Investments in debt and equity securities and other investments

6 Months Ended

Jun. 30, 2015

Investments Debt And Equity Securities [Abstract]

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:

	June 30, 2015						December 31, 2014
	Held to		Available				Held to		Available
	maturity		for sale		Total		maturity		for sale		Total
Certificates of deposit and money market funds    due within one year	$	940,589	$	—	$	940,589	$	335,975	$	—	$	335,975
Investments in mutual funds and common stock		—		31,238		31,238	—			28,123		28,123
	$	940,589	$	31,238	$	971,827	$	335,975	$	28,123	$	364,098
Short-term investments	$	940,589	$	1,552	$	942,141	$	335,975	$	1,424	$	337,399
Long-term investments		—		29,686		29,686		—		26,699		26,699
	$	940,589	$	31,238	$	971,827	$	335,975	$	28,123	$	364,098

The cost of the certificates of deposit and money market funds at June 30, 2015 and December 31, 2014 approximates their fair value. As of June 30, 2015 and December 31, 2014, the available-for-sale investments included $5,358 and $5,181 of gross pre-tax unrealized gains, respectively. During the six months ended June 30, 2015, the Company recorded gross pre-tax unrealized gains of $461, or $283 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the six months ended June 30, 2015, the Company sold investments in mutual funds for net proceeds of $385 and recognized a pre-tax gain of $284, or $173 after-tax, which was previously recorded in other comprehensive income. During the six months ended June 30, 2014, the Company sold investments in mutual funds for net proceeds of $1,277 and recognized a pre-tax gain of $340, or $207 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 June 30, 2015, 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 June 30, 2015, this minimum cash balance was approximately $54,200.