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56
The following table summarizes our investment securities and their related inception-to-date gross unrealized
gains and (losses), as of March 31, 2009 (in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losse s
Fair
Value
Short-term investments:
Municipal securities........................ $6,397 $5 $(3) $6,399
Corporate securities....................... 2,405 — — 2,405
Total short-term
investments
..........................
8,802
5
(3)
8,804
Long-term investments:
Municipal securities(1) ..................... 5,475 — (450) 5,025
Total long-term
investments
..........................
5,475
—
(450)
5,025
Total available-for-sale
investments
..................................
$14,277
$5
$(453)
$13,829
Put option ....................................... 4,541
Trading securities(1) ........................
26,077
Total long-term
investments pledged
..........
30,618
Total investment securities
........
$44,447
(1) The municipal securities included in the table above and classified as long-term are all
auction rate securities with most collateralized by student loans guaranteed by the U.S.
government under the Federal Family Education Loan Program and the majority of the
remaining securities backed by monoline bond insurance companies.
Available-for-sale investments
Our entire portfolio of available-for-sale investments had a fair value of $84.8 million at March 31, 2010, and
inception-to-date net unrealized gains of $3,000 that are recorded in accumulated other comprehensive
income (loss). Included in our portfolio of available-for-sale investments at March 31, 2010, are inception-to-
date gross unrealized losses of $0.2 million; these losses are temporary, as we believe the decline in fair
value is primarily attributable to the limited liquidity of these investments. During fiscal 2010, no securities had
an other-than-temporary impairment. During fiscal 2009, we recorded impairment charges of $6.3 million to
interest and other income (expense), net, related to declines in fair value that we concluded were other than
temporary. Of this fiscal 2009 impairment, $2.0 million related to a downgrade in one security’s rating from A
to CCC− and $4.3 million related to securities received as collateral for former auction rate securities (“ARS”)
that were required to be unwound as a result of Lehman Brothers filing for bankruptcy protection.
Included in our portfolio of available-for-sale investments at March 31, 2010 are two long-term municipal
securities, both ARS, which had a fair value of $1.9 million and inception-to-date unrealized losses of
$0.1 million, and have been in a continuous unrealized loss position for more than 12 months. These losses
are temporary as we believe the decline in fair value is primarily attributable to the limited liquidity of these
investments. None of the available-for-sale securities held as of March 31, 2009 were in an unrealized loss
position for more than 12 months.
The amount of pre-tax net unrealized gains on available-for-sale securities that has been included in
accumulated other comprehensive income in fiscal 2010 was $1.0 million. In addition, in fiscal 2010, we had
a pre-tax unrealized holding gain of $1.7 million on our investment in Yuke’s Co., Ltd. (“Yuke’s”) that is
classified as available-for-sale and is included in other long-term assets, net (see “Note 8—Other Long-Term
Assets”).
During fiscal 2010 there were $0.6 million of pre-tax realized gains and no realized losses from sales of
available-for-sale securities. During fiscal 2009 there were $0.1 million of pre-tax realized gains and
$0.4 million of pre-tax realized losses from sales of available-for-sale securities. Realized gains and losses on
sales of available-for-sale securities are recognized in net income on the specific identification basis.