Marketable Securities, Available-for-sale

6 Months Ended

Jun. 30, 2011

Marketable Securities, Available-for-sale

Marketable Securities, Available-for-sale

Note 6.  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 by the Financial Accounting Standards Board (“FASB”) in its Accounting Standards Codification (“ASC”) No. 320 (“ASC 320”), “Investments—Debt and Equity Securities.” Accordingly, these investments are recorded at fair value. 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,” net of tax, 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, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. At June 30, 2011 and December 31, 2010, the Company believed that the cost bases for its available-for-sale securities were recoverable in all material respects.

For the three- and six-month periods ended June 30, 2011, net realized earnings totaled $1.3 million and $2.6 million, respectively. For the three- and six-month periods ended June 30, 2010, net realized earnings totaled $1.7 million and $2.9 million, respectively. These earnings were recorded in “Gain from marketable securities, net” within the Consolidated Statements of Earnings.

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

								JUNE 30, 2011
(in thousands)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES			ESTIMATED FAIR VALUE
Type of security:
U.S. Treasury securities	$	3,156	$	1	$	-		$	3,157
Obligations of U.S. and local government agencies	36,443		45		(175		)	36,313
Corporate debt securities issued under
U.S. government/agency-backed programs	6,557		3		-			6,560
Corporate debt securities	163,306		334		(69		)	163,571
Asset-backed securities	23,515		53		(91		)	23,477
Total debt securities	232,977		436		(335		)	233,078
Time deposits	45,908		-		-			45,908
Short-term pooled investments	80,030		-		(10		)	80,020
Total marketable securities, available-for-sale	$	358,915	$	436	$	(345	)	$	359,006
							DECEMBER 31, 2010
Type of security:
U.S. Treasury securities	$	15,782	$	81	$	-		$	15,863
Obligations of U.S. and local government agencies	33,247		12		(215		)	33,044
Corporate debt securities issued under
U.S. government/agency-backed programs	170,878		112		-			170,990
Corporate debt securities	104,976		218		(92		)	105,102
Asset-backed securities	7,643		1		(12		)	7,632
Total debt securities	332,526		424		(319		)	332,631
Time deposits	76,312		-		-			76,312
Short-term pooled investments	28,850		2		-			28,852
Total marketable securities, available-for-sale	$	437,688	$	426	$	(319	)	$	437,795

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 sets forth the fair values of marketable securities, available-for-sale, by contractual maturity:

(in thousands)	JUNE 30, 2011		DECEMBER 31, 2010
Contractual maturity:
Maturing in one year or less	$	91,028	$	22,244
Maturing after one year through three years	113,010		299,381
Maturing after three years	29,040		11,006
Total debt securities	233,078		332,631
Time deposits and short-term pooled investments	125,928		105,164
Total marketable securities, available-for-sale	$	359,006	$	437,795