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MARKETABLE SECURITIES
6 Months Ended
Jun. 30, 2013
MARKETABLE SECURITIES  
MARKETABLE SECURITIES
5.
MARKETABLE SECURITIES
 
Marine Products investments are held with a large, well-capitalized financial institution.  Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designations as of each balance sheet date.  Debt securities are classified as available-for-sale because the Company does not have the intent to hold the securities to maturity. Available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity.  The cost of securities sold is based on the specific identification method.  Realized gains and losses, declines in value judged to be other than temporary, interest and dividends on available-for-sale securities are included in interest income.
 
The net realized gains and the reclassification of net realized gains from other comprehensive income are as follows:
 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
 
(in thousands)
 
2013
   
2012
   
2013
   
2012
 
Net realized gain
  $ 57     $ 74     $ 80     $ 112  
Reclassification of net realized gains from other comprehensive income
  $ 57     $ 74     $ 80     $ 112  
 
Gross unrealized gains (losses) on marketable securities are as follows:
 
   
June 30, 2013
   
December 31, 2012
 
   
Gross unrealized
   
Gross unrealized
 
(in thousands)
 
Gains
   
(Losses)
   
Gains
   
(Losses)
 
Municipal Obligations
  $ 174     $ (152 )   $ 284     $ (20 )
Corporate Obligations
    8       -       48       -  
    $ 182     $ (152 )   $ 332     $ (20 )
 
 
The amortized cost basis, fair value and net unrealized gains on the available-for-sale securities are as follows:
 
   
June 30, 2013
   
December 31, 2012
 
Type of Securities
 
Amortized
Cost Basis
   
Fair
Value
   
Net
Unrealized
Gains
   
Amortized
Cost Basis
   
Fair
Value
   
Net
Unrealized
Gains
 
(in thousands)
                                   
Municipal Obligations
  $ 35,461     $ 35,483     $ 22     $ 35,342     $ 35,606     $ 264  
Corporate Obligations
    756       764       8       1,270       1,317       48  
Total
  $ 36,217     $ 36,247     $ 30     $ 36,612     $ 36,923     $ 312  
 
Municipal obligations consist primarily of municipal notes rated A3 or higher ranging in maturity from less than one year to over 10 years.  Corporate obligations consist primarily of debentures and notes issued by other companies ranging in maturity from one to two years.  These securities are rated A2 or higher.  Investments with remaining maturities of less than 12 months are considered to be current marketable securities.  Investments with remaining maturities greater than 12 months are considered to be non-current marketable securities. The Company’s non-current marketable securities are scheduled to mature between 2014 and 2041.