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.



	December 31, 2015		December 31, 2014
	(In thousands)
Equity Method:
Partner companies	$	150,898	$	134,861
Private equity funds	942		1,128
	151,840		135,989
Cost Method:
Partner companies	5,024		6,774
Private equity funds	1,966		2,364
	6,990		9,138
Advances to partner companies	12,771		9,065
	$	171,601	$	154,192

In January 2016, the Company received $4.1 million in connection with the expiration of the escrow period related to the December 2013 sale of ThingWorx, Inc. to PTC, Inc., resulting in a gain of $4.1 million which is included in Equity income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 2015. This amount was included in Prepaid expenses and other current assets in the Consolidated Balance Sheets as of December 31, 2015 as the Company was owed such amount as of December 31, 2015. In July 2015, the Company received $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 year ended December 31, 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. The Company received $36.4 million in initial cash proceeds in connection with the transaction resulting in a gain of $32.7 million, which is included in Equity income (loss) in the Consolidated Statements of Operations for the year ended December 31, 2013.

In July 2015, the Company received $1.7 million in connection with the expiration of the escrow period related to the January 2014 sale of Alverix, Inc. to Becton, Dickinson and Company, resulting in a gain of $1.7 million which is included in Equity income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 2015. The Company received $15.7 million in initial cash proceeds in connection with the transaction resulting in a gain of $15.7 million, which is included in Equity income (loss) in the Consolidated Statements of Operations for the year ended December 31, 2014.

In July and March 2015, the Company received an aggregate $2.9 million in connection with the expiration of the escrow period related to the February 2014 sale of Crescendo Bioscience, Inc. to Myriad Genetics, Inc., resulting in a gain of $2.9 million which is included in Other income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 2015. The Company received $38.4 million in initial cash proceeds in connection with the transaction resulting in a gain of $27.4 million, which is included in Other income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 2014.

In July 2015, Quantia, Inc. 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 which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the year ended December 31, 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. 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 year ended December 31, 2015.

In April 2014, the Company sold its ownership interests in Sotera Wireless, Inc. The Company received $4.2 million in cash proceeds in connection with the transaction and recognized a gain of $1.5 million, which is included in Other income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 2014.

In February 2014, NuPathe was acquired by Teva Pharmaceutical Industries Ltd. for $3.65 per share in cash. In addition to the upfront cash payment, NuPathe shareholders received rights to receive additional cash payments of up to $3.15 per share if specified milestones are achieved over time. The Company received initial net cash proceeds of $23.1 million as a result of the transaction. Depending on the achievement of certain milestones, the Company may receive up to an additional $24.2 million. The Company recognized a gain of $3.0 million, which is included in Other income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 2014.

The Company recognized an impairment charge of $3.6 million related to AppFirst, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the year ended December 31, 2015. The impairment was due to lack of revenue growth. The adjusted carrying value of AppFirst is $3.0 million.

The Company recognized an impairment charge of $3.2 million related to InfoBionic, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the year ended December 31, 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.

The Company recognized an impairment charge of $2.3 million related to Dabo Health, Inc. which is reflected in Other income (loss), net in the Consolidated Statements of Operations for the year ended December 31, 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.

The Company recognized impairment charges of $11.2 million related to PixelOptics, Inc. which are reflected in Equity income (loss) in the Consolidated Statements of Operations for the year ended December 31, 2013. The impairments were based on PixelOptics' inability to raise additional capital to continue its operations. In 2013, PixelOptics filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company believes it is unlikely it will recover any of its capital.

The following summarized financial information for partner companies and funds accounted for under the equity method at December 31, 2015 and 2014 and for each of the years in the three-year period ended December 31, 2015, has been compiled from the financial statements of our respective partner companies and funds and reflects certain historical adjustments. Results of operations of the partner companies and funds are excluded for periods prior to their acquisition and subsequent to their disposition.



	As of December 31,
	2015		2014
	(In thousands)
Balance Sheets:
Current assets	$	357,663	$	312,621
Non-current assets	109,454		90,469
Total assets	$	467,117	$	403,090
Current liabilities	$	253,692	$	163,016
Non-current liabilities	110,829		80,050
Shareholders’ equity	102,596		160,024
Total liabilities and shareholders’ equity	$	467,117	$	403,090

As of December 31, 2015, the Company’s carrying value in equity method partner companies, in the aggregate, exceeded the Company’s share of the net assets of such companies by approximately $105.6 million. Of this excess, $78.8 million was allocated to goodwill and $26.8 million was allocated to intangible assets.



	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Results of Operations:
Revenue	$	401,182		$	319,197		$	270,666
Gross profit	$	113,801		$	97,405		$	121,297
Net loss	$	(140,801	)	$	(108,994	)	$	(63,452	)