Marketable Securities

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

MARKETABLE SECURITIES

The Company classifies its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis.

The following is a summary of available-for-sale securities at:

		September 30, 2013				December 31, 2012
($ in thousands)	Fair Value Hierarchy	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Certificates of deposit
with unrecognized losses for less than 12 months		$	1,717	$	1,707	$	1,578	$	1,571
with unrecognized losses for more than 12 months		111		111		508		507
with unrecognized gains		7,006		7,050		5,586		5,628
Total Certificates of deposit	Level 1	8,834		8,868		7,672		7,706
US Treasury and agency notes
with unrecognized losses for less than 12 months		5,853		5,841		3,057		3,024
with unrecognized losses for more than 12 months		3,948		3,930		874		873
with unrecognized gains		5,957		6,001		12,175		12,267
Total US Treasury and agency notes	Level 2	15,758		15,772		16,106		16,164
Corporate notes
with unrecognized losses for less than 12 months		9,155		9,049		1,993		1,971
with unrecognized losses for more than 12 months		316		315		201		200
with unrecognized gains		22,082		22,338		29,210		29,653
Total Corporate notes	Level 2	31,553		31,702		31,404		31,824
Municipal notes
with unrecognized losses for less than 12 months		1,378		1,360		1,961		1,948
with unrecognized losses for more than 12 months		1,045		1,040		620		613
with unrecognized gains		5,689		5,745		6,702		6,794
Total Municipal notes	Level 2	8,112		8,145		9,283		9,355
		$	64,257	$	64,487	$	64,465	$	65,049

We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss which is recognized through other comprehensive income.

At September 30, 2013, the fair market value of investment securities exceeded the cost basis by $230,000. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. None have been recorded at September 30, 2013. The Company has determined that any unrealized losses in the portfolio are temporary as of September 30, 2013. The Company believes that market factors such as, changes in interest rates, liquidity discounts, and premiums required by market participants rather than an adverse change in cash flows or a fundamental weakness in credit quality of the issuer have led to the temporary declines in value. In the future based on changes in the economy, credit markets, financial condition of issuers, or market interest rates, this could change.

As of September 30, 2013, the adjustment to accumulated other comprehensive income (loss) in consolidated equity for the temporary change in the value of securities reflects a decrease in the market value of available-for-sale securities of $212,000, which is net of estimated taxes of $142,000.

As of September 30, 2013, the Company’s gross unrealized holding gains equal $400,000 and gross unrealized holding losses equal $170,000.

The following tables summarize the maturities, at par, of marketable securities by year:

(in thousands)
At September 30, 2013	2013		2014		2015		2016		2017		Total
Certificates of deposit	$	965	$	1,627	$	4,213	$	1,501	$	437	$	8,743
U.S. Treasury and agency notes	890		6,787		5,168		2,350		592		15,787
Corporate notes	1,752		6,729		10,137		6,604		5,074		30,296
Municipal notes	450		3,675		2,205		1,235		295		7,860
	$	4,057	$	18,818	$	21,723	$	11,690	$	6,398	$	62,686

(in thousands)
At December 31, 2012	2013		2014		2015		2016		Total
Certificates of deposit	$	1,268	$	1,627	$	4,316	$	301	$	7,512
U.S. Treasury and agency notes	6,285		7,248		2,633		11		16,177
Corporate notes	10,916		6,729		9,420		3,325		30,390
Municipal notes	2,305		4,340		1,960		400		9,005
	$	20,774	$	19,944	$	18,329	$	4,037	$	63,084

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.