Fair Value Measurements | 9 Months Ended |
Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
Fair Value Measurements |
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We estimate the fair value of financial instruments using available market information and generally accepted valuation methodologies. We assess the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which pricing inputs used in measuring fair value are observable in the market. Level 1 inputs include unadjusted quoted prices for identical assets or liabilities and are the most observable. Level 2 inputs include unadjusted quoted prices for similar assets and liabilities that are either directly or indirectly observable, or other observable inputs such as interest rates, foreign currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include our own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the tables below. |
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There were no significant transfers between Levels 1, 2, and 3 during the nine months ended December 31, 2013. |
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The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: |
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| Fair value measurement used | | | | |
| Recorded | | Active | | Quoted | | Active | | | | |
value | markets | prices in | markets for | | | | |
as of | for | similar | unobservable | | | | |
| identical | instruments | inputs | | | | |
| assets or | and | | | | | |
| liabilities | observable | | | | | |
| | inputs | | | | | |
(In thousands) | December 31, 2013 | | (Level 1) | | (Level 2) | | (Level 3) | | | | |
Assets: | | | | | | | | | | | |
Commercial paper | $ | 19,990 | | | $ | — | | | $ | 19,990 | | | $ | — | | | | | |
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Corporate-owned life insurance — current | 1,469 | | | — | | | — | | | 1,469 | | | | | |
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Corporate-owned life insurance — non-current | 2,285 | | | — | | | — | | | 2,285 | | | | | |
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Liabilities: | | | | | | | | | | | |
Contingent consideration — current | 180 | | | — | | | — | | | 180 | | | | | |
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Contingent consideration — non-current | 1,570 | | | — | | | — | | | 1,570 | | | | | |
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| Fair value measurement used | | | | | | | | |
| Recorded | | Active | | Quoted | | Active | | | | | | | | |
value | markets | prices in | markets for | | | | | | | | |
as of | for | similar | unobservable | | | | | | | | |
| identical | instruments | inputs | | | | | | | | |
| assets or | and | | | | | | | | | |
| liabilities | observable | | | | | | | | | |
| | inputs | | | | | | | | | |
(In thousands) | March 31, 2013 | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | | | |
Assets: | | | | | | | | | | | | | | | |
Corporate-owned life insurance — non-current | 3,673 | | | — | | | — | | | 3,673 | | | | | | | | | |
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The fair value of the commercial paper was determined using a market approach, based on prices and other relevant information generated by market transactions involving similar assets, and therefore, is classified within Level 2 of the fair value hierarchy. |
The recorded value of the corporate-owned life insurance policies is adjusted to the cash surrender value of the policies obtained from the third party life insurance providers, which are not observable in the market, and therefore, are classified within Level 3 of the fair value hierarchy. Changes in the cash surrender value of these policies are recorded within “Other expenses (income), net” in the Condensed Consolidated Statements of Operations. |
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The fair value of the contingent consideration was determined by calculating the probability-weighted earn-out payments based on the assessment of the likelihood that certain milestones would be achieved. |
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The following table presents a summary of changes in the fair value of the Level 3 assets: |
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| Nine months ended | | | | | | | | | | | | |
| December 31, | | | | | | | | | | | | |
(In thousands) | 2013 | | 2012 | | | | | | | | | | | | |
Corporate-owned life insurance: | | | | | | | | | | | | | | | |
Balance on April 1 | $ | 3,673 | | | $ | 3,458 | | | | | | | | | | | | | |
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Unrealized gain relating to instruments held at reporting date | (6 | ) | | 55 | | | | | | | | | | | | | |
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Purchases, sales, issuances and settlements, net | 87 | | | 42 | | | | | | | | | | | | | |
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Balance on December 31 | $ | 3,754 | | | $ | 3,555 | | | | | | | | | | | | | |
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The following tables present information about our financial and nonfinancial assets and liabilities measured at fair value on a nonrecurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: |
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| Fair value measurement used | | | | |
| Recorded | | Active | | Quoted | | Active | | | | |
value as | markets | prices in | markets for | | | | |
of | for | similar | unobservable | | | | |
| identical | instruments | inputs | | | | |
| assets or | and | | | | | |
| liabilities | observable | | | | | |
| | inputs | | | | | |
(In thousands) | December 31, | | (Level 1) | | (Level 2) | | (Level 3) | | | | |
2013 | | | | |
Assets: | | | | | | | | | | | |
Goodwill | $ | 17,747 | | | $ | — | | | $ | — | | | $ | 17,747 | | | | | |
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Intangible assets | 10,947 | | | — | | | — | | | 10,947 | | | | | |
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Liabilities: | | | | | | | | | | | |
Restructuring liabilities — current | 176 | | | — | | | — | | | 176 | | | | | |
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Other employee benefit plan obligations — non-current | 195 | | | — | | | — | | | 195 | | | | | |
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| Fair value measurement used | | | | |
| Recorded | | Active | | Quoted | | Active | | | | |
value as | markets | prices in | markets for | | | | |
of | for | similar | unobservable | | | | |
| identical | instruments | inputs | | | | |
| assets or | and | | | | | |
| liabilities | observable | | | | | |
| | inputs | | | | | |
(In thousands) | March 31, | | (Level 1) | | (Level 2) | | (Level 3) | | | | |
2013 | | | | |
Assets: | | | | | | | | | | | |
Goodwill | $ | 14,128 | | | $ | — | | | $ | — | | | $ | 14,128 | | | | | |
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Intangible assets | 11,283 | | | — | | | — | | | 11,283 | | | | | |
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Liabilities: | | | | | | | | | | | |
Restructuring liabilities — current | 584 | | | — | | | — | | | 584 | | | | | |
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Other employee benefit plans obligations — non-current | 195 | | | — | | | — | | | 195 | | | | | |
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Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. Goodwill is subject to impairment testing at least annually or in interim periods if indicators of potential impairment exist, unless it is determined after a qualitative assessment that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount. A qualitative assessment of our reporting units was used to determine that no further impairment analysis was required at March 31, 2013. |
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Intangible assets are valued at their estimated fair value at time of acquisition. We evaluate the fair value of our definite-lived and indefinite-lived intangible assets on an annual basis, or in interim periods if indicators of potential impairment exist. The income approach using “the relief from royalty method” was used to value indefinite-lived intangible assets. |
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Restructuring liabilities primarily consist of one-time termination benefits to former employees and ongoing costs related to long-term operating lease obligations. The recorded value of the termination benefits to employees is adjusted to the expected remaining obligation each period based on the arrangements made with the former employees. The recorded value of the ongoing lease obligations is based on the remaining lease term and payment amount, net of sublease income plus interest, discounted to present value. Changes in subsequent periods resulting from revisions to either the timing or amount of estimated cash flows over the remaining future periods are measured using the credit-adjusted, risk-free rate that was used to measure the restructuring liabilities initially. |
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The inputs used to value our goodwill, intangible assets, capitalized software development, and restructuring liabilities are not observable in the market and therefore, these amounts are classified within Level 3 in the fair value hierarchy. |
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The following tables present a summary of changes in the fair value of the Level 3 assets and liabilities: |
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| Level 3 assets and liabilities |
| Nine months ended December 31, 2013 |
(In thousands) | Goodwill | | Intangible | | Contingent consideration | | Other | | Restructuring |
assets | employee | liabilities |
| benefit | |
| plans | |
| obligations | |
Balance at April 1, 2013 | $ | 14,128 | | | $ | 11,283 | | | $ | — | | | $ | 195 | | | $ | 584 | |
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Foreign currency translation adjustments | 175 | | | — | | | — | | | — | | | — | |
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Amortization | — | | | (941 | ) | | — | | | — | | | — | |
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Provisions | — | | | — | | | — | | | — | | | 718 | |
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Purchases | 3,444 | | | 605 | | | — | | | — | | | — | |
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Activity, payments and other charges (net) | — | | | — | | | 1,750 | | | — | | | (1,126 | ) |
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Balance at December 31, 2013 | $ | 17,747 | | | $ | 10,947 | | | 1,750 | | | $ | 195 | | | $ | 176 | |
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| Level 3 assets and liabilities |
| Nine months ended December 31, 2012 |
(In thousands) | Goodwill | | Intangible | | SERP obligations | | Other | | Restructuring |
assets | employee | liabilities |
| benefit | |
| plans | |
| obligations | |
Balance at April 1, 2012 | $ | 15,198 | | | $ | 13,190 | | | $ | 3,323 | | | $ | 195 | | | $ | 6,047 | |
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Foreign currency translation adjustments | (107 | ) | | — | | | — | | | — | | | — | |
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Amortization | — | | | (1,616 | ) | | — | | | — | | | — | |
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Provisions | — | | | — | | | — | | | — | | | 1,182 | |
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Activity, payments and other charges (net) | — | | | — | | | (3,323 | ) | | — | | | (6,298 | ) |
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Balance at December 31, 2012 | $ | 15,091 | | | $ | 11,574 | | | $ | — | | | $ | 195 | | | $ | 931 | |
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Unrealized losses related to goodwill represent fluctuations due to the movement of foreign currencies relative to the U.S. dollar and are recorded within “Accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets. |