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INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]  
Available-for-sale Securities
At December 31, the cost and carrying value of its available-for-sale investments were as follows (in thousands):
2011:
Cost
 
Gross Unrealized
 Gains
 
Gross Unrealized
 Losses
 
Carrying Value
Fixed maturities:
 
 
 
 
 
 
 
U.S. Treasury securities
$
7,053

 
$
227

 


 
$
7,280

Municipal bonds
3,118

 
297

 


 
3,415

Corporate bonds
23,738

 
588

 
$
(124
)
 
24,202

Government sponsored enterprises
1,625

 
76

 


 
1,701

 
35,534

 
1,188

 
(124
)
 
36,598

Marketable equity securities
35,547

 
7,341

 
(1,210
)
 
41,678

Total
$
71,081

 
$
8,529

 
$
(1,334
)
 
$
78,276

2010:
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Carrying Value
Fixed maturities:
 
 
 
 
 
 
 
U.S. Treasury securities
$
4,911

 
$
56

 
$
(64
)
 
$
4,903

Municipal bonds
3,147

 
107

 


 
3,254

Corporate bonds
28,365

 
783

 
(675
)
 
28,473

Government sponsored enterprises
4,193

 
187

 


 
4,380

 
40,616

 
1,133

 
(739
)
 
41,010

Marketable equity securities
80,664

 
30,687

 
(941
)
 
110,410

Total
$
121,280

 
$
31,820

 
$
(1,680
)
 
$
151,420
Investments Classified by Contractual Maturity Date
The amortized cost and carrying value of investments in fixed maturities at December 31, 2011, by contractual maturity, are shown below.  Expected maturity dates may differ from contractual maturity dates because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):
 
Amortized
 
Carrying
 
Cost
 
Value
Due in one year or less
$
9,939

 
$
10,126

Due after one year through five years
21,222

 
21,942

Due after five years
4,373

 
4,530

 
$
35,534

 
$
36,598
Investment Income
Net investment income is as follows for each of the years ended December 31 (in thousands):
 
2011
 
2010
 
2009
Investment income:
 
 
 
 
 
Fixed maturities
$
2,051

 
$
3,020

 
$
2,175

Equity securities
1,405

 
2,215

 
2,479

Other, primarily cash balances, net
686

 
1,358

 
1,285

Net investment income
4,142

 
6,593

 
5,939
Realized Gain (Loss) on Investments
Pre-tax net realized gain or loss on investments is as follows for each of the years ended December 31 (in thousands):
 
2011
 
2010
 
2009
Gross realized gains:
 
 
 
 
 
Fixed maturities
$
213

 
$
4,272

 
$
1,535

Equity securities and other investments
25,236

 
14,709

 
16,573

Total gain
25,449

 
18,981

 
18,108

Gross realized losses:
 
 
 

 
 

Fixed maturities
(6
)
 
(23
)
 
(5,225
)
Equity securities and other investments
(2,286
)
 
(443
)
 
(19,639
)
Total loss
(2,292
)
 
(466
)
 
(24,864
)
Net realized gain (loss)
$
23,157

 
$
18,515

 
$
(6,756
)
Schedule of Unrealized Loss on Investments
The following table summarizes the market value of those investments in an unrealized loss position for periods less than and greater than 12 months (in thousands):
 
2011
 
2010
Less than 12 months
Fair Value
 
Gross Unrealized
Loss
 
Fair Value
 
Gross Unrealized
Loss
Fixed maturities:
 

 
 
 
 
 
 
US Treasury securities
$
553

 


 
$
3,494

 
$
64

Corporate bonds
3,770

 
$
67

 
11,286

 
196

 
4,323

 
67

 
14,780

 
260

Marketable equity securities
7,847

 
461

 
5,907

 
459

Total
$
12,170

 
$
528

 
$
20,687

 
$
719


 
2011
 
2010
Greater than 12 months
Fair Value
 
Gross Unrealized
Loss
 
Fair Value
 
Gross Unrealized
Loss
Fixed maturities:
 

 
 
 
 
 
 
Corporate bonds
$
2,818

 
$
57

 
$
7,053

 
$
479

Marketable equity securities
2,757

 
749

 
2,534

 
482

Total
$
5,575

 
$
806

 
$
9,587

 
$
961
Schedule of Investments in Unconsolidated Affiliates
The following is unaudited summarized financial information of Spigit as of and for the year ended December 31, 2011 and December 31, 2010 (in thousands):

 
2011
 
2010
Current assets
$
9,061

 
$
6,602

Noncurrent assets
$
1,019

 
$
656

Current liabilities
$
18,163

 
$
8,598

Revenue
$
9,351

 
$
4,815

Gross margin
$
5,785

 
$
3,843

Loss from continuing operations and net loss
$
25,173

 
$
10,140
Fair Value Assets and Liabilities Measured on Recurring Basis
A description of the levels follows the table below.

At December 31, 2011 (in thousands):
 
Assets
Quoted Prices In Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant Unobservable
Inputs
(Level 3)
 
Balance at
December 31,
2011
Available-for-sale investments (A)
$
58,739

 
$
19,537

 
 
 
$
78,276

Liabilities
 

 
 

 
 
 
 

Deferred compensation (B)
$
36,315

 
 

 
 
 
$
36,315

Derivative instrument (C)
 
 
$
2,511

 
 
 
$
2,511



At December 31, 2010 (in thousands):
 
Assets
Quoted Prices In Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Balance at
December 31,
2010
Available-for-sale investments (A)
$
132,677

 
18,743

 
 
 
$
151,420

Liabilities
 

 
 

 
 
 
 

Deferred compensation (B)
$
37,879

 
 

 
 
 
$
37,879


(A) Where there are quoted market prices that are readily available in an active market, securities are classified as Level 1 of the valuation hierarchy. Level 1 available-for-sale investments are valued using quoted market prices multiplied by the number of shares owned and debt securities are valued using a market quote in an active market. All Level 2 available-for-sale securities are one class because they all contain similar risks and are valued using market prices and include securities where the markets are not active, that is where there are few transactions, or the prices are not current or the prices vary considerably over time. Inputs include directly or indirectly observable inputs such as quoted prices. Level 3 available-for-sale securities would include securities where valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
(B) Deferred compensation plans are compensation plans directed by the Company and structured as a Rabbi Trust for certain executives and non-employee directors. The investment assets of the Rabbi Trust are valued using quoted market prices multiplied by the number of shares held in each trust account including the shares of PICO common stock held in the trusts. The related deferred compensation liability represents the fair value of the investment assets.
(C) The derivative financial instrument is classified as level 2 because the inputs are directly observable, such as quoted market prices for relevant commodity futures contracts. Derivative financial instruments are valued based on the difference of the arithmetic average of the quoted market price of the relevant underlying, multiplied by the notional quantities and the arithmetic average of the prices specified in the instrument multiplied by the notional quantities.  
Fair Value Assets Measured on Non-Recurring Basis
The following table sets forth the Company's non-financial assets that were measured at fair value on a non-recurring basis for the year ended December 31, 2011 and 2010, by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset (in thousands):
Year Ended December 31, 2011:
Asset Description
 
Quoted Prices In Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Loss
(1) Intangible asset (exclusive right to use infrastructure and associated water credits)
 
 
 
 
 
$
84,890

 
$
16,224

(2) Real estate and options to purchase real estate
 
 
 
 
 
$
579

 
$
5,180


(1)
As of December 31, 2011, the Company had a non-recurring fair value measurement for an intangible asset with a carrying amount of $101.1 million that was written down to its implied fair value of $84.9 million, resulting in an impairment charge of $16.2 million, which was included in earnings for December 31, 2011. The implied fair value was calculated using a discounted cash flow model that incorporated a wide range of assumptions including current asset pricing, price escalation, discount rates, absorption rates, and timing of sales, and costs. Given the continued dramatic and prolonged slow-down in housing starts and sales in the North Valleys of Reno, Nevada, and the recent decline in market prices for similar assets, the Company adjusted its assumptions and judgments in the model by reducing the price and lengthening the timing of absorption of water sales from the original projections.

(2) As of December 31, 2011, the Company had a non-recurring fair value measurement for real estate and real estate option contracts with a carrying amount of $5.7 million that was written down to its implied fair value of $579,000 resulting in an impairment charge of $5.2 million, which was included in earnings for the year ended December 31, 2011. The implied fair value was calculated using a discounted cash flow model that incorporated a wide range of assumptions including current asset pricing, and timing of sales, and costs. Given the current facts and circumstances in certain of the real estate markets where the Company owns and develops real estate, including recent declines in market prices for similar assets, the Company adjusted its assumptions and judgments in its cash flow models by reducing prices, increasing costs and lengthening the timing of sales from the original projections.


Year Ended December 31, 2010:
Asset Description
 
Quoted Prices In Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
Gain/(Loss)
(1) Intangible asset (exclusive right to use infrastructure and associated water rights)
 
 
 
 
 
$
26,630

 
$
10,316


(1)
As of December 31, 2010, the Company had a non-recurring fair value measurement for an intangible asset with a carrying amount of $36.9 million that was written down to its implied fair value of $26.6 million, resulting in an impairment charge of $10.3 million, which was included in earnings for 2010.  The implied fair value was estimated based on a discounted cash flow model that incorporates estimates and assumptions about recognition of revenues and costs for the intangible asset.  See Note 4, Real Estate and Water Assets
Fair Value of Financial Instruments

The table below presents the carrying values and estimated fair values for certain of the Company’s financial instruments at December 31, 2011 (in thousands).
 
December 31, 2011
 
Carrying
Amount
 
Estimated Fair
 Value
Financial assets:
 
 
 
Cash and cash equivalents
$
125,547

 
$
125,547

Investments in debt securities
$
36,598

 
$
36,598

Equity securities
$
41,678

 
$
41,678

Notes and other receivables, net
$
6,893

 
$
6,893

Reinsurance receivables
$
15,475

 
$
15,475

Financial liabilities:
 
 
 
Debt
$
93,431

 
$
93,431

Derivative liability
$
2,511

 
$
2,511