Marketable Securities

12 Months Ended

Mar. 31, 2020

Marketable Securities [Abstract]

Marketable Securities

Marketable Securities and Other Investments

In accordance with ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," adopted by the Company on April 1, 2018, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounts) are measured at fair value through earnings. The Company's marketable securities are recorded at their fair value, with unrealized changes in market value realized within Investment (income) loss on the Consolidated Statements of Operations. The Company adopted this standard on a modified retrospective basis. A cumulative effect adjustment of $888,000 was recorded on April 1, 2018 to the beginning balance of Retained Earnings with an offset to Accumulated Other Comprehensive Loss. The impact on earnings for unrealized gains and losses was a loss of $143,000 and $183,000 in the twelve months ended March 31, 2020 and March 31, 2019, respectively.

Consistent with prior periods, the estimated fair value is based on quoted prices at the balance sheet dates. The cost of securities is based on the specific identification method. Interest and dividend income are included in Investment (income) loss in the Consolidated Statements of Operations.

Marketable securities are carried as long-term assets since they are held for the settlement of the Company’s general and products liability insurance claims filed through CM Insurance Company, Inc. ("CMIC"), a wholly owned captive insurance subsidiary. The marketable securities are not available for general working capital purposes.

Net realized gains related to sales of marketable securities were $50,000, $201,000, and $0 in fiscal years 2020, 2019, and 2018, respectively, and are included in Investment (income) loss in the Consolidated Statements of Operations.

On December 21, 2017, the Company purchased a 49% ownership interest in Eastern Morris Cranes Company Limited ("EMC"), a limited liability company organized and existing under the laws and regulations of the Kingdom of Saudi Arabia. The Company's ownership represents an equity investment in a strategic customer of STAHL serving the Kingdom of Saudi Arabia. The investment's carrying value is presented in Other assets in the Consolidated Balance Sheets in the amount of $3,402,000 and $3,602,000 as of March 31, 2020 and March 31, 2019, respectively, and has been accounted for as an equity method investment. The investment value was increased for the Company's ownership percentage of income earned by EMC in the amount of $778,000 and $449,000 in the twelve months ended March 31, 2020 and March 31, 2019, respectively, and is recorded in Investment (income) loss on the Consolidated Statement of Operations. Further, in the twelve months ended March 31, 2020, EMC distributed a cash dividend which the Company received 49% of pursuant to its ownership interest. The investment value was decreased for the Company's

share of EMC's cash dividend in the amount of $924,000 in the twelve months ended March 31, 2020 as it was determined to be a return on the Company's investment. The dividend is included in operating activities on the Consolidated Statement of Cash Flows under the cumulative earnings approach. The March 31, 2020 and 2019 trade accounts receivable balances due from EMC are $4,166,000 and $2,986,000, respectively, and are comprised of amounts due for the sale of goods and services in the ordinary course of business.