Notes to Consolidated Financial Statements

(8) Marketable Securities and Long-Term Investments Marketable securities consist of investments in fixed maturities and equity securities. The market value as of October 31, 1999 was $46,549 which included gross unrealized gains of $2,040 and gross unrealized losses of $3,287. The market value as of October 31, 1998 was $6,120 which approximated cost. The Company realized net gains on the sales of securities of $4,221, $2,727 and $370 for the years ended October 31, 1999, 1998 and 1997, respectively. The cost of securities sold was determined by using the average cost method. As of October 31, 1999, $39,677 of voluntary escrow funds, $6,608 of which related to debt securities, were reclassed from long-term investments to marketable securities as they are all expected to be liquidated by October 31, 2000. The contractual maturities of the debt securities were as follows: $500 in less than one year; $2,741 in one through five years; $2,919 in five through ten years; and $448 in more than ten years. Subsequent to October 31, 1999, the Company began liquidating these voluntary escrow funds, all of which are expected to be liquidated within the next 12 months. The market value of long-term investments as of October 31, 1999 and 1998 was $16,812 and $68,014 which included gross unrealized gains of $341 and $2,573, and gross unrealized losses of $109 and $2,654, respectively. Amounts classified as long-term investments and invested in debt securities as of October 31, 1999 totaled $384 and are scheduled to mature in five through ten years. See Notes 5 and 6 which include details of the Company's long-term investments.

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