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Investments | 6 Months Ended
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Jun. 30, 2012
Investments [Abstract] |
Investments | (2) Investments The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures” for its financial assets and liabilities, and to its non-financial assets and liabilities. ASC 820 provides a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements about a company’s use of fair-value measurements, including the effect of such measure on earnings. ###### GENTEX CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued (Unaudited) (4) Investments (continued) The Company’s investment securities are classified as available for sale and are stated at fair value based on quoted market prices. Assets or liabilities that have recurring measurements are shown below as of June 30, 2012 and December 31, 2011: As of June 30, 2012:
|  |  |  | Fair Value Measurements at Reporting Date Using
|  | Total as of |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
|  | June 30, 2012 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Cash & Cash Equivalents | $ | 375,707,033 | $ | 375,707,033 | $ | - | $ | -
Short-Term Investments: |  |  |  |  |  |  |  |
Government Securities |  | 15,995,000 |  | 15,995,000 |  | - |  | -
U.S. Treasury Notes |  | 25,010,750 |  | - |  | 25,010,750 |  | -
Corporate Bonds |  | 4,670,329 |  | - |  | 4,670,329 |  | -
Other |  | 271,037 |  | 271,037 |  | - |  | -
Long-Term Investments: |  |  |  |  |  |  |  |
Common Stocks |  | 58,278,414 |  | 58,278,414 |  | - |  | -
Mutual Funds - Equity |  | 74,680,329 |  | 74,680,329 |  | - |  | -
Certificate of Deposit |  | 505,390 |  | - |  | 505,390 |  | -
Corporate Bonds |  | 3,734,570 |  | - |  | 3,734,570 |  | -
Other - Equity |  | 357,700 |  | 357,700 |  | - |  | -
Total | $ | 559,210,552 | $ | 525,289,513 | $ | 33,921,039 | $ | -
As of December 31, 2011:
|  |  | Fair Value Measurements at Reporting Date Using
|  | Total as of |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
|  | December 31, 2011 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Cash & Cash Equivalents | $ | 357,986,774 | $ | 357,986,774 | $ | - | $ | -
Short-Term Investments: |  |  |  |  |  |  |  |
Government Securities |  | 35,024,030 |  | 35,024,030 |  | - |  | -
U.S. Treasury Notes |  | 25,044,000 |  | - |  | 25,044,000 |  | -
Corporate Bonds |  | 649,204 |  | - |  | 649,204 |  | -
Other |  | 91,003 |  | 91,003 |  | - |  | -
Long-Term Investments: |  |  |  |  |  |  |  |
Common Stocks |  | 53,554,303 |  | 53,554,303 |  | - |  | -
Mutual Funds - Equity |  | 73,749,772 |  | 73,749,772 |  | - |  | -
Certificate of Deposit |  | 505,390 |  | - |  | 505,390 |  | -
Other - Equity |  | 358,700 |  | 358,700 |  | - |  | -
Total | $ | 546,963,176 | $ | 520,764,582 | $ | 26,198,594 | $ | -
###### GENTEX CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued (Unaudited) (4) Investments (continued) The Company determines the fair value of its U.S. Treasury Notes, Government Securities and Corporate Bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market. The Company also refers to third party sources to validate valuations. The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2012 and December 31, 2011: As of June 30, 2012:
|  |  | Unrealized |
|  | Cost | Gains |  | Losses |  | Market Value
Short-Term Investments: |  |  |  |  |  |  |  |
Government Securities | $ | 15,998,699 | $ | 300 | $ | (3,999) | $ | 15,995,000
U.S. Treasury Notes |  | 25,006,426 |  | 4,324 |  | - |  | 25,010,750
Corporate Bonds |  | 4,675,864 |  | - |  | (5,535) |  | 4,670,329
Other |  | 271,037 |  | - |  | - |  | 271,037
Long-Term Investments: |  |  |  |  |  |  |  |
Common Stocks |  | 44,882,474 |  | 14,375,674 |  | (979,734) |  | 58,278,414
Mutual Funds - Equity |  | 67,461,376 |  | 8,046,348 |  | (827,395) |  | 74,680,329
Certificate of Deposit |  | 505,390 |  | - |  | - |  | 505,390
Corporate Bonds |  | 3,713,539 |  | 21,031 |  | - |  | 3,734,570
Other - Equity |  | 338,506 |  | 19,194 |  | - |  | 357,700
Total | $ | 162,853,311 | $ | 22,466,871 | $ | (1,816,663) | $ | 183,503,519
As of December 31, 2011:
|  |  | Unrealized |  |
|  | Cost |  | Gains |  | Losses |  | Market Value
Short-Term Investments: |  |  |  |  |  |  |  |
Government Securities | $ | 35,016,980 | $ | 7,090 | $ | (40) | $ | 35,024,030
U.S. Treasury Notes |  | 25,025,600 |  | 18,400 |  | - |  | 25,044,000
Corporate Bonds |  | 648,879 |  | 325 |  | - |  | 649,204
Other |  | 91,003 |  | - |  | - |  | 91,003
Long-Term Investments: |  |  |  |  |  |  |  |
Common Stocks |  | 42,344,526 |  | 12,274,640 |  | (1,064,863) |  | 53,554,303
Mutual Funds - Equity |  | 68,986,676 |  | 6,277,183 |  | (1,514,087) |  | 73,749,772
Certificate of Deposit |  | 505,390 |  | - |  | - |  | 505,390
Other - Equity |  | 338,506 |  | 20,194 |  | - |  | 358,700
Total | $ | 172,957,560 | $ | 18,597,832 | $ | (2,578,990) | $ | 188,976,402
###### GENTEX CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued (Unaudited) (4) Investments (continued) Unrealized losses on investments as of June 30, 2012, are as follows:
| Aggregate Unrealized Losses |  | Aggregate Fair Value
Less than one year | $ | (1,816,663) |  | $ | 40,106,822
Greater than one year |  | - |  |  | -
Unrealized losses on investments as of December 31, 2011 are as follows:
| Aggregate Unrealized Losses |  | Aggregate Fair Value
Less than one year | $ | (2,578,990) |  | $ | 42,845,635
Greater than one year |  | - |  |  | -
ASC 320, “Accounting for Certain Investments in Debt and Equity Securities”, as amended and interpreted, provided guidance on determining when an investment is other than temporarily impaired. The Company reviews its fixed income and equity investment portfolio for any unrealized losses that would be deemed other-than-temporary and require the recognition of an impairment loss in income. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and the Company’s intent and ability to hold the investments. Management also considers the type of security, related-industry and sector performance, as well as published investment ratings and analyst reports, to evaluate its portfolio. Once a decline in fair value is determined to be other than temporary, an impairment charge is recorded and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. No equity investment losses were considered to be other than temporary at June 30, 2012. Fixed income securities as of June 30, 2012, have contractual maturities as follows:
Due within one year | $ | 45,947,116
Due between one and five years |  | 4,239,960
Due over five years |  | -
Total | $ | 50,187,076

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 + Details
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