Investments

3 Months Ended

Mar. 31, 2012

Investments [Abstract]

Investments

5. INVESTMENTS

Available-for-sale Investments

Investments in available-for-sale securities at fair value were as follows for the periods ended (in thousands):

	March 31, 2012									December 31, 2011
Description of the Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Agency securities	$	656,187	$	5,429	$	(313	)	$	661,303	$	641,997	$	4,506	$	(279	)	$	646,224
Corporate securities	458,432		1,059		(407		)	459,084		392,365		618		(1,190		)	391,793
Municipal securities	69,910		84		(16		)	69,978		80,004		57		(35		)	80,026
Government securities	27,274		185		(5		)	27,454		26,056		206		—			26,262
Total	$	1,211,803	$	6,757	$	(741	)	$	1,217,819	$	1,140,422	$	5,387	$	(1,504	)	$	1,144,305

The change in net unrealized gains (losses) on available-for-sale securities recorded in Other comprehensive income includes unrealized gains (losses) that arose from changes in market value of specifically identified securities that were held during the period, gains (losses) that were previously unrealized, but have been recognized in current period net income due to sales, as well as prepayments of available-for-sale investments purchased at a premium. This reclassification has no effect on total comprehensive income or equity and was immaterial for all periods presented.

For the three months ended March 31, 2012 and 2011, the Company received proceeds from sales of available-for-sale investments of $104.2 million and $180.4 million, respectively. For the three months ended March 31, 2012, the Company had no realized gains on the sales of available-for-sale investments. For the three months ended March 31, 2011, the Company had realized gains on the sales of available-for-sale investments of $0.2 million. For the three months ended March 31, 2012 and 2011, the Company had realized losses on available-for-sale investments of $0.2 million and $0.6 million, respectively, primarily related to prepayments at par of securities purchased at a premium. All realized gains and losses related to the sales of available-for-sale investments are included in other income, net, in the accompanying condensed consolidated statements of income.

The average remaining maturities of the Company’s short-term and long-term available-for-sale investments at March 31, 2012 were approximately five months and eight years, respectively.

Unrealized Losses on Available-for-Sale Investments

The gross unrealized losses on the Company’s available-for-sale investments that are not deemed to be other-than-temporarily impaired were $0.7 million and $1.5 million as of March 31, 2012 and December 31, 2011, respectively. The decrease in gross unrealized losses when comparing March 31, 2012 to December 31, 2011 was primarily due to changes in interest rates. Because the Company does not intend to sell any of its investments in an unrealized loss position and it is more likely than not that it will not be required to sell the securities before the recovery of its amortized cost basis, which may not occur until maturity, it does not consider the securities to be other-than-temporarily impaired.

Cost Method Investments

The Company held direct investments in privately-held companies of approximately $30.8 million and $32.2 million as of March 31, 2012 and December 31, 2011, respectively, which are accounted for based on the cost method and are included in Other assets in the accompanying condensed consolidated balance sheets. The Company periodically reviews these investments for impairment. If the Company determines that an other-than-temporary impairment has occurred, it will write-down the investment to its fair value.