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.



	March 31, 2017		December 31, 2016
	(Unaudited - In thousands)
Equity Method:
Partner companies	$	131,852	$	154,219
Private equity funds	446		447
	132,298		154,666
Cost Method:
Partner companies	2,687		2,112
Private equity funds	1,400		1,550
	4,087		3,662
Advances to partner companies	25,240		25,142
	$	161,625	$	183,470

In March 2017, the Company sold its interest in partner company Beyond.com back to Beyond.com for $26.0 million. The Company received $15.5 million in cash and a three-year, $10.5 million note for the balance due, which accrues interest at a rate of 9.5% per annum. The receipt of the $15.5 million in cash resulted in a gain of $0.1 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the three months ended March 31, 2017. The $10.5 million note is fully reserved and has a carrying value of zero as of March 31, 2017. A gain will be recorded when the note is repaid. Interest is payable annually and interest income is recorded as earned throughout the year.

In the quarter ended March 31, 2017, the Company recognized an impairment charge of $2.7 million related to Pneuron, Inc. which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the three months ended March 31, 2017. The impairment was due to a decline in revenue and a lack of new customers. The adjusted carrying value of the Company's interest in Pneuron is $2.5 million at March 31, 2017.

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 2015 and $0.6 million in connection with the expiration of the initial escrow period in July 2016. In January 2017, the Company received an additional $0.6 million in connection with the expiration of the final escrow period resulting in a gain of $0.6 million which is included in Equity income (loss) in the Consolidated Statements of Operations for the three months ended March 31, 2017.

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 three months ended March 31, 2016.