Investments

9 Months Ended

Sep. 30, 2013

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):

	September 30, 2013									December 31, 2012
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	$	527,430	$	1,440	$	(442	)	$	528,428	$	400,365	$	2,347	$	(5	)	$	402,707
Corporate securities	679,443		785		(505		)	679,723		404,546		947		(171		)	405,322
Municipal securities	72,951		65		(57		)	72,959		32,214		114		(15		)	32,313
Government securities	128,220		295		(7		)	128,508		39,863		131		(1		)	39,993
Total	$	1,408,044	$	2,585	$	(1,011	)	$	1,409,618	$	876,988	$	3,539	$	(192	)	$	880,335

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 out of Accumulated other comprehensive loss into current period net income has no effect on total comprehensive income or equity and was immaterial for all periods presented. See Note 11 for more information related to comprehensive income.

For the three and nine months ended September 30, 2013, the Company received proceeds from the sales of available-for-sale investments of $111.5 million and $486.8 million, respectively. For the three and nine months ended September 30, 2012, the Company received proceeds from the sales of available-for-sale investments of $188.3 million and $891.0 million, respectively. The Company had realized gains on the sales of available-for-sale investments during the three and nine months ended September 30, 2013 of $0.1 million and $0.5 million, respectively. The Company had no realized gains on the sales of available-for-sale investments during the three months ended September 30, 2012. The Company had realized gains of $3.5 million on the sales of available-for-sale investments during the nine months ended September 30, 2012.

For the three and nine months ended September 30, 2013, the Company had realized losses on available-for-sale investments of $0.1 million and $0.4 million, respectively, primarily related to prepayments at par of securities purchased at a premium. For the three and nine months ended September 30, 2012, the Company had realized losses on available-for-sale investments of $0.2 million and $0.8 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 (expense), 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 September 30, 2013 were approximately six months and three years, respectively.

Other-Than-Temporary Impairment on Available-for-Sale Investments

During the third quarter of 2012, one of the Company’s available-for-sale investments with a carrying amount of $5.0 million was determined to be other-than-temporarily impaired. As a result of this determination, the investment was written down to its fair value of $2.5 million, resulting in an impairment charge of $2.5 million. The impairment charge is included in Other income (expense), net in the accompanying condensed consolidated statements of income. See Note 6 for more information.

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 as of September 30, 2013 and December 31, 2012 were $1.0 million and $0.2 million, respectively. 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 certain early-stage entities as of September 30, 2013 and December 31, 2012 of approximately $29.8 million and $26.2 million, respectively, which are accounted for based on the cost method and are included in Other assets in the accompanying condensed consolidated balance sheets. During the three and nine months ended September 30, 2013, the Company recorded a gain of $1.3 million and $2.3 million, respectively, from companies in which the Company held direct investments, which were acquired by a third party and was included in Other income (expense), net in the accompanying condensed consolidated statements of income. 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.