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MARKETABLE SECURITIES
 9 Months Ended
Sep. 30, 2012
Available-For-Sale Securities  
MARKETABLE SECURITIES
5.
MARKETABLE SECURITIES
 
Marine Products maintains investments at 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)
   
2012
    
2011
    
2012
    
2011
  
Net realized gain
   $ 36     $ 25     $ 148     $ 50  
Reclassification of net realized gains from other comprehensive income
   $ 36     $ 25     $ 148   $ 50  
 
Gross unrealized gains (losses) on marketable securities are as follows:
 
   
September 30, 2012
    
December 31, 2011
  
Gross unrealized
Gross unrealized
(In thousands)
  
Gains
    
(Losses)
    
Gains
    
(Losses)
  
Municipal Obligations
 $ 434 $ (1 ) $ 308 $ (29 )
Corporate Obligations
      60       -       46       -  
  $ 494       (1 )   $ 354     $ (29 )
 
The amortized cost basis, fair value and net unrealized gains on the available-for-sale securities are as follows:
 
   
September 30, 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
 $ 53,597 $ 54,030 $ 433 $ 49,553 $ 49,832 $ 279
Corporate Obligations
     1,774       1,834       60       4,223       4,269       46  
Total
   $ 55,371     $ 55,864     $ 493     $ 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 2014 and 2048.