INVESTMENTS

Short-term and long-term investments held by LP are debt securities designated as available for sale and are reported at fair market value using the specific identification method. The following table summarizes unrealized gains and losses related to these investments as of December 31, 2012 and December 31, 2011:



Dollar amounts in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2012
Auction rate securities	$	0.3	$	1.7	$	—	$	2.0

Total marketable securities	$	0.3	$	1.7	$	—	$	2.0

December 31, 2011
Auction rate securities	$	0.3	$	0.4	$	—	$	0.7

Total marketable securities	$	0.3	$	0.4	$	—	$	0.7

As of December 31, 2012, LP had $2.0 million ($23.4 million, par value) invested in auction rate securities (ARS). The ARS held by LP are securities with long-term nominal maturities for which the interest rates are reset through a Dutch auction each month. LP’s investments in ARS represent interests in collateralized debt obligations supported by pools of residential and commercial mortgages, bank trust preferred notes and other securities.

During 2011, LP sold $38.1 million (par value) of its ARS in an open market transaction for $19.1 million. LP recorded a gain on sale of securities of $15.2 million, which represents a recovery of losses previously recorded as an “Other-than-temporary impairment”.

During 2010, LP sold $35.3 million (par value) of its ARS pursuant to a tender offer for $21.8 million plus accrued interest. LP recorded a gain on sale of securities of $19.0 million, which represented a recovery of losses previously recorded as an "Other-than-temporary impairment".

LP reviews its marketable securities routinely for other-than-temporary impairment. The primary factors LP used to determine if an impairment charge must be recorded, because a decline in value of the security is other than temporary, include (i) whether the fair value of the investment is significantly below its cost basis, (ii) the financial condition of the issuer of the security (including its credit rating) and the underlying collateral, (iii) the length of time that the cost of the security has exceeded its fair value and (iv) LP’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value.

The contractual maturities of debt securities classified as available for sale at December 31, 2012 were as follows:



Dollar amounts in millions	2012
Dollar amounts in millions	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due in more than one year	0.3		2.0
Total marketable securities	$	0.3	$	2.0

Proceeds from sales and maturities of investments for the years ended December 2011 and 2010, totaled $19.1 million, and $21.8 million. There were no purchases of short-term and long-term investments for the years ended December 31, 2012, 2011, and 2010. During 2012, 2011 and 2010, LP did not own any short-term investments. Net unrealized gains and losses on derivative instruments are reported as a separate component of “Accumulated comprehensive loss” in Stockholders’ equity.

During 2012, LP's ARS litigation with Deutsche Bank Securities, Inc. was settled, which resulted in a gain of $20.0 million recorded in non-operating income (expense). (See Note 11 for further discussion)