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Long-Term Investments
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6 Months Ended |
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Dec. 31, 2011
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| Long-Term Investments [Abstract] | |
| Long-Term Investments | Note 6. Long-term Investments As of December 31, 2011 and June 30, 2011, the Company held $3,669,000 and $5,188,000, respectively, of auction-rate securities ("auction rate securities"), net of unrealized losses, representing its interests in auction rate preferred shares in a closed end mutual fund invested in municipal securities and student loans guaranteed by the Federal Family Education Loan Program; such auction rate securities were rated AAA or CAA3 at December 31, 2011 and AAA or BAA at June 30, 2011. These auction rate preferred shares have no stated maturity date and the stated maturity dates for these auction rate student loans range from 2035 to 2040. During February 2008, the auctions for these auction rate securities began to fail to obtain sufficient bids to establish a clearing rate and the securities were not saleable in the auction, thereby losing the short-term liquidity previously provided by the auction process. As a result, as of December 31, 2011 and June 30, 2011, $3,669,000 and $5,188,000 of these auction rate securities have been classified as long-term available-for-sale investments, respectively. The Company has used a discounted cash flow model to estimate the fair value of the auction rate securities as of December 31, 2011 and June 30, 2011. The material factors used in preparing the discounted cash flow model are 1) the discount rate utilized to present value the cash flows, 2) the time period until redemption and 3) the estimated rate of return. Management derives the estimates by obtaining input from market data on the applicable discount rate, estimated time to redemption and estimated rate of return. The changes in fair value have been primarily due to changes in the estimated rate of return and a change in the estimated redemption period. Changes in these estimates or in the market conditions for these investments are likely in the future based upon the then current market conditions for these investments and may affect the fair value of these investments. Based on this assessment of fair value, the Company determined there was a recovery in fair value of its auction rate securities of $156,000 during the six months ended December 31, 2011. There was no change in fair value of its auction rate securities during the three months ended December 31, 2011 and the three and six months ended December 31, 2010. The cumulative total decline as of December 31, 2011 and June 30, 2011 was $181,000 and $337,000, respectively. That amount has been recorded as a component of other comprehensive income. As of December 31, 2011 and June 30, 2011, the Company has recorded an accumulated unrealized loss of $109,000 and $204,000, net of deferred income taxes, respectively. The Company deems this loss to be temporary as it will not likely be required to sell the securities before their anticipated recovery and the Company has the intent and financial ability to hold these investments until recovery of cost. Although the investment impairment is considered to be temporary, these investments are not currently liquid and in the event the Company needs to access these funds, the Company will not be able to do so without a loss of principal. The Company continues to monitor the liquidity situation in the marketplace and the creditworthiness of its holdings and will perform periodic impairment analyses. During the three and six months ended December 31, 2011, $0 and $1,675,000 of these auction rate securities were redeemed at par, respectively, and $400,000 and $1,300,000 were redeemed at par during the three and six months ended December 31, 2010, respectively. |