Note 9 - Marketable Securities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

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

9.  Marketable Securities:

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

	As of December 31, 2020		As of December 31, 2019
Marketable securities:
Amortized cost (1)	$	114,531	$	12,064
Unrealized gains/(losses), net (1)		592,423		(2,711	)
Total fair value	$	706,954	$	9,353

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

During the years ended December 31, 2020 and 2019, the net unrealized gains on marketable securities were $594.8 million and $0.8 million, respectively. These net unrealized gains are included in Gain/(loss) on marketable securities, net on the Company’s Consolidated Statements of Income. See Footnote 16 to the Notes to the Company’s 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 Consolidated Balance Sheets as of December 31, 2019. 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 Consolidated Statements of Income, 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 Consolidated Statements of Income. The shares began trading on the New York Stock Exchange under the symbol "ACI" on June 26, 2020. As of December 31, 2020, the Company holds 39.8 million common shares in ACI (subject to certain contractual lock-up provisions) which are accounted for as available-for-sale marketable securities and are included in Marketable securities on the Company’s Consolidated Balance Sheets. As of December 31, 2020, the Company’s investment in ACI was $700.4 million, including a mark-to-market gain of $596.8 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 was paid on November 10, 2020 to stockholders of record as of the close of business on October 26, 2020. As a result, the Company recognized $4.0 million of dividend income during the year ended December 31, 2020, which is included in Other income, net on the Company’s Consolidated Statements of Income.