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MARKETABLE SECURITIES
 3 Months Ended
Mar. 31, 2014
Available-For-Sale 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
  
   
March 31,
  
(in thousands)
  
2014
    
2013
  
Net realized gains
   $ 2     $ 23  
Reclassification of net realized gains from other comprehensive income
   $ 2     $ 23  
 
Gross unrealized gains (losses) on marketable securities are as follows:
 
   
March 31, 2014
    
December 31, 2013
  
   
Gross unrealized
    
Gross unrealized
  
(in thousands)
  
Gains
    
(Losses)
    
Gains
    
(Losses)
  
Municipal Obligations
   $ 240     $ (23 )   $ 223     $ (16 )
Corporate Obligations
     5       (2 )     6       -  
    $ 245     $ (25 )   $ 229     $ (16 )
 
 
The amortized cost basis, fair value and net unrealized gains on the available-for-sale securities are as follows:
 
   
March 31, 2014
    
December 31, 2013
  
Type of Securities
  
Amortized
Cost Basis
    
Fair
Value
    
Net
Unrealized
Gains
    
Amortized
Cost Basis
    
Fair
Value
    
Net
Unrealized
Gains
  
(in thousands)
                                    
Municipal Obligations
   $ 38,517       38,734       217     $ 35,925     $ 36,132     $ 207  
Corporate Obligations
     1,866       1,869       3       450       456       6  
Total
   $ 40,381       40,603       220     $ 36,375     $ 36,588     $ 213  
 
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 2015 and 2025.