NOTE C – MARKETABLE SECURITIES

The Company classifies its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis.

The following is a summary of available-for-sale securities at June 30, 2011 and December 31, 2010:


(in thousands)	2011				2010
	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Marketable Securities:
Certificates of deposit
with unrecognized losses for less than 12 months	$	1,002	$	999	$	1,040	$	1,034
with unrecognized losses for more than 12 months		100		100		—		—
with unrecognized gains		5,642		5,692		4,338		4,392

Total Certificates of deposit		6,744		6,791		5,378		5,426


US Treasury and agency notes
with unrecognized losses for less than 12 months		1,593		1,591		12,500		12,441
with unrecognized losses for more than 12 months		126		126		124		124
with unrecognized gains		24,351		24,556		7,211		7,342

Total US Treasury and agency notes		26,070		26,273		19,835		19,907


Corporate notes
with unrecognized losses for less than 12 months		1,759		1,746		5,135		5,077
with unrecognized gains		21,312		21,808		12,526		12,952

Total Corporate notes		23,071		23,554		17,661		18,029


Municipal notes
with unrecognized losses for less than 12 months		2,439		2,419		2,588		2,543
with unrecognized gains		5,195		5,255		3,038		3,080

Total Municipal notes		7,634		7,674		5,626		5,623

	$	63,519	$	64,292	$	48,500	$	48,985

We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss which is recognized through other comprehensive income.

At June 30, 2011, the fair market value of investment securities exceeded the cost basis by $773,000. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. None have been recorded at June 30, 2011. In the future based on changes in the economy, credit markets, financial condition of issuers, or market interest rates, this could change.

As of June 30, 2011, the adjustment to accumulated other comprehensive income (loss) in consolidated equity for the temporary change in the value of securities reflects an increase in the market value of available-for-sale securities of $288,000, which includes estimated taxes of $114,000.

As of June 30, 2011, the Company’s gross unrealized holding gains equal $812,000 and gross unrealized holding losses equal $39,000. On June 30, 2011, the average maturity of certificates of deposits was 2.11 years, the average maturity of U.S. Treasury and agency securities was 2.61 years, the average maturity of corporate notes was 2.51 years and the average maturity of municipal notes was 2.86 years. Currently, the Company has no securities with a remaining term to maturity of greater than five years.

The following tables summarize the maturities, at par, of marketable securities by year:


(in thousands)
At June 30, 2011	2011		2012		2013		2014		2015		Total
Certificates of deposit	$	2,234	$	1,536	$	1,168	$	682	$	945	$	6,565

U.S. Treasury and agency notes		3,377		4,734		10,785		4,916		2,221		26,033

Corporate notes		1,962		3,450		9,348		4,884		2,699		22,343

Municipal notes		565		910		2,505		3,120		290		7,390

	$	8,138	$	10,630	$	23,806	$	13,602	$	6,155	$	62,331


(in thousands)
At December 31, 2010	2011		2012		2013		2014		2015		Total
Certificates of deposit	$	2,234	$	1,547	$	1,168	$	286	$	—	$	5,235

U.S. Treasury and agency notes		3,516		4,734		8,535		1,969		980		19,734

Corporate notes		3,203		3,200		7,348		2,804		600		17,155

Municipal notes		930		910		1,750		1,840		—		5,430

	$	9,883	$	10,391	$	18,801	$	6,899	$	1,580	$	47,554

All of our securities are valued using level one indicators. Level one indicators are quoted market prices for the same or equivalent securities. The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.