XML 37 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
MARKETABLE EQUITY SECURITIES
 3 Months Ended
Mar. 31, 2013
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 March 31, 2013, the Company determined that an impairment charge of approximately $24,000 was necessary. For the quarter ended March 31, 2012, the Company determined that an impairment charge was not necessary.
 
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 March 31, 2013 and December 31, 2012.

 
March 31, 2013
 
 
December 31, 2012
 
 
(in thousands)
 
Available-for-sale securities
 
 
 
 
 
 
Fair market value
 
$
18,855
 
 
$
17,188
 
Cost
 
 
10,334
 
 
 
10,361
 
Unrealized gain
 
$
8,521
 
 
$
6,827
 
 
 
 
 
 
 
 
 
Trading securities
 
 
 
 
 
 
 
 
Fair market value
 
$
145
 
 
$
132
 
Cost
 
 
157
 
 
 
158
 
Unrealized loss
 
$
(12
)
 
$
(26
)
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
Fair market value
 
$
19,000
 
 
$
17,320
 
Cost
 
$
10,491
 
 
 
10,519
 
Unrealized gain
 
$
8,509
 
 
$
6,801
 

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 March 31, 2013 and December 31, 2012.

 
March 31, 2013
 
 
December 31, 2012
 
 
(in thousands)
 
Available-for-sale securities:
 
 
 
 
 
 
Gross unrealized gains
 
$
8,578
 
 
$
6,960
 
Gross unrealized losses
 
 
57
 
 
 
133
 
Total unrealized gains
 
$
8,521
 
 
$
6,827
 

As of March 31, 2013 and December 31, 2012, the total net unrealized gain, net of deferred income taxes, in accumulated other comprehensive income was approximately $5,286,000 and $4,235,000, respectively.

For the quarter ended March 31, 2013, the Company had net unrealized gains in market value on securities classified as available-for-sale of approximately $986,000, net of deferred income taxes. 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 quarter ended March 31, 2013, the Company's marketable securities that are classified as trading had gross recognized losses of approximately $12,000 and no gross recognized gains. For the quarter ended March 31, 2012, the Company's marketable securities that are classified as trading had gross recognized gains of approximately $4,000 and gross recognized losses of approximately $2,000. The following table shows recognized gains (losses) in market value for securities classified as trading during the first three months of 2013 and 2012.

 
Three Months Ended
 
 
March 31, 2013
 
 
March 31, 2012
 
 
(in thousands)
 
Trading securities
 
 
 
 
 
 
Recognized loss at beginning of period
 
$
(26
)
 
$
(16
)
Recognized (loss) gain at end of period
 
 
(12
)
 
 
2
 
Net recognized gain
 
$
14
 
 
$
18
 
 
 
 
 
 
 
 
 
Net recognized gain (loss), net of taxes
 
$
9
 
 
$
11
 

There were no reclassifications of marketable securities during the first three months of 2013 or 2012.
 
The following table shows the Company's realized gains during the first three months of 2013 and 2012 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
 
 
March 31, 2013
 
 
March 31, 2012
 
 
(in thousands)
 
Realized gains
 
 
 
 
 
 
Sale proceeds
 
$
13
 
 
$
526
 
Cost of securities sold
 
 
6
 
 
 
229
 
Realized gains
 
$
7
 
 
$
297
 
 
 
 
 
 
 
 
 
Realized gains, net of taxes
 
$
4
 
 
$
179
 

The following table shows the Company's investments' approximate gross unrealized losses and fair value of those securities in a loss position at March 31, 2013 and December 31, 2012. These investments consist of equity securities. As of March 31, 2013 and December 31, 2012 there were no investments that had been in a continuous unrealized loss position for twelve months or longer.

 
March 31, 2013
 
 
December 31, 2012
 
 
(in thousands)
 
 
Fair
Value
 
 
Unrealized
Losses
 
 
Fair
Value
 
 
Unrealized
Losses
 
Equity securities – Available-for-sale
 
$
1,392
 
 
$
57
 
 
$
1,567
 
 
$
133
 
Equity securities – Trading
 
 
145
 
 
 
12
 
 
 
129
 
 
 
26
 
Totals
 
$
1,537
 
 
$
69
 
 
$
1,696
 
 
$
159
 

The market value of the Company's equity securities are periodically used as collateral against any outstanding margin account borrowings. As of March 31, 2013 and December 31, 2012, the Company had outstanding borrowings of approximately $10,554,000 and $10,711,000, respectively, under its margin account. Margin account borrowings are used for the purchase of marketable equity securities and as a source of short-term liquidity.