Investments

9 Months Ended

Jan. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investments

Note 2: Investments

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets funds. The investments in securities are classified as available-for-sale securities and are reported at fair value. Available-for-sale investments in debt securities mature between June 2019 and January 2044. The Company uses the average cost method to determine the cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings. Unrealized gains and losses are excluded from earnings and reported separately as a component of stockholders’ equity. Dividend and interest income are reported as earned.

As of January 31, 2019 and April 30, 2018, investments consisted of the following:

Investments at January 31, 2019	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Municipal bonds	$	5,487,000	$	65,000	$	(88,000	)	$	5,464,000
Corporate bonds		56,000		1,000		—			57,000
REITs		89,000		—		(2,000	)		87,000
Equity securities		16,532,000		2,933,000		(479,000	)		18,986,000
Money markets and CDs		1,176,000		—		—			1,176,000
Total	$	23,340,000	$	2,999,000	$	(569,000	)	$	25,770,000

Investments at April 30, 2018	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Municipal bonds	$	5,984,000	$	66,000	$	(309,000	)	$	5,741,000
Corporate bonds		129,000		2,000		—			131,000
REITs		110,000		3,000		(7,000	)		106,000
Equity securities		15,930,000		3,714,000		(311,000	)		19,333,000
Money markets and CDs		1,035,000		—		—			1,035,000
Total	$	23,188,000	$	3,785,000	$	(627,000	)	$	26,346,000

The Company evaluates all marketable securities for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded an impairment loss of $36,000 for the quarter, and recorded a loss of $68,000 for the nine months ended January 31, 2019. For the corresponding periods last year, management did not record a loss for the quarter, but did record a $23,000 impairment loss for the nine months ended January 31, 2018.

The following tables show the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at January 31, 2019 and April 30, 2018, respectively.

Unrealized Loss Breakdown by Investment Type at January 31, 2019

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	2,678,000	$	(33,000	)	$	618,000	$	(55,000	)	$	3,296,000	$	(88,000	)
REITs		—		—			87,000		(2,000	)		87,000		(2,000	)
Equity securities		4,806,000		(351,000	)		519,000		(128,000	)		5,325,000		(479,000	)
Total	$	7,484,000	$	(384,000	)	$	1,224,000	$	(185,000	)	$	8,708,000	$	(569,000	)

Unrealized Loss Breakdown by Investment Type at April 30, 2018

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	960,000	$	(200,000	)	$	2,385,000	$	(109,000	)	$	3,345,000	$	(309,000	)
REITs		55,000		(6,000	)		27,000		(1,000	)		82,000		(7,000	)
Equity securities		2,545,000		(127,000	)		823,000		(184,000	)		3,368,000		(311,000	)
Total	$	3,560,000	$	(333,000	)	$	3,235,000	$	(294,000	)	$	6,795,000	$	(627,000	)

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at January 31, 2019.

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at January 31, 2019.