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Marketable Securities

6 Months Ended

Jun. 30, 2012

Marketable Securities [Abstract]

MARKETABLE SECURITIES

NOTE C – MARKETABLE SECURITIES

The Company classifies its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis.

The following is a summary of available-for-sale securities at June 30, 2012 and December 31, 2011:


($ in thousands)						2012								2011
Marketable Securities:		Fair Value Hierarchy				Cost				Estimated Fair Value				Cost				Estimated Fair Value

Certificates of deposit
with unrecognized losses for less than 12 months						$	1,902			$	1,893			$	3,646			$	3,605
with unrecognized losses for more than 12 months							103				103				—				—
with unrecognized gains							4,324				4,360				3,525				3,551

Total Certificates of deposit			Level 1				6,329				6,356				7,171				7,156


US Treasury and agency notes
with unrecognized losses for less than 12 months							6,293				6,236				4,352				4,338
with unrecognized losses for more than 12 months							—				—				1,002				1,000
with unrecognized gains							14,723				14,844				16,479				16,660

Total US Treasury and agency notes			Level 2				21,016				21,080				21,833				21,998


Corporate notes
with unrecognized losses for less than 12 months							4,739				4,707				9,230				9,098
with unrecognized losses for more than 12 months							821				818				1,539				1,494
with unrecognized gains							26,052				26,460				19,369				19,738

Total Corporate notes			Level 2				31,612				31,985				30,138				30,330


Municipal notes
with unrecognized losses for less than 12 months							1,058				1,048				1,177				1,165
with unrecognized losses for more than 12 months							952				944				881				873
with unrecognized gains							7,516				7,622				6,964				7,044

Total Municipal notes			Level 2				9,526				9,614				9,022				9,082

						$	68,483			$	69,035			$	68,164			$	68,566

We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss which is recognized through other comprehensive income.

At June 30, 2012, the fair market value of investment securities exceeded the cost basis by $552,000. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. None have been recorded at June 30, 2012. The Company has determined that any unrealized losses in the portfolio are temporary as of June 30, 2012. The Company believes that market factors such as, changes in interest rates, liquidity discounts, and premiums required by market participants rather than an adverse change in cash flows or a fundamental weakness in credit quality of the issuer have led to the temporary declines in value. In the future based on changes in the economy, credit markets, financial condition of issuers, or market interest rates, this could change.

As of June 30, 2012, the adjustment to accumulated other comprehensive income (loss) in consolidated equity for the temporary change in the value of securities reflects an increase in the market value of available-for-sale securities of $91,000, which includes estimated taxes of $60,000.

As of June 30, 2012, the Company’s gross unrealized holding gains equal $672,000 and gross unrealized holding losses equal $120,000. On June 30, 2012, the average maturity of certificates of deposits was 2.77 years, the average maturity of U.S. Treasury and agency securities was 2.31 years, the average maturity of corporate notes was 2.16 years and the average maturity of municipal notes was 2.40 years. Currently, the Company has no securities with a remaining term to maturity of greater than five years.

The following tables summarize the maturities, at par, of marketable securities by year:


(in thousands)
At June 30, 2012		2012				2013				2014				2015				2016				Total
Certificates of deposit		$	200			$	1,255			$	1,627			$	2,739			$	301			$	6,122

U.S. Treasury and agency notes			671				8,785				8,982				2,633				—				21,071

Corporate notes			2,377				11,416				7,097				8,334				1,313				30,537

Municipal notes			710				2,305				4,345				1,760				100				9,220

		$	3,958			$	23,761			$	22,051			$	15,466			$	1,714			$	66,950


(in thousands)
At December 31, 2011		2012				2013				2014				2015				2016				Total
Certificates of deposit		$	1,536			$	1,255			$	1,627			$	2,526			$	—			$	6,944

U.S. Treasury and agency notes			4,734				10,285				5,856				936				—				21,811

Corporate notes			3,450				11,231				8,923				5,584				—				29,188

Municipal notes			860				2,505				4,145				1,160				—				8,670

		$	10,580			$	25,276			$	20,551			$	10,206			$	—			$	66,613

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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