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, 2016		December 31, 2015
	(Unaudited - In thousands)
Equity Method:
Partner companies	$	151,437	$	150,898
Private equity funds	448		942
	151,885		151,840
Cost Method:
Partner companies	1,200		5,024
Private equity funds	1,661		1,966
	2,861		6,990
Advances to partner companies	18,195		12,771
	$	172,941	$	171,601

In April 2016, Putney, Inc. was acquired by Dechra Pharmaceuticals Plc. The Company received $58.2 million in initial cash proceeds in connection with the transaction, excluding $0.4 million which was released from escrow in July 2016 and $0.6 million which will be held in escrow until April 2017. The Company recognized a gain of $55.2 million on the transaction, which was included in Equity income (loss) in the Consolidated Statements of Operations in the quarter ended June 30, 2016. The Company recognized a gain of $0.4 million on the escrow release in July 2016 which is included in Equity income (loss) in the Consolidated Statements of Operations in the quarter ended September 30, 2016.

In July 2015, Quantia, Inc. was acquired by Physicians Interactive. The Company received $7.8 million in initial cash proceeds in connection with the transaction. In July 2016, the Company received an additional $0.6 million which was released from escrow resulting in a gain of $0.6 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the three and nine months ended September 30, 2016.

In the quarter ended September 30, 2016, the Company recognized an impairment charge of $2.4 million related to its Penn Mezzanine debt and equity participations which is reflected in Other income (loss), net in the Consolidated Statements of Operations for the three and nine months ended September 30, 2016. The amount of the impairment was determined based on the difference between the carrying value of the Company's debt and equity participations and their estimated fair values. The Company has no remaining Penn Mezzanine debt participations and the adjusted carrying value of the Company's remaining Penn Mezzanine equity participation was $0.2 million at September 30, 2016.

In the quarter ended September 30, 2016, the Company recognized an impairment charge of $1.0 million related to Aventura, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the three and nine months ended September 30, 2016. The impairment was due to a lack of revenue growth and a strategic repositioning of the product in the market. The adjusted carrying value of the Company's interest in Aventura was $2.7 million at September 30, 2016.

In the quarter ended June 30, 2016, the Company recognized an impairment charge of $1.7 million related to AppFirst, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2016. The impairment was due to the shutdown of AppFirst's operations and the sale of its assets. The amount of the impairment was determined based on the difference between the carrying value of the Company's holdings in AppFirst and the proceeds received on the sale of AppFirst's assets in June 2016. The adjusted carrying value of the Company's interest in AppFirst was $0 at September 30, 2016.

In June 2016, the Company sold its ownership interests in Bridgevine, Inc. The Company received cash proceeds of $5.0 million and recognized a gain of $0.4 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, 2016.

In April 2015, DriveFactor, Inc. was acquired by CCC Information Services, Inc. The Company received $9.1 million in initial cash proceeds in connection with the transaction. 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. In April 2016, the Company received an additional $1.1 million which was released from escrow resulting in a gain of $1.1 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2016.

In April 2016, the Company received $3.3 million associated with the achievement of the final performance milestone related to the December 2013 sale of ThingWorx, Inc. to PTC, Inc., resulting in a gain of $3.3 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2016. In January 2016, the Company received $4.1 million in connection with the expiration of the escrow period related to the transaction, which was included in Prepaid expenses and other current assets in the Consolidated Balance Sheets as of December 31, 2015 as the Company had earned such amount as of December 31, 2015.

The Company discloses aggregate summarized statements of operations for any partner companies accounted for under the equity method that are deemed significant. The following table provides significant partner company operations information for the nine months ended September 30, 2016 and 2015. The partner company results of operations have been compiled from respective partner company financial statements, reflect certain historical adjustments, and are reported on a one quarter lag basis.



	Nine Months Ended
	September 30, 2016			September 30, 2015
	(In thousands)
Results of Operations:
Revenue	$	299,768		$	291,860
Gross profit	$	190,168		$	182,809
Net loss	$	(135,045	)	$	(105,042	)