FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Financial assets measured at fair value on a recurring basis

The following table presents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis at December 31, 2012 and 2011 (in thousands):



			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
At December 31, 2012	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	1,399,162	$	1,218,046	$	181,116	$	—
State and municipal bonds	1,253,789		—		1,253,789		—
U.S. Treasury securities	78,931		78,931		—		—
Government-sponsored enterprise securities	73,532		—		73,532		—
Residential mortgage-backed securities	312,641		—		312,641		—
Commercial mortgage-backed securities	21,590		—		21,590		—
Asset-backed securities	23,626		—		23,626		—
Corporate debt and other securities	991,610		—		991,610		—
Total	$	4,154,881	$	1,296,977	$	2,857,904	$	—



			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
At December 31, 2011	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	1,579,003	$	1,449,883	$	129,120	$	—
State and municipal bonds	1,032,954		—		1,032,954		—
U.S. Treasury securities	91,340		91,340		—		—
Government-sponsored enterprise securities	143,278		—		143,278		—
Residential mortgage-backed securities	368,798		—		368,798		—
Commercial mortgage-backed securities	14,825		—		14,825		—
Asset-backed securities	13,504		—		13,504		—
Corporate debt and other securities	1,065,500		11,598		1,053,902		—
Total	$	4,309,202	$	1,552,821	$	2,756,381	$	—

Summary of changes in fair value of Level 3 financial assets

The following table provides a summary of changes in the fair value of the Company’s Level 3 financial assets for the year ended December 31, 2011 (in thousands):



Year Ended December 31, 2011	Total Level 3			Mortgage-backed securities			Asset-backed securities			Corporate and other
Beginning Balance, January 1, 2011	$	1,077		$	220		$	127		$	730
Transfers to (from) Level 3 ⁽¹⁾	(856		)	(258		)	(119		)	(479		)
Total gains or losses (realized / unrealized)
Included in earnings	107			16			7			84
Included in other comprehensive income	(55		)	38			(8		)	(85		)
Purchases, issuances, sales and settlements
Purchases	—			—			—			—
Issuances	—			—			—			—
Sales	(273		)	(16		)	(7		)	(250		)
Settlements	—			—			—			—
Ending Balance, December 31, 2011	$	—		$	—		$	—		$	—


⁽¹⁾	The Company no longer relied upon broker quotes or other models involving unobservable inputs to value these securities, as there were sufficient observable inputs (e.g., trading activity) to validate the reported fair value. As a result, the Company transferred all securities from Level 3 to Level 2 during the year ended December 31, 2011.

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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