We currently maintain our principal place of business at 100 Crowne Point Place, Sharonville, Ohio 45241, which we own. We occupy approximately 80% of this property. The remaining amount, approximately 20%, is leased to a third-party tenant. We believe that our existing facility is adequate to support our business.
Cash increased $1,084,000, or 13.4%, for the year ended December 31, 2014 to approximately $9.2 million at December 31, 2014 from approximately $8.1 million at December 31, 2013. This cash increase is primarily the result of cash flow from operations of approximately $2,556,000, that was offset by cash used in investing activities of approximately $845,000 and cash used in financing activities of approximately $627,000.
As of December 31, 2014, we believe our most significant other commitments are:
Fully-insured premium revenue is recognized in the period during which dental or vision coverage is provided to the covered individuals. Payments received from customers in advance of the related period of coverage, as well as related accounts receivable, are reflected on the accompanying consolidated balance sheets as unearned premium revenue. The Company’s unearned premium revenue was approximately $32,637,000 and $35,395,000 at December 31, 2014 and 2013, respectively, for the estimated premium revenue associated with the remaining contract periods and related amounts recorded in accounts receivable. Enrollment changes not yet reflected on employer group invoices, also known as retroactive membership adjustments, are estimated based on available data and are reflected in revenue in the current period. These retroactive membership adjustments are generally immaterial to the consolidated financial statements. Self-insured premium revenue is recognized upon the payment of claims for self-insured members in accordance with contracts with self-insured employers. We provide administrative and claims processing services, benefit plan design, and access to provider networks for an administrative fee to self-insured groups. The Company has no underwriting risk arising from the provision or cost of any services provided to the self-insured groups.
Deferred Acquisition Costs- Deferred acquisition costs are those incremental direct costs related to the successful acquisition of new and renewal business. These incremental direct costs are those that are essential to the contract transaction and would not have been incurred had the contract transaction not occurred. Such incremental direct costs include commissions, costs of contract issuance and underwriting, premium taxes and other costs the Company incurs to acquire successful new business or renew existing business. The Company defers policy acquisition costs and amortizes them over the estimated life of the contracts, which are short-duration in nature, in proportion to premiums earned. The Company capitalized deferred acquisition costs of approximately $3,989,000, $4,867,000, and $3,368,000, and amortized approximately $4,129,000, $3,862,000, and $3,592,000 of these capitalized costs for the years ended December 31, 2014, 2013, and 2012, respectively. The amortization of these costs are recorded in commission expenses and other acquisition costs included in the consolidated statements of comprehensive income.
Healthcare Services Expense- Healthcare services expense is recognized on a monthly basis. In the case of the fully-insured dental HMO and indemnity (“dental HMO/IND”) and dental PPO segments, healthcare services expense is calculated by taking the paid claims associated with the fully-insured membership and adjusting this amount for the change in the claims payable liability determined using actuarial estimates. For the self-insured dental segment, the healthcare services expense is based solely on the paid claims for the self-insured membership. The Company incurred claim costs related to dental care providers amounting to approximately $71,696,000, $67,762,000, and $63,736,000, for the years ended December 31, 2014, 2013, and 2012, respectively.
The Company owned 107 corporate bonds at December 31, 2014, which consist primarily of investment grade securities. At December 31, 2014, total bond fair value was approximately $7,196,000, which consists of 67 different securities each with a credit rating of A- or better totaling approximately $5,247,000. The remaining 40 securities, totaling approximately $1,949,000 had a credit rating of between BBB+ and B-. The weighted average yield-to-cost of the Company’s corporate bonds was approximately 3.18% at December 31, 2014. The weighted average maturity of the Company’s corporate bonds was 5.10 years at December 31, 2014. The unrealized gains and losses on available-for-sale investment activity are due to a change in fair value for these investments caused primarily by changes in prevailing interest rates since they were purchased. There were approximately $30,000 realized gains for the year ended December 31, 2014, respectively. There were no material realized gains or losses for the year ended December 31, 2013.
Investments classified at December 31, 2014 and 2013, as fixed maturities and short-term investments were as follows:
Share-based compensation cost is measured at the grant date based on the fair value of the awards and is recognized as expense over the vesting periods and is included in total insurance expense in the consolidated statements of comprehensive income. The fair value of the awards is remeasured at the end of each reporting period through the remaining vesting period with the change in fair value recognized in earnings.
The following is a summary of activity of vested awards for the years ended December 31, 2014 and 2013: