Note 8 - Investments in Marketable Securities

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

Note 8 – Investments in Marketable Securities

Our investments in marketable securities include marketable equity securities and restricted marketable debt securities. Our investments in marketable equity securities are carried at fair value with the changes in unrealized gains and losses recognized in our results of operations at each measurement date. Our investments in restricted marketable debt securities are classified as available for sale securities and carried at fair value with the unrealized gains and losses recognized through accumulated other comprehensive income at each measurement date. Realized gains and losses from securities sales are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis.

Marketable securities and restricted marketable securities consist of the following (in thousands):

	December 31, 2019				December 31, 2018
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investments available for sale:
Marketable equity securities	$	30,176	$	152,453	$	30,176	$	140,223
Restricted investments available for sale:
Corporate debt securities		63,414		65,653		69,439		67,632
Asset–backed securities		54,451		55,185		62,772		62,068
U.S. Treasury securities		13,379		13,410		22,038		21,457
State and municipal securities		12,922		13,158		21,818		21,436
	$	174,342	$	299,859	$	206,243	$	312,816

Included in the marketable equity securities are the following (in thousands, except share amounts):

	December 31, 2019						December 31, 2018
	Shares		Cost		Fair Value		Shares		Cost		Fair Value
NHI Common Stock		1,630,642	$	24,734	$	132,865		1,630,642	$	24,734	$	123,179

The amortized cost and estimated fair value of debt securities classified as available for sale, by contractual maturity, are as follows:

	December 31, 2019				December 31, 2018
(in thousands)	Cost		Fair Value		Cost		Fair Value
Maturities:
Within 1 year	$	15,726	$	15,767	$	11,448	$	11,401
1 to 5 years		88,314		90,408		98,487		97,430
6 to 10 years		40,126		41,231		64,932		62,527
Over 10 years		–		–		1,200		1,235
	$	144,166	$	147,406	$	176,067	$	172,593

Gross unrealized gains related to marketable equity securities are $122,290,000 and $110,081,000 as of December 31, 2019 and 2018, respectively. Gross unrealized losses related to marketable equity securities are $13,000 and $34,000 as of December 31, 2019 and 2018, respectively. For the years ended December 31, 2019 and 2018, the Company recognized net unrealized gains of $12,230,000 and $1,138,000, respectively, in the consolidated statements of operations.

Gross unrealized gains related to available for sale marketable debt securities are $3,407,000 and $335,000 as of December 31, 2019 and 2018, respectively. Gross unrealized losses related to available for sale marketable debt securities are $167,000 and $3,809,000 as of December 31, 2019 and 2018, respectively.

For the marketable securities in gross unrealized loss positions, (a) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (b) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment for the years ended December 31, 2019 and 2018.

Proceeds from the sale of available for sale marketable debt securities during the years ended December 31, 2019, 2018, and 2017 were $44,500,000, $4,539,000, and $50,197,000, respectively. Net investment gains of $127,000, $18,000, and $262,000 were realized on these sales during the years ended December 31, 2019, 2018, and 2017, respectively. No sales were reported for the marketable equity securities for the years ended December 31, 2019, 2018, and 2017.