Investments

12 Months Ended

Dec. 31, 2013

Investments [Abstract]

INVESTMENTS

INVESTMENTS

Available-for-sale Investments

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

	December 31, 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	$	453,922	$	1,177	$	(349	)	$	454,750	$	400,365	$	2,347	$	(5	)	$	402,707
Corporate securities	643,360		947		(216		)	644,091		404,546		947		(171		)	405,322
Municipal securities	53,698		81		(23		)	53,756		32,214		114		(15		)	32,313
Government securities	156,930		196		(47		)	157,079		39,863		131		(1		)	39,993
Total	$	1,307,910	$	2,401	$	(635	)	$	1,309,676	$	876,988	$	3,539	$	(192	)	$	880,335

The change in net unrealized gains (losses) on available-for-sale securities recorded in Other comprehensive income (loss) 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 not material for all periods presented. See Note 14 for more information related to comprehensive income.

The average remaining maturities of the Company’s short-term and long-term available-for-sale investments at December 31, 2013 were approximately five months and three years, respectively.

Realized Gains and Losses on Available-for-sale Investments

For the years ended December 31, 2013 and 2012, the Company had realized gains on the sales of available-for-sale investments of $3.0 million and $4.1 million, respectively. For the years ended December 31, 2013 and 2012, the Company had realized losses on available-for-sale investments of $2.7 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 (expense) income, net, in the accompanying consolidated statements of income.

The Company continues to monitor its overall investment portfolio and if the credit ratings of the issuers of its investments deteriorate or if the issuers experience financial difficulty, including bankruptcy, the Company may be required to make adjustments to the carrying value of the securities in its investment portfolio and recognize impairment charges for declines in fair value that are determined to be other-than-temporary.

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

There were no other-than-temporarily impaired available-for-sale investments during the twelve months ended December 31, 2013. During 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 (expense) income, net in the accompanying consolidated statements of income.

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 $0.6 million and $0.2 million as of December 31, 2013 and 2012, 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 privately-held companies of approximately $24.3 million and $26.2 million as of December 31, 2013 and 2012, respectively, which are accounted for based on the cost method and are included in Other assets in the accompanying 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. During 2013 and 2012, certain companies in which the Company held direct investments were acquired by third parties and as a result of these sales transactions the Company recorded gains of $6.0 million and $16.5 million, respectively, which was included in Other (expense) income, net in the accompanying consolidated statements of income. The Company determined that certain cost method investments were impaired during 2013, 2012 and 2011 and recorded a total charge of $3.7 million, $3.5 million, and $3.5 million, respectively, which is included in Other (expense) income, net in the accompanying consolidated statements of income. See Note 5 for more information.