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 or trading securities are carried at fair value. Unrealized gains and losses on securities classified as available-for-sale are included, net of tax, 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, 2012, the evaluation resulted in an impairment charge of approximately $20,000 in the Company's non-operating income in its statement of operations. 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 in its statement of operations.

For the nine-month period ended September 30, 2012, the evaluation resulted in an impairment charge of approximately $63,000 in the Company's non-operating income in its statement of operations. 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 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, 2012 and December 31, 2011.

	September 30, 2012			December 31, 2011
	(in thousands)
Available-for-sale securities
Fair market value	$	18,361		$	20,123
Cost		10,984			12,539
Unrealized gain	$	7,377		$	7,584

Trading securities
Fair market value	$	129		$	141
Cost		157			157
Unrealized loss	$	(28	)	$	(16	)

Total
Fair market value	$	18,490		$	20,264
Cost		11,141			12,696
Unrealized gain	$	7,349		$	7,568

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, 2012 and December 31, 2011.

	September 30, 2012			December 31, 2011
	(in thousands)
Available-for-sale securities:
Gross unrealized gains	$	7,476		$	7,866
Gross unrealized losses		(99	)		(282	)
Total unrealized gains	$	7,377		$	7,584

As of September 30, 2012 and December 31, 2011, the total net unrealized gain, net of deferred income taxes, in accumulated other comprehensive income was approximately $4,576,000 and $4,705,000, respectively.

For the nine months ended September 30, 2012, the Company had net unrealized gains in market value on securities classified as available-for-sale of approximately $1,065,000, net of deferred income taxes. For the year ended December 31, 2011, the Company had net unrealized gains in market value on securities classified as available-for-sale of approximately $825,000, net of deferred income taxes.

As of September 30, 2012, the Company's marketable securities that are classified as trading had gross recognized losses of approximately $28,000 and no gross recognized gains. As of September 30, 2011, the Company's marketable securities that are classified as trading had gross recognized losses of approximately $37,000 and no gross recognized gains. The following table shows recognized gains (losses) in market value for securities classified as trading for the periods indicated.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
Trading securities
Recognized (loss) gain at beginning of period	$	(13	)	$	(4	)	$	(16	)	$	14
Recognized loss at end of period		(28	)		(37	)		(28	)		(37	)
Net recognized (loss) gain for the period	$	(15	)	$	(33	)	$	(12	)	$	(51	)

Net recognized (loss) gain for the period, net of taxes	$	(9	)	$	(20	)	$	(7	)	$	(31	)

There were no reclassifications between the categories of marketable securities during the first nine months of 2012 or 2011.

The following table shows the Company's realized gains for the periods indicated on certain securities which were held as available-for sale. The cost of securities sold is based on the specific identification method and interest and dividends on securities are included in non-operating income.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands)				(in thousands)
Realized gains
Sale proceeds	$	1,407	$	-	$	3,558	$	966
Cost of securities sold		450		-		1,561		189
Realized gains	$	957	$	-	$	1,997	$	777

Realized gains, net of taxes	$	569	$	-	$	1,194	$	470

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, 2012 and December 31, 2011. These investments consist of equity securities. As of September 30, 2012 and December 31, 2011 there were no investments that had been in a continuous unrealized loss position for twelve months or longer.

	September 30, 2012				December 31, 2011
	(in thousands)
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Equity securities – Available-for-sale	$	1,710	$	99	$	2,914	$	282
Equity securities – Trading		129		29		141		16
Totals	$	1,839	$	128	$	3,055	$	298

The market value of the Company's equity securities are periodically used as collateral against any outstanding margin account borrowings. As of September 30, 2012, the Company had outstanding borrowings of approximately $4,893,000 under its margin account which were used for the purchase of marketable equity securities and as a source of short-term liquidity. The Company had no borrowings under its margin account as of December 31, 2011.