Investments

3 Months Ended

Dec. 31, 2011

Investments [Abstract]

Investments

5. 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 December 31, 2011 and September 30, 2011. Available-for-sale securities 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. 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. When an other-than-temporary impairment in the fair value of any individual security classified as held-to-maturity occurs, the Company writes down the security to fair value with a corresponding adjustment to other income. Interest on debt securities, including amortization of premiums and accretion of discounts, is included in other income. Realized gains and losses from the sales of debt securities, which are included in other income, are determined using the specific identification method.

The original cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2011 and September 30, 2011 were as follows (in thousands):

	December 31, 2011
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	31,040	$	186	$	—		$	31,226
Mortgage-backed securities		3,653		125		(50	)		3,728
Municipal bonds		3,463		50		—			3,513
Asset-backed securities		1,146		—		(46	)		1,100
Corporate bonds		2,464		34		(10	)		2,488
Total	$	41,766	$	395	$	(106	)	$	42,055

	September 30, 2011
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	30,433	$	176	$	(6	)	$	30,603
Mortgage-backed securities		3,871		131		(54	)		3,948
Municipal bonds		3,561		53		—			3,614
Asset-backed securities		1,336		1		(49	)		1,288
Corporate bonds		2,474		32		(9	)		2,497
Total	$	41,675	$	393	$	(118	)	$	41,950

The original cost and fair value of investments by contractual maturity at December 31, 2011 were as follows (in thousands):

	Amortized Cost		Fair Value
Debt securities due within:
One year	$	10,538	$	10,555
One to five years		26,723		26,973
Five years or more		4,505		4,527
Total	$	41,766	$	42,055

The following table summarizes sales of available-for-sale securities (in thousands):

	Three months ended December 31,
	2011		2010
Proceeds from sales	$	2,641	$	1,200
Gross realized gains	$	9	$	2
Gross realized losses	$	—	$	(2	)

At December 31, 2011, the amortized cost and fair market value of held-to-maturity debt securities were both $3.0 million. Investments in securities designated as held-to-maturity consist of tax-exempt municipal bonds and have maturity dates ranging between two months and three months from December 31, 2011. At September 30, 2011, the amortized cost and fair market value of held-to-maturity debt securities were $3.0 million and $3.1 million, respectively.