Note 6 - Investments in Marketable Securities

3 Months Ended

Dec. 31, 2018

Notes to Financial Statements

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

Note

6

- Investments in Marketable Securities

All investments are classified as “Current assets” because they are available for sale at any time. These “available-for-sale” marketable securities are stated at fair value. The Company uses quoted prices in active markets for identical assets (consistent with the Level

1

definition in the fair value hierarchy) to measure the fair value of its investments on a recurring basis pursuant to ASC

820,

Fair Value Measurement

.

As of

December 31, 2018,

there were net unrealized gains of

$129,767,000

with these investments. With the adoption of ASU

No.

2016

-

01,

Subtopic

825

-

10,

as stated in Note

3,

the Company recorded and included in its net loss the net unrealized losses on investments of

$28,640,000

for the

three

months ended

December 31, 2018.

At

September 30, 2018,

net unrealized gains of

$158,407,000

were recorded before taxes of

$42,151,000

in the accumulated other comprehensive income in the accompanying Consolidated Balance Sheets. Most of the unrealized gains were in the common stocks of

three

U.S. financial institutions and

one

foreign manufacturer.

Investments in equity securities as of

December 31, 2018

and

September 30, 2018

are summarized below.

   

Investment

s

in Financial Instruments

	December 31, 2018						September 30, 2018
	Aggregate fair value		Amortized/ Adjusted cost basis		Pretax net unrealized gains		Aggregate fair value		Amortized/ Adjusted cost basis		Pretax net unrealized gains
Marketable securities	$	183,656,000	$	53,889,000	$	129,767,000	$	212,296,000	$	53,889,000	$	158,407,000

As of

December 31, 2018,

the Company performed an evaluation for an equity security with a fair value below cost to determine if the unrealized loss was other-than-temporary. This evaluation considers a number of factors including, but

not

limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer and the Company’s ability and intent to hold the security until fair value recovers. The assessment of the ability and intent to hold this security to recovery focuses on liquidity needs, asset/liability management objectives and security portfolio objectives. Based on the result of the evaluation, the Company concluded that as of

December 31, 2018,

the unrealized loss related to an equity security it owns was temporary.