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Fair Value Measurements And Marketable Securities
 3 Months Ended
Mar. 31, 2012
Fair Value Measurements And Marketable Securities [Abstract]  
Fair Value Measurements And Marketable Securities

Note 3 – Fair Value Measurements and Marketable Securities

We, in accordance with U.S. GAAP, define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Effective January 1, 2008, we elected the fair value option for certain of our marketable securities purchased since such adoption. Management initially elected the fair value option for certain of our marketable securities because it views such investment securities as highly liquid and available to be drawn upon for working capital purposes making them similar to its cash and cash equivalents. Accordingly, we record net unrealized gain or loss in the other income - investment and interest caption in our consolidated statements of comprehensive income for such investments. We have not elected the fair value option for marketable securities acquired after December 31, 2009. Although these assets continue to be highly liquid and available, we do not believe these assets are representative of our operating activities. These assets are representative of our investing activities, and they will be available for future needs of the Company to support its current and projected growth.

 

Certain of our assets and liabilities are reported at fair value in the accompanying balance sheets. Such assets and liabilities include cash and cash equivalents, marketable securities, accounts and notes receivable, accounts payable, income taxes payable and other accrued expenses. The following tables provide fair value measurement information for our marketable securities and deferred compensation fund investment assets as of March 31, 2012 and December 31, 2011.

 

     As of March 31, 2012  
                   Fair Value Measurement Using:  
     Carrying
Amount		      Total Fair
Value		      Quoted Prices
in Active
Markets
(Level 1)		      Significant Other
Observable Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  

Financial Assets

               

Marketable securities

               

Municipal bonds

    $ 21,350,000       $ 21,350,000       $ —         $ 21,350,000       $ —     

Equity securities - Deferred comp fund

               

Money Market

    $ 3,161,000       $ 3,161,000       $ —         $ 3,161,000       $ —     

Large Cap Value

      3,092,000         3,092,000         3,092,000         —           —     

Large Cap Growth

      2,468,000         2,468,000         2,468,000         —           —     

Fixed income

      1,631,000         1,631,000         1,631,000         —           —     

Small Cap Value

      1,345,000         1,345,000         1,345,000         —           —     

Balanced and Lifestyle

      1,101,000         1,101,000         1,101,000         —           —     

Speciality

      908,000         908,000         908,000         —           —     

International

      694,000         694,000         694,000         —           —     

Large Cap Blend

      673,000         673,000         673,000         —           —     

Mid Cap Growth

      344,000         344,000         344,000         —           —     

Small Cap Growth

      62,000         62,000         62,000         —           —     

Mid Cap Value

      62,000         62,000         62,000         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Equity securities - Deferred comp fund

    $ 15,541,000       $ 15,541,000       $ 12,380,000       $ 3,161,000       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     As of December 31, 2011  
                   Fair Value Measurement Using:  
     Carrying
Amount		      Total Fair
Value		      Quoted Prices
in Active
Markets
(Level 1)		      Significant Other
Observable Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		  

Financial Assets

               

Marketable securities

               

Municipal bonds

    $ 31,337,000       $ 31,337,000       $ —         $ 31,337,000       $ —     

Equity securities - Deferred comp fund

               

Money Market

    $ 3,029,000       $ 3,029,000       $ —         $ 3,029,000       $ —     

Large Cap Value

      2,716,000         2,716,000         2,716,000         —           —     

Large Cap Growth

      2,184,000         2,184,000         2,184,000         —           —     

Small Cap Value

      1,244,000         1,244,000         1,244,000         —           —     

Fixed Income

      1,429,000         1,429,000         1,429,000         —           —     

Specialty

      832,000         832,000         832,000         —           —     

Balanced and Lifestyle

      814,000         814,000         814,000         —           —     

International

      562,000         562,000         562,000         —           —     

Large Cap Blend

      500,000         500,000         500,000         —           —     

Mid Cap Growth

      363,000         363,000         363,000         —           —     

Mid Cap Value

      54,000         54,000         54,000         —           —     

Small Cap Growth

      53,000         53,000         53,000         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Equity securities - Deferred comp fund

    $ 13,780,000       $ 13,780,000       $ 10,751,000       $ 3,029,000       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

The fair value of the municipal bonds is measured using pricing service data from an external provider. The fair value of equity investments in the funded deferred compensation plan are valued (Level 1) based on quoted market prices. The money market fund in the funded deferred compensation plan is valued (Level 2) at the net asset value ("NAV") of the shares held by the plan at the end of the period. As a practical expedient, fair value of our money market fund is valued at the NAV as determined by the custodian of the fund. The money market fund includes short-term United States dollar denominated money-market instruments. The money market fund can be redeemed at its NAV at its measurement date as there are no significant restrictions on the ability of participants to sell this investment.

For the three month periods ended March 31, 2012 and 2011, the other income - investment and interest caption on our consolidated statements of comprehensive income includes an unrealized loss from marketable securities of $56,000 and $145,000, respectively, for investments recorded under the fair value option. For the three month periods ended March 31, 2012 and 2011, the accumulated other comprehensive income on our consolidated balance sheet and stockholders' equity includes unrealized loss from marketable securities of $173,000 and unrealized gains of $90,000, respectively, related to marketable securities that are not recognized under the fair value option in accordance with U.S. GAAP.

 

     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Estimated
Fair Value		      Other-than-
temporary
Impairments		  

March 31, 2012

              

Type of security:

              

Municipal bonds

    $ 627,000       $ 26,000       $ —        $ 653,000       $ —     

Municipal bonds - available for sale

      20,414,000         285,000         (2,000 )      20,697,000         —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total debt securities

    $ 21,041,000       $ 311,000       $ (2,000 )    $ 21,350,000       $ —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

December 31, 2011

              

Type of security:

              

Municipal bonds

    $ 2,167,000       $ 82,000       $ —        $ 2,249,000       $ —     

Municipal bonds - available for sale

      28,745,000         352,000         (9,000 )      29,088,000         —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total debt securities

    $ 30,912,000       $ 434,000       $ (9,000 )    $ 31,337,000       $ —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

For the three month periods ended March 31, 2012 and 2011, we received total proceeds of $10,597,000 and $1,503,000 respectively, from sales of available for sale municipal bonds. These sales resulted in realized gains of $183,000 and $3,000 recorded in other income, investment and interest caption on our statement of comprehensive income for the three month periods ended March 31, 2012 and 2011, respectively. The basis for the sale of these securities was a specific identification of each bond sold during this period.

 

The contractual maturities of available for sale investments held at March 31, 2012 and December 31, 2011.

 

     As of March 31, 2012  

Contractual maturity:

    Municipal Bonds      Municipal Bonds  -
Available for Sale		      Total Debt Securities  

Maturing in one year or less

    $ 15,000       $ 1,550,000       $ 1,565,000   

Maturing after one year through three years

      638,000         6,513,000         7,151,000   

Maturing after three years

      —           12,634,000         12,634,000   
  

 

 

     

 

 

     

 

 

  

Total debt securities

    $ 653,000       $ 20,697,000       $ 21,350,000   
  

 

 

     

 

 

     

 

 

  
     As of December 31, 2011  

Contractual maturity:

    Municipal Bonds      Municipal Bonds -
Available for Sale		      Total Debt Securities  

Maturing in one year or less

    $ 34,000       $ 4,100,000       $ 4,134,000   

Maturing after one year through three years

      2,215,000         18,874,000         21,089,000   

Maturing after three years

      —           6,114,000         6,114,000   
  

 

 

     

 

 

     

 

 

  

Total debt securities

    $ 2,249,000       $ 29,088,000       $ 31,337,000