Marketable Securities

6 Months Ended

Jan. 31, 2017

Marketable Securities [Abstract]

Marketable Securities

Note 4—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, 2017:
Certificates of deposit*	$	19,335	$	2	$	(1	)	$	19,336
Federal Government Sponsored Enterprise notes		6,331		—		(23	)		6,308
International agency notes		653		—		(10	)		643
Mutual funds		5,223		15		(1	)		5,237
Corporate bonds		3,290		6		(13	)		3,283
Equity		379		42		—			421
U.S. Treasury notes		5,035		2		(68	)		4,969
Municipal bonds		13,082		3		(9	)		13,076
Total	$	53,328	$	70	$	(125	)	$	53,273
July 31, 2016:
Certificates of deposit*	$	17,690	$	6	$	—		$	17,696
Federal Government Sponsored Enterprise notes		3,457		17		—			3,474
International agency notes		409		5		—			414
Mutual funds		5,121		—		(39	)		5,082
Corporate bonds		3,633		40		—			3,673
Equity		2,463		—		(140	)		2,323
U.S. Treasury notes		4,946		95		(1	)		5,040
Municipal bonds		15,222		26		(1	)		15,247
Total	$	52,941	$	189	$	(181	)	$	52,949

* 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 January 2017, the Company received 23,227 shares of Zedge Class B common stock in connection with the lapsing of restrictions on Zedge restricted stock held by certain of the Company’s employees and the payment of taxes related thereto. As part of the Zedge Spin-Off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one share of Zedge’s Class B common stock for every three restricted shares of the Company that they held as of the record date for the Zedge Spin-Off. The Company received the Zedge shares in exchange for the payment of an aggregate of $74,000 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. At January 31, 2017, the Zedge shares owned by the Company had a fair value of $77,000.

Proceeds from maturities and sales of available-for-sale securities were $10.8 million and $9.9 million in the three months ended January 31, 2017 and 2016, respectively, and $16.8 million and $18.7 million in the six months ended January 31, 2017 and 2016, respectively. In the three and six months ended January 31, 2017, gross realized gains included in earnings as a result of sales were $0.3 million. In the six months ended January 31, 2016, gross realized gains included in earnings as a result of sales were $0.5 million. There were no gross realized gains (losses) included in earnings as a result of sales in the three months ended January 31, 2016. 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, 2017 were as follows:

	Fair Value
	(in thousands)
Within one year	$	26,264
After one year through five years		18,266
After five years through ten years		2,369
After ten years		716
Total	$	47,615

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, 2017:
Certificates of deposit	$	1	$	3,164
Federal Government Sponsored Enterprise notes		23		6,265
International agency notes		10		643
Mutual funds		1		2,600
Corporate bonds		13		2,239
U.S. Treasury notes		68		4,408
Municipal bonds		9		9,878
Total	$	125	$	29,197
July 31, 2016:
Mutual funds	$	39	$	5,082
Equity		140		2,323
U.S. Treasury notes		1		199
Municipal bonds		1		3,112
Total	$	181	$	10,716

At January 31, 2017 and July 31, 2016, there were no securities in a continuous unrealized loss position for 12 months or longer.