Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value of Assets Measured on Recurring Basis

The following tables present the fair values of the Company’s assets, measured on a recurring basis, as of September 30, 2017 and December 31, 2016:

(in thousands)	Total		Level 1		Level 2		Level 3
September 30, 2017
Assets:
Debt securities:
U.S. Treasury bonds	$	145,453	$	—	$	145,453	$	—
Municipal bonds		1,072,362		—		1,072,362		—
Foreign government bonds		161,649		—		161,649		—
Governmental agency bonds		221,718		—		221,718		—
Governmental agency mortgage-backed securities		2,225,920		—		2,225,920		—
U.S. corporate debt securities		726,928		—		714,419		12,509
Foreign corporate debt securities		249,454		—		248,581		873
		4,803,484		—		4,790,102		13,382
Equity securities:
Preferred stocks		18,527		18,527		—		—
Common stocks		427,658		427,658		—		—
		446,185		446,185		—		—
Total assets	$	5,249,669	$	446,185	$	4,790,102	$	13,382

(in thousands)	Total		Level 1		Level 2		Level 3
December 31, 2016
Assets:
Debt securities:
U.S. Treasury bonds	$	151,391	$	—	$	151,391	$	—
Municipal bonds		984,333		—		984,333		—
Foreign government bonds		140,048		—		140,048		—
Governmental agency bonds		193,868		—		193,868		—
Governmental agency mortgage-backed securities		2,163,673		—		2,163,673		—
U.S. corporate debt securities		678,524		—		631,859		46,665
Foreign corporate debt securities		241,526		—		235,258		6,268
		4,553,363		—		4,500,430		52,933
Equity securities:
Preferred stocks		15,582		15,582		—		—
Common stocks		388,503		388,503		—		—
		404,085		404,085		—		—
Total assets	$	4,957,448	$	404,085	$	4,500,430	$	52,933

Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis

The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three months ended September 30, 2017 and 2016:

	September 30, 2017									September 30, 2016
(in thousands)	U.S. corporate debt securities			Foreign corporate debt securities			Total			U.S. corporate debt securities			Foreign corporate debt securities			Total
Fair value at beginning of period	$	18,128		$	1,915		$	20,043		$	14,493		$	723		$	15,216
Transfers into Level 3		3,747			573			4,320			5,968			—			5,968
Transfers out of Level 3		(6,788	)		—			(6,788	)		(4,546	)		—			(4,546	)
Net realized and unrealized gains (losses):
Included in earnings		26			(1	)		25			5			—			5
Included in other comprehensive income (loss)		(86	)		(5	)		(91	)		115			43			158
Purchases		901			149			1,050			1,866			1,045			2,911
Sales		(1,231	)		—			(1,231	)		(46	)		(50	)		(96	)
Settlements		(2,188	)		(1,758	)		(3,946	)		(356	)		—			(356	)
Fair value at end of period	$	12,509		$	873		$	13,382		$	17,499		$	1,761		$	19,260

The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the nine months ended September 30, 2017 and 2016:

	September 30, 2017									September 30, 2016
(in thousands)	U.S. corporate debt securities			Foreign corporate debt securities			Total			U.S. corporate debt securities			Foreign corporate debt securities			Total
Fair value at beginning of period	$	46,665		$	6,268		$	52,933		$	43,567		$	6,572		$	50,139
Transfers into Level 3		377			198			575			269			—			269
Transfers out of Level 3		(27,066	)		(2,111	)		(29,177	)		(27,764	)		(3,822	)		(31,586	)
Net realized and unrealized gains (losses):
Included in earnings		117			11			128			(88	)		(48	)		(136	)
Included in other comprehensive income (loss)		(460	)		(47	)		(507	)		1,053			88			1,141
Purchases		7,994			1,075			9,069			10,132			1,243			11,375
Sales		(2,824	)		(1,954	)		(4,778	)		(4,750	)		(1,045	)		(5,795	)
Settlements		(12,294	)		(2,567	)		(14,861	)		(4,920	)		(1,227	)		(6,147	)
Fair value at end of period	$	12,509		$	873		$	13,382		$	17,499		$	1,761		$	19,260

Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of September 30, 2017 and December 31, 2016:

	Carrying		Estimated fair value
(in thousands)	Amount		Total		Level 1		Level 2		Level 3
September 30, 2017
Assets:
Cash and cash equivalents	$	1,141,915	$	1,141,915	$	1,141,915	$	—	$	—
Deposits with banks	$	20,940	$	20,887	$	265	$	20,622	$	—
Notes receivable, net	$	7,466	$	7,297	$	—	$	—	$	7,297
Liabilities:
Deposits	$	2,965,426	$	2,965,426	$	2,965,426	$	—	$	—
Notes and contracts payable	$	734,091	$	756,536	$	—	$	752,070	$	4,466

	Carrying		Estimated fair value
(in thousands)	Amount		Total		Level 1		Level 2		Level 3
December 31, 2016
Assets:
Cash and cash equivalents	$	1,006,138	$	1,006,138	$	1,006,138	$	—	$	—
Deposits with banks	$	21,222	$	21,176	$	1,017	$	20,159	$	—
Notes receivable, net	$	7,799	$	7,542	$	—	$	—	$	7,542
Liabilities:
Deposits	$	2,779,478	$	2,779,478	$	2,779,478	$	—	$	—
Notes and contracts payable	$	736,693	$	734,812	$	—	$	729,658	$	5,154