5. Cash Equivalents and Marketable Securities

Cash equivalents are short-term, highly liquid investments with original maturity dates of three months or less at the date of acquisition. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. As of October 27, 2012, the Company’s short term investments, as classified on the balance sheet, were $39.9 million. These investments are marketable securities classified as available-for-sale and are recorded at fair value with any unrealized gain or loss recorded as an element of stockholders’ equity. The fair value of short term investments is determined based on quoted market prices at the reporting date for those instruments. As of October 27, 2012 and July 31, 2012, aggregate cash and cash equivalents and short and long term investments consisted of (in thousands):


October 27, 2012:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	105,608	$	—	$	—		$	105,608
Government securities		39,935		4		(1	)		39,938

Total	$	145,543	$	4	$	(1	)	$	145,546


July 31, 2012:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	136,654	$	—	$	—		$	136,654
Government securities		302,695		66		(22	)		302,739

Total	$	439,349	$	66	$	(22	)	$	439,393