Marketable Securities

6 Months Ended

Jun. 30, 2011

Note 5 — Marketable Securities

The Company’s marketable securities include equity securities, treasury securities, tax advantaged municipal securities and Federal Deposit Insurance Corporation (“FDIC”) insured corporate bonds. The Company’s investment policy limits the effective maturity on individual securities to six years and an average portfolio maturity to three years with a minimum Moody’s credit rating of A3 or a Standard & Poor’s credit rating of A-. As of June 30, 2011, the Company’s portfolio had an average maturity of three years and an average credit quality of AA1 as defined by Moody’s.

The following is a summary of marketable securities held by the Company as of June 30, 2011 and December 31, 2010 (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
June 30, 2011
Debt securities:
Municipal securities	$	314,125	$	671	$	(406	)	$	314,390
Equity securities		50,000		—		(11,664	)		38,336

Total marketable securities	$	364,125	$	671	$	(12,070	)	$	352,726


December 31, 2010
Debt securities:
Treasury securities	$	7,937	$	11	$	(57	)	$	7,891
Municipal securities		368,583		550		(2,833	)		366,300
Corporate debt securities		3,722		—		(78	)		3,644
Equity securities		50,000		2,130		—			52,130

Total marketable securities	$	430,242	$	2,691	$	(2,968	)	$	429,965

The following table shows the estimated fair values and gross unrealized losses as of June 30, 2011 for the Company’s investments in individual debt and equity securities that have been in a continuous unrealized loss position deemed to be temporary for less than 12 months and for more than 12 months (in thousands):


Less than 12 Months					More than 12 Months
Estimated Fair		Unrealized			Estimated Fair		Unrealized
Value		Losses			Value		Losses
$	140,227	$	(12,070	)	$	—	$	—

At June 30, 2011 and December 31, 2010, the Company had 40 and 110 marketable debt securities, respectively, in an unrealized loss position. Of the 40 securities in an unrealized loss position at June 30, 2011, the average estimated fair value and average unrealized loss was $2.5 million and $10,000, respectively. Of the 110 securities in an unrealized loss position at December 31, 2010, the average estimated fair value and average unrealized loss was $2.1 million and $27,000, respectively. The decrease in the number of debt securities held in an unrealized loss position at June 30, 2011 is due to the timing of purchases and sales of the Company’s debt securities during the first half of 2011, along with decreases in market interest rates.

The contractual terms of the debt securities held by the Company do not permit the issuer to settle the securities at a price less than the amortized cost of the investments. The Company does not consider its investments in debt securities with a current unrealized loss position to be other-than-temporarily impaired at June 30, 2011, because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost.

The Company does not consider its investments in marketable equity securities with a current unrealized loss position to be other-than-temporarily impaired at June 30, 2011. The Company periodically reviews its marketable equity securities for other-than-temporary declines in fair value below their cost basis, or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. When assessing marketable equity securities for other-than-temporary declines in value, the Company considers factors including: the significance of the decline in value compared to the cost basis; the underlying factors contributing to a decline in the prices of securities in a single asset class; how long the market value of the investment has been less than its cost basis; any market conditions that impact liquidity; the views of external investment managers; any news or financial information that has been released specific to the investee; and the outlook for the overall industry in which the investee operates.

The following table shows the current and non-current classification of the Company’s marketable securities as of June 30, 2011 and December 31, 2010 (in thousands):


	June 30,		December 31,
	2011		2010
Current	$	212,499	$	170,648
Non-current		140,227		259,317

Total marketable securities	$	352,726	$	429,965

As of June 30, 2011, the Company held non-current marketable debt and equity securities of $101.9 million and $38.3 million, respectively. As of December 31, 2010, the Company held non-current marketable debt and equity securities of $207.2 million and $52.1 million, respectively. Investments in an unrealized loss position deemed to be temporary at June 30, 2011 and December 31, 2010 that have a contractual maturity of greater than 12 months have been classified on the Company’s consolidated balance sheets as non-current marketable securities under the caption “Marketable securities, net of current portion,” reflecting the Company’s current intent and ability to hold such investments to maturity. The Company’s investments in marketable debt securities and marketable equity securities are classified as available-for-sale.

The following table shows the gross realized gains and losses from the sale of marketable securities, based on the specific identification method, for the three and six month periods ended June 30, 2011 and 2010 (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011			2010
Proceeds from sale of marketable securities	$	195,025	$	144,684	$	225,178		$	285,265


Gross realized gains	$	2,110	$	1,855	$	2,112		$	4,082
Gross realized losses		—		—		(356	)		—

Net realized gain	$	2,110	$	1,855	$	1,756		$	4,082