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MARKETABLE SECURITIES
 6 Months Ended
Jun. 30, 2015
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   Six months ended  
  June 30,   June 30,  
(in thousands)   2015   2014     2015     2014  
Net realized gain   $ 11     $ -     $ 32     $ 2  
Reclassification of net realized gains from other comprehensive income   $ 11     $ -     $ 32     $ 2  

  

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

 

    June 30, 2015     December 31, 2014  
    Gross unrealized     Gross unrealized  
(in thousands)   Gains     (Losses)     Gains     (Losses)  
Municipal Obligations   $ 61     $ (34 )   $ 121     $ (31 )
Corporate Obligations     13       (1 )     1       (6 )
    $ 74     $ (35 )   $ 122     $ (37 )

 

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

  

    June 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   $ 30,906     $ 30,933     $ 27     $ 31,990     $ 32,080     $ 90  
Corporate Obligations     5,496       5,508       12       5,409       5,404       (5 )
Total   $ 36,402     $ 36,441     $ 39     $ 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 6 years. Corporate obligations consist primarily of debentures and notes issued by other companies ranging in maturity from one to six 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 2016 and 2021.