RESTRICTED INVESTMENTS AND BOND COLLATERAL

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



	December 31,
	2013			2012
	(In thousands)
Coal Segment:
WML debt reserve account	$	13,067		$	13,062
Reclamation bond collateral:
Kemmerer Mine	24,966			24,702
Absaloka Mine	11,653			14,507
Rosebud Mine	3,145			12,495
Beulah Mine	1,270			1,270
Power Segment:
Letter of credit account	5,998			5,990
Corporate Segment:
Postretirement medical benefit bonds	8,467			8,593
Workers’ compensation bonds	6,667			6,590
Total restricted investments and bond collateral	75,233			87,209
Less current portion	(5,998		)	—
Total restricted investments and bond collateral, less current portion	$	69,235		$	87,209

The Company’s carrying value and estimated fair value of its restricted investments and bond collateral at December 31, 2013 are as follows:



	Carrying Value		Fair Value
	(In thousands)
Cash and cash equivalents	$	40,605	$	40,605
Time deposits	2,444		2,444
Held-to-maturity securities	32,184		32,046
	$	75,233	$	75,095

In 2013, 2012, and 2011, the Company recorded a gain of less than $0.1 million, $0.1 million, and $0.1 million, respectively, on the sale of available-for-sale securities held as restricted investments and bond collateral.

In 2013, $3.0 million and $9.4 million of reclamation bond collateral has been released from restriction regarding the Absaloka and Rosebud Mines, respectively.

The $6.0 million letter of credit account in the power segment has been released from restriction in February, 2014 and as a result is included as current portion.

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, 2013.

As of December 31, 2013, 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

As of February, 2014, the Company will no longer be 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,
	2013			2012
	(In thousands)
Amortized cost	$	32,184		$	3,983
Gross unrealized holding gains	309			356
Gross unrealized holding losses	(447		)	—
Fair value	$	32,046		$	4,339

Maturities of held-to-maturity securities are as follows at December 31, 2013:



	Amortized Cost		Fair Value
	(In thousands)
Due within one year	$	1,111	$	1,143
Due in five years or less	17,839		17,944
Due after five years to ten years	6,769		6,665
Due in more than ten years	6,465		6,294
	$	32,184	$	32,046

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



	December 31,
	2013		2012
	(In thousands)
Cost basis	$	—	$	175
Gross unrealized holding gains	—		16
Fair value	$	—	$	191