INVESTMENTS

Investments at March 31, 2013 and 2012 primarily include corporate equity securities and auction-rate securities.

All marketable securities are deemed by management to be available-for-sale and are reported at fair value, with the exception of certain auction-rate securities as described below. Net unrealized gains and losses that are deemed to be temporary are reported within stockholders’ equity on the Company’s condensed consolidated balance sheets as a component of accumulated other comprehensive (loss) income. Unrealized losses that are deemed to be other-than-temporary are recorded in the condensed consolidated statement of operations in the period such determination is made. Gross realized gains or losses are recorded based on the specific identification method. For the three months ended March 31, 2013 and 2012, the Company's gross realized gains and losses on short-term investments were not significant. The Company’s investments are further detailed in the table below:



	March 31, 2013					December 31, 2012
	Adjusted Cost			Fair Value		Adjusted Cost		Fair Value
	(In thousands)
Corporate equity securities	$	2,687		$	2,126	$	2,687	$	2,687
Auction-rate securities	983			1,066		983		1,066
	$	3,670		$	3,192	$	3,670	$	3,753
Unrealized gains	83					83
Unrealized losses	(561		)			—
Net unrealized (losses) gains	(478		)			83
Fair value	$	3,192				$	3,753
Amount included in short-term investments				$	2,126			$	2,687
Amount included in other assets				1,066				1,066
				$	3,192			$	3,753

In September 2010, in connection with the sale of the Company’s smart card business in France to INSIDE Secure (“INSIDE”), the Company received an equity interest in INSIDE, which was privately-held at the time of the investment. In February 2012, INSIDE successfully completed an initial public offering on the NYSE Euronext stock exchange in Paris. As a result of that public offering, the Company reclassified its investment in INSIDE to short-term investments from other assets and accounted for this investment as an available for sale security. In the fourth quarter of 2012, the Company recorded an impairment charge of $1.2 million on its investment in INSIDE, which it concluded to be other-than-temporary.

For the three months ended March 31, 2013, auctions for the Company's sole auction-rate security continued to fail and as a result this security continues to be illiquid. The Company concluded that $1.1 million of its auction-rate security is unlikely to be liquidated within the next twelve months and classified this security as a long-term investment, which is included in other assets on the consolidated balance sheets.

Contractual maturities (at adjusted cost) of available-for-sale debt securities as of March 31, 2013, were as follows:



	(In thousands)
Due within one year	$	—
Due in 1-5 years	—
Due in 5-10 years	—
Due after 10 years	983
Total	$	983

Atmel has classified all investments with original maturity dates of 90 days or more as short-term as it has the ability and intent to liquidate them within the year, with the exception of the Company’s remaining auction-rate securities, which have been classified as long-term investments and included in other assets on the condensed consolidated balance sheets.