4. INVESTMENTS

At December 31, 2012, investments consist of $0.7 million of money market funds and $0.2 million of equity securities, both held to fund ALC's executive retirement plan ("ERP") obligations, and $30,138 held in an individual equity security which was contributed to ALC's capital upon the Separation. At December 31, 2011, investments consisted of $0.7 million of money market funds and $0.2 million of equity securities, both held to fund ALC's ERP obligations, and $0.7 million held in individual equity securities. The investments are Level 1 investments and are classified as available-for-sale and stated at fair value based on market quotes at December 31, 2012 and 2011, respectively.

The securities related to the executive retirement plan are held in a securities brokerage account and are invested at the specific direction of the participants. Investment options include a limited number of mutual funds and money market funds.

ALC accounts for securities related to the executive retirement plan under the fair value option. All gains and losses related to these investments are recorded in the consolidated statements of operations as a component of general and administrative expense. Interest income and dividends are reported as a component of interest income.

The other equity investments are recorded at fair value. Unrealized gains and losses which are determined to be temporary in nature are recorded net of deferred taxes as a component of other comprehensive income. In the event unrealized losses are determined to be other-than-temporary, the unrealized loss is reclassified from comprehensive income and reported in the consolidated statements of operations. The current fair market value of the impaired investment then becomes the new cost basis of the investment. In the second quarter of 2010, the Company performed its quarterly review of investment securities and determined the severity and duration of the impairment on its equity investments and the likelihood of recovery of these investments was such that the investments were other-than-temporarily impaired. An other-than-temporary loss on investments of $2.0 million was recorded in the year ended December 31, 2010. No such impairment was recorded in the years ended December 31, 2011 or 2012.

ALC recorded realized gains of $0.3 million in 2012 and $1.0 million in 2011, and $23,000 in 2010. All of the gains were reported as a separate line item in the consolidated statements of operations. Gains and losses on ERP investments are reported in general and administrative expense.

Investments consisted of the following:

	December 31, 2012						December 31, 2011
	Cost		Fair Market Value		Unrealized Gain		Cost		Fair Market Value		Unrealized Gain
	(In thousands)
ERP Investments	$	856	$	870	$	14	$	1,120	$	1,127	$	7
Equity Investments with unrealized gains		—		30		30		474		713		239
Total Investments	$	856	$	900	$	44	$	1,594	$	1,840	$	246