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MARKETABLE SECURITIES
 9 Months Ended
Sep. 30, 2016
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)   2016     2015     2016     2015  
Net realized gain   $ 16     $ 12     $ 30     $ 44  
Reclassification of net realized gains from other comprehensive income   $ 16     $ 12     $ 30     $ 44  

 

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

 

    as of September 30, 2016     as of December 31, 2015  
  Gross unrealized   Gross unrealized
(in thousands)   Gains     (Losses)     Gains     (Losses)  
Municipal Obligations   $ 61     $ (36 )   $ 4     $ (4 )
Corporate Obligations     32       -       22       (25 )
    $ 93     $ (36 )   $ 26     $ (29 )
  

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

 

    as of September 30, 2016     as of December 31, 2015  
Type of Securities   Amortized
Cost Basis		     Fair
Value		     Net
Unrealized
Gains		     Amortized
Cost Basis		     Fair
Value		     Net
Unrealized
Gains
(Losses)		  
(in thousands)                                    
Municipal Obligations   $ 38,211     $ 38,236     $ 25     $ 30,996     $ 30,996     $ 0  
Corporate Obligations     3,431       3,463       32       3,961       3,958       (3 )
Total   $ 41,642     $ 41,699     $ 57     $ 34,957     $ 34,954     $ (3 )

 

Municipal obligations consist primarily of municipal notes rated AA- or higher ranging in maturity from less than one year to over 20 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 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 2017 and 2037.