Note 6 - Marketable Securities

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

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

6. Marketable Securities

The amortized cost and unrealized gains/(losses), net of marketable securities as of September 30, 2020 and December 31, 2019, are as follows (in thousands):

	As of September 30, 2020		As of December 31, 2019
Marketable securities:
Amortized cost (1)	$	114,531	$	12,064
Unrealized gains/(losses), net (1)		442,260		(2,711	)
Total fair value	$	556,791	$	9,353

(1) See Albertsons Companies, Inc. discussion below.

During the three months ended September 30, 2020 and 2019, the net unrealized losses on marketable securities were $76.9 million and $0.2 million, respectively. In addition, during the nine months ended September 30, 2020 and 2019, the net unrealized gains on marketable securities were $444.6 million and $1.4 million, respectively. These net unrealized losses and gains are included in (Loss)/gain on marketable securities, net on the Company’s Condensed Consolidated Statements of Operations. See Footnote 11 to the Notes to the Company’s Condensed Consolidated Financial Statements for fair value disclosure.

Albertsons Companies, Inc. (“ACI”) –

The Company owned 9.29% of the common stock of ACI, one of the largest food and drug retailers in the United States, and accounted for this $140.2 million investment on the cost method, which was included in Other assets on the Company’s Condensed Consolidated Balance Sheets. During June 2020, ACI issued $1.75 billion of convertible preferred stock and used the net proceeds of $1.68 billion to repurchase approximately 17.5% of ACI’s common stock owned by its current shareholders. As a result of this transaction, the Company received net proceeds of $156.1 million, recognized a gain of $131.6 million, which is included in Gain on sale of cost method investment on the Company’s Condensed Consolidated Statements of Operations and held a 7.5% ownership interest in ACI.

On June 25, 2020, ACI announced its initial public offering ("IPO") of 50.0 million shares of its common stock had been priced at $16.00 per share. In connection with this transaction, the Company received net proceeds of $71.4 million, net of fees, from the sale of 4.7 million common shares in ACI and recognized a gain of $59.2 million, which is included in Gain on sale of cost method investment on the Company’s Condensed Consolidated Statements of Operations. The shares began trading on the New York Stock Exchange under the symbol "ACI", on June 26, 2020. As of September 30, 2020, the Company holds 39.8 million common shares in ACI which are accounted for as available-for-sale marketable securities and are included in Marketable securities on the Company’s Condensed Consolidated Balance Sheets. As of September 30, 2020, the Company’s investment in ACI was $551.8 million, including a mark-to-market gain of $448.2 million.

During October 2020, ACI declared a cash dividend of $0.10 per share of Class A common stock and Class A-1 common stock. The cash dividend is payable on November 10, 2020 to stockholders of record as of the close of business on October 26, 2020.  As a result, the Company anticipates it will receive $4.0 million during the fourth quarter 2020 relating to this dividend distribution.