FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2013

Financial Instruments [Abstact]

Financial Instruments Disclosure [Text Block]

FINANCIAL INSTRUMENTS

Investments

The Corporation's investments in marketable securities include debt securities which are classified as available-for-sale. At June 30, 2013, the Corporation held $5 million in debt securities ($5 million at December 31, 2012), which had contractual maturities of less than 10 years. These securities are recorded at fair value, which approximates cost, and are included in “Other investments” in the consolidated balance sheets and classified as Level 2 measurements. There were no proceeds from sales of marketable securities for the three and six-month periods ended June 30, 2013 and June 30, 2012.

For securities frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks.

Long-Term Debt

The Company has long-term debt of $471 million in the consolidated balance sheets at June 30, 2013 ($471 million at December 31, 2012). At June 30, 2013, the fair value of this long-term debt was $559 million ($587 million at December 31, 2012) and is classified as a Level 2 measurement. Fair value is determined in a manner similar to the methods described above for investments.

In the first quarter of 2012, the Corporation redeemed $37 million aggregate principal amount of pollution control/industrial revenue bonds that matured on January 1, 2012.

Cost approximates fair value for all other financial instruments.