INVESTMENTS

Investments. Our long-term investment portfolio includes the real estate assets of ALLETE Properties, debt and equity securities consisting primarily of securities held to fund employee benefits and land held-for-sale in Minnesota.



Investments	September 30, 2011	December 31, 2010
Millions
ALLETE Properties	$93.0	$94.0
Available-for-sale Securities	30.5	25.2
Other	6.0	6.8
Total Investments	$129.5	$126.0



ALLETE Properties	September 30, 2011	December 31, 2010
Millions
Land Held-for-sale Beginning Balance (January 1, 2011 and 2010, respectively)	$86.0	$74.9
Deeds to Collateralized Property	1.9	9.9
Capitalized Improvements and Other	0.1	1.2
Cost of Real Estate Sold	(0.3)	—
Land Held-for-sale Ending Balance	87.7	86.0
Long-Term Finance Receivables (net of allowances of $0.6 and $0.8)	2.0	3.7
Other	3.3	4.3
Total Real Estate Assets	$93.0	$94.0

Land Held-for-sale. Land held-for-sale is recorded at the lower of cost or fair value as determined by the evaluation of individual land parcels. Land values are reviewed for impairment on a quarterly basis and no impairments were recorded for the nine months ended September 30, 2011 (none in 2010).

Long-Term Finance Receivables. As of September 30, 2011, long-term finance receivables were $2.0 million net of allowance ($3.7 million net of allowance as of December 31, 2010). The decrease is primarily the result of the transfer of properties back to ALLETE Properties by deed-in-lieu of foreclosure, in satisfaction of amounts previously owed under long-term finance receivables. Long-term finance receivables are collateralized by property sold, accrue interest at market-based rates and are net of an allowance for doubtful accounts.



Long-Term Finance Receivables	Real
Allowance Roll-Forward	Estate
Millions
Beginning Balance as of December 31, 2010	$0.8
Reduction to Reserve	(0.2)
Ending Balance as of September 30, 2011	$0.6