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Investments
9 Months Ended
Sep. 30, 2013
Investments  
Investments

5. Investments

 

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, 2013

 

$

421,890

 

$

342

 

$

(10

)

$

422,222

 

Corporate notes and bonds at September 30, 2013

 

294,284

 

125

 

(101

)

294,308

 

Total

 

$

716,174

 

$

467

 

$

(111

)

$

716,530

 

Reported under the following captions on the consolidated balance sheet at September 30, 2013:

 

 

 

 

 

 

 

 

 

Current marketable investments

 

$

394,612

 

 

 

 

 

 

 

Noncurrent marketable investments

 

321,562

 

 

 

 

 

 

 

 

 

$

716,174

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair
Value

 

Government-sponsored enterprises at December 31, 2012

 

$

350,043

 

$

261

 

$

(35

)

$

350,269

 

Corporate notes and bonds at December 31, 2012

 

280,385

 

184

 

(140

)

280,429

 

Total

 

$

630,428

 

$

445

 

$

(175

)

$

630,698

 

Reported under the following captions on the consolidated balance sheet at December 31, 2012:

 

 

 

 

 

 

 

 

 

Current marketable investments

 

$

325,175

 

 

 

 

 

 

 

Noncurrent marketable investments

 

305,253

 

 

 

 

 

 

 

 

 

$

630,428

 

 

 

 

 

 

 

 

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, 2013

 

As of December 31, 2012

 

 

 

Fair
Value

 

Gross
Unrealized
Loss

 

Fair
Value

 

Gross
Unrealized
Loss

 

Government-sponsored enterprises:

 

 

 

 

 

 

 

 

 

Continuous unrealized loss position less than one year

 

$

52,522

 

$

(10

)

$

72,727

 

$

(35

)

Continuous unrealized loss position greater than one year

 

 

 

 

 

 

 

52,522

 

(10

)

72,727

 

(35

)

Corporate notes and bonds:

 

 

 

 

 

 

 

 

 

Continuous unrealized loss position less than one year

 

$

99,131

 

$

(101

)

$

90,960

 

$

(140

)

Continuous unrealized loss position greater than one year

 

 

 

 

 

 

 

99,131

 

(101

)

90,960

 

(140

)

Total

 

$

151,653

 

$

(111

)

$

163,687

 

$

(175

)

 

We attribute the unrealized losses on held-to-maturity securities as of September 30, 2013 and December 31, 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 terms. 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 (in thousands):

 

 

 

September 30, 2013

 

 

 

Amortized
Cost

 

Fair
Value

 

Due in less than one year

 

$

394,612

 

$

394,863

 

Due in one to two years

 

321,562

 

321,667

 

Due in three to five years

 

 

 

Due after five years

 

 

 

Total

 

$

716,174

 

$

716,530

 

 

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.

 

Cost Method Investments

 

As of September 30, 2013, we maintain in the aggregate, non-controlling equity investments of approximately $38.0 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, 2013, as we have not identified any events or developments indicating that their carrying amounts may be impaired. We include these investments within other assets on our accompanying consolidated balance sheets.