INVESTMENTS

The Company's investments are intended to establish a high-quality portfolio that preserves principal, meets liquidity needs, avoids inappropriate concentrations, and delivers an appropriate yield in relationship to the Company's investment guidelines and market conditions. The following is a summary of available-for-sale securities at March 31, 2012 (amounts in thousands):



	Available-for-sale Securities
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government agency bonds	$	342,025	$	476	$	(397	)	$	342,104
Municipal bonds	19,888		234		—			20,122
Auction rate securities	10,246		—		—			10,246
Corporate bonds and debt	770,891		4,150		(937		)	774,104
Marketable equity securities	5,864		188		(788		)	5,264
	$	1,148,914	$	5,048	$	(2,122	)	$	1,151,840

The following is a summary of available-for-sale securities at March 31, 2011 (amounts in thousands):



	Available-for-sale Securities
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government agency bonds	$	431,355	$	159	$	(923	)	$	430,591
Municipal bonds	11,445		34		(22		)	11,457
Auction rate securities	12,475		—		—			12,475
Corporate bonds and debt	519,499		4,116		(589		)	523,026
Marketable equity securities	26,173		688		—			26,861
	$	1,000,947	$	4,997	$	(1,534	)	$	1,004,410

At March 31, 2012, the Company's available-for-sale debt securities, and marketable equity securities are presented on the consolidated balance sheets as short-term investments of $823.3 million and long-term investments of $328.6 million. At March 31, 2011, the Company’s available-for-sale debt securities and marketable equity securities are presented on the consolidated balance sheets as short-term investments of $539.6 million and long-term investments of $464.8 million.

At March 31, 2012, $10.2 million of the fair value of the Company's investment portfolio was invested in ARS. With the continuing liquidity issues in the global credit and capital markets, the Company's ARS have experienced multiple failed auctions from September 2007 through the date of this report. While the Company continues to earn interest on these investments based on a pre-determined formula with spreads tied to particular interest rate indices, the estimated market value for these ARS no longer approximates the original purchase value.

The fair value of the failed ARS of $10.2 million has been estimated based on market information and estimates determined by management and could change significantly based on market conditions. The Company evaluated the impairments in the value of these ARS, determining its intent to sell these securities prior to the recovery of its amortized cost basis resulted in the securities being other-than-temporarily impaired. In fiscal 2012, the Company recognized a net gain of $0.3 million on these investments due to a redemption at par value of one ARS position offsetting impairment charges. In fiscal 2011, the Company recognized an impairment charge on these investments of $1.6 million.

The Company believes that, based on its current unrestricted cash, cash equivalents and short-term investment balances, the current lack of liquidity in the credit and capital markets for ARS will not have a material impact on its liquidity, cash flow or ability to fund its operations.

At March 31, 2012, the Company evaluated its investment portfolio and noted unrealized losses of $1.3 million on its debt securities, and $0.8 million on its marketable equity securities which were due to fluctuations in interest rates, credit market conditions, and/or market prices. Management does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of March 31, 2012 and the Company's intent is to hold these investments until these assets are no longer impaired, except for the ARS described above and certain equity investments that are actively being sold. For those debt securities not scheduled to mature until after March 31, 2013, such recovery is not anticipated to occur in the next year and these investments have been classified as long-term investments.

The amortized cost and estimated fair value of the available-for-sale securities at March 31, 2012, by maturity, excluding marketable equity securities of $5.3 million and corporate debt of $4.6 million, which have no contractual maturity, are shown below (amounts in thousands). Expected maturities can differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties, and the Company views its available-for-sale securities as available for current operations.



	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale
Due in one year or less	$	268,501	$	1,537	$	(21	)	$	270,017
Due after one year and through five years	839,677		3,323		(1,297		)	841,703
Due after five years and through ten years	25,177		—		(16		)	25,161
Due after ten years	5,069		—		—			5,069
	$	1,138,424	$	4,860	$	(1,334	)	$	1,141,950

The amortized cost and estimated fair value of the available-for-sale securities at March 31, 2011, by maturity, excluding marketable equity securities of $26.9 million and corporate debt of $3.5 million, which have no contractual maturity, are shown below (amounts in thousands).



	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale
Due in one year or less	$	143,447	$	903	$	(2	)	$	144,348
Due after one year and through five years	815,352		3,406		(1,532		)	817,226
Due after five years and through ten years	—		—		—			—
Due after ten years	12,475		—		—			12,475
	$	971,274	$	4,309	$	(1,534	)	$	974,049

During the year ended March 31, 2012, the Company had net realized gains of $0.4 million from sales of available-for-sale marketable equity securities compared to net realized gains of $3.2 million and $1.1 million, respectively, for the years ended March 31, 2011 and March 31, 2010. The Company had a net realized gain of $0.4 million from sales of available-for-sale debt securities during the year ended March 31, 2012, compared to an immaterial amount of net realized gains and losses during the year ended March 31, 2011 and a net realized gain of $1.2 million during the year ended ended March 31, 2010.

Marketable Equity Investments

The Company had investments in public companies with a fair value of $5.3 million as of March 31, 2012. Cash dividends and other distributions of earnings from the investees, if any, are included in other income at the date of record. The Company has classified the shares owned in these companies as marketable securities. As of March 31, 2012, the Company had a net unrealized loss in other comprehensive income of $0.6 million on these marketable securities compared to an unrealized gain of $0.7 million for the year ended March 31, 2011. During the years ended March 31, 2012 and March 31, 2011, the Company recorded impairment charges of $2.4 million and $3.0 million, respectively, on certain shares that it held due to the current market price and active selling of the shares.

Non-marketable Equity Investments

The Company has certain non-marketable equity investments in several companies with a carrying value of $7.7 million at March 31, 2012. The investments in privately held companies are accounted for using the cost or the equity method of accounting, as appropriate. Each period the Company evaluates whether an event or change in circumstances has occurred that may indicate an investment has been impaired. If upon further investigation of such events the Company determines the investment has suffered a decline in value that is other than temporary, the Company writes down the investment to its estimated fair value. At March 31, 2012, the Company determined there were no such impairments and there were no impairment charges recognized in any of the three years then ended. These investments are included in other assets on the consolidated balance sheet.