Investments and Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Equity Method Investments Disclosure [Abstract]

Fair Value Disclosures [Text Block]

Investments and Fair Value Measurements

All of the Company’s short-term and long-term investment balances at September 30, 2013, $11.4 million at par, were invested in tax free, auction rate student ("ARS") loan educational bonds that are classified as available-for-sale and, therefore, are carried at fair value on the financial statements.  As of September 30, 2013, all of the Company’s auction rate student loan bonds were associated with unsuccessful auctions.  As of September 30, 2013 the Company had received call notices, at par, for $6.9 million which were received in October and November 2013. The investments, not including the calls received subsequent to September 30, 2013, consist of two holdings and have contractual maturities that currently range from June 1, 2034 to May 1, 2040.  These securities, $4.6 million, at par, hold medium to high grade investment (A-AA+) ratings from recognized rating agencies. Since the first auction failures in February 2008 when the Company had approximately $198.5 million ARS at par, the Company has received approximately $193.9 million of calls, including calls received subsequent to September 30, 2013, from issuers, at par, plus accrued interest at the time of the call.  There were $0.1 million and $9.9 million in calls, at par, during the three and nine months ended September 30, 2013.

The fair value of available-for-sale investments at September 30, 2013 and December 31, 2012 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	( in thousands)
September 30, 2013
Current
Auction rate student loan educational bonds	$	6,850	—		$	—	$	6,850
Long-term:
Auction rate student loan educational bonds	$	4,575	$	—	$	230	$	4,345
	$	11,425	$	—	$	230	$	11,195

December 31, 2012
Long-term:
Auction rate student loan educational bonds	$	21,300	$	—	$	1,284	$	20,016

The contractual maturities and announced calls of available-for-sale securities at September 30, 2013 are detailed in the table below. As management receives intents to call from issuers, the associated securities are changed from their contractual maturities to the date received in the respective call notice.

	Fair Value		Amortized Cost
	(in thousands)
Due within one year	$	6,850	$	6,850
Due after one year through five years	—		—
Due after five years through ten years	—		—
Due after ten years through May 1, 2040	4,345		4,575
	$	11,195	$	11,425

The unrealized loss of $0.2 million is recorded as an adjustment to accumulated other comprehensive loss and the Company has not recognized any other than temporary impairments in the consolidated statements of comprehensive income.   During the three and nine month periods ended September 30, 2013 the Company recorded unrealized gains of $0.5 million and $1.1 million, respectively, due to the reversal of prior period recorded unrealized losses as the Company has received $9.9 million in calls, at par, during the nine months ended September 30, 2013 and another $6.9 million subsequent to September 30, 2013. There were no other changes in other comprehensive income for the three and nine months ended September 30, 2013 and the unrealized losses on available-for-sale securities of $0.2 million is the only component of accumulated other comprehensive loss at September 30, 2013. There were no realized gains or losses related to these investments for the three and nine months ended September 30, 2013 and 2012.

The table below presents a rollforward for all assets and liabilities, measured at fair value, on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013 and 2012.

	Available-for-sale debt securities
	(in thousands)
	2013			2012
Balance, January 1	$	20,016		$	50,569
Settlements	(9,875		)	(31,325		)
Purchases	—			—
Issuances	—			—
Sales	—			—
Transfers in to (out of) Level 3	—			—
Total gains or losses (realized/unrealized):
Included in earnings	—			—
Included in other comprehensive income, net of tax	1,054			1,797
Balance, September 30,	$	11,195		$	21,041

Municipal bonds of $1.4 million at September 30, 2013 and $1.3 million at December 31, 2012 are stated at amortized cost, are classified as held-to-maturity and are included in restricted cash in other non-current assets. Differences between amortized cost and fair value of municipal bonds are not considered material.