Debt Security Investments

12 Months Ended

Dec. 31, 2012

Debt Security Investments [Abstract]

Debt Security Investments

NOTE 3

Debt Security Investments

In connection 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 $72.5 million in U.S. treasury securities, to available for sale. During 2012, the Company received proceeds from the sale of $66.3 million and maturity of $6.2 million in debt security investments classified as available for sale. Additionally during 2012, the Company received proceeds from the sale of $7.6 million and maturity of $35.9 million in debt security investments classified as held to maturity. The proceeds from the sale and maturity of such investments along with cash generated from current year operations were used to pay out $90.4 million in cash dividends and $61.8 million in redemption of the remaining 8.625% senior notes due in 2014 (“Senior Notes”). At December 31, 2012, these remaining investments had a fair value and amortized cost of $3.5 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 December 31, 2012.

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

	December 31, 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	$	3,486	$	13	$	—	$	3,499	$	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. None of the debt security investments were outstanding for 12 months or more (in thousands):

	Less than 12 months
	Fair value		Unrealized gains  (losses)
December 31, 2012
U.S. Treasury securities	$	3,499	$	13

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 the debt security investments have been recorded as of December 31, 2012 and December 31, 2011.