THQ 2011 Annual Report Download - page 77

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 )DLU9DOXH
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs
and minimize the use of unobservable inputs. There is a fair value hierarchy based on three levels of inputs, of which the first
two are considered observable and the last unobservable, that may be used to measure fair value. We used the following methods
and assumptions to estimate the fair value of our investment securities:
• Level 1 — Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to
access at the measurement date. We do not adjust the quoted prices for these investments.
• Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar
assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not
active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term
of the assets or liabilities.
• Level 3 — Discounted cash flow analysis using unobservable inputs that are supported by little or no market activity
and that are significant to the fair value of the assets or liabilities, as discussed further below.
Our policy is to recognize transfers between these levels of the fair value hierarchy as of the beginning of the reporting period.
The following table summarizes our financial assets measured at fair value on a recurring basis as of March 31, 2011 (amounts
in thousands):
Cash equivalents:
Money market funds
Other long-term assets, net:
Investment in Yuke's
7RWDO
/HYHO
$ 30,461
4,686
$ 35,147
 /HYHO
$—
—
$—
 /HYHO
$—
—
$—
 7RWDO
$ 30,461
4,686
$ 35,147
The following table summarizes our financial assets measured at fair value on a recurring basis as of March 31, 2010 (amounts
in thousands):
Cash equivalents:
Money market funds
Negotiable certificates of deposit
Corporate securities
Municipal securities
Short-term investments:
Municipal securities
Corporate securities
Negotiable certificates of deposit
Short-term investments, pledged:
Student loan ARS
Put option
Long-term investments:
Municipal securities
Other long-term assets, net:
Investment in Yuke's
7RWDO
/HYHO
$ 21,049
—
—
—
—
—
—
—
—
—
5,564
$ 26,613
/HYHO
$—
28,545
8,439
14,175
17,241
64,354
1,346
—
—
—
—
$ 134,100
/HYHO
$—
—
—
—
—
—
—
21,036
1,738
1,851
—
$ 24,625
7RWDO
$ 21,049
28,545
8,439
14,175
17,241
64,354
1,346
21,036
1,738
1,851
5,564
$ 185,338
68