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Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2016
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments

3.  Investments

As of December 31, 2016 and 2015, the Company’s investments consisted of U.S. treasury notes with maturities up to approximately two years and were classified as available-for-sale.  Fair market value of U.S. treasury notes is measured on a recurring basis based on Level 1 inputs (level inputs are described in Note 1 under “Fair Value Measurements”).

The Company designates the appropriate classification of its investments at the time of purchase based upon the intended holding period. During the year ended December 31, 2015, the Company transferred the classification of its investments from held-to-maturity to available-for-sale due to anticipated liquidity needs related to increased repurchases of shares of the Company’s common stock.    The carrying value of held-to-maturity securities transferred to available-for-sale during the year ended December 31, 2015 was $1,040,850 and the fair market value of those securities was determined to be $1,038,138, resulting in an unrealized holding loss of $2,712.  As a result, the Company recorded $2,468  ($1,522, net of tax) of unrealized holding losses in other comprehensive income (loss), and an other-than-temporary impairment charge of $244 in interest and other income (expense), in the consolidated statement of income and comprehensive income.

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



 

 

 

 

 



 

 



December 31,



2016

 

2015

Amortized cost

$

 455,109 

 

$

 1,040,850 

Unrealized gains (losses)

 

 (218)

 

 

 (2,712)

Fair market value

$

 454,891 

 

$

 1,038,138 



The following is a summary of unrealized gains (losses) of available-for-sale securities recorded in other comprehensive income (loss):





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Year ended December 31,



 

 

 

2016

 

2015

 

2014

Unrealized gains (losses) on available-for-sale securities

 

 

 

$

 2,251 

 

$

 (2,468)

 

$

 -

Unrealized gains (losses) on available-for-sale securities, net of tax

 

 

 

$

 1,402 

 

$

 (1,522)

 

$

 -



The following is a summary of available-for-sale securities activity recorded in interest and other income (expense) in the consolidated statement of income and comprehensive income:





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Year ended December 31,



 

 

 

2016

 

2015

 

2014

Realized gains (losses) from sale of available-for-sale securities

 

 

 

$

 547 

 

$

 -

 

$

 -

Other-than-temporary impairment

 

 

 

$

 -

 

$

 244 

 

$

 -

The Company has elected to fund certain deferred compensation obligations through a rabbi trust, the assets of which are designated as trading securities, as described further in Note 7. “Employee Benefit Plans.”