Fair Value Measurements (Notes) | 3 Months Ended |
Jun. 30, 2013 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' |
Fair Value Measurements | ' |
Fair Value Measurements |
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Accounting rules for fair value clarify that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: |
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Level 1- | Observable inputs such as quoted prices in active markets; | | | | | | | | | | | | | | | |
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Level 2- | Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | | | | | | | | | | | | | | | |
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Level 3- | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | | | | | | | | | | | | | | | |
Marketable Debt Instruments |
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Marketable debt instruments include instruments such as corporate bonds and debt, government agency bonds, bank deposits, municipal bonds, and money market fund deposits. When the Company uses observable market prices for identical securities that are traded in less active markets, the Company classifies its marketable debt instruments as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. The Company corroborates non-binding market consensus prices with observable market data using statistical models when observable market data exists. The discounted cash flow model uses observable market inputs, such as LIBOR-based yield curves, currency spot and forward rates, and credit ratings. |
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Assets and Liabilities Measured at Fair Value on a Recurring Basis |
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Assets measured at fair value on a recurring basis at June 30, 2014 are as follows (amounts in thousands): |
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| Quoted Prices | | Significant | | Significant | | Total | |
in Active | Other | Unobservable | Balance | |
Markets for | Observable | Inputs | | |
Identical | Inputs | (Level 3) | | |
Instruments | (Level 2) | | | |
(Level 1) | | | | |
Assets | | | | | | | | |
Money market mutual funds | $ | 8,051 | | | $ | — | | | $ | — | | | $ | 8,051 | | |
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Corporate bonds and debt | — | | | 928,750 | | | 6,190 | | | 934,940 | | |
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Government agency bonds | — | | | 683,300 | | | — | | | 683,300 | | |
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Deposit accounts | — | | | 609,719 | | | — | | | 609,719 | | |
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Municipal bonds | — | | | 41,565 | | | — | | | 41,565 | | |
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Auction rate securities | — | | | — | | | 9,825 | | | 9,825 | | |
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Total assets measured at fair value | $ | 8,051 | | | $ | 2,263,334 | | | $ | 16,015 | | | $ | 2,287,400 | | |
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Assets measured at fair value on a recurring basis at March 31, 2014 are as follows (amounts in thousands): |
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| Quoted Prices | | Significant | | Significant | | Total | |
in Active | Other | Unobservable | Balance | |
Markets for Identical Instruments | Observable | Inputs | | |
(Level 1) | Inputs | (Level 3) | | |
| (Level 2) | | | |
Assets | | | | | | | | |
Money market mutual funds | $ | 192,159 | | | $ | — | | | $ | — | | | $ | 192,159 | | |
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Corporate bonds and debt | — | | | 937,776 | | | 6,190 | | | 943,966 | | |
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Government agency bonds | — | | | 681,394 | | | — | | | 681,394 | | |
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Deposit accounts | — | | | 274,444 | | | — | | | 274,444 | | |
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Municipal bonds | — | | | 41,709 | | | — | | | 41,709 | | |
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Auction rate securities | — | | | — | | | 9,825 | | | 9,825 | | |
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Total assets measured at fair value | $ | 192,159 | | | $ | 1,935,323 | | | $ | 16,015 | | | $ | 2,143,497 | | |
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There were no transfers between Level 1 and Level 2 during the three months ended June 30, 2014 or the year ended March 31, 2014. |
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At June 30, 2014 and at March 31, 2014, the Company's ARS for which recent auctions were unsuccessful are made up of securities related to the insurance industry valued at $9.8 million with a par value of $22.4 million. The Company estimated the fair value of its ARS, which are classified as Level 3 securities, based on the following: (i) the underlying structure of each security; (ii) the present value of future principal and interest payments discounted at rates considered to reflect current market conditions; (iii) consideration of the probabilities of default, auction failure, or repurchase at par for each period; and (iv) estimates of the recovery rates in the event of default for each security. The significant unobservable inputs used in the fair value measurement of the insurance sector ARS as of June 30, 2014 were estimated risk free discount rates, liquidity risk premium, and the liquidity horizon. The risk free discount rate applied to these securities was 2% to 2.5% adjusted for the liquidity risk premium which ranged from 9.1% to 29.5%. The anticipated liquidity horizon ranged from 7 to 10 years. A significant increase in the liquidity premium or discount rate, in isolation, would lead to a significantly lower fair value measurement. A significant increase in the liquidity horizon, in isolation, would lead to a significantly lower fair value measurement. Each quarter the Company investigates material changes in the fair value measurements of its ARS. |
The following tables present a reconciliation for all assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3) for the year ended March 31, 2014 (amounts in thousands): |
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Year ended March 31, 2014 | | Auction Rate | | Corporate | | Contingent | | Total Gains |
Securities | Debt | Consideration | (Losses) |
Balance at March 31, 2013 | | $ | 33,791 | | | $ | 6,190 | | | $ | (19,100 | ) | | $ | — | |
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Total gains (losses) (realized and unrealized): | | | | | | | | |
Included in earnings | | 1,101 | | | — | | | (1,370 | ) | | (269 | ) |
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  Included in other comprehensive income | | (332 | ) | | — | | | — | | | (332 | ) |
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Purchases, sales, issuances, and settlements, net | | (24,735 | ) | | — | | | 20,470 | | | — | |
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Balance at March 31, 2014 | | $ | 9,825 | | | $ | 6,190 | | | $ | — | | | $ | (601 | ) |
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Gains and losses recognized in earnings using Level 3 inputs for ARS are credited or charged to Other Income (Expense) on the condensed consolidated statements of income. Gains and losses recognized in earnings using Level 3 inputs related to the revaluation of contingent consideration are credited or charged to Special Charges on the condensed consolidated statements of income. |
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Assets measured at fair value on a recurring basis are presented/classified on the condensed consolidated balance sheets at June 30, 2014 as follows (amounts in thousands): |
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| Quoted Prices | | Significant | | Significant | | Total | |
 in Active | Other | Unobservable | Balance | |
Markets for | Observable | Inputs | | |
Identical | Inputs | (Level 3) | | |
Instruments | (Level 2) | | | |
(Level 1) | | | | |
Assets | | | | | | | | |
Cash and cash equivalents | $ | 8,051 | | | $ | 609,719 | | | $ | — | | | $ | 617,770 | | |
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Short-term investments | — | | | 1,142,091 | | | — | | | 1,142,091 | | |
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Long-term investments | — | | | 511,524 | | | 16,015 | | | 527,539 | | |
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Total assets measured at fair value | $ | 8,051 | | | $ | 2,263,334 | | | $ | 16,015 | | | $ | 2,287,400 | | |
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Assets measured at fair value on a recurring basis are presented/classified in the condensed consolidated balance sheets at March 31, 2014 as follows (amounts in thousands): |
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| Quoted Prices | | Significant | | Significant | | Total | |
in Active | Other | Unobservable | Balance | |
Markets for | Observable | Inputs | | |
Identical | Inputs | Â (Level 3) | | |
Instruments | (Level 2) | | | |
(Level 1) | | | | |
Assets | | | | | | | | |
Cash and cash equivalents | $ | 192,159 | | | $ | 274,444 | | | $ | — | | | $ | 466,603 | | |
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Short-term investments | — | | | 878,182 | | | — | | | 878,182 | | |
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Long-term investments | — | | | 782,697 | | | 16,015 | | | 798,712 | | |
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Total assets measured at fair value | $ | 192,159 | | | $ | 1,935,323 | | | $ | 16,015 | | | $ | 2,143,497 | | |
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Financial Assets Not Recorded at Fair Value on a Recurring Basis |
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The Company's non-marketable equity and cost-method investments are not recorded at fair value on a recurring basis.  These investments are monitored on a quarterly basis for impairment charges.  The investments will only be recorded at fair value when an impairment charge is recognized.  There were no impairment charges recognized on these investments in the three months ended June 30, 2014 and June 30, 2013. |