Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Simon Schaeffer with Goldman Sachs.
Simon Schaeffer - Goldman Sachs
Good afternoon. Thanks very much. I wanted to ask a question on the excess cash situation, just about what happened this quarter. I was wondering how the company looked at -- what we perceive to be somewhat of an excessive capitalization again in terms of excess cash and perhaps some of the challenges that you incurred again highlighting that excess capitalization. Thank you.
Guerrino De Luca
I think Mark may comment on this one but let me say something; I understand your question. It is true that our cash management traditionally, always and in the future will be focused on total conservativeness and that’s why we were completely blindsided by what happened here, which has nothing to do with our philosophy of cash management. It has nothing to do with the policies we have and I think Mark explained it enough, enough of what happened.
The truth is we have always said that the best use of cash is potentially buying companies, potentially making acquisitions, and we have made them and will continue to make them, and buying back our stock, which is a great investment and a great way to return money to our shareholders.
This incident, as regrettable as it is, doesn’t change that philosophy.
Operator
Your next question comes from the line of Ted Chung with Bear Stearns.
Ted Chung - Bear Stearns
Great, thank you. Just a quick question; with this short-term investment, has there been any impact on the previous earnings or results?
Mark J. Hawkins
Ted, let me just describe that; the answer is no. These investments were Triple A and were liquid and trading at par during the prior periods. It was only during this period and Q2 when the issue of liquidity was discovered and the problem was discovered and worked through, so there are no issues. The prior period accounting is correct.
Ted Chung - Bear Stearns
Okay, let me ask it in a different way; was there a much higher return for these investments that might have boosted your earnings from prior quarters?
Mark J. Hawkins
Actually, there was a de minimis effect in the return on these investments, so that -- actually, the yield was de minimis.
Ted Chung - Bear Stearns
Okay, great. And what type of controls have you implemented since then that would assure us that this type of event will not happen?
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