XML 25 R9.htm IDEA: XBRL DOCUMENT v2.3.0.15
MARKETABLE EQUITY SECURITIES
9 Months Ended
Sep. 30, 2011
MARKETABLE EQUITY SECURITIES [Abstract] 
MARKETABLE EQUITY SECURITIES
NOTE C:  MARKETABLE EQUITY SECURITIES
The Company accounts for its marketable securities in accordance with ASC Topic 320, Investments-Debt and Equity Securities. ASC Topic 320 requires companies to classify their investments as trading, available-for-sale or held-to-maturity. The Company's investments in marketable securities are classified as either trading or available-for-sale and consist of equity securities. Management determines the appropriate classification of these securities at the time of purchase and re-evaluates such designation as of each balance sheet date. The cost of securities sold is based on the specific identification method and interest and dividends on securities are included in non-operating income.

Marketable equity securities classified as available-for-sale are carried at fair value, with the unrealized gains and losses, net of tax, included as a component of accumulated other comprehensive income in shareholders' equity. Realized gains and losses, declines in value judged to be other-than-temporary on available-for-sale securities, and increases or decreases in value on trading securities, if any, are included in the determination of net income. A quarterly evaluation is performed in order to judge whether declines in value below cost should be considered temporary and when losses are deemed to be other-than-temporary. Several factors are considered in this evaluation process including the severity and duration of the decline in value, the financial condition and near-term outlook for the specific issuer and the Company's ability to hold the securities.

For the quarter ended September 30, 2011, the evaluation resulted in an impairment charge of approximately $30,000 in the Company's non-operating income (expense) in its statement of operations. For the quarter ended September 30, 2010, the Company determined that an impairment charge was not necessary.
 
For the nine-month period ended September 30, 2011, the evaluation resulted in an impairment charge of approximately $223,000 in the Company's non-operating income (expense) in its statement of operations. For the nine-month period ended September 30, 2010, the evaluation resulted in an impairment charge of approximately $60,000 in the Company's non-operating income (expense) in its statement of operations.
 
The following table sets forth cost, market value and unrealized gain/(loss) on equity securities classified as available-for-sale and equity securities classified as trading as of September 30, 2011 and December 31, 2010.

   
September 30, 2011
  
December 31, 2010
 
   
(in thousands)
 
Available-for-sale securities
      
Fair market value
 $17,662  $18,101 
Cost
  12,626   11,000 
Unrealized gain
 $5,036  $7,101 
          
Trading securities
        
Fair market value
 $120  $172 
Cost
  157   157 
Unrealized (loss) gain
 $(37) $15 
          
Total
        
Fair market value
 $17,782  $18,273 
Cost
  12,783   11,157 
Unrealized gain
 $4,999  $7,116 

The following table sets forth the gross unrealized gains and losses on the Company's marketable securities that are classified as available-for-sale as of September 30, 2011 and December 31, 2010.

   
September 30, 2011
  
December 31, 2010
 
   
(in thousands)
 
Available-for-sale securities:
      
Gross unrealized gains
 $5,833  $7,333 
Gross unrealized losses
  (797)  (232)
Total unrealized gains (losses)
 $5,036  $7,101 

As of September 30, 2011 and December 31, 2010, the total net unrealized gain, net of deferred income taxes, in accumulated other comprehensive income was approximately $3,047,000 and $4,406,000, respectively.

As of September 30, 2011, the Company's marketable securities that are classified as trading had gross recognized losses of approximately $37,000 and had no gross recognized gains. The following table shows recognized gains (losses) in market value for securities classified as trading during the first nine months of 2011 and 2010.

   
September 30, 2011
  
September 30, 2010
 
   
(in thousands)
 
Trading securities
      
Recognized gain (loss) at beginning of period
 $14  $63 
Recognized gain (loss) at end of period
  (37)  63 
Change in net recognized (loss) gain
 $(51) $- 
          
Change in net recognized gain (loss), net of taxes
 $(31) $- 

The following table shows the Company's realized gains during the first nine months of 2011 and 2010 on certain securities which were held as available-for-sale.

   
September 30, 2011
  
September 30, 2010
 
   
(in thousands)
 
Realized gains
      
Sales proceeds
 $966  $622 
Cost of securities sold
  189   308 
Realized gains
 $777  $314 
          
Realized gains, net of taxes
 $470  $190 

The following table shows the Company's investments' approximate gross unrealized losses and fair value of those securities in a loss position at September 30, 2011 and December 31, 2010. These investments consist of equity securities. As of September 30, 2011 and December 31, 2010 there were no investments that had been in a continuous unrealized loss position for twelve months or longer.

 
September 30, 2011
 
December 31, 2010
 
(in thousands)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Equity securities – Available-for-sale
$4,079
 
$797
 
$1,745
 
$232
Equity securities – Trading
120
 
37
 
-
 
-
Totals
$4,199
 
$834
 
$1,745
 
$232

The market value of the Company's equity securities are used as collateral against any outstanding margin account borrowings. As of September 30, 2011, the Company had outstanding borrowings of approximately $28,000 under its margin account which were used for the purchase of marketable equity securities and as a source of short-term liquidity.