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Marketable Securities and Time Deposits
 6 Months Ended
Jun. 30, 2012
Marketable Securities and Time Deposits [Abstract]  
MARKETABLE SECURITIES AND TIME DEPOSITS

NOTE D—MARKETABLE SECURITIES AND TIME DEPOSITS

The Company accounts for investments in marketable securities in accordance with FASB ASC No. 320-10 “Investments in Debt and Equity Securities.” Management determines the appropriate classification of its investments in government and corporate marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date.

The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported in other comprehensive income. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and interest are included in financial income, net. Interest and dividends on securities are included in financial income, net. The following is a summary of available-for-sale securities and short-term deposits at June 30, 2012 and December 31, 2011:

 

                                                 
    Amortized cost     Unrealized gains (losses), net     Estimated fair value  
    June 30,
2012		     December 31,
2011		     June 30,
2012		     December 31,
2011		     June 30
2012		     December 31,
2011		  
    (Unaudited)     (Audited)     (Unaudited)     (Audited)     (Unaudited)     (Audited)  

Short-term deposits

   $ 2,615     $ 15,803     $ —       $ —       $ 2,615     $ 15,803  

U.S. GSE securities

     3,763       10,725       2       (29 )      3,765       10,696  

Corporate obligations

     83,356       74,173       (111 )      (1,000 )      83,245       73,173  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
    $ 89,736     $ 100,701     $ (109 )    $ (1,029 )    $ 89,625     $ 99,672  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The amortized cost of short-term deposits and available-for-sale debt securities at June 30, 2012, by contractual maturities, is shown below:

 

                                 
    Amortized
cost		     Unrealized gains
(losses)		     Estimated
fair value		  
      Gains     Losses    

Due in one year or less

   $ 18,791     $ 43     $ (2 )    $ 18,832  

Due after one year to five years

     70,943       369       (519 )      70,793  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 89,734     $ 412     $ (521 )    $ 89,625  
   

 

 

    

 

 

    

 

 

    

 

 

  

The actual maturity dates may differ from the contractual maturities because debtors may have the right to call or prepay obligations without penalties.

As of June 30, 2012, the unrealized losses in the Company’s investments in all types of marketable securities were temporary and no impairment loss was realized in the Company’s condensed consolidated statements of income.

The total fair value of marketable securities with outstanding unrealized losses as of June 30, 2012 amounted to $34,402. Of the $521 unrealized losses outstanding as of June 30, 2012, a portion of which, in the amount of $218, was outstanding for more than 12 months and the remaining portion of $303 was outstanding for less than 12 months.

Proceeds from maturity of available-for-sale marketable securities during the six months ended June 30, 2012 and 2011 were $15,625 and $31,333, respectively. Proceeds from sales of available-for-sale marketable securities during the six months ended June 30, 2012 and 2011 were $16,097 and $3,915, respectively. Net realized gains from the sale of available-for sale marketable securities for the six months ended June 30, 2012 were $241, as compared to net realized gains of $134 for the same periods in 2011. The Company determines realized gains or losses on the sale of available-for-sale marketable securities based on a specific identification method.

Marketable securities are periodically reviewed for impairment. If management concludes that any marketable security is impaired, management determines whether such impairment is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period, and the Company’s intent to sell, or whether it is more likely than not that the Company will be required to sell the marketable security before recovery of cost basis. If any impairment is considered other-than-temporary, the marketable security is written down to its fair value through a corresponding charge to financial income, net.