MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2015

MARKETABLE SECURITIES

MARKETABLE SECURITIES

5. MARKETABLE SECURITIES

Marine Products’ marketable securities 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				Nine months ended
	September 30,				September 30,
(in thousands)	2015		2014		2015		2014
Net realized gain	$	12	$	3	$	44	$	5
Reclassification of net realized gains from other comprehensive income	$	12	$	3	$	44	$	5

Gross unrealized gains (losses) on marketable securities are as follows:

	September 30, 2015					December 31, 2014
	Gross unrealized					Gross unrealized
(in thousands)	Gains		(Losses)			Gains		(Losses)
Municipal Obligations	$	91	$	(7	)	$	121	$	(31	)
Corporate Obligations		23		(1	)		1		(6	)
	$	114	$	(8	)	$	122	$	(37	)

The amortized cost basis, fair value and net unrealized gains on the available-for-sale securities are as follows:

	September 30, 2015						December 31, 2014
Type of Securities	Amortized  Cost Basis		Fair  Value		Net  Unrealized  Gains		Amortized  Cost Basis		Fair  Value		Net  Unrealized  Gains  (Losses)
(in thousands)
Municipal Obligations	$	30,014	$	30,098	$	84	$	31,990	$	32,080	$	90
Corporate Obligations		4,993		5,015		22		5,409		5,404		(5	)
Total	$	35,007	$	35,113	$	106	$	37,399	$	37,484	$	85

Municipal obligations consist primarily of municipal notes rated A- or higher ranging in maturity from less than one year to over 21 years. Corporate obligations consist primarily of debentures and notes issued by other companies ranging in maturity from one to five years. These securities are rated A- 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 the fourth quarter of 2016 and 2037.