NOTE 8 – INVESTMENTS

The Company completed the sale of certain investments in nonpublicly traded equity securities in 2004 and its marketable securities in 2003. Gains on sales of investments of $50,000 and $1.2 million in 2004 and 2003, respectively, were calculated using the specific identification method and were reported in Unclassified – net. The proceeds from these sales were $50,000 and $6.1 million in 2004 and 2003, respectively.

NOTE 10—INVESTMENTS

Investments consist of marketable securities and nonpublicly traded equity securities for which a market value is not readily determinable. Marketable securities are all classified as available for sale and are reported at fair value, with unrealized gains or losses on such securities reflected, net of taxes, in the Accumulated other comprehensive earnings (losses) component of shareholders’ equity. In accordance with SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities,” the Company evaluates whether a decline in fair value below cost is other than temporary based on the amount of unrealized losses and their duration. Other-than-temporary impairments are recognized in earnings. Nonpublicly traded equity securities are reported at the lower of cost or estimated net realizable value. Adjustments to net realizable value are recognized in earnings. There have been no dividends earned on these investments. The Company completed the sale of its investments in nonpublicly traded equity securities in 2004 and marketable securities in 2003. The gains on these sales were calculated using the specific identification method and were reported in Unclassified – net.

The original cost, pretax realized gains and unrealized (losses), reductions to net realizable value and fair value of investments are as follows: