Investments

9 Months Ended

Sep. 30, 2015

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):

	September 30, 2015									December 31, 2014
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	$	577,539	$	1,422	$	(80	)	$	578,881	$	637,474	$	1,296	$	(457	)	$	638,313
Corporate securities	679,887		396		(928		)	679,355		795,255		232		(1,372		)	794,115
Municipal securities	15,466		28		(1		)	15,493		48,744		17		(31		)	48,730
Government securities	63,596		143		—			63,739		121,431		37		(256		)	121,212
Total	$	1,336,488	$	1,989	$	(1,009	)	$	1,337,468	$	1,602,904	$	1,582	$	(2,116	)	$	1,602,370

The change in net unrealized gains (losses) on available-for-sale securities recorded in Other comprehensive (loss) 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 not material for all periods presented. See Note 13 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 September 30, 2015 were approximately six months and three years, respectively.

Realized Gains and Losses on Available-for-sale Investments

For the three and nine months ended September 30, 2015, the Company received proceeds from the sales of available-for-sale investments of $718.4 million and $1.55 billion, respectively, and for the three and nine months ended September 30, 2014, it received proceeds from the sales of available-for-sale investments of $469.6 million and $1.34 billion, respectively.

The Company had realized gains on the sales of available-for-sale investments during the three and nine months ended September 30, 2015 of $0.3 million and $0.7 million, respectively, and for the three and nine months ended September 30, 2014, it had realized gains on the sales of available-for-sale investments of $0.2 million and $1.4 million, respectively.

For the three and nine months ended September 30, 2015, the Company had realized losses on available-for-sale investments of $0.6 million and $0.9 million, respectively, and for the three and nine months ended September 30, 2014, it 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.

All realized gains and losses related to the sales of available-for-sale investments are included in Other expense, net, in the accompanying condensed 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 as of September 30, 2015 and December 31, 2014 were $1.0 million and $2.1 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 privately-held companies of approximately $17.2 million and $16.6 million as of September 30, 2015 and December 31, 2014, 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. For the three months ended September 30, 2015, no cost method investments were determined to be impaired. For the nine months ended September 30, 2015, the Company determined that certain cost method investments were impaired and recorded a charge of $3.0 million which was included in Other expense, net in the accompanying condensed consolidated statements of income. For the three and nine months ended September 30, 2014, the Company determined that certain cost method investments were impaired and recorded a charge of $3.2 million and $8.3 million, respectively, which were included in Other expense, net in the accompanying condensed consolidated statements of income.

During the three and nine months ended September 30, 2015, no gains were recorded on cost method investments. During the three and nine months ended September 30, 2014, certain early-stage entities in which the Company held direct investments were acquired by third parties and as a result of such sale transactions, the Company recorded gains of $1.2 million and $2.7 million, respectively, which were included in Other expense, net in the accompanying condensed consolidated statements of income.