5. Investments

Investments consist principally of U.S. government and government agency obligations, mortgage-backed securities and corporate and municipal debt securities and are classified as available-for-sale at March 31, 2013 and September 30, 2012. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed consolidated statements of income and reported in the condensed consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the condensed consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. 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 for which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Interest earned 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 amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of March 31, 2013 and September 30, 2012 were as follows (in thousands):


	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	34,318	$	59	$	—		$	34,377
Mortgage-backed securities		2,513		112		(24	)		2,601
Municipal bonds		3,421		27		(1	)		3,447
Asset-backed securities		537		—		(5	)		532
Corporate bonds		1,673		23		—			1,696

Total	$	42,462	$	221	$	(30	)	$	42,653


	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,641	$	213	$	—		$	28,854
Mortgage-backed securities		2,896		129		(26	)		2,999
Municipal bonds		3,178		35		—			3,213
Asset-backed securities		613		—		(15	)		598
Corporate bonds		6,858		28		—			6,886

Total	$	42,186	$	405	$	(41	)	$	42,550

As of March 31, 2013, the Company concluded that the unrealized losses related to the available-for-sale securities shown above were not other-than-temporary as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of their amortized cost.

The amortized cost and fair value of investments by contractual maturity at March 31, 2013 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	15,132	$	15,147
One to five years		23,951		24,040
Five years or more		3,379		3,466

Total	$	42,462	$	42,653

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


	Three months ended					Six months ended
	March 31,					March 31,
	2013		2012			2013		2012
Proceeds from sales	$	25,175	$	31,913		$	25,980	$	34,554
Gross realized gains	$	161	$	163		$	165	$	171
Gross realized losses	$	—	$	(1	)	$	—	$	(1	)

During the second quarter of fiscal 2012, all remaining held-to-maturity debt securities matured.