Marketable Investments

9 Months Ended

Sep. 30, 2012

Marketable Investments

Marketable Investments

5. Marketable Investments

Held-to-Maturity Investments

Marketable investments classified as held-to-maturity consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Government-sponsored enterprises at September 30, 2012	$	285,999	$	266	$	(32	)	$	286,233
Corporate notes and bonds at September 30, 2012	202,388		300		(20		)	202,668
Total	$	488,387	$	566	$	(52	)	$	488,901
Reported under the following captions on the consolidated balance sheet at September 30, 2012:
Current marketable investments	$	240,032
Noncurrent marketable investments	248,355
	$	488,387

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Government-sponsored enterprises at December 31, 2011	$	308,202	$	155	$	(170	)	$	308,187
Corporate notes and bonds at December 31, 2011	276,118		113		(442		)	275,789
Total	$	584,320	$	268	$	(612	)	$	583,976
Reported under the following captions on the consolidated balance sheet at December 31, 2011:
Current marketable investments	$	240,803
Noncurrent marketable investments	343,517
	$	584,320

The following table summarizes gross unrealized losses and the length of time marketable investments have been in a continuous unrealized loss position (in thousands):

	As of September 30, 2012					As of December 31, 2011
	Fair Value		Gross Unrealized Loss			Fair Value		Gross Unrealized Loss
Government-sponsored enterprises:
Continuous unrealized loss position less than one year	$	53,646	$	(32	)	$	170,018	$	(170	)
Continuous unrealized loss position greater than one year	—		—			—		—
	53,646		(32		)	170,018		(170		)
Corporate notes and bonds:
Continuous unrealized loss position less than one year	$	32,327	$	(20	)	$	149,383	$	(442	)
Continuous unrealized loss position greater than one year	—		—			—		—
	32,327		(20		)	149,383		(442		)
Total	$	85,973	$	(52	)	$	319,401	$	(612	)

We attribute the unrealized losses on held-to-maturity securities as of September 30, 2012, to the variability in related market interest rates. We do not intend to sell these securities, nor is it more likely than not that we will be required to sell them prior to the end of their contractual term. Furthermore, we believe these securities do not expose us to undue market risk or counterparty credit risk. As such, we do not consider these securities to be other than temporarily impaired.

The following table summarizes the contractual maturities of held-to-maturity marketable investments at September 30, 2012 (in thousands):

	September 30, 2012
	Amortized Cost		Fair Value
Due in less than one year	$	240,032	$	240,342
Due in one to two years	248,355		248,559
Due in three to five years	—		—
Due after five years	—		—
Total	$	488,387	$	488,901

Equity Investments

We own less than one percent of the common stock of a public company. Our investment is classified as available-for-sale, reported at fair value based on the quoted market price, and included on the accompanying consolidated balance sheets in noncurrent marketable investments.

As of September 30, 2012, we maintain investments in equity totaling approximately $8.0 million in privately-held corporations. We account for these investments at cost since we do not have the ability to exercise significant influence over these companies and their fair values are not readily determinable. The fair value of these investments has not been estimated at September 30, 2012, as there have been no events or developments indicating that their carrying amounts may be impaired. We include these investments within other assets on the accompanying consolidated balance sheets.