Marketable Securities

6 Months Ended

Jan. 31, 2016

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:
January 31, 2016:
Certificates of deposit*	$	21,831	$	—	$	(7	)	$	21,824
Federal Government Sponsored Enterprise notes		5,813		10		—			5,823
Mutual funds		5,063		—		(231	)		4,832
Corporate bonds		2,467		6		(11	)		2,462
U.S. Treasury notes		2,785		32		—			2,817
Municipal bonds		9,028		12		(1	)		9,039
Total	$	46,987	$	60	$	(250	)	$	46,797
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 $9.9 million and $5.3 million in the three months ended January 31, 2016 and 2015, respectively, and $18.7 million and $12.1 million in the six months ended January 31, 2016 and 2015, respectively. The gross realized losses that were included in earnings as a result of sales were nil and $14,000 in the three months ended January 31, 2016 and 2015, respectively, and gains of $0.5 million and losses of $54,000 in the six months ended January 31, 2016 and 2015, respectively. 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 January 31, 2016 were as follows:

	Fair Value
	(in thousands)
Within one year	$	19,311
After one year through five years		20,564
After five years through ten years		1,799
After ten years		291
Total	$	41,965

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)
January 31, 2016:
Certificates of deposit	$	7	$	11,217
Mutual funds		231		4,832
Corporate bonds		11		1,083
Municipal bonds		1		1,550
Total	$	250	$	18,682
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 January 31, 2016 and July 31, 2015, there were no securities in a continuous unrealized loss position for 12 months or longer.