Marketable Securities

9 Months Ended

Sep. 30, 2011

5.	Marketable Securities

Marketable securities at September 30, 2011 and December 31, 2010 consisted of debt securities, as detailed below, and equity securities. The aggregate fair value of the equity securities was $3.1 million and $3.6 million at September 30, 2011 and December 31, 2010, respectively, and the aggregate cost basis was $4.0 million at both September 30, 2011 and December 31, 2010. The Company also held restricted marketable securities at both September 30, 2011 and December 31, 2010, which consisted of debt securities, as detailed below, that collateralize letters of credit and lease obligations.

The following tables summarize the amortized cost basis of debt securities included in marketable securities, the aggregate fair value of those securities, and gross unrealized gains and losses on those securities at September 30, 2011 and December 31, 2010. The Company classifies its debt securities, other than mortgage-backed securities, based on their contractual maturity dates. Maturities of mortgage-backed securities have been estimated based primarily on repayment characteristics and experience of the senior tranches that the Company holds.

	Amortized	Fair	Unrealized
At September 30, 2011	Cost Basis	Value	Gains	(Losses)	Net
Unrestricted
Maturities within one year
U.S. government obligations	$2,028	$2,033	$5		$5
U.S. government guaranteed corporate bonds	21,249	21,309	60		60
U.S. government guaranteed collateralized mortgage obligations	986	986
Municipal bonds	14,722	14,749	27		27
Mortgage-backed securities	26	26	___	___	___
	39,011	39,103	92	___	92

Maturities between one and five years
U.S. government obligations	238,958	239,418	519	$(59)	460
U.S. government guaranteed corporate bonds	15,415	15,457	42	___	42
	254,373	254,875	561	(59)	502

Maturities between five and six years
Mortgage-backed securities	270	123	___	(147)	(147)

	293,654	294,101	653	(206)	447


	Amortized	Fair	Unrealized
At September 30, 2011 (continued)	Cost Basis	Value	Gains	(Losses)	Net
Restricted
Maturities within one year
U.S. government obligations	2,946	2,947	1		1

Maturities between one and three years
U.S. government obligations	4,261	4,280	19	___	19
	7,207	7,227	20	___	20

	$300,861	$301,328	$673	$(206)	$467

At December 31, 2010
Unrestricted
Maturities within one year
U.S. government obligations	$83,635	$83,684	$54	$(5)	$49
U.S. government guaranteed corporate bonds	48,173	48,531	358		358
U.S. government guaranteed collateralized mortgage obligations	2,027	2,131	104		104
Municipal bonds	1,597	1,603	6		6
Mortgage-backed securities	875	847	___	(28)	(28)
	136,307	136,796	522	(33)	489

Maturities between one and five years
U.S. government obligations	352,345	350,683	64	(1,726)	(1,662)
U.S. government guaranteed corporate bonds	15,522	15,477		(45)	(45)
Mortgage-backed securities	110	38	___	(72)	(72)
	367,977	366,198	64	(1,843)	(1,779)
Maturities between five and seven years
Mortgage-backed securities	284	243	___	(41)	(41)
	504,568	503,237	586	(1,917)	(1,331)

Restricted
Maturities within one year
U.S. government obligations	2,922	2,921		(1)	(1)

Maturities between one and three years
U.S. government obligations	4,135	4,118	___	(17)	(17)
	7,057	7,039	___	(18)	(18)

	$511,625	$510,276	$586	$(1,935)	$(1,349)

At September 30, 2011 and December 31, 2010, marketable securities included an additional unrealized loss of $0.9 million and $0.4 million, respectively, related to one equity security in the Company's marketable securities portfolio.

The following table shows the fair value of the Company's marketable securities that have unrealized losses and that are deemed to be only temporarily impaired, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2011 and December 31, 2010. The debt securities held at September 30, 2011, excluding mortgage-backed securities, mature at various dates through June 2014. The mortgage-backed securities held at September 30, 2011 have various estimated maturity dates through August 2017.

	Less than 12 Months		12 Months or Greater		Total
At September 30, 2011	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Unrestricted
U.S. government obligations	$67,234	$(59)			$67,234	$(59)
Equity securities	3,075	(969)			3,075	(969)
Mortgage-backed securities	_____	____	$149	$(147)	149	(147)
	70,309	(1,028)	149	(147)	70,458	(1,175)

	Less than 12 Months		12 Months or Greater		Total
At December 31, 2010	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Unrestricted
U.S. government obligations	$340,444	$(1,731)			$340,444	$(1,731)
U.S. government guaranteed corporate bonds	19,005	(45)			19,005	(45)
Equity securities	3,612	(433)			3,612	(433)
Mortgage-backed securities	_____	____	$1,128	$(141)	1,128	(141)
	363,061	(2,209)	1,128	(141)	364,189	(2,350)

Restricted
U.S. government obligations	6,154	(18)	___	___	6,154	(18)
	6,154	(18)	___	___	6,154	(18)

	$369,215	$(2,227)	$1,128	$(141)	$370,343	$(2,368)

Realized gains and losses are included as a component of investment income. For the three and nine months ended September 30, 2011 and 2010, realized gains and losses on sales of marketable securities were not significant. In computing realized gains and losses, the Company computes the cost of its investments on a specific identification basis. Such cost includes the direct costs to acquire the security, adjusted for the amortization of any discount or premium.

The Company's assets that are measured at fair value on a recurring basis, at September 30, 2011 and December 31, 2010, were as follows:

		Fair Value Measurements at Reporting Date Using
	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
At September 30, 2011
Unrestricted
Available-for-sale marketable securities
U.S. government obligations	$241,451		$241,451
U.S. government guaranteed corporate bonds	36,766		36,766
U.S. government guaranteed collateralized mortgage obligations	986		986
Municipal bonds	14,749		14,749
Mortgage-backed securities	149		149
Equity securities	3,075	$3,075	_______
	297,176	3,075	294,101

Restricted
Available-for-sale marketable securities
U.S. government obligations	7,227	___	7,227

	$304,403	$3,075	$301,328

		Fair Value Measurements at Reporting Date Using
	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
At December 31, 2010
Unrestricted
Available-for-sale marketable securities
U.S. government obligations	$434,367		$434,367
U.S. government guaranteed corporate bonds	64,008		64,008
U.S. government guaranteed collateralized mortgage obligations	2,131		2,131
Municipal bonds	1,603		1,603
Mortgage-backed securities	1,128		1,128
Equity securities	3,612	$3,612	_______
	506,849	3,612	503,237

Restricted
Available-for-sale marketable securities
U.S. government obligations	7,039	___	7,039

	$513,888	$3,612	$510,276

Marketable securities included in Level 2 were valued using a market approach utilizing prices and other relevant information, such as interest rates, yield curves, prepayment speeds, loss severities, credit risks and default rates, generated by market transactions involving identical or comparable assets. The Company considers market liquidity in determining the fair value for these securities. During the nine months ended September 30, 2010, deterioration in the credit quality of a marketable security from one issuer subjected the Company to the risk of not being able to recover a portion of the security's carrying value. As a result, the Company recognized a $0.1 million impairment charge related to this Level 2 marketable security, which the Company considered to be other-than-temporarily impaired. During the three and nine months ended September 30, 2011, and the three months ended September 30, 2010, the Company did not record any charges for other-than-temporary impairment of its Level 2 marketable securities.

The Company holds one Level 3 marketable security, which had no fair value at September 30, 2011 and December 31, 2010. This Level 3 security was valued using information provided by the Company's investment advisors and other sources, including quoted bid prices which took into consideration the security's lack of liquidity. There were no purchases, sales, or maturities of Level 3 marketable securities and no unrealized gains or losses related to Level 3 marketable securities for the three and nine months ended September 30, 2011 and 2010. There were no transfers of marketable securities between Levels 1, 2, or 3 classifications during the three and nine months ended September 30, 2011 and 2010.

On a quarterly basis, the Company reviews its portfolio of marketable securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost are other-than-temporary. With respect to debt securities, this review process also includes an evaluation of the Company's (a) intent to sell an individual debt security or (b) need to sell the debt security before its anticipated recovery or maturity. With respect to equity securities, this review process includes an evaluation of the Company's ability and intent to hold the securities until their full value can be recovered.