Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value

Fair Value

5. FAIR VALUE

Financial Assets

The following table summarizes our fair value measurements at June 30, 2011 and December 31, 2010, respectively, for financial assets measured at fair value on a recurring basis:

			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
June 30, 2011
Cash equivalents	$	1,470,957	$	1,470,957	$	0	$	0
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations		822,787		0		822,787		0
Mortgage-backed securities		1,824,036		0		1,824,036		0
Tax-exempt municipal securities		2,489,883		0		2,468,830		21,053
Mortgage-backed securities:
Residential		49,749		0		49,749		0
Commercial		414,963		0		414,963		0
Asset-backed securities		117,385		0		116,286		1,099
Corporate debt securities		3,478,520		0		3,454,422		24,098
Redeemable preferred stock		5,333		0		0		5,333
Total debt securities		9,202,656		0		9,151,073		51,583
Securities lending invested collateral		29,737		29,737		0		0
Total invested assets	$	10,703,350	$	1,500,694	$	9,151,073	$	51,583
December 31, 2010
Cash equivalents	$	1,606,592	$	1,606,592	$	0	$	0
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations		711,613		0		711,613		0
Mortgage-backed securities		1,663,179		0		1,663,179		0
Tax-exempt municipal securities		2,433,334		0		2,381,528		51,806
Mortgage-backed securities:
Residential		55,887		0		55,887		0
Commercial		321,031		0		321,031		0
Asset-backed securities		149,751		0		148,545		1,206
Corporate debt securities		3,032,311		0		3,025,097		7,214
Redeemable preferred stock		5,333		0		0		5,333
Total debt securities		8,372,439		0		8,306,880		65,559
Securities lending invested collateral		49,636		24,639		24,997		0
Total invested assets	$	10,028,667	$	1,631,231	$	8,331,877	$	65,559

Our Level 3 assets had a fair value of $51.6 million at June 30, 2011, or less than 0.5% of our total invested assets. During the three and six months ended June 30, 2011 and 2010, the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following:

	For the three months ended June 30,
	2011									2010
	Auction Rate Securities			Private Placements/ Venture Capital			Total			Auction Rate Securities			Private Placements/ Venture Capital			Total
	(in thousands)
Beginning balance at April 1	$	51,323		$	13,492		$	64,815		$	63,902		$	11,920		$	75,822
Total gains or losses:
Realized in earnings		0			(380	)		(380	)		0			17			17
Unrealized in other comprehensive income		1,831			696			2,527			821			570			1,391
Purchases		0			17,000			17,000			0			3,000			3,000
Sales/calls		(32,525	)		(373	)		(32,898	)		(2,500	)		(500	)		(3,000	)
Settlements		425			94			519			(10,750	)		(466	)		(11,216	)
Balance at June 30	$	21,054		$	30,529		$	51,583		$	51,473		$	14,541		$	66,014
	For the six months ended June 30,
	2011									2010
	Auction Rate Securities			Private Placements/ Venture Capital			Total			Auction Rate Securities			Private Placements/ Venture Capital			Total
	(in thousands)
Beginning balance at January 1	$	51,806		$	13,753		$	65,559		$	68,814		$	23,909		$	92,723
Total gains or losses:
Realized in earnings		16			(213	)		(197	)		16			6,195			6,211
Unrealized in other comprehensive income		1,757			615			2,372			1,368			(4,205	)		(2,837	)
Purchases		0			17,000			17,000			0			3,167			3,167
Sales/calls		(32,525	)		(626	)		(33,151	)		(2,500	)		(13,220	)		(15,720	)
Settlements		0			0			0			(16,225	)		(1,305	)		(17,530	)
Balance at June 30	$	21,054		$	30,529		$	51,583		$	51,473		$	14,541		$	66,014

There were no material transfers between Level 1 and Level 2 during the three and six months ended June 30, 2011 or June 30, 2010.

Financial Liabilities

Our long-term debt is recorded at carrying value in our consolidated balance sheets. The carrying value of our long-term debt outstanding was $1,664.0 million at June 30, 2011 and $1,668.8 million at December 31, 2010. The fair value of our long-term debt was $1,824.3 million at June 30, 2011 and $1,746.5 million at December 31, 2010. The fair value of our long-term debt is determined based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current prices estimated to be available to us for debt with similar terms and remaining maturities.