Investments

9 Months Ended

Jun. 30, 2011

Investments [Abstract]

Investments

(4) Investments

     Investments consist principally of U.S. government and government agency obligations and mortgage-backed securities and are classified as available-for-sale or held-to-maturity at June 30, 2011 and September 30, 2010. Available-for-sale investments are reported at fair value with unrealized gains and losses net of tax excluded from operations and reported as a separate component of stockholders’ equity, except for other-than-temporary impairments, which are reported as a charge to current operations. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income (loss). This adjustment results in a new cost basis for the investment. Investments that management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. If there is an other-than-temporary impairment in the fair value of any individual security classified as held-to-maturity, the Company will write down the security to fair value with a corresponding adjustment to other income (loss). Interest on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of debt securities, which are included in other income (loss), are determined using the specific identification method.

     The original cost, unrealized holding gains and losses, and fair value of available-for-sale investments as of June 30, 2011 and September 30, 2010 were as follows (in thousands):

	June 30, 2011
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government obligations	$	29,337	$	58	$	(4	)	$	29,391
Mortgage-backed securities		4,061		126		(42	)		4,145
Municipal bonds		2,891		42		(1	)		2,932
Asset-backed securities		1,659		3		(45	)		1,617
Corporate bonds		3,646		27		(1	)		3,672
Total	$	41,594	$	256	$	(93	)	$	41,757

	September 30, 2010
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government obligations	$	25,968	$	395	$	(34	)	$	26,329
Mortgage-backed securities		4,711		164		(48	)		4,827
Municipal bonds		3,079		72		—			3,151
Asset-backed securities		1,146		8		(42	)		1,112
Corporate bonds		5,828		24		—			5,852
Total	$	40,732	$	663	$	(124	)	$	41,271

     The original cost and fair value of investments by contractual maturity at June 30, 2011 were as follows (in thousands):

	Amortized Cost		Fair Value
Debt securities due within:
One year	$	12,851	$	12,858
One to five years		23,407		23,537
Five years or more		5,336		5,362
Total	$	41,594	$	41,757

     The following table summarizes sales of available-for-sale securities for the three-month and nine-month periods ended June 30, 2011(in thousands):

	Three Months Ended		Nine Months Ended
	June 30, 2011		June 30, 2011
Proceeds from sales	$	23,247	$	47,827
Gross realized gains	$	171	$	384
Gross realized losses	$	—	$	(4	)

     At June 30, 2011, the amortized cost and fair market value of held-to-maturity debt securities was $3.1 million. Investments in securities designated as held-to-maturity consist of tax-exempt municipal bonds with maturity dates of less than one year as of June 30, 2011. At September 30, 2010, the amortized cost and fair market value of held-to-maturity debt securities were $4.1 million and $4.3 million, respectively.