Marketable Securities, Available-for-sale

12 Months Ended

Dec. 31, 2014

Marketable Securities, Available-for-sale

Marketable Securities, Available-for-sale

Note F: Marketable Securities, Available-for-sale

The Company's investment portfolio includes U.S. Treasury securities; obligations of U.S. government agencies; municipal debt securities; 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. 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 loss" 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. Gross unrealized losses related to the Company's available-for-sale securities have been in continuous unrealized loss positions for less than 12 months. At December 31, 2014 and 2013, the Company believed that the cost bases for these securities were recoverable in all material respects.

For the years ended December 31, 2014, 2013 and 2012, net realized earnings associated with the Company's investment portfolio, which includes interest, dividends and net realized gains on sales of marketable securities, totaled $1.5 million, $1.8 million and $2.2 million, respectively. These earnings were included in "Gain from marketable securities, net" within the Consolidated Statements of Earnings. Realized gains or losses on the sales of marketable securities were included as reclassification adjustments, which are a component of other comprehensive income. (See Note B, "Accumulated Other Comprehensive Income (Loss).")

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 type of security:

	DECEMBER 31, 2014
(in thousands)		AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES			ESTIMATED FAIR VALUE
Type of security:
U.S. Treasury securities	$	350	$	–	$	–		$	350
Municipal debt securities		13,529		1,715		(61	)		15,183
Total debt securities		13,879		1,715		(61	)		15,533
Time deposits		7,511		–		–			7,511
Total marketable securities, available-for-sale	$	21,390	$	1,715	$	(61	)	$	23,044

	DECEMBER 31, 2013
Type of security:
U.S. Treasury securities	$	76,355	$	149	$	–		$	76,504
Obligations of U.S. government agencies		17,074		2		(8	)		17,068
Municipal debt securities		33,492		492		(1,008	)		32,976
Corporate debt securities		157,798		102		(21	)		157,879
Asset-backed securities		20,433		76		(20	)		20,489
Total debt securities		305,152		821		(1,057	)		304,916
Time deposits		1,606		–		–			1,606
Short-term pooled investments		6,633		–		–			6,633
Total marketable securities, available-for-sale	$	313,391	$	821	$	(1,057	)	$	313,155

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

	DECEMBER 31,
(in thousands)		2014		2013
Contractual maturity:
Maturing in one year or less	$	350	$	129,384
Maturing after one year through three years		–		154,169
Maturing after three years		15,183		21,363
Total debt securities		15,533		304,916
Time deposits and short-term pooled investments		7,511		8,239
Total marketable securities, available-for-sale	$	23,044	$	313,155