutual funds     2,000      -      (198)     1,802      -      1,802 
          Subtotal     25,866      -      (198)     25,668      23,866      1,802 
Level 2:                                    
     Commercial paper     13,483      1      (3)     13,481      -      13,481 
     Corporate debt     77,999      14      (138)     77,875      -      77,875 
     Municipal securities     5,745      1      (1)     5,745      -      5,745 
     Asset backed securities     21,782      -      (46)     21,736      -      21,736 
     Mortgage backed securities     2,328      -      (33)     2,295      -      2,295 
     Agency bond     6,806      -      (22)     6,784      -      6,784 
     International government securities     1,000      1      -      1,001      -      1,001 
          Subtotal     129,143      17      (243)     128,917      -      128,917 
          Total assets   $ 155,009    $ 17    $ (441)   $ 154,585    $ 23,866    $ 130,719 
Level 3:                                    
Liabilities:                                    
     Contingent consideration   $ -    $ -    $ -    $ 341    $ -    $ - 
          Total liabilities   $ -    $ -    $ -    $ 341    $ -    $ - 

 

            Gross     Gross           Cash and      
      Amortized     Unrealized     Unrealized     Estimated     Cash     Short-Term
As of March 31, 2015     Costs     Gain     Loss     Fair Value     Equivalents     Investments
     Cash   $ 24,734    $ -    $ -    $ 24,734    $ 24,734    $ - 
Level 1:                                    
     Money market funds     28,376      -      -      28,376      28,376      - 
     Mutual funds     2,000      -      (107)     1,893      -      1,893 
          Subtotal     55,110      -      (107)     55,003      53,110      1,893 
Level 2:                                    
     Commercial paper     9,043      1      -      9,044      -      9,044 
     Corporate debt     75,284      57      (10)     75,331      -      75,331 
     Municipal securities     5,435      2      (1)     5,436      -      5,436 
     Asset backed securities     21,503      4      (5)     21,502      -      21,502 
     Mortgage backed securities     5,822      -      (52)     5,770      -      5,770 
     Agency bond     4,201      3      -      4,204      -      4,204 
     International government securities     800      4      -      804      -      804 
          Subtotal     122,088      71      (68)     122,091      -      122,091 
          Total   $ 177,198    $ 71    $ (175)   $ 177,094    $ 53,110    $ 123,984 

 

Contractual maturities of investments as of December 31, 2015 are set forth below (in thousands):

      Estimated
      Fair Value
Due within one year   $ 65,670 
Due after one year     65,049 
     Total   $ 130,719 

 

The Company's contingent consideration liability, included in other accrued liabilities and noncurrent liabilities on the consolidated balance sheets, was associated with the Quality Software Corporation (QSC) acquisition made in the first quarter of fiscal 2016. The liability was measured at fair value using a probability weighted average of the potential payment outcomes that would occur should certain contract milestones be reached. There is no market data available to use in valuing the contingent consideration; therefore, the Company developed its own assumptions related to the achievement of the milestones to evaluate the fair value of the liability. As such, the contingent consideration is classified within Level 3 as described below.

The item classified as Level 3 within the valuation hierarchy, consisting of contingent consideration liability related to the QSC acquisition, was valued based on an estimate of the probability of success of the milestones being achieved. The table below presents a rollforward of the contingent consideration liability valued using a Level 3 input (in thousands):

      Three Months Ended     Nine Months Ended
      December 31,     December 31,
      2015     2014     2015     2014
Balance at beginning of period   $ 391    $ -    $ -    $ - 
     Purchase price contingent consideration     -      -      541      - 
     Contingent consideration payments     (50)     -      (200)     - 
Balance at end of period   $ 341    $ -    $ 341    $ -