Quarterly report pursuant to Section 13 or 15(d)

Short-Term Investments And Fair Value Measurements

 v2.3.0.11
Short-Term Investments And Fair Value Measurements
 3 Months Ended
Jun. 30, 2011
Short-Term Investments And Fair Value Measurements  
Short-Term Investments And Fair Value Measurements

Note 12. Short-term Investments and Fair Value Measurements

Short-term Investments

The following table presents short-term investments as of June 30, 2011 and March 31, 2011:

 

(in thousands)    June 30,
2011		      March 31,
2011		  

Available-for-sale

    $ 3,565      $ 490  

Held-to-maturity

      1,590        —     
                 

Total investments

    $ 5,155      $ 490  
                 

Fair Value Measurements

Fair value is defined by ASC 820 as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

 

  •  

Level 1 – Quoted prices in active markets for identical assets and liabilities.

 

  •  

Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

  •  

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

 

The Company's money market funds are measured using Level 1 inputs. The Company's certificates of deposits are measured using Level 2 inputs. The note payable guarantee described in Note 9 is measured using Level 3 inputs.

The following table presents financial assets and liabilities measured at fair value on a recurring basis and their related valuation inputs as of June 30, 2011:

 

(in thousands)    Total Fair
Value of
Asset or
Liability		      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		      Significant
Other
Observable
Inputs
(Level 2) 		     Significant
Unobservable
Inputs
(Level 3) 		     Balance Sheet
Classification

Assets:

               

Money market funds

    $ 33,068       $ 33,068         —           —         Cash and cash equivalents

Certificates of deposit

    $ 3,565         —         $ 3,565         —         Short-term investments

Liabilities:

               

Guarantee

    $ 66         —           —         $ 66       Accrued expenses

The following table presents financial assets and liabilities measured at fair value on a recurring basis and their related valuation inputs as of March 31, 2011:

 

(in thousands)    Total Fair
Value of
Asset or
Liability		      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		      Significant
Other
Observable
Inputs
(Level 2) 		     Significant
Unobservable
Inputs
(Level 3) 		     Balance Sheet
Classification

Assets:

               

Money market funds

    $ 30,487       $ 30,487         —           —         Cash and cash equivalents

Certificates of deposit

    $ 490         —         $ 490         —         Short-term investments

Liabilities:

               

Guarantee

    $ 66         —           —         $ 66       Accrued expenses

The fair value of investments approximates their carrying amounts due to the short-term nature of these financial assets.