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Investments in debt and equity securities and other investments
 6 Months Ended
Jun. 30, 2016
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, 2016

 

 

December 31, 2015

 

 

 

Held to

 

 

Available

 

 

 

 

 

 

Held to

 

 

Available

 

 

 

 

 

 

 

maturity

 

 

for sale

 

 

Total

 

 

maturity

 

 

for sale

 

 

Total

 

Certificates of deposit, commercial paper and money

   market funds due within one year

 

$

382,664

 

 

$

—

 

 

$

382,664

 

 

$

406,884

 

 

$

—

 

 

$

406,884

 

Investments in mutual funds, debt securities and

   common stock

 

 

—

 

 

 

50,056

 

 

 

50,056

 

 

—

 

 

 

33,482

 

 

 

33,482

 

 

 

$

382,664

 

 

$

50,056

 

 

$

432,720

 

 

$

406,884

 

 

$

33,482

 

 

$

440,366

 

Short-term investments

 

$

382,664

 

 

$

11,502

 

 

$

394,166

 

 

$

406,884

 

 

$

1,200

 

 

$

408,084

 

Long-term investments

 

 

—

 

 

 

38,554

 

 

 

38,554

 

 

 

—

 

 

 

32,282

 

 

 

32,282

 

 

 

$

382,664

 

 

$

50,056

 

 

$

432,720

 

 

$

406,884

 

 

$

33,482

 

 

$

440,366

 

 

The cost of the certificates of deposit, commercial paper and money market funds at June 30, 2016 and December 31, 2015 approximates their fair value. As of June 30, 2016 and December 31, 2015, the available-for-sale investments included $3,561 and $2,589 of gross pre-tax unrealized gains, respectively. During the six months ended June 30, 2016, the Company recorded gross pre-tax unrealized gains of $1,124, or $718 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the six months ended June 30, 2016, the Company sold investments in mutual funds for net proceeds of $1,347 and recognized a pre-tax gain of $152, or $93 after-tax, which was previously recorded in other comprehensive income. 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.

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, 2016, the Company held $6,250 of preferred stock in two privately held companies that are accounted for under the cost method as these investments do not have readily determinable fair values.

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, 2016, this minimum cash balance was approximately $58,437.