2.	MARKETABLE SECURITIES

ASC 320 “Investments – Debt and Equity Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify 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 December 31:


			2011				2010
($ in thousands)	Fair Value Hierarchy		Cost		Fair Value		Cost		Estimated Fair Value
Marketable Securities:
Certificates of deposit
with unrecognized losses for less than 12 months			$	3,646	$	3,605	$	1,040	$	1,034
with unrecognized gains				3,525		3,551		4,338		4,392

Total Certificates of deposit		Level 1		7,171		7,156		5,378		5,426

US Treasury and agency notes
with unrecognized losses for less than 12 months				4,352		4,338		12,500		12,441
with unrecognized losses for more than 12 months				1,002		1,000		124		124

with unrecognized gains				16,479		16,660		7,211		7,342

Total US Treasury and agency notes		Level 2		21,833		21,998		19,835		19,907
Corporate notes
with unrecognized losses for less than 12 months				9,230		9,098		5,135		5,077
with unrecognized losses for more than 12 months				1,539		1,494		—		—
with unrecognized gains				19,369		19,738		12,526		12,952

Total Corporate notes		Level 2		30,138		30,330		17,661		18,029

Municipal notes
with unrecognized losses for less than 12 months				1,177		1,165		2,588		2,543

with unrecognized losses for more than 12 months				881		873		—		—

with unrecognized gains				6,964		7,044		3,038		3,080

Total Municipal notes		Level 2		9,022		9,082		5,626		5,623

			$	68,164	$	68,566	$	48,500	$	48,985

At December 31, 2011 and 2010, the carrying value of cash and cash equivalents approximated market value.

The Company follows the provisions of ASC 320 “Investments – Debt and Equity Securities” which amended the recognition requirements for other-than-temporary impairment for debt securities. 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 December 31, 2011, the fair market value of investment securities exceeded the cost basis by $402,000. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. During 2011 and 2010, no other-than-temporary impairments were recorded. In the future based on changes in the economy, credit markets, financial condition of issuers, or market interest rates, this could change.

For the year ended December 31, 2009, we recognized $113,000 of impairment losses in our statement of operations. These impaired securities were subsequently sold during 2009 at a gain, which fully offset the previously recognized impairment losses.

As of December 31, 2011, the adjustment to accumulated other comprehensive income (loss) in consolidated equity for the temporary change in the value of securities reflects decrease in the market value of available-for-sale securities of $49,000, which is net of taxes of $34,000.

As of December 31, 2011, the Company’s gross unrealized holding gains equal $655,000 and gross unrealized holding losses equal $253,000. On December 31, 2011, the average maturity of certificates of deposits was 2.8 years, the average maturity of U.S. Treasury and agency securities was 2.1 years, the average maturity of corporate notes was 2.6 years and the average maturity of municipal notes was 2.7 years. Currently, the Company has no securities with a remaining term to maturity of greater than four years.

The following table summarizes the maturities, at par, of marketable securities by year ($ in thousands):


At December 31, 2011	2012		2013		2014		2015		2016		Total
Certificates of deposit	$	1,536	$	1,255	$	1,627	$	2,526	$	—	$	6,944
U.S. Treasury and agency notes		4,734		10,285		5,856		936		—	$	21,811
Corporate notes		3,450		11,231		8,923		5,584		—	$	29,188
Municipal notes		860		2,505		4,145		1,160		—	$	8,670

	$	10,580	$	25,276	$	20,551	$	10,206	$	—	$	66,613


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

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.