XML 72 R10.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Investments | 9 Months Ended
--- | ---
Jan. 31, 2016
Investments, Debt and Equity Securities [Abstract] |
Investments | Note 2 - Investments: Securities Available-for-Sale: Investments held by the Company are classified as securities available-for-sale in accordance with FASB's ASC 320, Investments - Debt and Equity Securities. All of the Company's securities classified as available-for-sale are readily marketable and have a maturity of twelve months or less and are included as current assets on the Consolidated Condensed Balance Sheets. Equity Securities: Equity securities classified as available-for-sale on the Consolidated Condensed Balance Sheets, consist of ETFs held for dividend yield that attempt to replicate the performance of certain equity indexes and ETFs that hold preferred shares primarily of financial institutions. As of January 31, 2016 and April 30, 2015, the aggregate cost of the equity securities classified as available-for-sale, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), PowerShares Financial Preferred ETF (PGF), small, mid and large cap high dividend yielding ETFs, and conservative equity ETFs (VLSM, VLML, VLLV), was $4,625,000 and $9,470,000, respectively, and the fair value was $4,550,000 and $9,632,000, respectively. Proceeds from sales of equity securities classified as available-for-sale during the nine months ended January 31, 2016 were $8,789,000 and the related capital losses of $15,000 were reclassified from Accumulated Other Comprehensive Income in the Consolidated Condensed Balance Sheet to the Consolidated Condensed Statement of Income. During the second quarter ended January 31, 2016, the Company made a decision to sell the dividend paying ETF and non dividend paying inverse ETF positions. The liquidated portfolio of investments generated an annual dividend return averaging 3% annually during the years it was held. The increase in gross unrealized losses on equity securities classified as available-for-sale of $237,000, net of deferred taxes of $84,000 was included in Shareholders' Equity at January 31, 2016. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $51,000, net of deferred taxes of $18,000 was included in Shareholders' Equity at January 31, 2015. Proceeds from sales of equity securities during the nine months ended January 31, 2015 amounted to $57,000. The changes in the value of equity securities investments are recorded in Other Comprehensive Income in the Consolidated Condensed Financial Statements. Realized gains and losses are recorded as of the trade date in the Consolidated Condensed Statements of Income when securities are sold, mature or are redeemed. As of January 31, 2016, accumulated other comprehensive income included net unrealized losses of $74,000, net of deferred taxes of $26,000. As of April 30, 2015, accumulated other comprehensive income included net unrealized gains of $162,000, net of deferred taxes of $57,000. The carrying value and fair value of securities available-for-sale at January 31, 2016 were as follows:
($ in thousands) |  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
ETFs - equities |  |  | 4,625 |  |  |  | 122 |  |  |  | (197 | ) |  |  | 4,550 |
|  | $ | 4,625 |  |  | $ | 122 |  |  | $ | (197 | ) |  | $ | 4,550 |
The carrying value and fair value of securities available-for-sale at April 30, 2015 were as follows:
($ in thousands) |  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Common stocks |  | $ | 101 |  |  | $ | 74 |  |  | $ | - |  |  | $ | 175 |
ETFs - equities |  |  | 3,903 |  |  |  | 1,508 |  |  |  | - |  |  |  | 5,411 |
Inverse ETFs - equities |  |  | 5,466 |  |  |  | - |  |  |  | (1,420 | ) |  |  | 4,046 |
|  | $ | 9,470 |  |  | $ | 1,582 |  |  | $ | (1,420 | ) |  | $ | 9,632 |
Income from Securities Transactions: Income from securities transactions was comprised of the following:
|  | Three Months Ended January 31, |  |  | Nine Months Ended January 31, |
($ in thousands) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Dividend income |  | $ | 31 |  |  | $ | 42 |  |  | $ | 111 |  |  | $ | 119 |
Interest income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3 |
Capital gain distributions |  |  | 105 |  |  |  | 57 |  |  |  | 105 |  |  |  | 57 |
Realized capital loss |  |  | - |  |  |  | - |  |  |  | (15 | ) |  |  | - |
Other |  |  | (3 | ) |  |  | (3 | ) |  |  | 14 |  |  |  | 24 |
Total income from securities transactions, net |  | $ | 133 |  |  | $ | 96 |  |  | $ | 215 |  |  | $ | 203 |
Investment in Unconsolidated Entities: Equity Method Investment: As of January 31, 2016 and April 30, 2015, the Company's investment in EAM Trust, on the Consolidated Condensed Balance Sheets was $58,079,000 and $58,048,000, respectively. The value of VLI’s investment in EAM at January 31, 2016 and April 30, 2015 reflects the fair value of contributed capital of $55,805,000 at inception which included $5,820,000 of cash and liquid securities in excess of working capital requirements contributed to EAM’s capital account by VLI, plus VLI's share of non-voting revenues and non-voting profits from EAM less distributions, made quarterly to VLI by EAM, during the period subsequent to its initial investment through the dates of the Consolidated Condensed Balance Sheets. It is anticipated that EAM will have sufficient liquidity and earn enough profit to conduct its current and future operations so the management of EAM will not need additional funding. The Company monitors its Investment in EAM Trust for impairment to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. Impairment indicators include, but are not limited to the following: (a) a significant deterioration in the earnings performance, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of the industry in which the investee operates, or (d) factors that raise significant concerns about the investee’s ability to continue as a going concern such as negative cash flows, working capital deficiencies, or noncompliance with statutory capital and regulatory requirements. EAM did not record any impairment losses for its assets during the fiscal years 2016 or 2015. The components of EAM’s investment management operations, provided to the Company by EAM, were as follows:
|  | Three Months Ended January 31, |  |  | Nine Months Ended January 31, |
($ in thousands) (unaudited) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Investment management fees earned from the Value Line Funds, net of fee waivers |  | $ | 3,656 |  |  | $ | 3,792 |  |  | $ | 11,147 |  |  | $ | 11,269 |
12b-1 fees and other fees, net of fee waivers |  | $ | 1,440 |  |  | $ | 1,385 |  |  | $ | 4,278 |  |  | $ | 4,094 |
Other income (loss) |  | $ | (57 | ) |  | $ | 4 |  |  | $ | (84 | ) |  | $ | 13 |
Investment management fee waivers (1) |  | $ | 48 |  |  | $ | 57 |  |  | $ | 143 |  |  | $ | 147 |
12b-1 fee waivers (1) |  | $ | 235 |  |  | $ | 378 |  |  | $ | 848 |  |  | $ | 1,147 |
Value Line’s non-voting revenues interest |  | $ | 1,825 |  |  | $ | 1,862 |  |  | $ | 5,546 |  |  | $ | 5,498 |
EAM's net income (2) |  | $ | 188 |  |  | $ | 324 |  |  | $ | 710 |  |  | $ | 994 |
(1) During fiscal 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds. During fiscal 2015 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to six of the Value Line Mutual Funds. (2) Represents EAM's net income, after giving effect to Value Line’s non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
|  | January 31, |  |  | April 30, |
($ in thousands) |  | 2016 |  |  | 2015 |
|  | (unaudited) |  |  |  |
EAM's total assets |  | $ | 60,259 |  |  | $ | 60,159 |
EAM's total liabilities (1) |  |  | (3,039 | ) |  |  | (3,104 | )
EAM's total equity |  | $ | 57,220 |  |  | $ | 57,055 |
(1) At January 31, 2016 and April 30, 2015, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,901,000 and $1,951,000, respectively.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration