Investments

The Company’s short-term investments are defined as those investments with original maturities of greater than three months and up to one year, and long-term investments are defined as those investments with original maturities greater than one year.

The Company classifies its investments as either held-to-maturity or available-for-sale at the time of purchase and reevaluates such designation periodically. Investments are classified as held-to-maturity when the Company has the intent and ability to hold the securities to maturity.

Investments in securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of income taxes, reported in “Accumulated other comprehensive income (loss)” in the condensed consolidated balance sheets. Realized gains and losses, determined on a specific identification method, are included in “Interest income” in the unaudited condensed consolidated statements of operations.

The Company did not have any held-to-maturity securities as of September 30, 2011 or December 31, 2010.

Investments in available-for-sale securities at September 30, 2011 were as follows:



Available-for-sale securities	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in millions)
Current:
Federal government securities	$	5.2	$	—	$	—	$	5.2
U.S. corporate bonds	4.6		—		—		4.6
Noncurrent:
Marketable equity securities	55.5		—		6.9		48.6
Federal government securities	11.4		0.2		—		11.6
U.S. corporate bonds	9.4		0.1		—		9.5
Total	$	86.1	$	0.3	$	6.9	$	79.5

Investments in available-for-sale securities at December 31, 2010 were as follows:



Available-for-sale securities	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
			(Dollars in millions)
Current:
Federal government securities	$	0.5	$	—	$	—	$	0.5
U.S. corporate bonds	1.9		—		—		1.9
Noncurrent:
Federal government securities	9.2		—		—		9.2
U.S. corporate bonds	6.3		—		—		6.3
Total	$	17.9	$	—	$	—	$	17.9

Contractual maturities for available-for-sale investments in debt securities at September 30, 2011 were as shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



Contractual maturities for available-for-sale securities	Cost		Fair Value
	(Dollars in millions)
Due in one year or less	$	9.8	$	9.8
Due in one to five years	20.8		21.1
Total	$	30.6	$	30.9

The Company’s investments in marketable equity securities consists of an investment in Winsway Coking Coal Holdings Limited and shares purchased of Macarthur Coal Limited (Macarthur). For additional information on the Macarthur shares purchased, see Note 17.

Proceeds from sales of securities amounted to $1.5 million and realized gains on the sales amounted to $0.1 million for the three and nine months ended September 30, 2011.

In addition to the securities described above, the Company held investments in debt and equity securities related to the Company's pro-rata share of funding in the Newcastle Coal Infrastructure Group (NCIG). During the nine months ended September 30, 2011, the Company sold all of its interests in these debt and equity securities. New debt securities were purchased for the funding of the next phase of NCIG's port expansion during the three months ended September 30, 2011. These debt securities are recorded at cost, which approximates fair value, and are denominated in U.S. dollars. The fair value of these securities was $29.4 million at September 30, 2011.

At each reporting date, the Company performs separate evaluations of debt and equity securities to determine if any unrealized losses are other-than-temporary. None of the securities that were in an unrealized loss position at September 30, 2011 has been so for greater than 12 months. The Company did not recognize any other-than-temporary losses on any of its investments during the nine months ended September 30, 2011.