XML 36 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Long-Term Investments
3 Months Ended
Mar. 31, 2015
Investments, All Other Investments [Abstract]  
Long-Term Investments

5.       LONG-TERM INVESTMENTS

As of March 31, 2015, the Company held an auction rate security with a par value of $2.5 million. This auction rate security has not experienced a successful auction since the liquidity issues experienced in the global credit and capital markets in 2008. As a result, the security is classified as a long-term investment as it is scheduled to mature in 2038. The security was rated A- by Standard and Poor’s as of March 31, 2015. The security continues to pay interest according to its stated terms.

The valuation of the Company’s auction rate security is subject to uncertainties that are difficult to predict. The fair value of the security is estimated utilizing a discounted cash flow analysis. The key drivers of the valuation model include the expected term, collateral underlying the security investment, the creditworthiness of the counterparty, the timing of expected future cash flows, discount rates, liquidity and the expected holding period. The security was also compared, when possible, to other observable market data for securities with similar characteristics. Based on the valuation of the security, the Company has recognized cumulative losses of $0.5 million as of March 31, 2015, none of which were realized during the three months ended March 31, 2015. The losses when recognized are included in investment and other income. The market value of the security has partially recovered. Included in other comprehensive income (loss) are unrealized gains (losses) of $63,000 and $(12,000) for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, the Company had recorded cumulative unrealized gains of $0.2 million. The resulting carrying value of the auction rate security at March 31, 2015, was $2.0 million. Any future decline in market value may result in additional losses being recognized.