7. Investment in Securities

12 Months Ended

Dec. 31, 2016

Investment In Securities

Investment in Securities

As of December 31, 2016, the Company, through its wholly-owned subsidiary, had purchased approximately 1.8 million shares of Iteris (NASDAQ: ITI), which represented approximately 5.5% of Iteris’s outstanding shares.  At December 31, 2016, the corresponding unrealized gain of approximately $1,664, net of tax of $924, is included in accumulated other comprehensive income as a separate component of stockholders’ equity.  There was no impact to the Company’s consolidated statements of income. 

On July 29, 2016, the Company, one of the Company’s significant stockholders, and certain of their affiliates entered into an agreement with Iteris. Pursuant to the agreement, a Director of the Company, who is an executive, co-founder and partner of the significant stockholder that is party to the agreement, was appointed to the Board of Directors of Iteris.  As of December 31, 2016, the Company and the significant stockholder of the Company beneficially own in the aggregate 2,600,194 shares of Iteris, which represents approximately 8.1% of Iteris’s outstanding shares.