5. Other Investments

12 Months Ended

Dec. 31, 2012

Other Investments Disclosure [Text Block]

5.    OTHER INVESTMENTS

The Company’s other investments consist primarily of nominal equity interests in various privately-held entities, including limited partnerships whose purpose is to invest venture capital funds in growth-oriented enterprises. The Company does not have significant influence over any investee and the Company’s investment represents less than 3% of the investee’s ownership. None of these investments meet the criteria of accounting under the equity method and accordingly are carried at cost less distributions and other than temporary unrealized losses.

The Company’s portfolio of other investments consists of approximately 30 individual investments primarily in limited partnerships with varying investment objectives and focus. Management has categorized these investments by investment focus: technology and communications, diversified businesses/distressed debt, real estate related, stock and debt funds.

As of December 31, 2012 and 2011 other investments had an aggregate carrying value of $3.6 million and $3.7 million, respectively. The Company has committed to fund approximately an additional $975,000 as required by agreements with the investees. The carrying value of these investments is equal to contributions less distributions and other than temporary loss valuation adjustments. During each of the years ended December 31, 2012 and 2011 the Company made contributions of approximately $244,000, and received distributions from these investments of $662,000 and $211,000, respectively.

The Company’s other investments are summarized below.

	Carrying values as of December 31,
Investment Focus	2012		2011
Venture capital funds – technology and communications	$	514,000	$	478,000
Venture capital funds – diversified businesses		1,337,000		1,444,000
Real estate and related		1,453,000		1,523,000
Other		300,000		300,000
Totals	$	3,604,000	$	3,745,000

The Company regularly reviews the underlying assets in its investment portfolio for events, including but not limited to bankruptcies, closures and declines in estimated fair value, that may indicate the investment has suffered other-than-temporary decline in value. When a decline is deemed other-than-temporary, an investment loss is recognized.

Net income from other investments is summarized below (excluding other than temporary impairment loss):

	2012		2011
Income from investment in 49% owned affiliate (a)	$	57,000	$	41,000
Real estate and related (b)		223,000		—
Venture capital funds – diversified businesses (c)		121,000		27,000
Other		—		1,000
Total net income from other investments	$	401,000	$	69,000

(a) This gain represents income from the Company’s 49% owned affiliate, T.G.I.F. Texas, Inc. (“TGIF”). The decrease in income is due to decrease net income of TGIF as a result of lower investment income. In 2012 and 2011 TGIF declared and paid a cash dividend, the Company’s portion of which was approximately $196,000 and $168,000, respectively. These dividends were recorded as reduction in the investment carrying value as required under the equity method of accounting for investments.

(b)           The gain in 2012 consists primarily of one cash distribution from an investment in real estate partnership which distributed proceeds from sales of its real estate.

(c)            The gain in 2012 consists of cash distributions from various investments in partnerships owning diversified businesses which made cash distributions from the sale or refinancing of operating companies in 2012. The gain in 2011 consists of cash distributions from an investment in one partnership owning diversified businesses which made cash distributions from the sale or refinancing of operating companies in 2011.

Other than temporary impairment losses from other investments

For the years ended December 31, 2012 and 2011 approximately $28,000 and $87,000, respectively, of valuation losses from other than temporary impairment losses from other investments were recorded. In 2012 this primarily consisted of an increased valuation loss of $28,000 from an investment in a private partnership which operates and leases executive suites in Miami, Florida. The Company has funded $120,000 to date and the losses incurred were associated with the start up costs of the venture. In 2011 this primarily consisted of a valuation loss of $84,000 from the same investment.

	2012			2011
Real estate and related	$	(28,000	)	$	(84,000	)
Other		—			(3,000	)
Total other than temporary impairment loss from other investments	$	(28,000	)	$	(87,000	)

Net gain or loss from other investments may fluctuate significantly from period to period in the future and could have a significant impact on the Company's net earnings. However, the amount of investment gain or loss from other investments for any given period has no predictive value and variations in amount from period to period have no practical analytical value.

The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss

position as of December 31, 2012 and December 31, 2011, aggregated by investment category and the length of time that investments have been in a continuous loss position:

	As of December 31, 2012
	Less than 12 Months					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	11,000	$	(10,000	)	$	374,000	$	(69,000	)	$	384,000	$	(79,000	)
Partnerships owning diversified businesses		—		—			241,000		(5,000	)		241,000		(5,000	)
Partnerships owning real estate and related investments		—		—			231,000		(49,000	)		231,000		(49,000	)
Total	$	11,000	$	(10,000	)	$	846,000	$	(123,000	)	$	856,000	$	(133,000	)

	As of December 31, 2011
	Less than 12 Months					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	327,000	$	(20,000	)	$	47,000	$	(39,000	)	$	374,000	$	(59,000	)
Partnerships owning diversified businesses		—		—			228,000		(61,000	)		228,000		(61,000	)
Partnerships owning real estate and related investments		—		—			256,000		(56,000	)		256,000		(56,000	)
Total	$	327,000	$	(20,000	)	$	531,000	$	(156,000	)	$	858,000	$	(176,000	)