XML 23 R8.htm IDEA: XBRL DOCUMENT

INVESTMENTS

3 Months Ended

Sep. 30, 2015

Disclosure Text Block Supplement [Abstract]

Investments and Other Noncurrent Assets [Text Block]

NOTE 2. INVESTMENTS

As of September 30, 2015, the Company held investments with a fair value of approximately $18.3 million and a cost basis of approximately $20.2 million. The fair value of these investments is approximately 63.6% of the Company’s total assets. In addition, the Company held other investments of $2.3 million accounted for under the cost method of accounting. On September 30, 2015, the Company had $16.2 million and $349,000 at fair value invested in USGIF and an offshore fund the Company advises, respectively. These amounts were included in the Consolidated Balance Sheet as “trading securities” and “available-for-sale securities.”

Investments in securities classified as trading are reflected as current assets on the Consolidated Balance Sheets at their fair value. Unrealized holding gains and losses on trading securities are included in earnings in the Consolidated Statements of Operations.

Investments in securities classified as available-for-sale, which may not be readily marketable, are reflected as non-current assets on the Consolidated Balance Sheets at their fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income as a separate component of shareholders’ equity until realized.

Other investments consist of equity investments in entities over which the Company is unable to exercise significant influence and which do not have readily determinable fair values. These investments are accounted for under the cost method of accounting and evaluated for impairment.

The Company considers many factors in determining impairment, including the severity and duration of the decline in value below cost, the Company’s interest and ability to hold the security for a period of time sufficient for an anticipated recovery in value, and the financial condition and specific events related to the issuer. When an impairment of a security is determined to be other-than-temporary, the impairment is recognized in earnings.

The Company records security transactions on trade date. Realized gains (losses) from security transactions are calculated on the first-in/first-out cost basis, unless otherwise identifiable, and are recorded in earnings on the date of sale.

The following details the components of the Company’s investments recorded as fair value as of September 30, 2015, and June 30, 2015.

	September 30, 2015
(dollars in thousands)	Cost		Gains		(Losses)			Fair Value
Trading securities1
Offshore fund	$	1,184	$	-	$	(835	)	$	349
Mutual funds - Fixed income		14,291		134		(1	)		14,424
Mutual funds - Domestic equity		535		-		(168	)		367
Other		46		-		(46	)		-
Total trading securities	$	16,056	$	134	$	(1,050	)	$	15,140

Available-for-sale securities2
Common Stock - Domestic	$	109	$	-	$	(11	)	$	98
Common Stock - International		659		58		(82	)		635
Corporate debt		1,394		-		(750	)		644
Mutual funds - Fixed income		1,229		14		(32	)		1,211
Mutual funds - Domestic equity		543		-		(110	)		433
Other		166		-		(10	)		156
Total available-for-sale securities3	$	4,100	$	72	$	(995	)	$	3,177

	June 30, 2015
(dollars in thousands)	Cost		Gains		(Losses)			Fair Value
Trading securities1
Offshore fund	$	1,184	$	-	$	(703	)	$	481
Mutual funds - Fixed income		14,691		68		(5	)		14,754
Mutual funds - Domestic equity		535		-		(130	)		405
Other		81		-		(81	)		-
Total trading securities	$	16,491	$	68	$	(919	)	$	15,640

Available-for-sale securities2
Common Stock - Domestic	$	535	$	316	$	(9	)	$	842
Common Stock - International		695		309		(39	)		965
Corporate debt		1,433		-		(817	)		616
Mutual funds - Fixed income		1,227		9		(22	)		1,214
Mutual funds - Domestic equity		543		-		(80	)		463
Other		169		1		(7	)		163
Total available-for-sale securities3	$	4,602	$	635	$	(974	)	$	4,263

1	Unrealized and realized gains and losses on trading securities are included in earnings in the statement of operations.

2	Unrealized gains and losses on available-for-sale securities are excluded from earnings and recorded in other comprehensive income as a separate component of shareholders’ equity until realized.

3	Net unrealized gains (losses) on available-for-sale securities gross and net of tax as of September 30, 2015, are $(923) and $(923), respectively, and as of June 30, 2015, are ($339) and ($339), respectively.

The following tables show the gross unrealized losses and fair values of available-for-sale investment securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	September 30, 2015
	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
(dollars in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Available-for-sale securities
Common stock - Domestic	$	-	$	-		$	98	$	(11	)	$	98	$	(11	)
Common stock - International		154		(25	)		89		(57	)		243		(82	)
Corporate debt		-		-			431		(750	)		431		(750	)
Mutual funds - Fixed income		63		(13	)		134		(19	)		197		(32	)
Mutual funds - Domestic equity		433		(110	)		-		-			433		(110	)
Other		155		(10	)		-		-			155		(10	)
Total available-for-sale securities	$	805	$	(158	)	$	752	$	(837	)	$	1,557	$	(995	)

	June 30, 2015
	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
(dollars in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Available-for-sale securities
Common stock - Domestic	$	77	$	(7	)	$	107	$	(2	)	$	184	$	(9	)
Common stock - International		114		(23	)		39		(16	)		153		(39	)
Corporate debt		386		(817	)		-		-			386		(817	)
Mutual funds - Fixed income		67		(7	)		139		(15	)		206		(22	)
Mutual funds - Domestic equity		463		(80	)		-		-			463		(80	)
Other		112		(7	)		-		-			112		(7	)
Total available-for-sale securities	$	1,219	$	(941	)	$	285	$	(33	)	$	1,504	$	(974	)

Investment income can be volatile and varies depending on market fluctuations, the Company’s ability to participate in investment opportunities, and timing of transactions. The Company expects that gains and losses will continue to fluctuate in the future.

Investment income (loss) from the Company’s investments includes:

•	realized gains and losses on sales of securities;

•	unrealized gains and losses on trading securities;

•	realized foreign currency gains and losses;

•	other-than-temporary impairments on available-for-sale securities; and

•	dividend and interest income.

The following summarizes investment income reflected in earnings for the periods discussed:

	Three Months Ended September 30,
(dollars in thousands)	2015			2014
Investment Income
Realized gains on sales of available-for-sale securities	$	531		$	295
Realized losses on sales of trading securities		(35	)		-
Unrealized losses on trading securities		(64	)		(231	)
Realized foreign currency gains		35			20
Other-than-temporary declines in available-for-sale securities		(60	)		-
Dividend and interest income		127			136
Total Investment Income	$	534		$	220

Included in investment income were other-than temporary declines in value on available-for-sale corporate debt securities of approximately $60,000 for the three months ended September 30, 2015. The impairment loss resulted from fair values of securities being lower than book value and proposed changes to debt securities. Three securities with a combined cost basis of $49,000 were written down to a combined fair value of $12,000. Another security was written down to the net present value of estimated cash flows. This security had a cost basis of $970,000 and was written down to $947,000. In making these determinations, the Company considered the length of time and extent to which the fair value has been less than cost basis, financial condition and prospects of the issuers and the Company's ability to hold the investment until recovery.