SHORT-TERM INVESTMENTS

We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Investments classified as available-for-sale are reported at fair value with unrealized gains and losses, net of related income taxes, recorded as a separate component of other comprehensive income (“OCI”) in stockholders’ equity until realized. Interest and amortization of premiums and discounts for debt securities are included in interest income. Gains and losses on securities sold are determined based on the specific identification method and are included in other income (expense).

Cash, cash equivalents and short-term investments consist of the following (in thousands):



	December 29, 2012
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	87,980	$	16	$	—		$	87,996

Short-term investments:
Available-for-sale securities:
Certificates of deposit	$	2,008	$	13	$	—		$	2,021
U.S. Treasury and agency obligations	81,272		359		—			81,631
Corporate notes and obligations	8,048		82		(1		)	8,129
Total short-term investments	$	91,328	$	454	$	(1	)	$	91,781



	September 29, 2012
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	67,752	$	9	$	—		$	67,761

Short-term investments:
Available-for-sale securities:
Certificates of deposit	$	2,017	$	2	$	—		$	2,019
U.S. Treasury and agency obligations	108,284		666		(2		)	108,948
International government obligations	2,004		14		—			2,018
Corporate notes and obligations	41,912		272		(1		)	42,183
Commercial paper	2,000		—		—			2,000
Total short-term investments	$	156,217	$	954	$	(3	)	$	157,168

At December 29, 2012, gross unrealized losses on our investments with unrealized losses that are not deemed to be other-than-temporarily impaired were $2,000 on corporate notes and obligations of $6.7 million.

The amortized cost and estimated fair value of available-for-sale investments in debt securities as of December 29, 2012 and September 29, 2012 classified as short-term investments on our condensed consolidated balance sheet were as follows (in thousands):



	December 29, 2012				September 29, 2012
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Investments in available-for-sale debt securities due in less than one year	$	89,320	$	89,760	$	154,200	$	155,149

During the three months ended December 29, 2012, we received proceeds totaling $56.6 million from the sale of available-for-sale securities and realized gross gains of less than $0.1 million. During the three months ended December 31, 2011, we received proceeds totaling $27.5 million from the sale of available-for-sale securities and realized gross gains of less than $0.1 million.