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MARKETABLE EQUITY SECURITIES
 12 Months Ended
Dec. 31, 2012
MARKETABLE EQUITY SECURITIES [Abstract]  
MARKETABLE EQUITY SECURITIES
3. 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 stockholders' 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 years ended December 31, 2012, 2011 and 2010, the evaluation resulted in an impairment charges of approximately $71,000, $315,000 and $60,000, respectively, being reported  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 December 31, 2012 and 2011.

   
2012
  
2011
 
   
(in thousands)
 
Available-for-sale securities
      
Fair market value
 $17,188  $20,123 
Cost
  10,361   12,539 
Unrealized gain
 $6,827  $7,584 
          
Trading securities
        
Fair market value
 $132  $141 
Cost
  158   157 
Unrealized loss
 $(26) $(16)
          
Total
        
Fair market value
 $17,320  $20,264 
Cost
  10,519   12,696 
Unrealized gain
 $6,801  $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 December 31, 2012 and 2011.

   
2012
  
2011
 
   
(in thousands)
 
Available-for-sale securities
      
Gross unrealized gains
 $6,960  $7,866 
Gross unrealized losses
  133   282 
          
Net unrealized gains
 $6,827  $7,584 

As of December 31, 2012 and 2011, the total net unrealized gain, net of deferred income taxes, in accumulated other comprehensive income was approximately $4,235,000 and $4,705,000, respectively.

For the year ended December 31, 2012, the Company had net unrealized losses in market value on securities classified as available-for-sale of approximately $459,000, 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 December 31, 2012, the Company's marketable securities that are classified as trading had gross recognized losses of approximately $26,000 and had no gross recognized gains. As of December 31, 2011, the Company's marketable securities that were classified as trading had gross recognized losses of approximately $16,000 and had no gross recognized gains. The following table shows recognized gains (losses) in market value for securities classified as trading during 2012, 2011 and 2010.

   
2012
  
2011
  
2010
 
   
(in thousands)
 
Trading securities
         
Recognized (loss) gain at beginning of period
 $(16) $14  $63 
Recognized (loss) gain at end of period
  (26)  (16)  14 
Securities transferred from trading to available-for-sale
  -   -   63 
              
Change in net recognized (loss) gain
 $(10) $(30) $14 
              
Change in net recognized (loss) gain, net of taxes
 $(6) $(15) $6 

During 2012 and 2011, there were no reclassifications of marketable securities.
 
The following table shows the Company's realized gains during 2012, 2011 and 2010 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.

   
2012
  
2011
  
2010
 
   
(in thousands)
 
Realized gains
         
Sale proceeds
 $4,554  $1,137  $622 
Cost of securities sold
  2,183   289   308 
              
Realized gains
 $2,371  $848  $314 
              
Realized gains, net of taxes
 $1,437  $526  $190 

The following table shows the Company's investments' approximate gross unrealized losses and fair value at December 31, 2012 and 2011. As of December 31, 2012 and 2011 there were no investments that had been in a continuous unrealized loss position for twelve months or longer.

   
2012
  
2011
 
   
(in thousands)
 
      
Unrealized
     
Unrealized
 
 
 
Fair Value
  
Losses
  
Fair Value
  
Losses
 
              
Equity securities – Available for sale
 $1,567  $133  $2,914  $282 
Equity securities – Trading
  129   26   141   16 
                  
Totals
 $1,696  $159  $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 December 31, 2012, the Company had outstanding borrowings of $10,711,000 under its margin account. As of December 31, 2011, the Company did not have any outstanding borrowings under its margin account.