Quarterly report pursuant to Section 13 or 15(d)

Trading And Available-For-Sale Securities At Fair Value

v3.19.3
Trading And Available-For-Sale Securities At Fair Value
6 Months Ended
Sep. 30, 2019
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract]  
Trading And Available-For-Sale Securities At Fair Value

As of September 30, 2019 and March 31, 2019, trading and available-for-sale  securities consisted of:

 

   

  September 30,

2019

   

March 31,

2019

 
             
Equity securities   $ 101,058     $ 105,017  
Debt securities     62,765       62,691  
Mutual investment funds     -       241  
Total trading securities   $ 163,823     $ 167,949  
                 
Certificates of deposit   $ 7,012     $ -  
Mutual investment funds     690       -  
Debt securities     567       -  
Preferred shares     317       -  
Equity securities     2       2  
Total available-for-sale securities, at fair value   $ 8,588     $ 2  

 

The Company recognized no other than temporary impairment in accumulated other comprehensive income.

  

The fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Company utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Company is valuing and the selected benchmark. Depending on the type of securities owned by the Company, other valuation methodologies may be required.

 

Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

 

The valuation hierarchy contains three levels:

 

Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets.

 

Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured.

 

Level 3 - Valuation inputs are unobservable and significant to the fair value measurement.

 

The following tables present trading and available-for-sale  securities assets in the condensed consolidated financial statements at fair value on a recurring basis as of September 30, 2019 and March 31, 2019:

 

          Fair Value Measurements at September 30, 2019 using  
      September 30,        Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs      Significant Unobservable Inputs   
    2019     (Level 1)     (Level 2)     (Level 3)  
                         
Equity securities   $ 101,058     $ 101,058     $ -     $ -  
Debt securities     62,765       62,765       -       -  
Total trading securities   $ 163,823     $ 163,823     $ -     $ -  
                                 
Certificates of deposit   $ 7,012     $ -     $ 7,012     $ -  
Mutual investment funds     690       690       -       -  
Debt securities     567       -       567       -  
Preferred shares     317       -       317       -  
Equity securities     2       -       -       2  
Total available-for-sale securities, at fair value   $ 8,588     $ 690     $ 7,896     $ 2  

 

          Fair Value Measurements at March 31, 2019 using  
   

 

  March 31,

    Quoted Prices in Active Markets for Identical Assets      Significant Other Observable Inputs      Significant Unobservable Inputs   
     2019     (Level 1)     (Level 2)     (Level 3)  
                         
Equity securities   $ 105,017     $ 105,017     $ -     $ -  
Debt securities     62,691       62,187       -       504  
Mutual investment funds     241       241       -       -  
Total trading securities   $ 167,949     $ 167,445     $ -     $ 504  
                                 
Equity securities   $ 2     $ -     $ -     $ 2  
Total available-for-sale securities, at fair value   $ 2     $ -     $ -     $ 2  

 

The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2019. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value.

 

Type

  Valuation Technique    

FV as of March 31,

2019

    Significant Unobservable Inputs     %  
                             
Corporate bonds DCF   $ 504   Discount rate     11.3 %            

 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended September 30, 2019:

 

    Trading securities     Available for sale securities  
Balance as of March 31, 2019   $ 504     $ 2  
                 
Sale of investments that use Level 3 inputs     (497 )     -  
Foreign currency translation     (7 )     -  
Balance as of September 30, 2019   $ -     $ 2  

 

    September 30, 2019  
     Assets measured at amortized cost      Unrealized gain/(loss) accumulated in other comprehensive income/(loss)      Assets measured at fair value  
Certificates of deposit   $ 7,002     $ 10     $ 7,012  
Mutual investment funds     685       5       690  
Debt securities     569       (2 )     567  
Preferred shares     304       13       317  
Equity securities     1       1       2  
                         
Available-for-sale securities, at fair value   $ 8,561     $ 27     $ 8,588  

 

    March 31, 2019  
    Assets measured at amortized cost      Unrealized gain accumulated in other comprehensive income/(loss)      Assets measured at fair value  
Equity securities   $ 1     $ 1     $ 2  
                         
Available-for-sale securities, at fair value   $ 1     $ 1     $ 2  

 

Of the available-for-sale securities, $8,534 is held as a reserve for distribution to shareholders who have not yet claimed their distributions from the 2011 sale of the Company’s oil and gas exploration and production operations. These funds are currently payable, subject to the entitled shareholders completing and submitting to the Company the necessary documentation to claim his, her or its distribution payments. The Company has no control over when, or if, any entitled shareholder will submit the necessary documentation to claim his, her, or its distribution payment.