Cash Equivalents and Investments

Investments in Available-for-Sale and Trading Securities

The following tables summarize the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of June 30, 2013 and December 31, 2012 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of June 30, 2013
Cash equivalents:
Certificate of deposit	$	0.3	$	—	$	—		$	0.3
Money market funds	1,011.5		—		—			1,011.5
U.S. government securities	96.3		—		—			96.3
Total cash equivalents	1,108.1		—		—			1,108.1
Restricted investments:
Money market funds	89.5		—		—			89.5
Mutual funds	2.7		—		—			2.7
Total restricted investments	92.2		—		—			92.2
Fixed income securities:
Asset-backed securities	237.8		0.1		(0.5		)	237.4
Certificates of deposit	36.0		—		—			36.0
Commercial paper	6.6		—		—			6.6
Corporate debt securities	651.9		1.3		(1.0		)	652.2
Foreign government debt securities	15.8		—		—			15.8
Government-sponsored enterprise obligations	292.8		0.1		(0.5		)	292.4
U.S. government securities	295.9		0.1		—			296.0
Total fixed income securities	1,536.8		1.6		(2.0		)	1,536.4
Publicly-traded equity securities	7.6		11.7		(0.2		)	19.1
Total available-for-sale securities	2,744.7		13.3		(2.2		)	2,755.8
Trading securities in mutual funds^(*)	13.8		—		—			13.8
Total	$	2,758.5	$	13.3	$	(2.2	)	$	2,769.6

Reported as:
Cash equivalents	$	1,108.1	$	—	$	—		$	1,108.1
Restricted investments	92.2		—		—			92.2
Short-term investments	531.1		12.1		(0.3		)	542.9
Long-term investments	1,027.1		1.2		(1.9		)	1,026.4
Total	$	2,758.5	$	13.3	$	(2.2	)	$	2,769.6

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^(*)	Balance includes the Company's non-qualified deferred compensation plan assets.



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2012
Cash equivalents:
Certificate of deposit	$	0.6	$	—	$	—		$	0.6
Commercial paper	10.8		—		—			10.8
Government-sponsored enterprise obligations	6.1		—		—			6.1
Money market funds	1,042.6		—		—			1,042.6
U.S. government securities	165.8		—		—			165.8
Total cash equivalents	1,225.9		—		—			1,225.9
Restricted investments:
Money market funds	102.6		—		—			102.6
Mutual funds	2.9		0.1		—			3.0
Total restricted investments	105.5		0.1		—			105.6
Fixed income securities:
Asset-backed securities	226.2		0.3		(0.1		)	226.4
Certificates of deposit	41.9		—		—			41.9
Commercial paper	11.6		—		—			11.6
Corporate debt securities	533.4		2.3		(0.1		)	535.6
Foreign government debt securities	5.0		—		—			5.0
Government-sponsored enterprise obligations	264.6		0.3		—			264.9
U.S. government securities	328.6		0.1		—			328.7
Total fixed income securities	1,411.3		3.0		(0.2		)	1,414.1
Publicly-traded equity securities	3.0		—		(0.1		)	2.9
Total available-for-sale securities	2,745.7		3.1		(0.3		)	2,748.5
Trading securities in mutual funds^(*)	12.6		—		—			12.6
Total	$	2,758.3	$	3.1	$	(0.3	)	$	2,761.1

Reported as:
Cash equivalents	$	1,225.9	$	—	$	—		$	1,225.9
Restricted investments	105.5		0.1		—			105.6
Short-term investments	441.3		0.3		(0.1		)	441.5
Long-term investments	985.6		2.7		(0.2		)	988.1
Total	$	2,758.3	$	3.1	$	(0.3	)	$	2,761.1

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^(*)	Balance includes the Company's non-qualified deferred compensation plan assets.

The following table presents the maturities of the Company's total fixed income securities as of June 30, 2013 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Due within one year	$	509.7	$	0.4	$	(0.1	)	$	510.0
Due between one and five years	1,027.1		1.2		(1.9		)	1,026.4
Total	$	1,536.8	$	1.6	$	(2.0	)	$	1,536.4

The Company had 249 and 98 investments in unrealized loss positions as of June 30, 2013 and December 31, 2012, respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates and stock prices. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company aggregates its investments by category and length of time the securities have been in a continuous unrealized loss position to facilitate its evaluation.

For the available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) it has the intention to sell any of these investments and (ii) whether it is more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. As of June 30, 2013 the Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three and six months ended June 30, 2013 and June 30, 2012.

For available-for-sale equity securities that have unrealized losses, the Company evaluates whether there is an indication of other-than-temporary impairments. This determination is based on several factors, including the financial condition and near-term prospects of the issuer and the Company's intent and ability to hold the publicly-traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value. During the three and six months ended June 30, 2013 and June 30, 2012, the Company did not recognize other-than-temporary impairments associated with these investments.

There were no material gross realized gains or losses from available-for-sale and trading securities during the three and six months ended June 30, 2013 and June 30, 2012. Realized gains and losses are determined based on the specific identification method.

The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of June 30, 2013 and December 31, 2012 (in millions):



	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of June 30, 2013
Fixed income securities:
Asset-backed securities	$	195.3	$	(0.5	)	$	—	$	—	$	195.3	$	(0.5	)
Corporate debt securities	304.0		(1.0		)	—		—		304.0		(1.0		)
Foreign government debt securities	15.0		—			—		—		15.0		—
Government-sponsored enterprise obligations	129.6		(0.5		)	—		—		129.6		(0.5		)
U.S. government securities	56.5		—			—		—		56.5		—
Total fixed income securities	700.4		(2.0		)	—		—		700.4		(2.0		)
Publicly-traded equity securities	2.8		(0.2		)	—		—		2.8		(0.2		)
Total available-for sale securities	$	703.2	$	(2.2	)	$	—	$	—	$	703.2	$	(2.2	)



	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of December 31, 2012
Fixed income securities:
Asset-backed securities^(*)	$	55.1	$	(0.1	)	$	0.1	$	—	$	55.2	$	(0.1	)
Certificates of deposit	0.3		—			—		—		0.3		—
Commercial paper	10.0		—			—		—		10.0		—
Corporate debt securities	116.0		(0.1		)	—		—		116.0		(0.1		)
Government-sponsored enterprise obligations	30.0		—			—		—		30.0		—
U.S. government securities	68.2		—			—		—		68.2		—
Total fixed income securities	279.6		(0.2		)	0.1		—		279.7		(0.2		)
Publicly-traded equity securities	2.9		(0.1		)	—		—		2.9		(0.1		)
Total available-for sale securities	$	282.5	$	(0.3	)	$	0.1	$	—	$	282.6	$	(0.3	)

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^(*) Balance greater than 12 months includes investments that were in an immaterial unrealized loss position as of December 31, 2012.

Restricted Cash and Investments

The Company classifies cash and investments designated as available-for-sale securities as restricted cash and investments on its Condensed Consolidated Balance Sheets for: (i) amounts held in escrow accounts, as required by certain acquisitions completed between 2005 and 2013; (ii) the India Gratuity Trust and Israel Retirement Trust, which cover statutory severance obligations in the event of termination of any of the Company's India and Israel employees, respectively; and (iii) the Directors and Officers ("D&O") indemnification trust.

The following table summarizes the Company's cash and investments that are classified as restricted cash and investments in the Condensed Consolidated Balance Sheets (in millions):



	As of
	June 30, 2013		December 31, 2012
Restricted cash	$	1.8	$	0.8
Restricted investments	92.2		105.6
Total restricted cash and investments	$	94.0	$	106.4

Privately-Held Investments

As of June 30, 2013 and December 31, 2012, the carrying values of the Company’s privately-held investments of $46.3 million and $32.0 million, respectively, were included in other long-term assets in the Condensed Consolidated Balance Sheets.

The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company adjusts the carrying value for its privately-held investments for any impairment if the fair value is less than the carrying value of the respective assets on an other-than-temporary basis.

The Company determined that certain privately-held investments were other-than-temporarily impaired, resulting in impairment charges of $0.4 million for both the three and six months ended June 30, 2013 and $14.0 million for the six months ended June 30, 2012 that were recorded within other (expense) income, net in the Condensed Consolidated Statements of Operations. There were no such charges during the three months ended June 30, 2012.