Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v2.4.0.8
Fair Value Measurements
12 Months Ended
Dec. 31, 2013
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, 2013, for assets and liabilities measured at fair value on a recurring basis:  
 
Level I
 
Level II
 
Level III
 
Total
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
974,304

 
$

 
$

 
$
974,304

Investments available for sale:
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
212,185

 
$
12,238

 
$

 
$
224,423

Corporate securities

 
296,086

 

 
296,086

Municipal securities:
 

 
 

 
 

 
 
General obligation

 
54,422

 

 
54,422

Pre-refunded

 
10,917

 

 
10,917

Revenue

 
69,054

 

 
69,054

Variable rate demand notes

 
28,575

 

 
28,575

Asset backed securities

 
139,050

 

 
139,050

Mortgage backed securities
$

 
$
33,891

 
$

 
$
33,891

Total investments
$
212,185

 
$
644,233

 
$

 
$
856,418

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
26,642

 
$

 
$

 
$
26,642

Certificates of deposit
5,891

 

 

 
5,891

U.S. Treasury securities and obligations of U.S. government corporations and agencies
14,413

 

 

 
14,413

Total restricted deposits
$
46,946

 
$

 
$

 
$
46,946

Other long term assets:
 
 
 
 
 
 
 
Interest rate swap contract
$

 
$
9,576

 
$

 
$
9,576

Total assets at fair value
$
1,233,435

 
$
653,809

 
$

 
$
1,887,244


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
$
745,933

 
$

 
$

 
$
745,933

Investments available for sale:
 

 
 

 
 

 
 

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

 
$
40,246

 
$

 
$
97,360

Corporate securities

 
295,111

 

 
295,111

Municipal securities:
 

 
 

 
 

 
 

General obligation

 
86,571

 

 
86,571

Pre-refunded

 
5,422

 

 
5,422

Revenue

 
84,064

 

 
84,064

Variable rate demand notes

 
23,385

 

 
23,385

Asset backed securities

 
74,637

 

 
74,637

Mortgage backed securities

 

 

 

Total investments
$
57,114

 
$
609,436

 
$

 
$
666,550

Restricted deposits available for sale:
 

 
 

 
 

 
 

Cash and cash equivalents
$
14,455

 
$

 
$

 
$
14,455

Certificates of deposit
5,890

 

 

 
5,890

U.S. Treasury securities and obligations of U.S. government corporations and agencies
13,941

 

 

 
13,941

Total restricted deposits
$
34,286

 
$

 
$

 
$
34,286

Other long term assets:
 
 
 
 
 
 
 
Interest rate swap contract
$

 
$
16,304

 
$

 
$
16,304

Total assets at fair value
$
837,333

 
$
625,740

 
$

 
$
1,463,073


 
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, 2013, there were $1,143 of transfers from Level I to Level II and $26,301 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 $37,608 and $26,321 as of December 31, 2013 and December 31, 2012, respectively.