Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v2.4.0.6
Fair Value Measurements
 12 Months Ended
Mar. 31, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 13. Fair Value Measurements

Fair value is defined by ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on 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, of which the first two are considered observable and the last unobservable, 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 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 March 31, 2012:

 

(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

    $ 82,931       $ 82,931         —           —         Cash and cash equivalents

Liabilities:

               

Guarantee

    $ 25         —           —         $ 25       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 markets funds

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

Liabilities:

               

Guarantee

    $ 66         —           —         $ 66       Accrued expenses

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