Quantum Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Mar. 31, 2017

Schedule of property and equipment estimated useful lives

Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows:



Machinery and equipment	3 to 5 years
Computer equipment	3 to 5 years
ERP software	10 years
Other software	3 years
Furniture and fixtures	5 years
Other office equipment	5 years
Leasehold improvements	Shorter of useful life or life of lease

Schedule of assets measured and recorded at fair value on a recurring basis

The assets measured and recorded at fair value on a recurring basis consist of money market funds which are valued using quoted market prices at the respective balance sheet dates and are level 1 fair value measurements (in thousands):



	As of March 31,
	2017		2016
Money market funds	$	—	$	1,640

Schedule of carrying value and fair value of financial liabilities

The carrying value and fair value were as follows (in thousands):



	As of March 31,
	2017				2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Convertible subordinated debt ⁽¹⁾	$	62,827	$	60,667	$	69,253	$	51,686

Long-term debt: ⁽²⁾
Credit agreement with Wells Fargo	—		—		65,709		65,741
Revolving credit agreement	16,852		18,490		—		—
Term loan agreement	48,176		50,026		—		—
Total long-term debt	$	65,028	$	68,516	$	65,709	$	65,741




	⁽¹⁾ Fair value based on quoted market prices in less active markets (level 2).
	⁽²⁾ Fair value based on outstanding borrowings and market interest rates (level 2)