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Investments in debt and equity securities
 9 Months Ended
Sep. 30, 2016
Investments Debt And Equity Securities [Abstract]  
Investments in debt and equity securities

4.

Investments in debt and equity securities

The Company classifies certain debt securities as held-to-maturity and records them at amortized cost based on the Company’s intentions and strategy concerning those investments. 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 these securities consist of the following:

 

 

 

September 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

 

$

647,885

 

 

$

—

 

 

$

647,885

 

 

$

406,884

 

 

$

—

 

 

$

406,884

 

Investments in mutual funds, debt securities and

   common stock

 

 

—

 

 

 

53,259

 

 

 

53,259

 

 

—

 

 

 

33,482

 

 

 

33,482

 

 

 

$

647,885

 

 

$

53,259

 

 

$

701,144

 

 

$

406,884

 

 

$

33,482

 

 

$

440,366

 

Short-term investments

 

$

647,885

 

 

$

11,593

 

 

$

659,478

 

 

$

406,884

 

 

$

1,200

 

 

$

408,084

 

Long-term investments

 

 

—

 

 

 

41,666

 

 

 

41,666

 

 

 

—

 

 

 

32,282

 

 

 

32,282

 

 

 

$

647,885

 

 

$

53,259

 

 

$

701,144

 

 

$

406,884

 

 

$

33,482

 

 

$

440,366

 

 

The cost of the certificates of deposit, commercial paper and money market funds at September 30, 2016 and December 31, 2015 approximates their fair value. As of September 30, 2016 and December 31, 2015, the available-for-sale investments included $4,934 and $2,589 of gross pre-tax unrealized gains, respectively. During the nine months ended September 30, 2016, the Company recorded gross pre-tax unrealized gains of $2,578, or $1,781 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the nine months ended September 30, 2016, the Company sold investments in mutual funds and debt securities for net proceeds of $4,645 and recognized a pre-tax gain of $233, or $143 after-tax, which was previously recorded in other comprehensive income. During the nine months ended September 30, 2015, the Company sold investments in mutual funds and common stock for net proceeds of $1,961 and recognized a pre-tax gain of $617, or $376 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.

Certain DaVita Medical Group (DMG, formerly known as HealthCare Partners or HCP) legal entities are required to maintain minimum cash balances in order to comply with regulatory requirements in conjunction with medical claim reserves. As of September 30, 2016, this minimum cash balance was approximately $58,127.