Note 5.

Investments

Langfang Haobo Diamond Co., Ltd.

In July 2009, the Company acquired a 40% non-controlling interest in Langfang Haobo Diamond Co. Ltd. ("Haobo") to form a joint venture in Beijing, China. The total carrying value of the investment recorded as of September 30, 2011 and June 30, 2011 was $5.2 million and $5.3 million, respectively. This investment is accounted for under the equity method of accounting. During the three months ended September 30, 2011 and 2010, the Company's pro-rata share of losses from this investment was $0.1 million and was recorded in other expense (income), net in the Condensed Consolidated Statements of Earnings.

Fuxin Electronic Technology Company

In March 2007, the Company acquired a 10% non-controlling minority interest in Guangdong Fuxin Electronic Technology ("Fuxin") based in Guangdong Province, China for $3.6 million. In July 2008, the Company completed an additional non-controlling investment of 10.2% of the equity interests of Fuxin for approximately $4.9 million. The Company has a total equity investment in Fuxin of 20.2%, which is accounted for under the equity method of accounting. The total carrying value of the investment recorded at September 30, 2011 and June 30, 2011 was $10.6 million and $10.1 million, respectively. During the three months ended September 30, 2011 and 2010, the Company's pro-rata share of earnings from this investment was $0.4 million and $0.2 million, respectively, and was recorded in other expense (income), net in the Condensed Consolidated Statements of Earnings.