Marketable Securities

9 Months Ended

Jun. 30, 2011

Marketable Securities [Abstract]

MARKETABLE SECURITIES

6. MARKETABLE SECURITIES

Our marketable securities consist of certificates of deposit, commercial paper, corporate bonds and government municipal bonds.

We analyze our available-for-sale marketable securities for impairment on an ongoing basis. We consider factors such as the length of time and extent to which the securities have been in an unrealized loss position and the trend of any unrealized losses. We also consider whether an unrealized loss is a temporary loss or an other-than-temporary loss such as: (a) whether we have the intent to sell the security, or (b) whether it is more likely than not that we will be required to sell the security before its anticipated recovery.

In order to estimate the fair value for each security in our investment portfolio, where available, we obtain quoted market prices and trading activity for each security. We also review the financial solvency of each security issuer and obtain other relevant information from our investment advisor. As of June 30, 2011, 31 of our securities were trading below our amortized cost basis. We determined each decline in value to be temporary based upon the above described factors. We expect to realize the fair value of these securities, plus accrued interest, either at the time of maturity or when the security is sold.

All of our current holdings are classified as available-for-sale marketable securities and are recorded at fair value on our consolidated balance sheet with the unrealized gains and losses recorded in accumulated other comprehensive loss.

At June 30, 2011 our marketable securities were (in thousands):

	Amortized		Unrealized		Unrealized
	Cost (1)		Gains		Losses (2)			Fair Value (1)
Current marketable securities:
Corporate bonds	$	14,137	$	5	$	(12	)	$	14,130
Government municipal bonds		12,617		2		(5	)		12,614
Certificates of deposit		4,755		—		(5	)		4,750
Commercial paper		6,995		—		(6	)		6,989
Current marketable securities		38,504		7		(28	)		38,483
Non-current marketable securities:
Corporate bonds		6,503		—		(19	)		6,484
Certificates of deposit		250		—		(1	)		249
Non-current marketable securities		6,753		—		(20	)		6,733
Total marketable securities	$	45,257	$	7	$	(48	)	$	45,216

(1)	Included in amortized cost and fair value is purchased and accrued interest of $555.
(2)	The aggregate related fair value of securities with unrealized losses as of June 30, 2011 was $31,647.

At September 30, 2010 our marketable securities were (in thousands):

	Amortized		Unrealized		Unrealized
	Cost (1)		Gains		Losses (2)			Fair Value (1)
Current marketable securities:
Corporate bonds	$	26,163	$	7	$	(9	)	$	26,161
Government municipal bonds		5,463		5		(2	)		5,466
Certificates of deposit		5,001		6		—			5,007
Current marketable securities	$	36,627	$	18	$	(11	)	$	36,634

(1)	Included in amortized cost and fair value is purchased and accrued interest of $451.
(2)	The aggregate related fair value of securities with unrealized losses as of September 30, 2010 was $18,909.