Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2012

Fair value of financial instruments [Abstract]

Fair value of financial instruments

Note 9 – Fair Value of Financial Instruments

Investments in Available-for-sale Securities

We have investments in mutual funds designated as available-for-sale securities that are carried at fair value in the financial statements. For these investments, fair value was estimated based on quoted prices categorized as a Level 1 valuation.

				December 31,
(In millions)				2012	2011
Mutual funds
	Cost		$	4.3	16.9
	Gross unrealized gains			1.0	3.1
		Fair value	$	5.3	20.0

The table below presents a reconciliation for investments measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3):

				December 31,
(In millions)				2012	2011	2010
Beginning balance			$	-	3.4	3.1
	Total gain and (loss), realized and unrealized:
		Included in interest and other income		-	2.6	-
		Included in other comprehensive income (loss)		-	0.3	0.3
	Purchases			-	-	-
	Sales			-	(6.3)	-
Ending balance			$	-	-	3.4

Fixed-Rate Debt

The fair value and carrying value of our fixed-rate debt are as follows:

			December 31,	December 31,
(In millions)			2012	2011
DTA bonds
	Carrying value	$	43.2	43.2
	Fair value		43.4	44.0
Unsecured notes issued in a private placement
	Carrying value		100.0	100.0
	Fair value		110.5	106.4

The fair value estimate of our obligation related to the fixed-rate Dominion Terminal Associates (“DTA”) bonds is based on price information observed in a less-active market, which we have categorized as a Level 2 valuation. During 2011, the market for these bonds was not active and we therefore transferred these bonds from Level 1 to Level 2.

The fair value estimate of our unsecured private-placement notes is based on the present value of future cash flows, discounted at rates for similar instruments at the respective measurement dates, which we have categorized as a Level 3 valuation.

Other Financial Instruments

Other financial instruments include cash and cash equivalents, short-term fixed rate deposits, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value due to their short-term nature.

The fair value of outstanding foreign currency contracts was not significant. There were no transfers in or out of any of the levels of the valuation hierarchy in 2012.