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 (loss).

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 (loss) 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,

2016,

2015

and

2014,

the evaluation resulted in impairment charges of approximately

$709,000,

$833,000

and

$1,000,

respectively, being reported in the Company’s non-operating income (loss) in its statements of operations.

The following table sets forth cost, market value and unrealized gain on equity securities classified as available-for-sale as of

December

31,

2016

and

2015.

The Company had

securities classified as trading securities as of

December

31,

2016

December

31,

2015.

	2016		2015
	(in thousands)
Available-for-sale securities
Fair market value	$	27,621	$	24,575
Cost		15,569		16,015
Unrealized gain	$	12,052	$	8,560

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,

2016

and

2015.

	2016		2015
	(in thousands)
Available-for-sale securities
Gross unrealized gains	$	12,161	$	9,893
Gross unrealized losses		109		1,333
Net unrealized gains	$	12,052	$	8,560

As of

December

31,

2016

and

2015,

the total net unrealized gains, net of deferred income taxes, in accumulated other comprehensive income was approximately

$7,476,000

and

$5,310,000,

respectively.

For the year ended

December

31,

2016

the Company had net unrealized gains in market value on securities classified as available-for-sale of approximately

$2,166,000,

net of deferred income taxes. For the year ended

December

31,

2015,

the Company had net unrealized losses in market value on securities classified as available-for-sale of approximately

$1,092,000,

net of deferred income taxes.

For the years ended

December

31,

2016,

2015

and

2014,

the Company recognized dividends of approximately

$1,024,000,

$1,058,000,

and

$896,000

in non-operating income in its statements of operations, respectively.

During

2016,

there were

reclassifications of marketable securities between trading and available for sale. During

2015,

the Company reclassified the securities which were classified as trading to available-for-sale at their fair market values at the time of transfer.

The following table shows recognized gains (losses) in market value for securities classified as trading during

2015

and

2014.

securities were classified as trading during

2016.

	2015			2014
	(in thousands)
Trading securities
Recognized gain (loss) at beginning of period	$	146		$	8
Recognized gain at end of period		-			146
Securities transferred from trading to available-for-sale		(81	)		-

Change in net recognized gain (loss)	$	(65	)	$	138

The following table shows the Company’s realized gains during

2016,

2015

and

2014

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.

	2016		2015		2014
	(in thousands)
Realized gains
Sale proceeds	$	1,550	$	1,500	$	1,720
Cost of securities sold		547		434		818

Realized gains	$	1,003	$	1,066	$	902

Realized gains, net of taxes	$	627	$	654	$	546

December

31,

2016,

the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were

$1,340,000

and

$109,000,

respectively. At

December

31,

2015,

the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were

$5,099,000

and

$1,333,000,

respectively. As of

December

31,

2016

and

2015,

there were

investments that had been in a continuous unrealized loss position for

twelve

months or longer.

The market value of the Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of

December

31,

2016

and

2015,

the Company had outstanding borrowings of

$10,358,000

and

$11,949,000

under its margin account, respectively. The interest rate on margin account borrowings was

1.30%

and

0.94%

as of

December

31,

2016

and

2015,

respectively.