INVESTMENTS

As of September 30, 2014, the Company held investments with a fair value of approximately $23.1 million and a cost basis of approximately $22.9 million. In addition, the Company held other investments of $2.4 million . Total investments are approximately 70.0 percent of the Company’s total assets.

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 equity 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 an equity security is determined to be other-than-temporary, the impairment is recognized in earnings.

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 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 $14.1 million.

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, 2014, and June 30, 2014.



	September 30, 2014
			Gross Unrealized
(dollars in thousands)	Cost		Gains		(Losses)			Fair Value
Trading securities ¹
Offshore fund	$	1,184	$	—	$	(390	)	$	794
Mutual funds - Fixed income	16,241		79		(2		)	16,318
Mutual funds - Domestic equity	535		—		(85		)	450
Other	107		—		(83		)	24
Total trading securities	$	18,067	$	79	$	(560	)	$	17,586

Available-for-sale securities ²
Common stock - Domestic	$	496	$	605	$	(3	)	$	1,098
Common stock - International	652		383		(8		)	1,027
Corporate debt	1,700		6		(287		)	1,419
Mutual funds - Fixed income	1,228		14		(11		)	1,231
Mutual funds - Domestic equity	543		5		—			548
Other	232		1		(4		)	229
Total available-for-sale securities ³	$	4,851	$	1,014	$	(313	)	$	5,552



	June 30, 2014
			Gross Unrealized
(dollars in thousands)	Cost		Gains		(Losses)			Fair Value
Trading securities ¹
Offshore fund	$	1,184	$	—	$	(186	)	$	998
Mutual funds - Fixed income	16,241		92		—			16,333
Mutual funds - Domestic equity	535		—		(76		)	459
Other	107		—		(80		)	27
Total trading securities	$	18,067	$	92	$	(342	)	$	17,817

Available-for-sale securities ²
Common stock - Domestic	$	535	$	586	$	(3	)	$	1,118
Common stock - International	607		802		—			1,409
Corporate debt	1,706		—		(74		)	1,632
Mutual funds - Fixed income	1,228		21		(2		)	1,247
Mutual funds - Domestic equity	543		7		—			550
Other	232		9		(1		)	240
Total available-for-sale securities ³	$	4,851	$	1,425	$	(80	)	$	6,196


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 on available-for-sale securities gross and net of tax as of September 30, 2014, are $701 and $462, respectively, and as of June 30, 2014, are $1,345 and $888, 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, 2014
	Less Than 12 Months					12 Months or Greater				Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale securities
Common stock - Domestic	$	106	$	(3	)	$	—	$	—	$	106	$	(3	)
Common stock - International	140		(8		)	—		—		140		(8		)
Corporate debt	1,168		(287		)	—		—		1,168		(287		)
Mutual funds - Fixed income	218		(11		)	—		—		218		(11		)
Other	63		(4		)	—		—		63		(4		)
Total available-for-sale securities	$	1,695	$	(313	)	$	—	$	—	$	1,695	$	(313	)



	June 30, 2014
	Less Than 12 Months					12 Months or Greater				Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale securities
Common stock - Domestic	$	125	$	(3	)	$	—	$	—	$	125	$	(3	)
Corporate debt	1,382		(74		)	—		—		1,382		(74		)
Mutual funds - Fixed income	151		(2		)	—		—		151		(2		)
Other	118		(1		)	—		—		118		(1		)
Total available-for-sale securities	$	1,776	$	(80	)	$	—	$	—	$	1,776	$	(80	)

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:



(dollars in thousands)	Three Months Ended September 30,
Investment Income (Loss)	2014			2013
Realized gains on sales of available-for-sale securities	$	295		$	875
Unrealized gains (losses) on trading securities	(231		)	109
Realized foreign currency gains	20			5
Dividend and interest income	136			71
Total Investment Income	$	220		$	1,060