Investment in TowerJazz Semiconductor Ltd.

9 Months Ended

Sep. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Investment in TowerJazz Semiconductor Ltd.

Investment in TowerJazz Semiconductor Ltd.

As of September 30, 2012, the Company held 42,970 available-for-sale TowerJazz ordinary shares with a net unrealized gain of $24,000 recorded in accumulated other comprehensive income, or AOCI, on the balance sheet which includes a tax benefit and the difference between the cost of $1.95 per share and carrying value of $8.84 per share, their fair value on the last trading day of the reporting period. The number of TowerJazz ordinary shares held by the Company reflect the 1 to 15 reverse stock split implemented by ToweJazz effective August 3, 2012.

The fair value of TowerJazz marketable securities as of September 30, 2012 was determined based on “Level 1” inputs as described in Note 7. In the first nine months of 2012, the Company recorded $63,000 of tax benefit related to AOCI attributable to unrealized gains on investment in TowerJazz.