RESTRICTED INVESTMENTS AND BOND COLLATERAL

The Company’s restricted investments and bond collateral consist of the following:



	December 31,
	2012		2011
	(In thousands)
Coal Segment:
WML debt reserve account	$	13,062	$	11,664
Reclamation bond collateral:
Kemmerer Mine	24,702		—
Absaloka Mine	14,507		13,593
Rosebud Mine	12,495		12,264
Beulah Mine	1,270		1,270
Power Segment:
Letter of credit account	5,990		5,983
Corporate Segment:
Postretirement medical benefit bonds	8,593		7,039
Workers’ compensation bonds	6,590		6,492
Total restricted investments and bond collateral	$	87,209	$	58,305

The Company’s carrying value and estimated fair value of its restricted investments and bond collateral at December 31, 2012 are as follows:



	Carrying Value		Fair Value
	(In thousands)
Cash and cash equivalents	$	74,607	$	74,607
Time deposits	8,428		8,428
Held-to-maturity securities	3,983		4,339
Available-for-sale securities	191		191
	$	87,209	$	87,565

In 2012, 2011, and 2010, the Company recorded a gain of $0.2 million, $0.1 million, and $0.1 million, respectively, on the sale of available-for-sale securities held as restricted investments and bond collateral.

Coal Segment

Pursuant to the terms of the Note Purchase Agreement dated June 26, 2008, WML must maintain a debt service reserve account. The debt service reserve account is required to contain funds sufficient to pay the principal, interest, and collateral agent’s fees scheduled to be paid in the following six months. The debt service reserve account was fully funded at December 31, 2012.

As of December 31, 2012, the Company had reclamation bond collateral in place for its Kemmerer, Absaloka, Rosebud and Beulah Mines. Bond collateral is not required at the Jewett Mine as reclamation bonding is the responsibility of its customer. These government-required bonds assure that coal-mining operations comply with applicable federal and state regulations relating to the performance and completion of final reclamation activities. The amounts deposited in the bond collateral account secure the bonds issued by the bonding company.

Power Segment

Following the Parent Notes offering in February 2011, ROVA is no longer required to maintain its debt protection accounts, ash reserve account or the repairs and maintenance account.

The Company is required to fund a letter of credit account for its power operations.

Corporate Segment

The Company is required to obtain surety bonds in connection with its self-insured workers’ compensation plan and certain health care plans. The Company’s surety bond underwriters require collateral to issue these bonds.

Held-to-Maturity and Available-for-Sale Restricted Investments and Bond Collateral

The amortized cost, gross unrealized holding gains and losses and fair value of held-to-maturity securities are as follows:



	December 31,
	2012		2011
	(In thousands)
Amortized cost	$	3,983	$	4,866
Gross unrealized holding gains	356		413
Gross unrealized holding losses	—		(38		)
Fair value	$	4,339	$	5,241

Maturities of held-to-maturity securities are as follows at December 31, 2012:



	Amortized Cost		Fair Value
	(In thousands)
Due within one year	$	609	$	616
Due in five years or less	1,920		2,032
Due after five years to ten years	844		1,017
Due in more than ten years	610		674
	$	3,983	$	4,339

The cost basis, gross unrealized holding gains and fair value of available-for-sale securities are as follows:



	December 31,
	2012		2011
	(In thousands)
Cost basis	$	175	$	1,566
Gross unrealized holding gains	16		221
Fair value	$	191	$	1,787