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Investments
6 Months Ended
Jun. 30, 2013
Investments

2. Investments

Management determines the appropriate classification of securities at the time of purchase and reevaluates such designation as of each balance sheet date. We carry available-for-sale securities at fair value, with temporary unrealized gains and losses, net of tax, reported in accumulated other comprehensive income, a component of stockholders’ investment. The amortized cost of debt securities reflects amortization of premiums and accretion of discounts to maturity computed under the effective interest method. We included this amortization in the caption “Net investment income and other” within the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). We also included in “Net investment income and other” realized gains and losses on sales of securities and declines in value of securities determined to be other-than-temporary. We base the cost of securities sold upon the specific identification method. We include interest and dividends on securities classified as available-for-sale in net investment income.

We did not hold any investment securities as of June 30, 2013 and we did not recognize any realized or unrealized gains or losses on the sale of investment securities during the three and six months ended June 30, 2013. At December 31, 2012 we held certificates of deposits with an adjusted cost basis and fair value of $2.8 million. We realized no gains or losses on the sale of our investment securities for the three months ended June 30, 2012, and we realized gains of $3,000 and other-than–temporary impairments of $11,000 for the six months ended June 30, 2012. We recognized unrealized gains of $41,000 and no unrealized losses in accumulated other comprehensive income as of June 30, 2012. No investments were held in an unrealized loss position for greater than 12 months at June 30, 2012.