Marketable Securities

6 Months Ended

Sep. 30, 2019

Marketable Securities [Abstract]

Marketable Securities

6.    Marketable Securities and Other Investments

In accordance with ASU 2016-01 “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” adopted by the Company on April 1, 2018, all equity investments in unconsolidated entities

(other than those accounted for using the equity method of accounting) are measured at fair value through earnings. The Company's marketable securities are recorded at their fair value, with unrealized changes in market value realized within Investment (income) loss on the Condensed Consolidated Statements of Operations. The impact on earnings for unrealized gains and losses was a gain of $37,000 and not material in the three months ended September 30, 2019 and September 30, 2018, respectively. The impact on earnings for unrealized gains and losses was a gain of $174,000 and not material in the six months ended September 30, 2019 and September 30, 2018, respectively.

Consistent with prior periods, the estimated fair value is based on quoted market prices at the balance sheet dates. The cost of securities sold is based on the specific identification method. Interest and dividend income are included in Investment (income) loss in the Condensed Consolidated Statements of Operations.

Marketable securities are carried as long-term assets since they are held for the settlement of the Company’s general and product liability insurance claims filed through CM Insurance Company, Inc. ("CMIC"), a wholly owned captive insurance subsidiary. The marketable securities are not available for general working capital purposes.

Net realized gains related to sales of marketable securities were not material in the three and six months ended September 30, 2019 and September 30, 2018, respectively.

The Company owns a 49% ownership interest in Eastern Morris Cranes Company Limited (EMC), a limited liability company organized and existing under the laws and regulations of the Kingdom of Saudi Arabia. The Company's ownership represents an equity investment in a strategic customer of STAHL serving the Kingdom of Saudi Arabia. The investment value was increased for the Company's ownership percentage of income earned by EMC in the amount of $260,000 and $200,000 in the six months ended September 30, 2019 and September 30, 2018, respectively, recorded in Investment (income) loss on the Condensed Consolidated Statements of Operations. The investment's carrying value as of September 30, 2019 was $3,759,000 and has been accounted for as an equity method investment. It is presented in Other assets in the Condensed Consolidated Balance Sheets. The September 30, 2019 trade accounts receivable balance due from EMC is $5,220,000 and is comprised of amounts due for the sale of goods and services in the ordinary course of business.