Investments in debt and equity securities and other investments

9 Months Ended

Sep. 30, 2014

Investments in debt and equity securities and other investments

4. Investments in debt and equity securities and other investments

Based on the Company’s intentions and strategy concerning investments in debt securities, the Company classifies certain debt securities as held-to-maturity and records them at amortized cost. Equity securities that have readily determinable fair values, including those of mutual funds, common stock and other debt securities, are classified as available-for-sale and recorded at fair value.

The Company’s investments in securities consist of the following:

	September 30, 2014						December 31, 2013
	Held to maturity		Available for sale		Total		Held to maturity		Available for sale		Total
Certificates of deposit and money market funds due within one year	$	140,722	$	—	$	140,722	$	5,601	$	—	$	5,601
Investments in mutual funds and common stock		—		26,237		26,237		—		19,421		19,421
	$	140,722	$	26,237	$	166,959	$	5,601	$	19,421	$	25,022
Short-term investments	$	140,722	$	1,400	$	142,122	$	5,601	$	1,200	$	6,801
Long-term investments		—		24,837		24,837		—		18,221		18,221
	$	140,722	$	26,237	$	166,959	$	5,601	$	19,421	$	25,022

The cost of the certificates of deposit and money market funds at September 30, 2014 and December 31, 2013 approximates their fair value. As of September 30, 2014 and December 31, 2013, the available-for-sale investments included $5,594 and $5,096 of gross pre-tax unrealized gains, respectively. During the nine months ended September 30, 2014, the Company recorded gross pre-tax unrealized gains of $838, or $517 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the nine months ended September 30, 2014, the Company sold investments in mutual funds for net proceeds of $1,321 and recognized a pre-tax gain of $340, or $207 after-tax, which was previously recorded in other comprehensive income. During the nine months ended September 30, 2013, the Company sold investments in mutual funds for net proceeds of $1,091 and recognized a pre-tax gain of $155, or $94 after-tax, which was previously recorded in other comprehensive income.

The investments in mutual funds classified as available-for-sale are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans.

As of September 30, 2014, the Company held $5,000 of preferred stock in a privately held company that is accounted for under the cost method as this investment does not have a readily determinable fair value.

Certain HCP entities are required to maintain minimum cash balances in order to comply with regulatory requirements in conjunction with medical claim reserves. As of September 30, 2014, this minimum cash balance was approximately $56,000.