4.	MARKETABLE EQUITY SECURITIES

The Company accounts for its marketable securities in accordance with ASC Topic

321,

Investments- Equity Securities

. ASC Topic

321

requires companies to measure equity investments at fair value, with changes in fair value recognized in net income. The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income (expense).

Marketable equity securities are carried at fair value, with gains and losses in fair market value included in the determination of net income. The fair market value of marketable equity securities is determined based on quoted market prices in active markets. See “Item

Financial Statements and Supplementary Data, Note

to the Consolidated Financial Statements – Fair Value of Financial Instruments” for additional information regarding the valuation of marketable equity securities.

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

December 31, 2018

and

2017.

	2018		2017
	(in thousands)
Available-for-sale securities:
Fair market value	$	27,549	$	26,664
Cost		25,602		16,640
Unrealized gain	$	1,947	$	10,024

Prior to the Company’s

January 1, 2018

adoption of ASU

2016

01,

unrealized gains and losses in fair market value were presented as a component of Accumulated Other Comprehensive Income in shareholders’ equity, and only realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities were included in the determination of net income. The cost of securities determined to be in an other-than-temporary loss position were required to be presented net of the amount of the other-than-temporary impairment calculated. Subsequent to adoption of ASU

2016

01,

cost is

longer presented net of other-than-temporary impairment. The

December 31, 2017

cost reflected in the table above was presented net of approximately

$2,314,000

of other-than-temporary impairment.

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of

December 31, 2018

and

2017.

	2018		2017
	(in thousands)
Available-for-sale securities:
Gross unrealized gains	$	5,668	$	10,150
Gross unrealized losses		3,721		126
Net unrealized gains	$	1,947	$	10,024

For the years ended

December 31, 2018,

2017

and

2016,

the Company recognized dividends of approximately

$1,171,000,

$999,000,

and

$1,024,000

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

The following table shows the Company’s net realized gains during

2018,

2017

and

2016

on certain marketable equity securities.

	2018		2017		2016
	(in thousands)
Realized gains:
Sale proceeds	$	1,044	$	6,833	$	1,550
Cost of securities sold		669		2,098		547

Realized gains	$	375	$	4,735	$	1,003

Realized gains, net of taxes	$	278	$	2,938	$	627

December 31, 2018,

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

$12,399,000

and

$3,721,000,

respectively. At

December 31, 2017,

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.

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

December 31, 2018

and

2017,

the Company had outstanding borrowings of

$11,281,000

and

$5,903,000

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

3.11%

and

2.07%

as of

December 31, 2018

and

2017,

respectively.