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 June 30, 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 June 30, 2013 and September 30, 2012 were as follows (in thousands):


	June 30, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,260	$	15	$	(90	)	$	28,185
Mortgage-backed securities		5,180		92		(50	)		5,222
Municipal bonds		3,288		17		(6	)		3,299
Asset-backed securities		1,622		—		(8	)		1,614
Corporate bonds		4,115		12		(30	)		4,097

Total	$	42,465	$	136	$	(184	)	$	42,417


	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 June 30, 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 June 30, 2013 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	10,712	$	10,723
One to five years		25,080		25,000
Five years or more		6,673		6,694

Total	$	42,465	$	42,417

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


	Three months ended June 30,						Nine months ended June 30,
	2013			2012			2013			2012
Proceeds from sales	$	8,507		$	649		$	34,487		$	35,203
Gross realized gains	$	6		$	3		$	171		$	174
Gross realized losses	$	(4	)	$	(1	)	$	(4	)	$	(2	)