Quantum Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE

FAIR VALUE

3 Months Ended

Jun. 30, 2017

Our assets measured and recorded at fair value on a recurring basis may consist of money market funds, which are included in cash and cash equivalents in our Condensed Consolidated Balance Sheets and are valued using quoted market prices (level 1 fair value measurements) at the respective balance sheet dates. At June 30, 2017 and March 31, 2017, we had no cash in money market funds.

We did not record impairments to any non-financial assets in the first quarter of fiscal 2018 or fiscal 2017. We do not have any non-financial liabilities measured and recorded at fair value on a non-recurring basis.

Our financial liabilities were comprised primarily of convertible subordinated debt and long-term debt at June 30, 2017 and March 31, 2017. The carrying value and fair value of our convertible subordinated debt and long-term debt were as follows (in thousands):



	As of
	June 30, 2017				March 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
Convertible subordinated debt ⁽¹⁾	$	62,926	$	61,513	$	62,827	$	60,667

Long-term debt: ⁽²⁾
Revolving credit agreement	11,888		13,372		16,852		18,490
Term loan agreement	48,331		49,930		48,176		50,026
Total long-term debt	$	60,219	$	63,302	$	65,028	$	68,516




	⁽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).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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