MARKETABLE SECURITIES

3 Months Ended

Mar. 31, 2012

Available-For-Sale Securities [Abstract]

5.	MARKETABLE SECURITIES

Marine Products maintains investments 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
	March 31,
(In thousands)		2012		2011
Net realized gain		$	38	$	-
Reclassification of net realized gains from other comprehensive income		$	38	$	-

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

	March 31, 2012					December 31, 2011
	Gross unrealized					Gross unrealized
(In thousands)	Gains		(Losses)			Gains		(Losses)
Municipal Obligations	$	357	$	(24	)	$	308	$	(29	)
Corporate Obligations		67		-			46		-
	$	424		(24	)	$	354	$	(29	)

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

	March 31, 2012						December 31, 2011
Type of Securities	Amortized Cost Basis		Fair Value		Net Unrealized Gain		Amortized Cost Basis		Fair Value		Net Unrealized Gain
(in thousands)
Municipal Obligations	$	50,248	$	50,581	$	333	$	49,553	$	49,832	$	279
Corporate Obligations		2,470		2,537		67		4,223		4,269		46
Total	$	52,718	$	53,118	$	400	$	53,776	$	54,101	$	325

Municipal obligations consist primarily of municipal notes rated A1/P1 or higher ranging in maturity from less than 12 months to over 10 years. Corporate obligations consist primarily of debentures and notes issued by other companies ranging in maturity from two to four years. These securities are rated BBB 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 2013 and 2048.