Debt Security Investments

9 Months Ended

Sep. 30, 2012

Debt Security Investments [Abstract]

Debt Security Investments

3. Debt Security Investments

Corresponding with the Company’s Board of Directors’ August 2012 declaration of a $10.00 per common share special cash dividend and the institution of a quarterly dividend policy, the Company announced its intention to fund the dividends from existing cash and its debt security investments. As a result of these declarations, on September 30, 2012, the Company reclassified its entire portfolio of debt security investments classified as held-to-maturity, which consisted of U.S. treasury securities, to available for sale. At September 30, 2012, these investments had a fair value and amortized cost of $76.0 million. The investments’ net unrealized appreciation, net of tax, increased the Company’s accumulated other comprehensive income and shareholders’ equity by $13,000 as of September 30, 2012.

The following table summarizes amortized cost, gross unrealized gains, gross unrealized losses and the fair value of debt security investments (in thousands):

	September 30, 2012									December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities	$	76,009	$	29	$	(8	)	$	76,030	$	36,950	$	—	$	(6	)	$	36,944

The following table displays the gross unrealized losses and fair value of all available for sale debt security investments that were in a continuous unrealized loss position for the periods indicated.

	Less than 12 months					12 months or more				Total
	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
September 30, 2012
U.S. Treasury securities	$	47,235	$	(8	)	$	—	$	—	$	47,235	$	(8	)
December 31, 2011
U.S. Treasury securities	$	36,944	$	(6	)	$	—	$	—	$	36,944	$	(6	)

The following table presents the amortized cost and the fair value of debt security investments, by contractual maturity (in thousands):

	September 30, 2012
	Amortized Cost		Fair Value
Due in one year or less	$	56,585	$	56,583
Due after one year through five years		19,424		19,447
Total debt security investments	$	76,009	$	76,030

Debt security investments are reviewed periodically to determine if a permanent decline in fair value has occurred that would require impairment of the carrying value. No impairments on debt security investments have been recorded as of September 30, 2012 and December 31, 2011.