Note 4 - Marketable Securities And Time Deposits

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

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, 2014 and December 31, 2013:

	Amortized cost				Unrealized gains (losses), net						Estimated fair value
	June 30, 2014		December 31, 2013		June 30, 2014			December 31, 2013			June 30 2014		December 31, 2013
	(Unaudited)		(Audited)		(Unaudited)			(Audited)			(Unaudited)		(Audited)
Short term deposits	$	2,952	$	2,911	$	-		$	-		$	2,952	$	2,911
U.S. GSE securities		3,934		3,093		12			(11	)		3,946		3,082
Corporate obligations		95,404		98,444		(198	)		(380	)		95,206		98,064
	$	102,290	$	104,448	$	(186	)	$	(391	)	$	102,104	$	104,057

The amortized cost of short-term deposits and available-for-sale debt securities at June 30, 2014, by contractual maturities, is shown below:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses			Estimated fair value
Due in one year or less	$	10,368	$	10	$	(1	)	$	10,377
Due after one year to five years		91,922		197		(392	)		91,727
	$	102,290	$	207	$	(393	)	$	102,104

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

Management believes that as of June 30, 2014, 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 statement of income.

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.

The unrealized losses related to corporate obligations were primarily due to changes in interest rates. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2014.

The total fair value of marketable securities with outstanding unrealized losses as of June 30, 2014 amounted to $52,461, while the unrealized losses for these marketable securities amounted to $393. Of the $393 unrealized losses outstanding as of June 30, 2014, a portion of which in the amount of $184 related to marketable securities that were in a loss position for more than 12 months and the remaining portion in the amount of $209 was related to marketable securities that were in a loss position for less than 12 months.

Proceeds from maturity of available-for-sale marketable securities during the six months ended June 30, 2014 and 2013 were $7,135 and $9,242, respectively. Proceeds from sales of available-for-sale marketable securities during the six months ended June 30, 2014 and 2013 were $31,989 and $22,961, respectively. Net realized gains from the sale of available-for-sale securities for the six months ended June 30, 2014 and 2013 were $65 and $542, respectively. The Company determines realized gains or losses on the sale of available-for-sale marketable securities based on a specific identification method.