(4)	Marketable Securities

The Company accounts for its marketable equity 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 beginning January 1, 2018. The fair value of marketable equity securities is determined based on quoted market prices in active markets, as described in Note 8.

The following table sets forth market value, cost, and unrealized gains on equity securities (in thousands):

	September 29, 2018		December 31, 2017
Fair value	$	10,433	$	15,144
Cost		8,010		10,231
Unrealized gain	$	2,423	$	4,913

Prior to the Company’s adoption of ASU 2016-01 as of January 1, 2018 , unrealized gains and losses in fair market value were presented as a component of Accumulated Other Comprehensive Income in shareholders’ equity; before adoption of this guidance, the Company included in net income only realized gains and losses and declines in value determined to be other-than-temporary on available-for-sale securities. The cost of securities determined to be in an other-than-temporary loss position was required to be presented net of the amount of the other-than-temporary impairment calculated. Subsequent to adoption of ASU 2016-01, cost is no longer presented net of other-than-temporary impairment. The December 31, 2017 cost reflected in the table above was presented net of approximately $424,000 of other-than-temporary impairment.

(4)	Marketable Securities - continued

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities (in thousands):

	September 29, 2018			December 31, 2017
Gross unrealized gains	$	2,999		$	5,390
Gross unrealized losses		(576	)		(477	)
Net unrealized gains	$	2,423		$	4,913

The following table shows the Company’s net realized gains on marketable equity securities (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
Realized gain
Sale proceeds	$	2,804	$	725	$	5,615	$	1,261
Cost of securities sold		2,439		106		5,123		338
Realized gain	$	365	$	619	$	492	$	923

Realized gain, net of taxes	$	275	$	388	$	368	$	565

During the thirteen-week and thirty-nine week periods ended September 29, 2018, our marketable equity securities portfolio experienced a net unrealized pre-tax gain (loss) in market value of approximately $232,000 and ($201,000), respectively, which was reported in other non-operating income (expense) for the period.