4. Investments

Investments consist of available-for-sale securities and are measured at fair value, which is based on quoted market prices or cash flow models. Accordingly, unrealized gains and temporary losses on investments, net of tax, are reported as accumulated other comprehensive income (loss). Realized gains and losses are determined using the specific identification method.

At June 30, 2012 and December 31, 2011, investments were as follows:


	June 30, 2012
	Cost / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Debt securities:
Corporate obligations	$	15,451	$	124	$	(3	)	$	15,572
Mortgage/asset-backed securities		68		10		0			78
Private debt obligations ^(a)		1,716		11,647		0			13,363

Total debt securities		17,235		11,781		(3	)		29,013
Equity securities		4		8		0			12

Total investments	$	17,239	$	11,789	$	(3	)	$	29,025


	December 31, 2011
	Cost / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Debt securities:
Corporate obligations	$	20,747	$	158	$	(39	)	$	20,866
Mortgage/asset-backed securities		101		10		0			111
Private debt obligations ^(a)		1,742		9,700		(2	)		11,440

Total debt securities		22,590		9,868		(41	)		32,417
Equity securities		4		7		0			11

Total investments	$	22,594	$	9,875	$	(41	)	$	32,428

(a)	Through December 31, 2009, certain private debt obligations experienced other-than-temporary losses and $13.2 million of impairments were recorded. Unrealized gains of private debt obligations are stated as the difference between their fair value and cost basis, net of impairment.

For the three months ended June 30, 2012 and 2011, realized gains on available-for-sale securities were zero and $0.3 million, respectively, which were included in other (expense) income, net. For the six months ended June 30, 2012 and 2011, realized gains on available-for-sale securities were zero and $0.4 million, respectively, which were included in other (expense) income, net.

For the six months ended June 30, 2012, included in accumulated other comprehensive income (loss) were $2.0 million of unrealized gains and $(1.2) million of tax expense. For the six months ended June 30, 2011, included in accumulated other comprehensive income (loss) were $2.8 million of unrealized gains, reclassification adjustments for $0.2 million of realized gains and $(1.0) million of tax expense.

At June 30, 2012, the contractual maturities of debt securities classified as available-for-sale were as follows:


	June 30, 2012
	Cost		Fair Value
	(In thousands)
Due in one year or less	$	15,032	$	15,156
Due after one year through five years		436		529
Due after five years through ten years		920		5,839
Due after ten years		779		7,411
Mortgage/asset-backed securities		68		78

Total	$	17,235	$	29,013

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalty.

At June 30, 2012, there were debt securities with a $0.4 million fair value and nominal unrealized losses that were in a continuous unrealized loss position for less than one year, and debt securities with a $28.6 million fair value with no continuous losses. At December 31, 2011, there were debt securities with a $10.9 million fair value and nominal unrealized losses that were in a continuous unrealized loss position for less than one year, and debt securities with a $21.5 million fair value with no continuous losses. We evaluated investments with unrealized losses to determine if they experienced an other-than-temporary impairment. This evaluation was based on various factors, including length of time securities were in a loss position, ability and intent to hold investments until temporary losses were recovered or mature, investee’s industry and amount of the unrealized loss. Based on these factors, unrealized losses at June 30, 2012 and December 31, 2011 were not deemed as an other-than-temporary impairment.