Marketable Securities

3 Months Ended

Oct. 31, 2015

Marketable Securities [Abstract]

Marketable Securities

Note 3—Marketable Securities

The following is a summary of marketable securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale securities:
October 31, 2015:
Certificates of deposit*	$	24,400	$	6	$	—		$	24,406
Federal Home Loan Bank bonds		795		—		—			795
Federal Home Loan Mortgage Corp. bonds		2,203		3		(2	)		2,204
Mutual funds		5,025		—		(82	)		4,943
Corporate bonds		3,090		6		(2	)		3,094
U.S. Treasury notes		2,644		11		—			2,655
Municipal bonds		9,212		13		—			9,225
Total	$	47,369	$	39	$	(86	)	$	47,322
July 31, 2015:
Certificates of deposit*	$	22,736	$	3	$	(2	)	$	22,737
Federal Home Loan Bank bonds		795		—		—			795
International agency notes		1,120		—		(1	)		1,119
Mutual funds		5,000		—		(18	)		4,982
Straight Path Communications Inc. common stock		2,086		—		(563	)		1,523
Municipal bonds		9,125		9		(3	)		9,131
Total	$	40,862	$	12	$	(587	)	$	40,287

* Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market.

In July 2015, the Company received 64,624 shares of Straight Path Communications Inc. (“Straight Path”) Class B common stock in connection with the lapsing of restrictions on awards of Straight Path restricted stock to certain of the Company’s employees. The Company spun-off Straight Path in July 2013. As part of the Straight Path spin-off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one share of Straight Path’s Class B common stock for every two restricted shares of the Company that they held as of the record date for the Straight Path spin-off. The Company received the Straight Path shares in exchange for the payment of an aggregate of $2.1 million for the employees’ tax withholding obligations upon the vesting event. The number of shares was determined based on their fair market value on the trading day immediately prior to the vesting date. In September and October 2015, the Company sold all of the shares for $2.6 million and recorded a gain on the sale of $0.5 million.

Proceeds from maturities and sales of available-for-sale securities were $8.9 million and $6.8 million in the three months ended October 31, 2015 and 2014, respectively. The gross realized gains (losses) that were included in earnings as a result of sales were gains of $0.5 million in the three months ended October 31, 2015 and losses of $40,000 in the three months ended October 31, 2014. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities.

The contractual maturities of the Company’s available-for-sale debt securities at October 31, 2015 were as follows:

	Fair Value
	(in thousands)
Within one year	$	21,613
After one year through five years		18,541
After five years through ten years		1,824
After ten years		401
Total	$	42,379

The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized:

	Unrealized Losses		Fair Value
	(in thousands)
October 31, 2015:
Federal Home Loan Mortgage Corp. bonds	$	2	$	1,698
Mutual funds		82		4,943
Corporate bonds		2		886
Total	$	86	$	7,527
July 31, 2015:
Certificates of deposit	$	2	$	2,194
International agency notes		1		1,119
Mutual funds		18		4,982
Straight Path Communications Inc. common stock		563		1,523
Municipal bonds		3		3,466
Total	$	587	$	13,284

At October 31, 2015 and July 31, 2015, there were no securities in a continuous unrealized loss position for 12 months or longer.