VLKAY » Topics » 5 Marketable Securities

This excerpt taken from the VLKAY 10-K filed Mar 19, 2010.

Marketable Securities

        Marketable securities, at January 2, 2010 and December 27, 2008, primarily consist of short-term United States Treasury bills and tax-exempt municipal bonds. The Company classifies its short-term

F-9


Table of Contents


CACHE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


investments as held-to-maturity. Held-to-maturity securities are those securities in which the Company has the ability and intent to hold the securities until maturity. Because the Company's held-to-maturity securities mature within one year of the purchase date, the securities are classified as short-term marketable securities. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts and such carrying values approximate fair value. A decline in the market value of any held-to-maturity security below cost that is deemed to be other than temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. No impairment has occurred for the fiscal periods presented herein. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity investments, as an adjustment to yield using the effective interest method. Interest income is recognized when earned. The fair value of our marketable securities totaled approximately $30.0 million and $25.2 million, as of January 2, 2010 and December 27, 2008, respectively.

This excerpt taken from the VLKAY 10-K filed Mar 19, 2010.

5.     Marketable Securities

At December 28, 2008, the Company maintained marketable securities classified as available-for-sale as follows (in thousands). At January 3, 2010, there were no short-term marketable securities. Gross unrealized holding gains at December 28, 2008 are due to fluctuations in interest rates.

 

     Amortized
Cost
   Gross Unrealized
Holding Gains
   Fair
Value

State and local government obligations

   $ 8,543    $ 57    $ 8,600
                    

Total marketable securities—short-term

   $ 8,543    $ 57    $ 8,600
                    

During 2009 and 2008, the Company sold available-for-sale securities for net proceeds from marketable securities of $16,183,000 and $7,857,000, respectively, with realized gains of $7,305,000 in 2009 and no realized gains or losses in 2008. Realized gains and losses are determined on the specific identification method. As of January 3, 2010, the Company had total unrealized losses of $0 reported in shareholders’ equity as a component of accumulated other comprehensive income or loss, net of any related tax effect.

This excerpt taken from the VLKAY 6-K filed Dec 9, 2009.

Marketable Securities


Marketable securities are recorded at market value as they are considered available-for-sale.  Included in marketable securities are 1,007,406 common shares of a company with directors in common.  The portfolio of marketable securities consists of short term notes with a yield of 0.21%, corporate bonds with a yield range of 0.87% - 3.88%, pool fund bonds with a yield of 4.17%, and preferred equities with a yield range of 4.49% - 5.95%.  An unrealized gain of $244,410 was recorded in other comprehensive income for the nine month period ended September 30, 2009.


This excerpt taken from the VLKAY 6-K filed Dec 8, 2009.

MARKETABLE SECURITIES


a)

During the nine months ended September 30, 2009, the Company acquired 2,800,000 common shares of Ona Power Corp. (CNSX: “OPO”), plus common share purchase warrants to purchase up to an additional 2,800,000 common shares at a price of $0.20 until August 20, 2011, at a gross cost of $420,000.  As a result of this acquisition, the Company held approximately 14.9% of the issued and outstanding common shares of OPO as at August 20, 2009.  Assuming the exercise of the 2,800,000 warrants, the Company would then hold approximately 29.8% of the then issued common shares of OPO (assuming no other warrant or option exercise).  Management determined that the value of the warrants to be nil.  OPO is considered to be a related party as a result of certain common directors.


As at September 30, 2009, the quoted market value of OPO common shares was $0.36 per share, or a total market value for the Company’s share of $1,008,000.


b)

During the nine months ended September 30, 2009, the Company acquired 440,000 common shares of Maxtech Ventures Inc (TSXV: “MVT”) at a gross cost of $220,515.


As at September 30, 2009, the quoted market value of MVT common shares was $0.40 per share, or a total market value for the Company’s share of $176,000.


c)

The carrying values of the investments were increased or decreased to their fair value at September 30, 2009, with the corresponding increase or decreased reflected in the adjustments to other comprehensive income.  Fair value adjustments for the nine months ended September 30, 3009 amounted to $543,485 recorded as comprehensive income.


        Market value as at
    Acquisition Cost   September 30, 2009
 
OPO Shares $ 420,000 $ 1,008,000
MVT Shares   220,515   176,000
 
  $ 640,515 $ 1,184,000


6.

This excerpt taken from the VLKAY 8-K filed Dec 3, 2009.

Note 4 – Marketable Securities

  The carrying amount, gross unrealized holding gains, gross unrealized holding losses, and fair value of investments in available-for-sale debt and equity securities of Israeli corporations by major security type and class of security at December 31, 2008 were as follows:

Carrying
amount

Gross
unrealized
holding
gains

Gross
unrealized
holding
(losses)

Fair value
NIS
 
At December 31, 2008                    
 Available for sale:  
   Corporate debt securities    128,194    -    (22,364 )  105,830  
   Equity securities    43,353    2,837    -    46,190  




   
     171,547    2,837    (22,364 )  152,020  





  Maturities of debt securities classified as available-for-sale were as follows at December 31, 2008:

Carrying
amount

Fair value
NIS
 
Available for sale:            
  Due in one through five years    86,101    71,080  
  Due after five years through ten years    42,093    34,750  


   
     128,194    105,830  



  The Company also maintains a portfolio of investment securities classified as trading of NIS 76,742 as of December 31, 2008. These investments are subject to price volatility associated with any interest-bearing instrument. Net realized losses on trading securities during the years ended December 31, 2008 were NIS 7 and are included in financial expense. Net unrealized losses on trading securities held at year end and included in financial expense for 2008 were NIS 9,510.

  The Company evaluates whether unrealized losses on available-for-sale investment securities indicate an other-than-temporary impairment. Based on this evaluation, the Company recognized an other-than-temporary impairment loss of NIS 1,281 on an investment in a certain corporate debt security in 2008. The unrealized loss on this corporate debt security was caused by an increased credit spread and decrease in the credit of the corporate debt security during 2008. Because the Company does not have the intent to hold this investment to recovery, it is considered to be other-than-temporarily impaired. Other-than-temporary impairment losses are included in financial expenses on the consolidated statement of operations.

F - 23



012 Smile.Communications Ltd.
 
Notes to the Combined and Consolidated Financial Statements

 
(All amounts are in thousands except where otherwise stated)

This excerpt taken from the VLKAY 6-K filed Dec 3, 2009.

MARKETABLE SECURITIES


The following marketable securities were held by the Company:


 

 

September 30, 2009

 

December 31, 2008

 

 


 


Marketable securities

(cost – 2008 - $4,500)

$

0

$

 3,250

 


During 2008, the Company sold 7,564,000 shares of Las Vegas, a publicly traded related party for total proceeds of $431,371, which had a total acquisition cost of $2,483,113. Of the realized loss on disposition, $1,058,892 has been reflected in 2006 and the remainder has been reflected in 2008.


The Company owns 6 shares or 0.0% of the total outstanding shares in the capital of Las Vegas, as of December 31, 2008 (2007 – 7,564,006 shares or 7.4%). Of these shares, 6,670,000  were acquired through the sale of the three card games software (note 9 (c)).


During 2006, the Company owned 2,500,000 shares of Colt Resources Inc. (formerly Colt Capital Corp.) (“Colt”), which represented 9.3% of the then total issued and outstanding shares of Colt. Colt is related to the Company by one common director.  During 2007, the Company sold all its Colt shares for a net gain of $99,011.


Pursuant to a Property Purchase Agreement dated July 31, 2008 with an arm’s length third party  in respect to the sale of the Company’s Lithium Properties (Mineral Leases) located in Ontario, as part of the consideration, the arm’s length party has issued to the Company 25,000 fully paid non-assessable common shares of Coniagas Resources Ltd. (“Coniagas”), a publicly listed company (Note 7).  Subsequent to December 31, 2008, the Company sold all of the 25,000 common shares of Coniagas and received net proceeds of $2,400.


This excerpt taken from the VLKAY 6-K filed Dec 2, 2009.

MARKETABLE SECURITIES

 

 

September 30, 2009


June 30, 2009

 

 

Number

 

 

Number

 

 

 

of Shares

Amount

 

of Shares

Amount

 

Sierra Geothermal Power Corp.


 




 


 

Cost – common shares

400,000

$

146,817


400,000

$

146,817

 

Unrealized loss

-

 

34,741


-

 

60,832

 

 


 




 


 

 

400,000

$

112,076


400,000

$

85,985


The unrealized loss on marketable securities, recorded in accumulated other comprehensive income, has not been recognized as an impairment loss due to the high volatility of the Sierra Geothermal share price.


This excerpt taken from the VLKAY 6-K filed Nov 27, 2009.

8 Marketable securities

    R$ thousand 
     
    Consolidated    Parent Company 
     
    09.30.2009    06.30.2009    09.30.2009    06.30.2009 
         
Available for sale    4.417.903    4.242.900    4.151.913    4.035.338 
Trading        26.172         
Held until maturity    395.172    423.535    4.365.904    18.893.441 
         
    4.813.075    4.692.607    8.517.817    22.928.779 
         
Less: current portion of securities    178.290    205.307    4.357.190    18.885.093 
         
Non-current portion of securities    4.634.785    4.487.300    4.160.627    4.043.686 
         

The securities, classified as long-term, are composed as follows:

    R$ thousand 
     
    Consolidated    Parent Company 
     
    09.30.2009    06.30.2009    09.30.2009    06.30.2009 
         
 
NTN-B    4.364.539    4.248.149    4.151.913    4.035.338 
B Certificates    58.895    64.642         
Other    211.351    174.509    8.714    8.348 
         
    4.634.785    4.487.300    4.160.627    4.043.686 
         

The Series B National Treasury Notes (NTN-B) were given as a guarantee to Petros, on October 23, 2008, after signing the financial commitment agreement entered into between Petrobras and subsidiaries that are sponsors of the Petros Plan, unions and Petros, for settling of obligations with the pension plan. The face value of the NTN-B is indexed to the variation of the Amplified Consumer Price Index (IPCA). The coupon interest will be paid half-yearly at the rate of 6% p.a. on the updated nominal value of these papers and their maturities are in 2024 and 2035. At September 30, 2009, the balances of the National Treasury Notes - Series B (NTN-B) are updated according to their market value, based on the average price published by the National Association of Open Market Institutions - ANBIMA.

The B certificates were received by Brasoil on account of the sale of platforms in 2000 and 2001, with half-yearly maturities until 2011 and yielding interest equivalent to Libor plus 0,70% p.a. to 4.25% p.a.

At September 30, 2009, the Parent company had resources invested in a non standard credit assignment investment fund (FIDC-NP), related to non-performing credit rights of its operating activities in the amount of R$ 4.357.190 thousand and R$ 18.885.093 thousand at June 30, 2009. (Item 1.01.04.05 of current liabilities)

This excerpt taken from the VLKAY 6-K filed Nov 27, 2009.

4. Marketable Securities

                Total 
         
            Interest rate    September 30,    December 31, 
       Security (ii)   Maturity    per annum    2009 (i)   2008 (i)
           
                (Unaudited)    
 
Available for Sale (iii)   Clep    2014    8%    802,940    759,319 
Available for Sale (iii)   Marlim    2011    7.4% + IGPM(*)   352,634    258,046 
Held to Maturity    Charter    2024    4%    899,303    884,311 
Held to Maturity    NTS    2010-2014    2.53%/4.19%    614,781    595,013 
Held to Maturity    NTN    2010-2014    2.53%/2,69%/4.19%    649,198    533,426 
Held to Maturity    Mexilhão    2010    4.56%    466,312    443,878 
Held to Maturity    Gasene    2009-2010    0.81% up to 2.54%    382,021    332,512 
Held to Maturity    PDET    2019    2.51%    357,334    355,984 
Held to Maturity    TUM    2010    1.47% up to 3.98%    496,061    436,035 
           
                5,020,584    4,598,524 
Less: Current balances                (2,553,494)   (2,598,764)
           
                2,467,090    1,999,760 
           

(*)  
IGPM - General Market Price Index, calculated by the Brazilian Institute of Economics (IBRE) of the Getulio Vargas Foundation (FGV).
     
     
(i)  
The balances include interest and principal.
(ii)  
Securities held by the fund respective to the special purposes companies, established to support Petrobras infrastructure projects, are not US exchange traded securities.
(iii)  
Changes in fair value related to the securities classified as available for sale in accordance with Codification Topic 320 are diminimus and were included in the Statement of Operations as financial income or expense.

13


This excerpt taken from the VLKAY 6-K filed Nov 27, 2009.

[i] Marketable securities

Marketable securities that have been in an unrealized loss position for less than twelve months are presented below:

 

     Amortized
cost
$
   Gross
unrealized
losses
$
    Estimated
fair value
$

2008

       

Maturing within one year

       

Government-backed commercial paper

   2,475    (16   2,459

Government bonds

   1,447    (1   1,446
               
   3,922    (17   3,905
               

Maturing after one year

       

Government bonds

   4,424    (37   4,387
               
   4,424    (37   4,387
               
   8,346    (54   8,292
               

2007

       

Maturing within one year

       

Commercial paper

   24,091    (6   24,085

Corporate bonds

   16,096    (44   16,052

Government bonds

   7,597    (1   7,596
               
   47,784    (51   47,733
               

None of the marketable securities held as at December 31, 2008 or 2007 have been in an unrealized loss position for more than twelve months.

 

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Table of Contents

Labopharm Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2008 and 2007

[thousands of Canadian dollars or other currencies, except where noted and for share and per share amounts]

 

27. RECONCILIATION BETWEEN ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN CANADA AND IN THE UNITED STATES [Cont’d]

 

This excerpt taken from the VLKAY 6-K filed Nov 25, 2009.

4. MARKETABLE SECURITIES


The following table summarizes the components of available-for-sale financial instruments reported as marketable securities at each balance sheet date:


 

Number

Cost

September 30, 2009
Fair Value

December 31, 2008
Fair Value

African Consolidated Resources plc

2,500,000

$     302,738

$              -

$    80,532

Arcus Development Group Inc.

150,000

21,000

18,000

-

Capstone Mining Corporation

8,707

26,730

25,511

-

Island Arc Exploration Corporation

200,000

18,000

17,000

-

It's Your Nickel Exploration

200,000

-

-

-

Laurion Minerals Exploration Inc.

2,000,000

40,000

80,000

40,000

Plutonic Power Corporation

30,000

96,900

106,200

-

Silver Quest Resources Ltd.

80,000

7,080

21,600

-

Balance

 

$    512,448

$  268,311

$  120,532


Note: African Consolidated Resources was sold during the first quarter of 2009 for gross proceeds of $90,099.


This excerpt taken from the VLKAY 6-K filed Nov 24, 2009.

NOTE 4 - MARKETABLE SECURITIES

ELETROBRÁS and its subsidiaries classify securities as held to maturity, based on the management strategies for these assets.

The securities held to maturity are recorded at the acquisition cost, plus interest and monetary adjustments, with a contra-entry to income.

In addition, CFT-E1 notes and investment certificates deriving from FINOR (Northeast Investment Fund) and FINAM (Amazon Investment Fund) tax incentives reported in line "other" are adjusted by provisions for losses upon their realization, and therefore, are shown net:

        R$ thousands     
   
    PARENT COMPANY    CONSOLIDATED 
               
    06/30/2009    03/31/2009    06/30/2009    03/31/2009 
               
NON-CURRENT                 
 CFT-E1    204,410    205,863    204,410    205,863 
 NTN-P    140,958    138,636    144,553    142,176 
 Partnership income    165,981    167,735    165,981    167,735 
 Founders' shares    94,584    92,641    94,584    92,641 
 Other    4,678    11,590    4,820    12,610 
               
    610,611    616,465    614,348    621,025 
               

a) PARTNERSHIP INCOME - This refers to income deriving from partnership investments (see Note 16), corresponding to an average remuneration equivalent to the IGP-M variation plus interest of 12% to 13% per annum (p.a.) on the capital invested, as shown below:

    R$ thousands 
     
    PARENT COMPANY AND CONSOLIDATED 
     
    06/30/2009    03/31/2009 
       
EATE    45,406    48,969 
TANGARÁ    68,483    66,255 
ELEJOR    17,271    16,719 
Other    34,821    35,792 
       
    165,981    167,735 
       

b) FOUNDERS' SHARES - shares acquired as a result of the restructuring of ELETROBRÁS' investment in INVESTCO S.A. These assets assure annual income equivalent to 10% of the companies' profit (mentioned below), paid together with the dividends, and will be redeemed on maturity expected for October 2032, by converting them into preferred shares of these companies, as follows:

34



    R$ thousands 
     
    PARENT COMPANY AND CONSOLIDATED 
     
    06/30/2009    03/31/2009 
       
PAULISTA LAJEADO    49,975    49,975 
LAJEADO ENERGIA    266,798    266,798 
EDP LAJEADO    184,577    184,577 
CEB LAJEADO    151,225    151,225 
       
Face value    652,575    652,575 
Adjustment to present value    (557,992)   (559,934)
       
Present value    94,584    92,641 
       

According to Law 11638/2007, these shares are now valued at their present value, in compliance with CVM Resolution 564/2008 which approved the accounting pronouncement CPC-12.

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