Marketable Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

MARKETABLE SECURITIES

ASC 320, “Investments – Debt and Equity Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify 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:

($ in thousands)		September 30, 2015				December 31, 2014
Marketable Securities:	Fair Value Hierarchy	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Certificates of deposit
with unrecognized losses for less than 12 months		$	2,826	$	2,814	$	2,522	$	2,492
with unrecognized losses for more than 12 months		250		250		837		832
with unrecognized gains		5,003		5,013		5,379		5,395
Total Certificates of deposit	Level 1	8,079		8,077		8,738		8,719
US Treasury and agency notes
with unrecognized losses for less than 12 months		131		131		1,919		1,910
with unrecognized losses for more than 12 months		—		—		702		700
with unrecognized gains		1,660		1,669		1,182		1,207
Total US Treasury and agency notes	Level 2	1,791		1,800		3,803		3,817
Corporate notes
with unrecognized losses for less than 12 months		10,719		10,657		3,872		3,841
with unrecognized losses for more than 12 months		2,094		2,081		4,423		4,405
with unrecognized gains		7,348		7,369		16,897		16,963
Total Corporate notes	Level 2	20,161		20,107		25,192		25,209
Municipal notes
with unrecognized losses for less than 12 months		1,241		1,232		739		733
with unrecognized losses for more than 12 months		405		401		457		456
with unrecognized gains		2,079		2,089		3,183		3,206
Total Municipal notes	Level 2	3,725		3,722		4,379		4,395
		$	33,756	$	33,706	$	42,112	$	42,140

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, 2015, the fair market value of investment securities was $50,000 less than their cost basis. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. The Company believes that any unrealized losses in the portfolio are temporary and accordingly, has not recognized other-than-temporary impairment related to any securities as of September 30, 2015. The Company also 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, 2015, the adjustment to accumulated other comprehensive loss in consolidated equity for the temporary change in the value of securities reflected a decrease in the market value of available-for-sale securities of $78,000, which includes an estimated tax benefit of $30,000.

As of September 30, 2015, the Company’s gross unrealized holding income equaled $50,000 and gross unrealized holding losses equaled $100,000.

The following tables summarize the maturities, at par, of marketable securities by year ($ in thousands):

At September 30, 2015	2015		2016		2017		2018		2019		Total
Certificates of deposit	$	395	$	2,492	$	631	$	4,510	$	—	$	8,028
U.S. Treasury and agency notes	—		100		959		579		193		1,831
Corporate notes	305		4,572		6,525		6,270		1,795		19,467
Municipal notes	200		1,025		940		1,455		—		3,620
	$	900	$	8,189	$	9,055	$	12,814	$	1,988	$	32,946

At December 31, 2014	2015		2016		2017		2018		Total
Certificates of deposit	$	4,213	$	1,501	$	831	2,149		$	8,694
U.S. Treasury and agency notes	1,176		600		1,209		879		3,864
Corporate notes	9,588		6,704		6,498		1,625		24,415
Municipal notes	2,105		1,235		790		125		4,255
	$	17,082	$	10,040	$	9,328	$	4,778	$	41,228

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