Investments

12 Months Ended

Sep. 30, 2011

Investments

Investments

Note 5—Investments

The following is a summary of cash equivalents and available-for-sale securities as of September 30, 2011 and 2010 (in thousands):

	September 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	27,578	$	—	$	—		$	27,578
Certificates of deposit and other bank deposits		107,751		—		—			107,751
Non- United States government securities		37,453		—		—			37,453
Auction rate securities		19,468		—		(2,020	)		17,448
	$	192,250	$	—	$	(2,020	)	$	190,230
Included in cash and cash equivalents	$	135,330	$	—	$	—		$	135,330
Included in short-term investments		28,319		—		—			28,319
Included in long-term investments		28,601		—		(2,020	)		26,581
	$	192,250	$	—	$	(2,020	)	$	190,230

	September 30, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	70,325	$	—	$	—		$	70,325
Certificates of deposit and other bank deposits		82,007		—		—			82,007
Non- United States government securities		19,098		—		—			19,098
United States government and agency securities		4,194		—		—			4,194
Auction rate securities		19,682		—		(2,242	)		17,440
	$	195,306	$	—	$	(2,242	)	$	193,064
Included in cash and cash equivalents	$	152,332	$	—	$	—		$	152,332
Included in short-term investments		18,449		—		—			18,449
Included in long-term investments		24,525		—		(2,242	)		22,283
	$	195,306	$	—	$	(2,242	)	$	193,064

The following is a summary of the Company's available-for-sale securities based on contractual maturities (in thousands):

	September 30,
	2011		2010
Due in one year or less	$	28,319	$	18,449
Due after one year through two years		9,133		4,843
Due after two years through three years		—		—
Due after three years		17,448		17,440
	$	54,900	$	40,732

The long-term investments as of September 30, 2011 and 2010, respectively, due after three years are auction rate securities ("ARS"). The Company had $2.0 million and $2.2 million of gross unrealized losses on auction rate securities as of September 30, 2011 and 2010, respectively. As a result of the credit rating reduction to below investment grade related to one of its ARS, the Company recorded an other-than-temporary impairment of $1.4 million in the year ended September 30, 2009 and $499,000 in the year ended September 30, 2010, partially offset by $463,000 of accretion recorded through September 30, 2011. These amounts were recorded in interest and other income (expense), net, in the statement of operations. See Note 6.