Marketable Securities

6 Months Ended

Mar. 31, 2013

Marketable Securities [Abstract]

MARKETABLE SECURITIES

MARKETABLE SECURITIES

Our marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds. We analyze our available-for-sale marketable securities for impairment on an ongoing basis. When we perform this analysis, we consider factors such as the length of time and extent to which the securities have been in an unrealized loss position and the trend of any unrealized losses. We also consider whether an unrealized loss is a temporary loss or an other-than-temporary loss based on factors such as: (a) whether we have the intent to sell the security, or (b) whether it is more likely than not that we will be required to sell the security before its anticipated recovery, or (c) permanent impairment due to bankruptcy or insolvency.

In order to estimate the fair value for each security in our investment portfolio, where available, we obtain quoted market prices and trading activity for each security. We obtain relevant information from our investment advisor and also may review the financial solvency of certain security issuers if warranted. As of March 31, 2013, 61 of our 72 securities that we are holding were trading below our amortized cost basis. We determined each decline in value to be temporary based upon the above described factors. We expect to realize the fair value of these securities, plus accrued interest, either at the time of maturity or when the security is sold. All of our current holdings are classified as available-for-sale marketable securities and are recorded at fair value on our consolidated balance sheet with the unrealized gains and losses recorded in accumulated other comprehensive loss. All of our non-current marketable securities will mature in less than 3 years.

5. MARKETABLE SECURITIES (CONTINUED)

At March 31, 2013 our marketable securities were (in thousands):

	Amortized Cost (1)		Unrealized Gains		Unrealized Losses (2)			Fair Value (1)
Current marketable securities:
Corporate bonds	$	24,036	$	1	$	(18	)	$	24,019
Commercial paper	2,000		—		—			2,000
Certificates of deposit	4,758		—		(2		)	4,756
Government municipal bonds	6,626		—		—			6,626
Current marketable securities	37,420		1		(20		)	37,401
Non-current marketable securities:
Corporate bonds	15,906		4		(37		)	15,873
Certificates of deposit	6,251		—		(19		)	6,232
Government municipal bonds	—		—		—			—
Non-current marketable securities	22,157		4		(56		)	22,105
Total marketable securities	$	59,577	$	5	$	(76	)	$	59,506

(1) Included in amortized cost and fair value is purchased and accrued interest of $500.

(2) The aggregate related fair value of securities with unrealized losses as of March 31, 2013 was $49,320. These investments have been in an unrealized loss position for less than twelve months.

At September 30, 2012 our marketable securities were (in thousands):

	Amortized Cost (1)		Unrealized Gains		Unrealized Losses (2)			Fair Value (1)
Current marketable securities:
Corporate bonds	$	39,306	$	14	$	(19	)	$	39,301
Commercial paper	2,000		—		—			2,000
Certificates of deposit	7,262		—		(4		)	7,258
Government municipal bonds	9,814		1		(2		)	9,813
Current marketable securities	58,382		15		(25		)	58,372
Non-current marketable securities:
Corporate bonds	2,019		—		(3		)	2,016
Total marketable securities	$	60,401	$	15	$	(28	)	$	60,388

(1) Included in amortized cost and fair value is purchased and accrued interest of $485.

(2) The aggregate related fair value of securities with unrealized losses as of September 30, 2012 was $34,503. These investments have been in an unrealized loss position for less than twelve months.