MARKETABLE SECURITIES
 3 Months Ended
Mar. 31, 2018
MARKETABLE SECURITIES  
MARKETABLE SECURITIES

6.     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 debt 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 debt 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)   2018     2017  
Net realized (loss) gain   $ (19 )   $ 10  
Reclassification of net realized (losses) gains from other comprehensive income   $ (19 )   $ 10  
 
Gross unrealized gains (losses) on marketable securities are as follows:

 

    March 31, 2018     December 31, 2017  
    Gross unrealized     Gross unrealized  
(in thousands)   Gains     (Losses)     Gains     (Losses)  
Municipal Obligations   $ -     $ (56 )   $ -     $ (70 )
Corporate Obligations     -       (2 )     -       -  
    $ -     $ (58 )   $ -     $ (70 )

 

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

 

    March 31, 2018     December 31, 2017  
Type of Securities  

Amortized

Cost Basis

    

Fair

Value

    

Net

Unrealized

Losses

     Amortized 
Cost Basis		     Fair 
Value		     Net 
Unrealized 
Losses		  
(in thousands)                                    
Municipal Obligations   $ 9,820     $ 9,764     $ (56 )   $ 13,101     $ 13,031     $ (70 )
Corporate Obligations     1,750       1,748       (2 )     -       -       -  
Total   $ 11,570     $ 11,512     $ (58 )   $ 13,101     $ 13,031     $ (70 )

 

Municipal obligations consist primarily of municipal notes rated AA- or higher ranging in maturity from less than one year to over 20 years. 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 2019 and 2047.