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INVESTMENTS
 6 Months Ended
Dec. 31, 2013
Investments, All Other Investments [Abstract]  
INVESTMENTS
INVESTMENTS
As of December 31, 2013, the Company held investments with a market value of approximately $26.0 million and a cost basis of approximately $25.5 million. The market value of these investments is approximately 69.7 percent of the Company’s total assets.
Investments in securities classified as trading are reflected as current assets on the consolidated balance sheet at their fair market value. Unrealized holding gains and losses on trading securities are included in earnings in the consolidated statements of operations and comprehensive income.
Investments in securities classified as available-for-sale, which may not be readily marketable, are reflected as non-current assets on the consolidated balance sheet 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.
In December 2013, the shareholders of the U.S. Government Securities Savings Fund approved a proposal resulting in the conversion of the fund from a money market market fund to a U.S. Government ultra-short bond fund that is not a money market fund. The fund was renamed U.S. Government Securities Ultra-Short Bond Fund (“Government Fund”). Prior to the conversion, while the fund was a money market fund, the amount held in the fund was classified as a cash equivalent. After the conversion, the amount held in the fund is classified as a trading mutual fund investment. The amount held in the fund by the Company as of the conversion date was $14,118,943.
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 summarizes the market value, cost, and unrealized gain or loss on investments as of December 31, 2013, and June 30, 2013.
 
Securities
 
Market Value
 
Cost
 
Unrealized Gain
(Loss)
 
Unrealized holding
gains on available-for-
sale securities, net of
tax
 
 
 
 
 
 
 
 
 
Trading1
 
$
18,640,758

 
$
19,062,335

 
$
(421,577
)
 
N/A

Available-for-sale2
 
7,343,679

 
6,485,471

 
858,208

 
$
566,417

Total at December 31, 2013
 
$
25,984,437

 
$
25,547,806

 
$
436,631

 
 
 
 
 
 
 
 
 
 
 
Trading1
 
$
4,758,220

 
$
5,457,989

 
$
(699,769
)
 
N/A

Available-for-sale2
 
9,053,111

 
8,064,902

 
988,209

 
$
652,218

Total at June 30, 2013
 
$
13,811,331

 
$
13,522,891

 
$
288,440

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

2Unrealized 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.
The following details the components of the Company’s available-for-sale investments as of December 31, 2013, and June 30, 2013.
 
 
 
December 31, 2013 (in thousands)
 
 
 
 
Gross Unrealized
 
 
 
 
Cost
 
Gains
 
(Losses)
 
Market Value
Available-for-sale securities
 
 
 
 
 
 
 
 
Common stock
 
$
1,668

 
$
1,075

 
$
(11
)
 
$
2,732

Preferred stock
 
204

 
—

 
(7
)
 
197

Corporate debt
 
1,718

 
—

 
(226
)
 
1,492

Venture capital investments
 
168

 
—

 
(5
)
 
163

Mutual funds
 
2,727

 
61

 
(29
)
 
2,759

Total available-for-sale securities
 
$
6,485

 
$
1,136

 
$
(278
)
 
$
7,343

 
 
 
June 30, 2013 (in thousands)
 
 
 
 
Gross Unrealized
 
 
 
 
Cost
 
Gains
 
(Losses)
 
Market Value
Available-for-sale securities
 
 
 
 
 
 
 
 
Common stock
 
$
870

 
$
529

 
$
(5
)
 
$
1,394

Venture capital investments
 
168

 
—

 
(5
)
 
163

Offshore funds
 
5,000

 
—

 
(288
)
 
4,712

Mutual funds
 
2,027

 
760

 
(3
)
 
2,784

Total available-for-sale securities
 
$
8,065

 
$
1,289

 
$
(301
)
 
$
9,053

 
 
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:
 
 
December 31, 2013 (in thousands)
 
 
Less Than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
$
322

 
$
(11
)
 
$
—

 
$
—

 
$
322

 
$
(11
)
Preferred stock
 
197

 
(7
)
 
—

 
—

 
197

 
(7
)
Corporate debt
 
1,242

 
(226
)
 
—

 
—

 
1,242

 
(226
)
Venture capital investments
 
163

 
(5
)
 
—

 
—

 
163

 
(5
)
Mutual funds
 
982

 
(29
)
 
—

 
—

 
982

 
(29
)
Total available-for-sale securities
 
$
2,906


$
(278
)

$
—


$
—


$
2,906


$
(278
)
 
 
 
June 30, 2013 (in thousands)
 
 
Less Than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
$
95

 
$
(5
)
 
$
—

 
$
—

 
$
95

 
$
(5
)
Venture capital investments
 
163

 
(5
)
 
—

 
—

 
163

 
(5
)
Offshore funds
 
—

 
—

 
4,712

 
(288
)
 
4,712

 
(288
)
Mutual funds
 
3

 
(3
)
 
—

 
—

 
3

 
(3
)
Total available-for-sale securities
 
$
261

 
$
(13
)
 
$
4,712

 
$
(288
)
 
$
4,973

 
$
(301
)

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:
Investment Income
 
Six Months Ended December 31,
 
 
2013
 
2012
Realized gains on sales of available-for-sale securities
 
$
692,673

 
$
217,200

Realized losses on sales of trading securities
 
(168,218
)
 
(244,627
)
Unrealized gains on trading securities
 
278,191

 
348,739

Realized foreign currency gains (losses)
 
4,527

 
(2,751
)
Other-than-temporary declines in available-for sale securities
 
—

 
(41,837
)
Dividend and interest income
 
301,702

 
84,914

Total Investment Income
 
$
1,108,875

 
$
361,638


 
Investment Income
 
Three Months Ended December 31,
 
 
2013
 
2012
Realized gains (losses) on sales of available-for-sale securities
 
$
(182,673
)
 
$
217,200

Realized losses on sales of trading securities
 
(168,218
)
 
(244,627
)
Unrealized gains on trading securities
 
169,488

 
177,158

Realized foreign currency losses
 
(452
)
 
(2,726
)
Other-than-temporary declines in available-for sale securities
 
—

 
(41,837
)
Dividend and interest income
 
230,080

 
55,819

Total Investment Income
 
$
48,225

 
$
160,987