XML 25 R11.htm IDEA: XBRL DOCUMENT

Note 4 - Marketable Equity Securities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

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 changes 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 Note 18 – 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, 2020 and 2019.

		2020				2019
		(in thousands)
Available-for-sale securities:
Fair market value		$	27,941			$	29,521
Cost			25,860				24,156
Unrealized gain		$	2,081			$	5,365

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of December 31, 2020 and 2019.

		2020				2019
		(in thousands)
Available-for-sale securities:
Gross unrealized gains		$	7,048			$	7,808
Gross unrealized losses			4,967				2,443
Net unrealized gains		$	2,081			$	5,365

For the years ended December 31, 2020, 2019 and 2018, the Company recognized dividends of approximately $1,266,000, $1,309,000, and $1,171,000 in non-operating income in its statements of operations, respectively.

The following table shows the Company’s net realized (losses) gains during 2020, 2019 and 2018 on certain marketable equity securities.

		2020				2019				2018
		(in thousands)
Realized (losses) gains:
Sale proceeds		$	2,039			$	2,984			$	1,044
Cost of securities sold			2,216				1,929				669

Realized (losses) / gains		$	(177	)		$	1,055			$	375

Realized (losses) / gains, net of taxes		$	(90	)		$	815			$	278

At December 31, 2020, the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were $10,221,000 and $4,967,000, respectively. At December 31, 2019, the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were $8,587,000 and $2,443,000, 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, 2020 and 2019, the Company had outstanding borrowings of $11,251,000 and $7,474,000 under its margin account, respectively, which is reflected in accrued expenses. The interest rates on margin account borrowings were 0.75% and 2.40% as of December 31, 2020 and 2019, respectively.