Cash and Cash Equivalents and Short-term Investments

9 Months Ended

Sep. 30, 2012

Cash and Cash Equivalents and Short-term Investments

Cash and Cash Equivalents and Short-term Investments

Note 5 Cash and Cash Equivalents and Short-term Investments

Our cash and cash equivalents and short-term investments consisted of the following:

	September 30,		December 31,
	2012		2011
	(In thousands)
Cash and cash equivalents	$	471,562	$	398,575
Short-term investments:
Trading equity securities	23,242		11,600
Available-for-sale equity securities	89,689		71,433
Available-for-sale debt securities	35,070		57,881
Total short-term investments	$	148,001	$	140,914

Certain information related to our cash and cash equivalents and short-term investments follows:

	September 30, 2012							December 31, 2011
	FairValue		GrossUnrealizedHoldingGains		GrossUnrealizedHoldingLosses			FairValue		GrossUnrealizedHoldingGains		GrossUnrealizedHoldingLosses
					(In thousands)
Cash and cash equivalents	$	471,562	$	—	$	—		$	398,575	$	—	$	—
Short-term investments:
Trading equity securities	23,242		17,517		—			11,600		5,876		—
Available-for-sale equity securities	89,689		53,798		(2,467		)	71,433		33,075		—
Available-for-sale debt securities:
Commercial paper and CDs	180		—		—			1,230		—		—
Corporate debt securities	31,680		10,826		(1,919		)	51,300		22,494		(2,095		)
Mortgage-backed debt securities	246		15		—			309		10		—
Mortgage-CMO debt securities	1,078		12		(4		)	2,547		13		(15		)
Asset-backed debt securities	1,886		—		(140		)	2,495		—		(238		)
Total available-for-sale debt securities	35,070		10,853		(2,063		)	57,881		22,517		(2,348		)
Total available-for-sale securities	124,759		64,651		(4,530		)	129,314		55,592		(2,348		)
Total short-term investments	148,001		82,168		(4,530		)	140,914		61,468		(2,348		)
Total cash, cash equivalents and short-term investments	$	619,563	$	82,168	$	(4,530	)	$	539,489	$	61,468	$	(2,348	)

Certain information related to the gross unrealized losses of our cash and cash equivalents and short-term investments follows:

	As of September 30, 2012
	Less Than 12 Months				More Than 12 Months
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(In thousands)
Available-for-sale equity securities	$	16,428	$	2,467	$	—	$	—
Available-for-sale debt securities:
Corporate debt securities (1)	—		—		17,900		1,919
Mortgage-CMO debt securities (2)	842		3		45		1
Asset-backed debt securities (2)	—		—		1,886		140
Total available-for-sale debt securities	842		3		19,831		2,060
Total	$	17,270	$	2,470	$	19,831	$	2,060

(1)Our unrealized loss on corporate debt securities relates to our investment in NFR Energy LLC’s 9.75% senior notes. This investment is in addition to our equity interest in NFR Energy LLC. The senior notes mature in 2017 and interest is paid semi-annually on February 15 and August 15.  We do not intend to sell this investment, and it is less likely than not that we will be required to sell it to satisfy our own cash flow and working capital requirements.  We believe that we will continue to collect all amounts due according to the contractual terms of the investment and, therefore, do not consider the decline in value of the investment to be other-than-temporary at September 30, 2012. See Note 8 Investments in Unconsolidated Affiliates for additional discussion of our equity investment.

(2)Our unrealized losses on available-for-sale debt securities held for more than one year are comprised of various types of securities.  Each of these securities has a rating ranging from “A” to “AAA” from Standard & Poor’s and ranging from “A2” to “Aaa” from Moody’s Investors Service and is considered of high credit quality.  In each case, we do not intend to sell these investments, and it is less likely than not that we will be required to sell them to satisfy our own cash flow and working capital requirements.  We believe that we will be able to collect all amounts due according to the contractual terms of each investment and, therefore, do not consider the decline in value of these investments to be other-than-temporary at September 30, 2012.

The estimated fair values of our corporate, mortgage-backed, mortgage-CMO and asset-backed debt securities at September 30, 2012, classified by time to contractual maturity, are shown below. Expected maturities differ from contractual maturities because the issuers of the securities may have the right to repay obligations without prepayment penalties and we may elect to sell the securities prior to the contractual maturity date.

	EstimatedFair Value
	September 30, 2012
	(In thousands)
Debt securities:
Due in one year or less	$	180
Due after one year through five years	17,900
Due in more than five years	16,990
Total debt securities	$	35,070

Certain information regarding our debt and equity securities is presented below:

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2012		2011		2012		2011
	(In thousands)
Available-for-sale:
Proceeds from sales and maturities	$	3,953	$	342	$	23,186	$	1,124
Realized gains (losses), net	1,732		2		14,007		(5		)