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Note C - Marketable Equity Securities
 3 Months Ended
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE C: MARKETABLE EQUITY SECURITIES


The Company accounts for its marketable securities in accordance with ASC Topic 320, (“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.


Based upon this evaluation, the Company determined that an impairment charge was not necessary for the quarters ended March 31, 2015 and 2014.


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, 2015 and December 31, 2014.


   

March 31, 2015

   

December 31, 2014

 
   

(in thousands)

 

Available-for-sale securities

               

Fair market value

  $ 27,087     $ 24,592  

Cost

    16,667       14,272  

Unrealized gain

  $ 10,420     $ 10,320  
                 

Trading securities

               

Fair market value

  $ 290     $ 303  

Cost

    157       157  

Unrealized gain

  $ 133     $ 146  
                 

Total

               

Fair market value

  $ 27,377     $ 24,895  

Cost

    16,824       14,429  

Unrealized gain

  $ 10,553     $ 10,466  

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, 2015 and December 31, 2014.


   

March 31, 2015

   

December 31, 2014

 
   

(in thousands)

 

Available-for-sale securities:

               

Gross unrealized gains

  $ 10,974     $ 10,710  

Gross unrealized losses

    554       390  

Net unrealized gains

  $ 10,420     $ 10,320  

As of March 31, 2015 and December 31, 2014, the total net unrealized gain, net of deferred income taxes, in accumulated other comprehensive income was approximately $6,464,000 and $6,402,000, respectively.


For the quarter ended March 31, 2015, the Company had net unrealized gains in market value on securities classified as available-for-sale of approximately $62,000, net of deferred income taxes. For the year ended December 31, 2014, the Company had net unrealized gains in market value on securities classified as available-for-sale of approximately $237,000, net of deferred income taxes.


For the quarter ended March 31, 2015, the Company recognized dividends of approximately $218,000 in non-operating income in its statements of operations. For the quarter ended March 31, 2014, the Company recognized dividends of approximately $189,000 in non-operating income in its statements of operations.


As of March 31, 2015, the Company's marketable securities that are classified as trading had gross recognized gains of approximately $133,000 and no gross recognized losses. As of March 31, 2014, the Company's marketable securities that are classified as trading had gross recognized gains of approximately $52,000 and no gross recognized losses. The following table shows recognized gains (losses) in market value for securities classified as trading during the first three months of 2015 and 2014.


   

Three Months Ended

 
   

March 31, 2015

   

March 31, 2014

 
   

(in thousands)

 

Trading securities

               

Recognized gain at beginning of period

  $ 146     $ 8  

Recognized gain at end of period

    133       52  

Net recognized (loss) gain

  $ (13 )   $ 44  
                 

Net recognized (loss) gain, net of taxes

  $ (8 )    $ 26  

There were no reclassifications of marketable securities between trading and available for sale categories during the first three months of 2015 or 2014.


There were no sales of marketable securities which were held as available-for-sale during the first three months of 2015 or 2014.


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, 2015 and December 31, 2014. These investments consist of equity securities. As of March 31, 2015 and December 31, 2014, there were no investments that had been in a continuous unrealized loss position for twelve months or longer.


   

March 31, 2015

   

December 31, 2014

 
   

(in thousands)

 
   

Fair

Value

   

Unrealized

Losses

   

Fair

Value

   

Unrealized

Losses

 

Equity securities – Available-for-sale

  $ 5,280     $ 554     $ 3,961     $ 390  

Equity securities – Trading

    -       -       -       -  

Totals

  $ 5,280     $ 554     $ 3,961     $ 390  

The market value of the Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of March 31, 2015 and December 31, 2014, the Company had outstanding borrowings of approximately $13,927,000 and $11,723,000, 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 and are included in Accrued expenses and other liabilities on our balance sheets.