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4. INVESTMENTS
Commercial Paper and Money Market Investments. As of December 31, 2015 and 2014, the Company had
commercial paper and money market investments of $433.0 million and $594.3 million, respectively, that are
classified as cash, cash equivalents and restricted cash in the Company’s Consolidated Balance Sheets.
Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the
following:
As of December 31
(in thousands) 2015 2014
Total cost ...................................... $253,062 $106,909
Gross unrealized gains ........................... 97,741 86,884
Gross unrealized losses ........................... (240) –
Total Fair Value ............................... $350,563 $193,793
At December 31, 2015 and 2014, the Company owned 28,000 shares in Markel Corporation (Markel) valued at
$24.7 million and $19.1 million, respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S.
Gayner, is a member of the Company’s Board of Directors.
The Company invested $146.2 million, $50.0 million and $15.0 million in marketable equity securities during
2015, 2014 and 2013, respectively. During 2014, the proceeds from the sale of marketable securities were $5.8
million and net realized losses were $2.6 million. During 2013, proceeds from sales of marketable equity
securities were $3.6 million and net realized gains on such sales were $0.9 million.
On June 30, 2014, the Company completed a transaction with Berkshire, as described in Note 7, that included the
exchange of 2,107 Class A Berkshire shares and 1,278 Class B Berkshire shares owned by the Company; a
$266.7 million gain was recorded.
At the end of 2013, the Company’s investment in Strayer Education, Inc. had been in an unrealized loss position
for about six months. The Company evaluated this investment for other-than-temporary impairment based on
various factors, including the duration and severity of the unrealized loss, the reason for the decline in value, the
potential recovery period and the Company’s ability and intent to hold the investment. Based on this evaluation,
the Company concluded that the unrealized loss was other-than-temporary and recorded a $10.4 million write-
down of the investment in 2013.
Investments in Affiliates. In the second quarter of 2015, the Company acquired approximately 20% of
HomeHero, a company that created and manages an online senior home care marketplace. At December 31,
2015, the Company also held a 40% interest in Residential Home Health Illinois, a 42.5% interest in Residential
Hospice Illinois, a 40% interest in the joint venture formed between Celtic and Allegheny Health Network
(AHN) and interests in several other affiliates (see Note 7).
On April 1, 2014, the Company received a gross cash distribution of $95.0 million from Classified Ventures’ sale
of apartments.com. In connection with this sale, the Company recorded a pre-tax gain of $90.9 million in the
second quarter of 2014. On September 30, 2014, the Company held a 16.5% interest in Classified Ventures. On
October 1, 2014, the Company and the remaining partners completed the sale of their entire stakes in Classified
Ventures. Total proceeds to the Company, net of transaction costs, were $408.5 million, of which $16.5 million
was held in escrow until received in the fourth quarter of 2015. The Company recorded a pre-tax gain of $396.6
million in connection with the sale in the fourth quarter of 2014.
2015 FORM 10-K 86