FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Jul. 31, 2012

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE H – FAIR VALUE OF FINANCIAL INSTRUMENTS

The cost, gross unrealized gains, gross unrealized losses and fair market value of available-for-sale securities at July 31, 2012 and April 30, 2012 are as follows (in thousands):

	July 31, 2012
			Gross		Gross			Fair
			Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Fixed income securities	$	10,210	$	308	$	(2	)	$	10,516
Equity securities		5,467		781		(86	)		6,162
	$	15,677	$	1,089	$	(88	)	$	16,678

	April 30, 2012
			Gross		Gross			Fair
			Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Fixed income securities	$	11,573	$	297	$	(6	)	$	11,864
Equity securities		5,411		552		(169	)		5,794
	$	16,984	$	849	$	(175	)	$	17,658

The following table presents the fair value and unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	Less than 12 months					12 Months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
July 31, 2012
Fixed Income Securities	$	100	$	(2	)	$	-	$	-		$	100	$	(2	)
Equity Securities		366		(84	)		128		(2	)		494		(86	)
	$	466	$	(86	)	$	128	$	(2	)	$	594	$	(88	)
April 30, 2012
Fixed Income Securities	$	301	$	(6	)	$	-	$	-		$	301	$	(6	)
Equity Securities		539		(169	)		-		-			539		(169	)
	$	840	$	(175	)	$	-	$	-		$	840	$	(175	)

The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. The Company does not believe that its investments in marketable securities with unrealized losses at July 31, 2012 are other-than-temporary due to market volatility of the security’s fair value, analysts’ expectations and the Company’s ability to hold the securities for a period of time sufficient to allow for any anticipated recoveries in market value.

During the three months ended July 31, 2012 and 2011, the Company redeemed available-for-sale securities in the amounts of $2.0 million and $4.5 million, respectively, realizing no gain in fiscal year 2013 and realized a gain of $6,800 in fiscal year 2012, which amounts are included in the determination of net income for those periods.

Maturities of fixed income securities classified as available-for-sale at July 31, 2012 are as follows, at cost (in thousands):

Current	$	1,005
Due after one year through five years		8,542
Due after five years through ten years		663
	$	10,210

The fair value accounting framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level2 Inputs to the valuation methodology include:

- Quoted prices for similar assets or liabilities in active markets;

- Quoted prices for identical or similar assets or liabilities in inactive markets

- Inputs other than quoted prices that are observable for the asset or liability;

- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. All of the Company’s investments in marketable securities are valued on a Level 1 basis.