Note 9 - Investments in Marketable Securities

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

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

Note

9

–

Inve

stments in Marketable Securities

Our investments in marketable equity securities are carried at fair value with the changes in unrealized gains and losses recognized in our results of operations at each measurement date. Our investments in marketable debt securities are classified as available for sale securities and carried at fair value with the unrealized gains and losses recognized through accumulated other comprehensive income at each measurement date. Realized gains and losses from securities sales are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note

10

for a description of the Company's methodology for determining the fair value of marketable securities.

Marketable securities and restricted marketable securities consist of the following

(in thousands)

:

	March 31, 2019				December 31, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investments available for sale:
Marketable equity securities	$	30,176	$	147,061	$	30,176	$	140,223
Restricted investments available for sale:
Corporate debt securities		66,649		66,819		69,439		67,632
Asset-based securities		64,601		64,504		62,772		62,068
U.S. Treasury securities		20,091		19,748		22,038		21,457
State and municipal securities		21,715		21,736		21,818		21,436
	$	203,232	$	319,868	$	206,243	$	312,816

Included in the marketable equity securities are the following

(in thousands, except share amounts)

:

	March 31, 2019						December 31, 2018
	Shares		Cost		Fair Value		Shares		Cost		Fair Value
NHI Common Stock		1,630,642	$	24,734	$	128,087		1,630,642	$	24,734	$	123,179

The amortized cost and estimated fair value of debt securities classified as available for sale, by contractual maturity, are as follows

(in thousands)

:

	March 31, 2019				December 31, 2018
	Cost		Fair Value		Cost		Fair Value
Maturities:
Within 1 year	$	11,081	$	11,054	$	11,448	$	11,401
1 to 5 years		95,001		95,229		98,487		97,430
6 to 10 years		66,974		66,524		64,932		62,527
Over 10 years		--		--		1,200		1,235
	$	173,056	$	172,807	$	176,067	$	172,593

Gross unrealized gains related to marketable equity securities are

$116,906,000

and

$110,081,000

as of

March 31, 2019

and

December 31, 2018,

respectively. Gross unrealized losses related to marketable equity securities are

$21,000

and

$34,000

as of

March 31, 2019

and

December 31, 2018,

respectively. For the

three

months ended

March 31, 2019

and

2018,

the Company recognized net unrealized gains of

$6,838,000

and net unrealized losses of

$15,517,000

,

respectively, for the changes in fair market value of the marketable equity securities in the interim condensed consolidated statement of operations.

Gross unrealized gains related to available for sale debt securities are

$1,089,000

and

$335,000

as of

March 31, 2019

and

December 31, 2018,

respectively. Gross unrealized losses related to available for sale debt securities are

$1,338,000

and

$3,809,000

as of

March 31, 2019

and

December 31, 2018,

respectively.

For the marketable securities in gross unrealized loss positions, (a) it is more likely than

not

that the Company will

not

be required to sell the investment securities before recovery of the unrealized losses, and (b) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized

no

other-than-temporary impairment during the

three

months ended

March 31, 2019

or for the year ended

December 31, 2018.

Proceeds from the sale of available for sale debt securities during the

three

months ended

March 31, 2019

and

2018

were

$6,576,000

and

$3,535,000,

respectively. Investment gains of

$0

and

$11,000

were realized on these sales during the

three

months ended

March 31, 2019

and

2018,

respectively.

No

sales were reported for marketable equity securities for the

three

months ended

March 31, 2019

and

2018,

respectively.