ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLE AND RECLAMATION DEPOSITS

The asset retirement obligation, contractual third-party reclamation receivable, and reclamation deposits for each of the Company’s operating segments at September 30, 2014 are summarized below:



	Asset Retirement Obligation		Contractual Third-Party Reclamation Receivable		Reclamation Deposits
	(In thousands)
Coal - U.S.	$	279,859	$	91,370	$	77,131
Coal - Canada	104,004		6,544		—
Power	944		—		—
Total	$	384,807	$	97,914	$	77,131

Asset Retirement Obligations

Changes in the Company’s asset retirement obligations were as follows:



	Nine Months Ended September 30,
	2014			2013
	(In thousands)
Asset retirement obligations, beginning of year (including current portion)	$	279,864		$	263,847
Accretion	23,329			16,426
Liabilities settled	(18,759		)	(17,072		)
ARO acquired	102,075			—
Changes due to foreign currency translation	(1,702		)	—
Asset retirement obligations, end of period	384,807			263,201
Less current portion	(29,529		)	(25,038		)
Asset retirement obligations, less current portion	$	355,278		$	238,163

Contractual Third-Party Reclamation Receivables

At September 30, 2014, the Company recognized as an asset of $97.9 million as contractual third-party reclamation receivables, representing the present value of customer obligations to reimburse the Company for future reclamation expenditures.

Reclamation Deposits

The Company’s reclamation deposits will be used to fund final reclamation activities. The Company’s carrying value and estimated fair value of its reclamation deposits at September 30, 2014 were as follows:



	Carrying Value		Fair Value		Fair Value Hierarchy
	(In thousands)
Cash and cash equivalents	$	44,248	$	44,248	Level 1
Available-for-sale securities	32,883		32,883		Level 1
	$	77,131	$	77,131

These accounts include available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses excluded from earnings and reported in Accumulated other comprehensive loss.

During the quarter ended September 30, 2014, the Company decided to more actively manage its investment yields. This decision resulted in the sale of $1.8 million carrying value of securities and realized losses of less than $0.1 million during the quarter ended September 30, 2014. The Company transferred the remainder of its securities classified as held-to-maturity to available-for-sale securities. The carrying value of held-to-maturity securities held as Reclamation deposits transferred to available-for-sale during the quarter ended September 30, 2014 was $32.2 million. As a result of the transfer, the Company recorded $0.6 million of unrealized holding gains in Accumulated other comprehensive loss during the quarter ended September 30, 2014.

Available-for-Sale Reclamation Deposits

The cost basis, gross unrealized holding gains and losses, and fair value of available-for-sale securities at September 30, 2014 were as follows (in thousands):



Cost basis	$	32,232
Gross unrealized holding gains	911
Gross unrealized holding losses	(260		)
Fair value	$	32,883

Maturities of available-for-sale securities were as follows at September 30, 2014:



	Amortized Cost		Fair Value
	(In thousands)
Within one year	$	530	$	475
Due in five years or less	16,397		16,840
Due after five years to ten years	7,793		7,856
Due in more than ten years	7,512		7,712
	$	32,232	$	32,883