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FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Oct. 31, 2012
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE I – FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The cost, gross unrealized gains, gross unrealized losses and fair market value of available-for-sale securities at October 31, 2012 and April 30, 2012 are as follows (in thousands):

 

    October 31, 2012  
          Gross     Gross     Fair  
          Unrealized     Unrealized     Market  
    Cost     Gains     Losses     Value  
Fixed income securities   $ 10,187     $ 357     $ -     $ 10,544  
Equity securities     5,701       687       (1 )     6,387  
    $ 15,888     $ 1,044     $ (1 )   $ 16,931  

 

    April 30, 2012  
          Gross     Gross     Fair  
          Unrealized     Unrealized     Market  
    Cost     Gains     Losses     Value  
Fixed income securities   $ 11,573     $ 297     $ (6 )   $ 11,864  
Equity securities     5,411       552       (169 )     5,794  
    $ 16,984     $ 849     $ (175 )   $ 17,658  

 

The following table presents the fair value and unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

 

    Less than 12 months     12 Months or more     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Losses     Value     Losses     Value     Losses  
October 31, 2012                                                
Fixed Income Securities   $ -     $ -     $ -     $ -     $ -     $ -  
Equity Securities     -       -       129       (1 )     129       (1 )
    $ -     $ -     $ 129     $ (1 )   $ 129     $ (1 )
April 30, 2012                                                
Fixed Income Securities   $ 301     $ (6 )   $ -     $ -     $ 301     $ (6 )
Equity Securities     539       (169 )     -       -       539       (169 )
    $ 840     $ (175 )   $ -     $ -     $ 840     $ (175 )

 

The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. The Company does not believe that its investments in marketable securities with unrealized losses at October 31, 2012 are other-than-temporary due to market volatility of the security’s fair value, analysts’ expectations and the Company’s ability to hold the securities for a period of time sufficient to allow for any anticipated recoveries in market value.

 

During the six months ended October 31, 2012 and 2011, the Company redeemed available-for-sale securities in the amount of $2.0 million and $5.1 million, respectively, and realized no gain or loss during the fiscal year 2013 period and a gain of $7,000 for the same period in fiscal year 2012. These amounts are included in the determination of net income for each period.

 

Maturities of fixed income securities classified as available-for-sale at October 31, 2012 are as follows, at cost (in thousands):

 

Current   $ 1,003  
Due after one year through five years     8,522  
Due after five years through ten years     662  
    $ 10,187  

 

The fair value accounting framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:

 

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

 

Level 2 Inputs to the valuation methodology include:

- Quoted prices for similar assets or liabilities in active markets;
- Quoted prices for identical or similar assets or liabilities in inactive markets
- Inputs other than quoted prices that are observable for the asset or liability;

- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. All of the Company’s investments in marketable securities are valued on a Level 1 basis.