Note 12 - Marketable Securities

12 Months Ended

Dec. 31, 2012

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

12.  Marketable Securities:

The amortized cost and estimated fair values of securities available-for-sale and held-to-maturity at December 31, 2012 and 2011, are as follows (in thousands):

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Equity securities	$	14,205	$	19,223	$	-	$	33,428
Held-to-maturity:
Other debt securities		3,113		284		-		3,397
Totalmarketable securities	$	17,318	$	19,507	$	-	$	36,825

	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Equity securities	$	14,253	$	16,210	$	(1	)	$	30,462
Held-to-maturity:
Other debt securities		3,078		378		(10	)		3,446
Totalmarketable securities	$	17,331	$	16,588	$	(11	)	$	33,908

During February 2008, the Company acquired an aggregate $190 million Australian denominated (“AUD”) ( USD $170.1 million) convertible notes (the “Valad notes”) issued by a subsidiary of Valad Property Group (“Valad”), a publicly traded Australian company listed on the Australian stock exchange that is a diversified, property fund manager, investor, developer and property investment banker with property investments in Australia, Europe and Asia.  The notes were guaranteed by Valad and bore interest at 9.5% payable semi-annually in arrears.  The notes were repayable after five years with an option for Valad to extend up to 18 months, subject to certain interest rate and conversion price resets.  The notes were convertible any time into publicly traded Valad securities at a price of AUD $26.60.  During 2010, the Company acquired an additional AUD $10 million (USD $9.3 million) of Valad notes.  Additionally, during 2010, Valad made a principal payment of AUD $8.0 million (USD $7.9 million).

During 2011, the Company received an additional principal payment of  $7.0 million AUD ( USD $6.9 million) and the Company sold its remaining Valad notes for a sales price of  AUD $165.0 million ( USD $169.1 million), plus unpaid accrued interest.  In connection with the anticipation of this sale, the Company entered into a foreign currency forward contract to sell AUD $165.0 million and buy USD $169.1 million in efforts to mitigate the foreign exchange risk resulting from fluctuations in currency exchange rates.  The Company designated the AUD-USD foreign exchange risk as the risk being hedged.

The Company recorded an adjustment to the carrying value of the Valad notes, including amounts allocated to the conversion option described below, of  USD $0.9 million based upon the agreed sales price. This adjustment is recorded in Other expense, net on the Company’s Consolidated Statements of Income.   At the completion of the sale, the Company received AUD $170.2 million (USD $174.7 million) representing the principal and unpaid interest and settled its foreign currency forward contract.    Upon settling the foreign currency forward contract, the Company recorded a reclass of $10.0 million from Accumulated other comprehensive income to Other expense, net, which was fully offset by a foreign currency gain on sale of the Valad notes.  As a result there was no net gain or loss recognized.

In accordance with the FASB’s Derivative and Hedging guidance, the Company bifurcated the conversion option within the Valad notes and separately accounted for this option as an embedded derivative.  The original host instrument was classified as an available-for-sale security at fair value and was included in Marketable securities on the Company’s Consolidated Balance Sheets with changes in the fair value recorded through Stockholders’ equity as a component of other comprehensive income.  At December 31, 2010, the Company had an unrealized gain, including foreign currency adjustments, associated with these notes of  $6.0 million. The embedded derivative was recorded at fair value and was included in Other assets on the Company’s Consolidated Balance Sheets with changes in fair value recognized in the Company’s Consolidated Statements of Income.  The value attributed to the embedded convertible option was  AUD $10.0 million, ( USD $10.2 million).  As a result of the fair value remeasurement of this derivative instrument during 2010 there was an AUD $0.2 million (USD $0.2 million) unrealized decrease in the fair value of the convertible option.  This unrealized increase/decrease is included in Other expense, net on the Company’s Consolidated Statements of Income.

During 2011, and 2010, the Company recorded impairment charges of $0.6 million, and $4.6 million, respectively, before income tax benefits of $0.4 million, and $0 million, respectively, due to the decline in value of certain marketable securities and other investments that were deemed to be other-than-temporary. These impairments were a result of the deterioration of the equity markets for these securities during their respective years and the uncertainty of their future recoverability. Market value for the equity securities represents the closing price of each security as it appears on their respective stock exchange at the end of the period.

During 2012, 2011 and 2010, the Company received $0.1 million, $22.7 million and $23.2 million in proceeds from the sale/redemption of certain marketable securities, respectively. In connection with these transactions, during 2012. 2011 and 2010 the Company recognized (i) gross realizable gains of $0.0 million, $0.8 million and $2.6 million, respectively, (ii) foreign currency gains of  $0.0 million, $1.6 million and $0.0 million, respectively, and (iii) gross realizable losses of $0.0 million, $0.3 million and $1.9 million, respectively.

As of December 31, 2012, the contractual maturities of Other debt securities classified as held-to-maturity are as follows: after one year through five years, $0.1 million; and after five years through 10 years, $3.0 million.  Actual maturities may differ from contractual maturities as issuers may have the right to prepay debt obligations with or without prepayment penalties.