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Marketable Securities
3 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities

4. Marketable Securities

The Company invests in marketable securities that are classified as available-for-sale and records them at fair value in the accompanying unaudited Consolidated Balance Sheets. 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.

Unrealized gains and losses are excluded from earnings and reported as a separate component of “Accumulated other comprehensive income (loss), net of tax” in the accompanying unaudited Consolidated Balance Sheets until the security is sold or matures. Gains or losses realized from sales of marketable securities are computed based on the specific identification method and recognized as a component of "Other income (expenses), net" in the accompanying unaudited Consolidated Statements of Operations. The Company had sales and maturities of marketable securities of $607.2 million in the three months ended December 31, 2022. There were insignificant sales of marketable securities in the three months ended December 31, 2021.

The following is a summary of the amortized cost and the fair value, including accrued interest receivable as well as unrealized gains (losses) on the short-term and long-term marketable securities as of December 31, 2022 and September 30, 2022 (in thousands):

    

    

Gross

    

Gross

    

Amortized

Unrealized 

Unrealized 

Cost

Losses

Gains

Fair Value

December 31, 2022:

 

  

 

  

 

  

 

  

U.S. Treasury securities and obligations of U.S. government agencies

 

$

479,617

$

(5,434)

$

13

 

$

474,196

Bank certificates of deposits

10,549

(174)

5

10,380

Corporate securities

341,317

(6,941)

334,376

Municipal securities

 

8,633

(13)

 

8,620

$

840,116

$

(12,562)

$

18

$

827,572

September 30, 2022:

  

 

  

 

  

 

  

U.S. Treasury securities and obligations of U.S. government agencies

$

804,774

 

$

(6,163)

 

$

21

$

798,632

Bank certificates of deposits

8,335

(158)

$

1

$

8,178

Corporate securities

406,270

(8,113)

398,157

Municipal securities

 

59,043

(226)

 

58,817

$

1,278,422

$

(14,660)

$

22

$

1,263,784

The fair values of the marketable securities by contractual maturities at December 31, 2022 are presented below (in thousands):

Amortized

    

Cost

Fair Value

Due in one year or less

$

525,787

$

522,897

Due after one year through five years

 

311,387

 

301,734

Due after five years through ten years

Due after ten years

 

2,942

 

2,941

Total marketable securities

$

840,116

$

827,572

Expected maturities could differ from contractual maturities because the security issuers may have the right to prepay obligations without prepayment penalties.

The Company reviews the marketable securities for impairment at each reporting period to determine if any of the securities have experienced an other-than-temporary decline in fair value. The Company considers factors, such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer, the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of its amortized cost basis. If the Company believes that an other-than-temporary decline in fair value has occurred, it writes down the investment to its fair value and recognizes the credit loss in earnings and the non-credit loss in accumulated other comprehensive income or loss. Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Management does not believe any unrealized losses represent impairments based on our evaluation of the available evidence.