Marketable Securities, Available-for-sale

12 Months Ended

Dec. 31, 2012

Marketable Securities, Available-for-sale

Marketable Securities, Available-for-sale

Note E: Marketable Securities, Available-for-sale

The Company's investment portfolio includes U.S. Treasury securities; obligations of U.S. government and local government agencies; corporate debt backed by U.S. government/agency programs; corporate debt securities; asset-backed securities of U.S. government agencies and covered bonds; time deposits; and short-term pooled investments. These investments are primarily held in the custody of a single financial institution. Time deposits and short-term pooled investments, which are not considered cash equivalents, have original maturities in excess of 90 days. The Company considers its investment portfolio to be available-for-sale as defined in ASC No. 320 ("ASC 320"), "Investments—Debt and Equity Securities." Accordingly, these investments are recorded at their fair values. The cost of securities sold is based on an average-cost basis. Unrealized gains and losses on these investments were included in "Accumulated other comprehensive income" within the Consolidated Balance Sheets.

The Company periodically reviews its available-for-sale securities for other-than-temporary declines in fair values that are below their cost bases, as well as whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. At December 31, 2012 and 2011, the Company believed that the cost bases for its available-for-sale securities were recoverable in all material respects.

For the years ended December 31, 2012, 2011 and 2010, net realized earnings associated with the Company's investment portfolio, which includes interest, dividends, and net realized gains and losses on sales of marketable securities, totaled $2.2 million, $3.9 million and $5.8 million, respectively. These earnings were included in "Gain from marketable securities, net" within the Consolidated Statements of Earnings.

The following table displays the fair values of marketable securities, available-for-sale, by type of security:

	DECEMBER 31, 2012
(in thousands)		AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES			ESTIMATED FAIR VALUE
Type of security:
U.S. Treasury securities	$	3,098	$	1	$	–		$	3,099
Obligations of U.S. and local government agencies		154,774		1,008		(489	)		155,293
Corporate debt securities		165,153		116		(75	)		165,194
Asset-backed securities		27,325		153		(164	)		27,314
Total debt securities		350,350		1,278		(728	)		350,900
Short-term pooled investments		37,127		–		(7	)		37,120
Total marketable securities, available-for-sale	$	387,477	$	1,278	$	(735	)	$	388,020

	DECEMBER 31, 2011
Type of security:
U.S. Treasury securities	$	1,557	$	–	$	(2	)	$	1,555
Obligations of U.S. and local government agencies		147,557		123		(860	)		146,820
Corporate debt securities issued under U.S. government/agency-backed programs		1,453		3		–			1,456
Corporate debt securities		126,088		101		(523	)		125,666
Asset-backed securities		46,198		42		(496	)		45,744
Total debt securities		322,853		269		(1,881	)		321,241
Time deposits		25,500		–		–			25,500
Short-term pooled investments		275		–		–			275
Total marketable securities, available-for-sale	$	348,628	$	269	$	(1,881	)	$	347,016

The primary objectives of the Company's investment portfolio are safety of principal and liquidity. Investments are made with the purpose of achieving the highest rate of return consistent with these two objectives. The Company's investment policy limits investments to debt rated investment grade or better, as well as to bank and money market instruments and to issues by the U.S. government, U.S. government agencies and municipal or other institutions primarily with investment-grade credit ratings. Policy restrictions are placed on maturities, as well as on concentration by type and issuer.

The following table displays the fair values of marketable securities, available-for-sale, by contractual maturity:

	DECEMBER 31,
(in thousands)		2012		2011
Contractual maturity:
Maturing in one year or less	$	68,347	$	167,413
Maturing after one year through three years		257,595		120,952
Maturing after three years		24,958		32,876
Total debt securities		350,900		321,241
Time deposits and short-term pooled investments		37,120		25,775
Total marketable securities, available-for-sale	$	388,020	$	347,016