NOTE D — MARKETABLE SECURITIES and SHORT –TERM deposits

The Company accounts for investments in marketable securities in accordance with FASB ASC

No.320

"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

June 30, 2017

and

December 31, 2016:

	Amortized cost				Unrealized losses, net						Fair value
	June 30, 2017		December 31, 2016		June 30, 2017			December 31, 2016			June 30, 2017		December 31, 2016
	(Unaudited)		(Audited)		(Unaudited)			(Audited)			(Unaudited)		(Audited)

Short-term deposits		10,919	$	7,610	$	-		$	-		$	10,919	$	7,610
U.S. GSE securities		20,952		24,351		(217	)		(289	)		20,735		24,062
Corporate obligations		76,645		76,264		(466	)		(813	)		76,179		75,451

	$	108,516	$	108,225	$	(683	)	$	(1,102	)	$	107,833	$	107,123

The amortized cost of marketable debt securities and short-term deposits at

June

30,

2017,

by contractual maturities, is shown below

			Unrealized gains (losses) (unaudited)
	Amortized cost		Gains		Losses			Fair value

Due in one year or less	$	33,495	$	9	$	(28	)	$	33,476
Due after one year to five years		75,021		45		(709	)		74,357

	$	108,516	$	54	$	(737	)	$	107,833

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, 2017,

the unrealized losses in the Company’s investments in all types of marketable securities were temporary and

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

June 30, 2017.

The total fair value of marketable securities with outstanding unrealized losses as of

June 30, 2017

amounted to

$75,788,

while the unrealized losses for these marketable securities amounted to

$737.

Of the

$737

unrealized losses outstanding as of

June 30, 2017,

a portion of which in the amount of

$183

related to marketable securities that were in a loss position for more than

months and the remaining portion in the amount of

$554

was related to marketable securities that were in a loss position for less than

months.

Proceeds from maturity of available-for-sale marketable securities during the

six

months ended

June 30, 2017

and

2016

were

$9,388

and

$21,500,

respectively. Proceeds from sales of available-for-sale marketable securities during the

six

months ended

June 30, 2017

and

2016

were

$8,578

and

$7,987,

respectively. Net realized losses from the sale of available-for-sale securities for the

six

months ended

June 30, 2017

were

$58

compared to net realized losses for the

six

months ended

June 30, 2016

$33.

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.