NOTE 7—Other Assets, Net
Other assets, net were comprised of the following (in thousands):
| February 28, 2013 |
February 29, 2012 |
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Equity-method investment |
$ | 15,560 | $ | 14,392 | ||||
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Cost-basis investments |
5,354 | 4,853 | ||||||
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Net non-current deferred tax assets (see NOTE 11—Income Taxes) |
5,226 | 13,603 | ||||||
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Security deposits and other |
5,123 | 5,792 | ||||||
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Other assets, net |
$ | 31,263 | $ | 38,640 | ||||
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The Company reviews its non-marketable cost-basis investments in equity securities for other than temporary declines in fair value based on prices recently paid for shares in that company, as well as changes in market conditions. The carrying values are not necessarily representative of the amounts that the Company could realize in a current transaction. During the years ended February 28, 2013, February 29, 2012 and February 28, 2011, no significant losses were recognized for equity investments in other companies.
Equity-method investment represents the Company’s investment in Open Invention Network LLC (“OIN”) and the related share of OIN’s accumulated deficit. The Company uses the equity method to account for its investment in OIN. The equity method requires the Company to increase or decrease the carrying amount of its investment in OIN to reflect the Company’s pro rata share of OIN’s gains and losses, respectively, as part of Other income (expense), net.
During the year ended February 28, 2013, the Company purchased patents for $22.4 million from OIN. The gain recognized by OIN related to the sale of these patents has been excluded from the Company’s pro rata share of OIN’s gains and losses.