Ownership Interests in and Advances to Partner Companies

The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies.



	September 30, 2015		December 31, 2014
	(Unaudited - In thousands)
Equity Method:
Partner companies	$	143,906	$	134,861
Private equity funds	1,030		1,128
	144,936		135,989
Cost Method:
Partner companies	5,024		6,774
Private equity funds	2,050		2,364
	7,074		9,138
Advances to partner companies	10,978		9,065
	$	162,988	$	154,192

In January 2014, Alverix, Inc., formerly an equity method partner company, was acquired by Becton, Dickinson and Company. The Company received $15.7 million in initial cash proceeds in connection with the transaction. The Company recognized a gain of $15.7 million on the transaction, which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2014. In July 2015, the Company received an additional $1.7 million in connection with the expiration of the escrow period, resulting in a gain of $1.7 million which is included in Equity income (loss), net in the Consolidated Statements of Operations for the three and nine months ended September 30 , 2015.

In December 2013, ThingWorx, Inc., formerly an equity method partner company, was acquired by PTC Inc. The Company received $36.4 million in initial cash proceeds in connection with the transaction excluding $4.1 million which will be held in escrow until December 2015. In July 2015, the Company received an additional $3.3 million associated with the achievement of performance milestones, resulting in a gain of $3.3 million which is included in Equity income (loss), net in the Consolidated Statements of Operations for the three and nine months ended September 30, 2015. Depending on the achievement of certain additional milestones, the Company may receive up to an additional $3.2 million in connection with the transaction.

In February 2014, Crescendo Bioscience, Inc., formerly a cost method partner company, was acquired by Myriad Genetics, Inc. The Company received $38.4 million in initial cash proceeds in connection with the transaction. The Company recognized a gain of $27.4 million on the transaction, which is included in Other income (loss), net in the Consolidated Statements of Operations for the nine months ended September 30, 2014. In March 2015, the Company received $2.0 million which was released from escrow resulting in a gain of $2.0 million which is included in Other income (loss), net in the Consolidated Statements of Operations for the nine months ended September 30, 2015. In July 2015, the Company received the remaining $0.9 million which was released from escrow resulting in a gain of $0.9 million which is included in Other income (loss), net in the Consolidated Statements of Operations for the three and nine months ended September 30, 2015.

In July 2015, Quantia, Inc., formerly an equity method partner company, was acquired by Physicians Interactive. The Company received cash proceeds of $7.8 million in connection with the transaction, excluding $1.2 million which will be held in escrow until July 2016. The Company recognized an impairment charge of $2.9 million in the second quarter of 2015 which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2015. The impairment was based on the difference between the Company's carrying value in Quantia and the initial net proceeds received.

In April 2015, DriveFactor, Inc., formerly an equity method partner company, was acquired by CCC Information Services Inc. The Company received cash proceeds of $9.1 million, excluding $1.1 million which will be held in escrow until approximately April 2016. The Company recognized a gain of $6.1 million on the transaction, which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2015.

The Company recognized an impairment charge of $3.2 million in the second quarter of 2015 related to InfoBionic, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2015. The impairment was due to discontinuation of InfoBionic's first-generation product. The amount of the impairment was determined based on the value at which InfoBionic raised additional equity financing in July 2015 from the Company and other existing capital providers. Proceeds from the financing will be used for development and commercialization of the second-generation product.

The Company recognized an impairment charge of $2.3 million in the first quarter of 2015 related to Dabo Health, Inc. which is reflected in Other income (loss), net in the Consolidated Statements of Operations for the nine months ended September 30, 2015. The impairment was based on the decision of the Company and other shareholders not to continue to fund Dabo Health's operations. The Company believes it is unlikely it will recover any of its capital.