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Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2016
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments

3. Fair Value of Financial Instruments

The carrying value of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of their short-term nature. Investments are carried at fair market value and are classified as available-for-sale.  Investments consist of U.S. treasury notes with maturities up to approximately 18 months.  Fair value of investments is measured using Level 1 inputs (quoted prices for identical assets in active markets).

The following is a summary of available-for-sale securities:

 

 

 

 

 



 

 



September 30,

 

December 31,



2016

 

2015

Amortized cost

$

 455,097 

 

$

 1,040,850 

Gross unrealized gains (losses)

 

 583 

 

 

 (2,712)

Fair market value

$

 455,680 

 

$

 1,038,138 

There were no realized gains (losses) from sales of available-for-sale securities during the three months ended September 30, 2016 and 2015. Realized gains were $547 and $0 for the nine months ended September 30, 2016 and 2015, respectively. The Company records realized gains and losses from sales of available-for-sale securities in interest and other income (expense) in the consolidated statement of income.

The Company also maintains a rabbi trust to fund obligations under a deferred compensation plan. Amounts in the rabbi trust are invested in mutual funds, which are designated as trading securities and carried at fair value, and are included in other assets in the consolidated balance sheet. Fair market value of mutual funds is measured using Level 1 inputs. The fair value of the investments in the rabbi trust was $17,515 and $18,331 as of September 30, 2016 and December 31, 2015, respectively. The Company records trading gains and losses in general and administrative expenses in the consolidated statement of income, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect its exposure to liabilities for payment under the deferred plan. The following table sets forth unrealized gains and losses on investments held in the rabbi trust:

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Three months ended September 30,

 

Nine months ended September 30,



2016

 

2015

 

2016

 

2015

Unrealized gains (losses) on investments held in rabbi trust

$

 391 

 

$

 (1,000)

 

$

 677 

 

$

 (744)