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, 2017,

2016

and

2015,

the evaluation resulted in impairment charges of approximately

$42,000,

$709,000

and

$833,000,

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, 2017

and

2016.

The Company had

securities classified as trading securities as of

December 31, 2017

December 31, 2016.

	201 7		201 6
	(in thousands)
Available-for-sale securities :
Fair market value	$	26,664	$	27,621
Cost		16,640		15,569
Unrealized gain	$	10,024	$	12,052

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, 2017

and

2016.

	201 7		201 6
	(in thousands)
Available-for-sale securities :
Gross unrealized gains	$	10,150	$	12,161
Gross unrealized losses		126		109
Net unrealized gains	$	10,024	$	12,052

As of

December 31,

201

and

2016,

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

$7,444,000

and

$7,476,000,

respectively.

For the year ended

December 31

2017

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

$1,507,000,

net of deferred income taxes. For the year ended

December 31, 2016,

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

$2,166,000,

net of deferred income taxes.

For the years ended

December 31,

201

2016

and

2015,

the Company recognized dividends of approximately

$999,000,

$1,024,000,

and

$1,058,000

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

here were

reclassifications of marketable securities between trading and available for sale during

2017

2016.

The following table shows the Company

’s realized gains during

2017,

2016

and

2015

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.

	201 7		20 1 6		20 1 5
	(in thousands)
Realized gains :
Sale proceeds	$	6,833	$	1,550	$	1,500
Cost of securities sold		2,098		547		434

Realized gains	$	4,735	$	1,003	$	1,066

Realized gains, net of taxes	$	2,938	$	627	$	654

December 31,

201

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

$2,980,000

and

$126,000,

respectively. At

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. As of

December 31, 2017

and

2016,

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, 2017

and

2016,

the Company had outstanding borrowings of

$5,903,000

and

$10,358,000

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

2.07%

and

1.30%

as of

December 31, 2017

and

2016,

respectively.