Note 4 - Marketable Securities and Time Deposits

9 Months Ended

Sep. 30, 2015

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 at September 30, 2015 and December 31, 2014:

	Amortized cost				Unrealized gains (losses), net						Fair value
	September 30, 2015		December 31, 2014		September 30, 2015			December 31, 2014			September 30, 2015		December 31, 2014
	(Unaudited)		(Audited)		(Unaudited)			(Audited)			(Unaudited)		(Audited)
Short term deposits	$	2,583	$	2,599	$	-		$	-		$	2,583	$	2,599
U.S. GSE securities		23,594		21,085		39			(34	)		23,633		21,051
Corporate obligations		77,795		80,389		(47	)		(262	)		77,748		80,127
	$	103,972	$	104,072	$	(8	)	$	(296	)	$	103,964	$	103,777

The amortized cost of marketable debt securities and short-term deposits at September 30, 2015, by contractual maturities, is shown below:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses			Fair value
Due in one year or less	$	17,677	$	27	$	(2	)	$	17,702
Due after one year to five years		86,295		149		(182	)		86,262
	$	103,972	$	176	$	(184	)	$	103,964

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 September 30, 2015, 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.

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 September 30, 2015.

The total fair value of marketable securities with outstanding unrealized losses as of September 30, 2015 amounted to $39,021, while the unrealized losses for these marketable securities amounted to $184. Of the $184 unrealized losses outstanding as of September 30, 2015, a portion of which in the amount of $44 related to marketable securities that were in a loss position for more than 12 months and the remaining portion in the amount of $140 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 nine months ended September 30, 2015 and 2014 were $14,157 and $9,896, respectively. Proceeds from sales of available-for-sale marketable securities during the nine months ended September 30, 2015 and 2014 were $11,492 and $40,821, respectively. Net realized losses from the sale of available-for-sale securities for the nine months ended September 30, 2015 were $26 compared to net realized gains for the nine months ended September 30, 2014 of $62. The Company determines realized gains or losses on the sale of 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.