SHORT-TERM INVESTMENTS

We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Investments classified as available-for-sale are reported at fair value with unrealized gains and losses, net of related income taxes, recorded as a separate component of other comprehensive income (“OCI”) in stockholders’ equity until realized. Interest and amortization of premiums and discounts for debt securities are included in interest income. Gains and losses on securities sold are determined based on the specific identification method and are included in other income (expense).

Cash, cash equivalents and short-term investments consist of the following (in thousands):



	March 31, 2012
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	86,030	$	34	$	—		$	86,064

Short-term investments:
Available-for-sale securities:
Certificates of deposit	$	2,000	$	3	$	—		$	2,003
U.S. Treasury and agency obligations	85,220		454		(19		)	85,655
Corporate notes and obligations	41,209		262		(18		)	41,453
Total short-term investments	$	128,429	$	719	$	(37	)	$	129,111



	October 1, 2011
	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	166,931	$	131	$	(1	)	$	167,061

Short-term investments:
Available-for-sale securities:
Certificates of deposit	$	6,500	$	10	$	—		$	6,510
International government obligations	1,101		1		(1		)	1,101
Corporate notes and obligations	45,282		275		(26		)	45,531
Total short-term investments	$	52,883	$	286	$	(27	)	$	53,142

The amortized cost and estimated fair value of available-for-sale investments in debt securities as of March 31, 2012 and October 1, 2011 classified as short-term investments on our condensed consolidated balance sheet were as follows (in thousands):



	March 31, 2012				October 1, 2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in less than 1 year	$	126,429	$	127,108	$	46,383	$	46,632
Total investments in available-for-sale debt securities	$	126,429	$	127,108	$	46,383	$	46,632

During the three and six months ended March 31, 2012, we received proceeds totaling $32.7 million and $60.1 million, respectively, from the sale of available-for-sale securities and realized gross gains of less than $0.1 million and $0.1 million, respectively. During the three and six months ended April 2, 2011, we received proceeds totaling $19.1 million and $37.5 million, respectively, from the sale of available-for-sale securities and realized gross gains of less than $0.1 million and $0.1 million, respectively.

At March 31, 2012, gross unrealized losses on our investments with unrealized losses that are not deemed to be other-than-temporarily impaired were $35,000 on corporate notes and obligations of $38.1 million and U.S. treasury and agency obligations of $81.2 million.

At March 31, 2012, approximately $149.3 million of our cash, cash equivalents and short-term investments were held outside the U.S. in certain of our foreign operations, $54.8 million of which was denominated in currencies other than the U.S. dollar. In January 2012 we converted $89.8 million of assets formerly denominated in Euro to U.S. dollars and invested those funds in U.S. Treasury securities within a European subsidiary whose functional currency is the U.S. dollar. Accordingly, there is no translation adjustment arising from these U.S. dollar denominated investments.