
4.	Marketable Securities

The Company invests its cash in marketable securities and classifies them as available-for-sale. The Company records these securities at fair value. Marketable securities reported as current assets represent investments that mature within one year from the balance sheet date. Long-term marketable securities represent investments with maturity dates greater than one year from the balance sheet date. At the time that the maturity dates of these investments become one year or less, the securities are reclassified to current assets. Unrealized gains and losses are excluded from earnings and reported in a separate component of stockholders’ equity until they are sold or mature. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results.

The following is a summary of marketable securities (included in short and long-term marketable securities in the consolidated balance sheets), including accrued interest receivable, as of September 30, 2011 and 2010 (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value

September 30, 2011:
U.S. Treasury securities and obligations of U.S. government agencies	$	53,342	$	17	$	(21	)	$	53,338
Corporate securities		66,045		50		(203	)		65,892
Mortgage-backed securities(1)		786		26		(3	)		809
Other debt securities		434		—		—			434
Municipal securities		24,915		9		(67	)		24,857
Bank certificate of deposits		1,655		—		—			1,655

	$	147,177	$	102	$	(294	)	$	146,985

September 30, 2010:
U.S. Treasury securities and obligations of U.S. government agencies	$	38,319	$	62	$	(8	)	$	38,373
Corporate securities		38,617		185		(4	)		38,798
Mortgage-backed securities(2)		1,771		23		(4	)		1,790
Other debt securities		186		—		—			186
Municipal securities		2,405		1		(2	)		2,404
Bank certificate of deposits		1,053		—		—			1,053

	$	82,351	$	271	$	(18	)	$	82,604


(1)		Fair value amounts include approximately $0.7 million of investments in the Federal Home Loan Mortgage and Federal National Mortgage Association.

(2)		Fair value amounts include approximately $0.8 million of investments in the Federal Home Loan Mortgage and Federal National Mortgage Association.

Gross realized gains on sales of available-for-sale marketable securities included in “Other (income) expense” in the Consolidated Statements of Operations was $24,000 and $10,000 for the years ended September 30, 2011 and 2010, respectively. There were no gross realized gains for the year ended September 30, 2009. There were no gross realized losses for the years ended September 30, 2011, 2010 and 2009.

The fair value of the marketable securities at September 30, 2011 by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties (in thousands).


	Fair Value

Due in one year or less	$	65,695
Due after one year through five years		78,280
Due after ten years		3,010

	$	146,985

Gain (Loss) on Investment

During fiscal 2010 and 2009, the Company recorded a charge of $0.2 million and $1.2 million, respectively, related to its minority equity investment in a Swiss public company. The charges during fiscal year 2009 reflect an other than temporary impairment of this investment. The $0.2 million charge during fiscal 2010 represents the loss on the sale of this investment. As of September 30, 2010, the Company no longer had an equity investment in this entity.