v2.4.1.9
Investments in debt and equity securities and other investments
 3 Months Ended
Mar. 31, 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:

 

 

 

March 31, 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

 

$

420,927

 

 

$

—

 

 

$

420,927

 

 

$

335,975

 

 

$

—

 

 

$

335,975

 

Investments in mutual funds and common stock

 

 

—

 

 

 

29,068

 

 

 

29,068

 

 

—

 

 

 

28,123

 

 

 

28,123

 

 

 

$

420,927

 

 

$

29,068

 

 

$

449,995

 

 

$

335,975

 

 

$

28,123

 

 

$

364,098

 

Short-term investments

 

$

420,927

 

 

$

1,438

 

 

$

422,365

 

 

$

335,975

 

 

$

1,424

 

 

$

337,399

 

Long-term investments

 

 

—

 

 

 

27,630

 

 

 

27,630

 

 

 

—

 

 

 

26,699

 

 

 

26,699

 

 

 

$

420,927

 

 

$

29,068

 

 

$

449,995

 

 

$

335,975

 

 

$

28,123

 

 

$

364,098

 

 

The cost of the certificates of deposit and money market funds at March 31, 2015 and December 31, 2014 approximates their fair value. As of March 31, 2015 and December 31, 2014, the available-for-sale investments included $5,468 and $5,181 of gross pre-tax unrealized gains, respectively. During the three months ended March 31, 2015, the Company recorded gross pre-tax unrealized gains of $544, or $382 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the three months ended March 31, 2015, the Company sold investments in mutual funds for net proceeds of $1,217 and recognized a pre-tax gain of $257, or $157 after-tax, which was previously recorded in other comprehensive income. During the three months ended March 31, 2014, the Company sold investments in mutual funds for net proceeds of $1,262 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 March 31, 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 March 31, 2015, this minimum cash balance was approximately $53,400.