INVESTMENTS
 3 Months Ended
Mar. 31, 2015
INVESTMENTS  
INVESTMENTS

4. INVESTMENTS

 

Investments consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

              Losses              

 

 

 

 

 

   

Amortized

   

 

 

   

Less than

    

Greater than

   

Estimated

 

 

 

Cost

 

Gains

 

One Year

 

One Year

 

Fair Value

 

 

 

(In thousands)

 

March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency debt securities

 

$
310,469 

 

$
353 

 

$
(10)

 

$

 —

 

$
310,812 

 

Corporate debt securities

 

 
182,014 

 

 
137 

 

 
(60)

 

 

 —

 

 
182,091 

 

International government agency debt securities

 

 
45,215 

 

 
37 

 

 
(4)

 

 

 —

 

 
45,248 

 

Total short-term investments

 

 
537,698 

 

 
527 

 

 
(74)

 

 

 —

 

 
538,151 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 
28,001 

 

 

 —

 

 
(26)

 

 

 —

 

 
27,975 

 

U.S. government and agency debt securities

 

 
26,090 

 

 

 —

 

 
(6)

 

 
(4)

 

 
26,080 

 

International government agency debt securities

 

 
2,575 

 

 

 —

 

 

 —

 

 

 —

 

 
2,575 

 

 

 

 
56,666 

 

 

 —

 

 
(32)

 

 
(4)

 

 
56,630 

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 
1,619 

 

 

 —

 

 

 —

 

 

 —

 

 
1,619 

 

Total long-term investments

 

 
58,285 

 

 

 —

 

 
(32)

 

 
(4)

 

 
58,249 

 

Total investments

 

$
595,983 

 

$
527 

 

$
(106)

 

$
(4)

 

$
596,400 

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency debt securities

 

$
226,387 

 

$
88 

 

$
(15)

 

$

 —

 

$
226,460 

 

Corporate debt securities

 

 
140,900 

 

 
26 

 

 
(66)

 

 

 —

 

 
140,860 

 

International government agency debt securities

 

 
39,774 

 

 
13 

 

 
(5)

 

 

 —

 

 
39,782 

 

Total short-term investments

 

 
407,061 

 

 
127 

 

 
(86)

 

 

 —

 

 
407,102 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency debt securities

 

 
100,429 

 

 

 —

 

 
(196)

 

 
(40)

 

 
100,193 

 

Corporate debt securities

 

 
61,187 

 

 

 —

 

 
(84)

 

 

 —

 

 
61,103 

 

International government agency debt securities

 

 
7,568 

 

 

 —

 

 
(2)

 

 
(1)

 

 
7,565 

 

 

 

 
169,184 

 

 

 —

 

 
(282)

 

 
(41)

 

 
168,861 

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 
1,619 

 

 

 —

 

 

 —

 

 

 —

 

 
1,619 

 

Total long-term investments

 

 
170,803 

 

 

 —

 

 
(282)

 

 
(41)

 

 
170,480 

 

Total investments

 

$
577,864 

 

$
127 

 

$
(368)

 

$
(41)

 

$
577,582 

 

 

The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows:

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

(In thousands)

    

2015

    

2014

Proceeds from the sales and maturities of marketable securities

 

$
98,927 

 

$
84,500 

Realized gains

 

$
11 

 

$

 —

Realized losses

 

$

 —

 

$
(3)

 

The Company’s available-for-sale and held-to-maturity securities at March 31, 2015 had contractual maturities in the following periods:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

Held-to-maturity

 

 

    

Amortized

    

Estimated

    

Amortized

    

Estimated

 

(In thousands)

 

Cost

 

Fair Value

 

Cost

 

Fair Value

 

Within 1 year

 

$
334,207 

 

$
334,234 

 

$
1,619 

 

$
1,619 

 

After 1 year through 5 years

 

 
260,157 

 

 
260,547 

 

 

 —

 

 

 —

 

Total

 

$
594,364 

 

$
594,781 

 

$
1,619 

 

$
1,619 

 

 

At March 31, 2015, the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted primarily of U.S. government and agency debt securities and corporate debt securities. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near-term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis.

 

In May 2014, the Company entered into an agreement whereby it is committed to provide up to €7.4 million to a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in healthcare, pharmaceutical and life sciences sectors. The Company’s commitment represents approximately 10% of the partnership’s total funding, and the Company is accounting for its investment in Fountain under the equity method.  At March 31, 2015, the Company had made payments of, and its investment is equal to, $1.1 million (€0.8 million), which is included within “Other assets” in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2015, the Company recorded a reduction in its investment in Fountain of less than $0.1 million, which represented the Company’s proportional share of Fountain’s net loss for this period.