Note 3. Investments

The Company has three classifications of investments: investments carried at fair value, investments carried at cost, and equity method investments. See Note 1 for definitions of each classification of investment.

At December 31, 2012 and 2011, investments carried at fair value consisted of:

	2012		2011
	(in thousands)
Cash management trust	$	-	$	197
Taxable bond funds		728		96
Domestic equity funds		1,265		1,232
International equity funds		71		635
	$	2,064	$	2,160

Investments carried at fair value were acquired under a rabbi trust arrangement related to the Company's SERP. The Company purchases investments in the trust to mirror the investment elections of participants in the SERP; gains and losses on the investments in the trust are reflected as increases or decreases in the liability owed to the participants. The Company recorded unrealized gains of $191 thousand during 2012, unrealized losses of $132 thousand during 2011 and unrealized gains of $187 thousand during 2010. Sales of investments resulted in the recognition of $66 thousand of realized gains in 2012, and $27 thousand and $8 thousand of realized losses in 2011 and 2010, respectively. Fair values for these investments are determined by quoted market prices ("level 1 fair values") for the underlying mutual funds, which may be based upon net asset value.

At December 31, 2012 and 2011, other investments, comprised of equity securities which do not have readily determinable fair values, consist of the following:

	2012		2011
Cost method:	(in thousands)
NECA Services, Inc.	$	505	$	505
CoBank		2,968		2,747
Other		251		255
		3,724		3,507
Equity method:
Burton Partnership		2,086		1,708
Other		340		930
		2,426		2,638
Total other investments	$	6,150	$	6,145

The Company's investment in CoBank increased $221 thousand and $190 thousand in the years ended December 31, 2012 and 2011, respectively, due to the ongoing patronage earned from the outstanding investment and loan balances the Company has with CoBank.

In the year ended December 31, 2012, the Company received distributions from its equity investments totaling $812 thousand in cash, principally due to the sale of the Company's investment in the Dolphin Communications I and II funds for $752 thousand. Equity investments had a net gain of $600 thousand in the year ended December 31, 2012, including $379 thousand from the Burton Partnership and $151 thousand from the Dolphin investments.

The Company's ownership interests in equity method investees were unchanged during 2012, except for the disposal of the Dolphin investments.