Annual report pursuant to Section 13 and 15(d)

Available-For-Sale Investments

v2.4.0.8
Available-For-Sale Investments
 12 Months Ended
Jun. 30, 2014
Available-For-Sale Investments

C. Available-For-Sale Investments:

At June 30, 2014 and 2013, the amortized cost and market value of the Company’s available-for-sale securities by major security type were as follows (in thousands):

 

     June 30,  
     2014      2013  
     Cost      Market      Cost      Market  

State and municipal debt securities

    $ 3,525       $ 3,525       $ 179,463       $ 179,764   

Corporate debt securities

      100         100         12,804         12,817   

Foreign corporate debt securities

      0         0         4,484         4,490   

Certificates of deposit

      7,639         7,639         14,809         14,809   

Equity securities

      29,472         37,097         29,472         89,647   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 40,736       $ 48,361       $ 241,032       $ 301,527   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

At June 30, 2014 and 2013, all of the Company’s available-for-sale debt securities were valued using Level 2 inputs, while its equity securities were valued using Level 1 inputs. Certificates of deposit are carried at cost and are not subject to the fair value hierarchy. There were no transfers between Level 1 and Level 2 securities during fiscal 2014. Gross unrealized gains on available-for-sale investments were $7.6 million at June 30, 2014. Gross unrealized gains and unrealized losses on available-for-sale investments were $60.7 million and $0.2 million, respectively, at June 30, 2013.

The Company’s investment in equity securities consists of investments in the common stock and warrants of ChemoCentryx, Inc. (CCXI). The warrants are to purchase 150,000 shares of CCXI common stock at $20 per share and expire in February, 2022. The fair value of the warrants as of June 30, 2014 and 2013 were $0.6 million and $1.5 million, respectively, and were valued using Level 2 inputs. At June 30, 2014, the Company holds an approximate 14% interest in CCXI.

Contractual maturities of available-for-sale debt securities are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to recall or prepay obligations with or without call or prepayment penalties.

 

Year Ending June 30, 2014:

       

Due within one year

    $ 7,689   

Due one to five years

      3,575   
  

 

 

  
   $ 11,264   
  

 

 

  

Proceeds from maturities or sales of available-for-sale securities were $290 million, $104 million and $132 million during fiscal 2014, 2013 and 2012, respectively. There were no material realized gains or losses on these sales. Realized gains and losses are determined on the specific identification method.