Investments in debt and equity securities

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Investments in debt and equity securities

Investments in debt and equity securities

The Company classifies certain debt securities as held-to-maturity and records them at amortized cost based on the Company’s intentions and strategy concerning those investments. Equity securities that have readily determinable fair values, and certain other financial instruments that have readily determinable fair values or redemption values, are classified as available-for-sale and recorded at fair value.

The Company’s investments in these securities and certain other financial instruments consist of the following:

	March 31, 2017						December 31, 2016
	Held to maturity		Available for sale		Total		Held to maturity		Available for sale		Total
Certificates of deposit, commercial paper and money market funds due within one year	$	312,065	$	—	$	312,065	$	256,827	$	—	$	256,827
Investments in mutual funds and common stock	—		48,124		48,124		50,000		47,404		97,404
Cash surrender value of life insurance policies	—		61,444		61,444		—		59,646		59,646
	$	312,065	$	109,568	$	421,633	$	306,827	$	107,050	$	413,877
Short-term investments	$	312,065	$	1,200	$	313,265	$	306,827	$	3,371	$	310,198
Long-term investments	—		108,368		108,368		—		103,679		103,679
	$	312,065	$	109,568	$	421,633	$	306,827	$	107,050	$	413,877

The cost of the certificates of deposit, commercial paper and money market funds at March 31, 2017 and December 31, 2016 approximates their fair value. As of March 31, 2017 and December 31, 2016, the available-for-sale investments included $5,585 and $3,701 of gross pre-tax unrealized gains, respectively. During the three months ended March 31, 2017, the Company recorded gross pre-tax unrealized gains of $2,113, or $1,559 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the three months ended March 31, 2017, the Company sold investments in mutual funds and debt securities for net proceeds of $4,025 and recognized a pre-tax gain of $229, or $140 after-tax, which was previously recorded in other comprehensive income. During the three months ended March 31, 2016, the Company sold investments in mutual funds for net proceeds of $1,062 and recognized a pre-tax gain of $152, or $93 after-tax, which was previously recorded in other comprehensive income.

The investments in mutual funds classified as available-for-sale are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans.

Investments in life insurance policies are carried at their cash surrender value, are held within trusts to fund existing obligations associated with certain of the Company’s non-qualified deferred compensation plans, and are principally classified as long-term to correspond with the long-term classification of the related plan liabilities.

Certain DMG legal entities are required to maintain minimum cash balances in order to comply with regulatory requirements in conjunction with medical claim reserves. As of March 31, 2017, this minimum cash balance was approximately $61,567.