Securities Available for Sale

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

Securities Available for Sale

The Company began purchasing securities available for sale during the second quarter of 2015. Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders' equity unless management determines that a security is other-than-temporarily impaired (OTTI). Realized gains and losses from sales of securities available for sale are determined on a specific identification basis and are included in other revenue (expense).

The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of September 30, 2015, are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities	$	251,253	$	4	$	(1,144	)	$	250,113
Asset-backed securities	54,990		4		(35		)	54,959
U.S. agency securities	20,602		5		(4		)	20,603
Municipal securities	5,840		3		—			5,843
Other securities	7,006		1		(6		)	7,001
Total securities available for sale	$	339,691	$	17	$	(1,189	)	$	338,519

A summary of securities available for sale with unrealized losses as of September 30, 2015, aggregated by category and period of continuous unrealized loss, is as follows:

	Less than 12 months					12 months or longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities	$	241,480	$	(1,144	)	$	—	$	—	$	241,480	$	(1,144	)
Asset-backed securities	49,955		(35		)	—		—		49,955		(35		)
U.S. agency securities	11,600		(4		)	—		—		11,600		(4		)
Other securities	4,999		(6		)	—		—		4,999		(6		)
Total securities with unrealized losses(1)	$	308,034	$	(1,189	)	$	—	$	—	$	308,034	$	(1,189	)

⁽¹⁾  The number of investment positions with unrealized losses totaled 142.

Management evaluates whether securities available for sale are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that it will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between the amortized cost and then-current fair value.

A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represents estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Management utilizes cash flow models to estimate the expected future cash flow from the securities to estimate the credit loss when necessary. Expected cash flows are discounted using the security's effective interest rate.

The evaluation of whether the Company expects to recover the amortized cost of a security is inherently judgmental. The evaluation includes the assessment of several security performance indicators, including the magnitude and duration of the unrealized loss and whether the Company has received all scheduled principal and interest payments. There were no impairment charges recognized during the first nine months of 2015.

The contractual maturities of securities available for sale at September 30, 2015, are as follows:

	Within 1 year		After 1 year through 5 years		After 5 years through 10 years		After 10 years		Total
Corporate debt securities	$	28,120	$	221,993	$	—	$	—	$	250,113
Asset-backed securities	—		54,959		—		—		54,959
U.S. agency securities	—		20,603		—		—		20,603
Municipal securities	—		5,843		—		—		5,843
Other securities	—		7,001		—		—		7,001
Total fair value	$	28,120	$	310,399	$	—	$	—	$	338,519
Total amortized cost	$	28,151	$	311,540	$	—	$	—	$	339,691

Proceeds and gross realized gains and losses from sales of securities available for sale are as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2015		2015
Proceeds	$	59,689	$	63,198
Gross realized gains	$	58	$	58
Gross realized losses	$	—	$	1