Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v2.4.0.6
Fair Value Measurements
12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the extent to which the fair value estimates are based upon observable or unobservable inputs.  Level inputs are as follows:
 
Level Input:
 
Input Definition:
Level I
 
Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 
 
 
Level II
 
Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.
 
 
 
Level III
 
Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
 
The following table summarizes fair value measurements by level at December 31, 2012, for assets and liabilities measured at fair value on a recurring basis:  
 
Level I
 
Level II
 
Level III
 
Total
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
843,952

 
$

 
$

 
$
843,952

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
57,114

 
$
46,250

 
$

 
$
103,364

Corporate securities

 
320,710

 

 
320,710

Municipal securities:
 

 
 

 
 

 
 
General obligation

 
89,837

 

 
89,837

Pre-refunded

 
5,422

 

 
5,422

Revenue

 
86,027

 

 
86,027

Variable rate demand notes

 
37,685

 

 
37,685

Asset backed securities

 
84,475

 

 
84,475

Total investments
$
57,114

 
$
670,406

 
$

 
$
727,520

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
14,460

 
$

 
$

 
$
14,460

Certificates of deposit
5,890

 

 

 
5,890

U.S. Treasury securities and obligations of U.S. government corporations and agencies
14,443

 

 

 
14,443

Total restricted deposits
$
34,793

 
$

 
$

 
$
34,793

Other long-term assets:
 
 
 
 
 
 
 
Interest rate swap contract
$

 
$
16,304

 
$

 
$
16,304

Total assets at fair value
$
935,859

 
$
686,710

 
$

 
$
1,622,569


The following table summarizes fair value measurements by level at December 31, 2011, for assets and liabilities measured at fair value on a recurring basis: 
 
Level I
 
Level II
 
Level III
 
Total
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
573,698

 
$

 
$

 
$
573,698

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
17,091

 
$
5,395

 
$

 
$
22,486

Corporate securities

 
189,029

 

 
189,029

Municipal securities:
 

 
 

 
 

 
 

General obligation

 
129,608

 

 
129,608

Pre-refunded

 
33,712

 

 
33,712

Revenue

 
120,860

 

 
120,860

Variable rate demand notes

 
64,658

 

 
64,658

Asset backed securities

 
52,192

 

 
52,192

Total investments
$
17,091

 
$
595,454

 
$

 
$
612,545

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
13,775

 
$

 
$

 
$
13,775

Certificates of deposit
5,890

 

 

 
5,890

U.S. Treasury securities and obligations of U.S. government corporations and agencies
7,153

 

 

 
7,153

Total restricted deposits
$
26,818

 
$

 
$

 
$
26,818

Other long-term assets:
 
 
 
 
 
 
 
Interest rate swap contract
$

 
$
11,431

 
$

 
$
11,431

Total assets at fair value
$
617,607

 
$
606,885

 
$

 
$
1,224,492


 
The Company periodically transfers U.S. Treasury securities and obligations of U.S. government corporations and agencies between Level I and Level II fair value measurements dependent upon the level of trading activity for the specific securities at the measurement date.  The Company’s policy regarding the timing of transfers between Level I and Level II is to measure and record the transfers at the end of the reporting period.  At December 31, 2012, there were $1,388 of transfers from Level I to Level II and $304 of transfers from Level II to Level I.  The Company utilizes matrix pricing services to estimate fair value for securities which are not actively traded on the measurement date.  The Company designates these securities as Level II fair value measurements.  The aggregate carrying amount of the Company’s life insurance contracts and other non-majority owned investments, which approximates fair value, was $26,321 and $24,094 as of December 31, 2012 and December 31, 2011, respectively.