Note 5. Cash, Cash Equivalents and Investments

6 Months Ended

Feb. 29, 2012

Cash and Cash Equivalents Disclosure [Text Block]

5. CASH, CASH EQUIVALENTS AND INVESTMENTS

Cash and Cash Equivalents - consist of demand deposits and corporate money market funds with maturities of three months or less at the date of acquisition and are reported at fair value.

The following table summarizes the Company’s cash and cash equivalents at February 29, 2012 (in thousands):

	Amortized Cost		Gross Unrealized Gain		Fair Value
Cash on hand	$	25,516	$	0	$	25,516
Corporate money market funds		159,482		0		159,482
Total cash and cash equivalents	$	184,998	$	0	$	184,998

The following table summarizes the Company’s cash and cash equivalents at August 31, 2011 (in thousands):

	Amortized Cost		Gross Unrealized Gain		Fair Value
Cash on hand	$	20,517	$	0	$	20,517
Corporate money market funds		161,168		0		161,168
Total cash and cash equivalents	$	181,685	$	0	$	181,685

Investments - during the first quarter of fiscal 2012, the Company purchased $15.0 million of certificates of deposit with maturity dates ranging from nine months to twelve months from purchase date. These certificates of deposit are held for investment and are not debt securities. For the three and six months ended February 29, 2012, interest income from the certificates of deposit was $0.34 million and $0.48 million, respectively. The fair value of the certificates of deposit at February 29, 2012 was $15.2 million and reported as investments (short-term) in the Company’s consolidated balance sheet. The impact of foreign currency reduced the fair value by $0.3 million as these certificates of deposit are held in Indian Rupees. The Company’s cash, cash equivalents and investments portfolio did not experience any realized or unrealized losses as a result of counterparty credit risk or ratings change during fiscal 2012 and 2011.