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FAIR VALUE MEASUREMENTS - Note 2
 6 Months Ended
Sep. 30, 2016
Cash and Cash Equivalents [Abstract]  
FAIR VALUE MEASUREMENTS - Note 2

2. FAIR VALUE MEASUREMENTS

Cash, cash equivalents, and available-for-sale investments, and contingent consideration were (in thousands):

            Gross     Gross           Cash and      
      Amortized     Unrealized     Unrealized     Estimated     Cash     Short-Term
As of September 30, 2016     Costs     Gain     Loss     Fair Value     Equivalents     Investments
     Cash   $ 24,564    $ -    $ -    $ 24,564    $ 24,564    $ - 
Level 1:                                    
     Money market funds     7,530      -      -      7,530      7,530      - 
     Mutual funds     2,000      -      (169)     1,831      -      1,831 
          Subtotal     34,094      -      (169)     33,925      32,094      1,831 
Level 2:                                    
     Commercial paper     15,578      6      -      15,584      -      15,584 
     Corporate debt     91,244      116      (16)     91,344      -      91,344 
     Asset backed securities     24,063      26      (1)     24,088      -      24,088 
     Mortgage backed securities     1,814      -      (14)     1,800      -      1,800 
     Agency bond     2,000      2      -      2,002      -      2,002 
     International government securities     1,000      1      -      1,001      -      1,001 
          Subtotal     135,699      151      (31)     135,819      -      135,819 
          Total assets   $ 169,793    $ 151    $ (200)   $ 169,744    $ 32,094    $ 137,650 
Level 3:                                    
     Contingent consideration   $ -    $ -    $ -    $ 216    $ -    $ - 
          Total liabilities   $ -    $ -    $ -    $ 216    $ -    $ - 

            Gross     Gross           Cash and      
      Amortized     Unrealized     Unrealized     Estimated     Cash     Short-Term
As of March 31, 2016     Costs     Gain     Loss     Fair Value     Equivalents     Investments
     Cash   $ 18,596    $ -    $ -    $ 18,596    $ 18,596    $ - 
Level 1:                                    
     Money market funds     14,980      -      -      14,980      14,980      - 
     Mutual funds     2,000      -      (187)     1,813      -      1,813 
          Subtotal     35,576      -      (187)     35,389      33,576      1,813 
Level 2:                                    
     Commercial paper     6,794      2      -      6,796      -      6,796 
     Corporate debt     85,164      78      (28)     85,214      -      85,214 
     Municipal securities     1,007      -      (1)     1,006      -      1,006 
     Asset backed securities     24,614      7      (11)     24,610      -      24,610 
     Mortgage backed securities     2,045      -      (17)     2,028      -      2,028 
     Agency bond     6,805      1      -      6,806      -      6,806 
     International government securities     1,000      1      -      1,001      -      1,001 
          Subtotal     127,429      89      (57)     127,461      -      127,461 
          Total assets   $ 163,005    $ 89    $ (244)   $ 162,850    $ 33,576    $ 129,274 
Level 3:                                    
     Contingent consideration   $ -    $ -    $ -    $ 341    $ -    $ - 
          Total liabilities   $ -    $ -    $ -    $ 341    $ -    $ - 

 

Contractual maturities of investments as of September 30, 2016 are set forth below (in thousands):

      Estimated
      Fair Value
Due within one year   $ 83,100 
Due after one year     54,550 
     Total   $ 137,650 

 

Contingent Consideration and Escrow Liability

The Company's contingent consideration liability and escrow 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. Amounts held in escrow were measured at fair value using present value computations. The contingent consideration 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 items are classified as Level 3 within the valuation hierarchy, consisting of contingent consideration and escrow liability related to the QSC acquisition, were valued based on an estimate of the probability of success of the milestones being achieved and present value computations, respectively. The table below presents a roll-forward of the contingent consideration and escrow liability valued using a Level 3 input (in thousands):

      Three Months Ended     Six Months Ended
      September 30,     September 30,
      2016     2015     2016     2015
Balance at beginning of period   $ 216    $ 391    $ 341    $ - 
     Purchase price contingent consideration     -      -      -      391 
     Contingent consideration payments      -      (150)     (125)     (150)
Balance at end of period   $ 216    $ 241    $ 216    $ 241