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Operating Segments
9 Months Ended
Sep. 30, 2011
Operating Segments [Abstract] 
OPERATING SEGMENTS
11. OPERATING SEGMENTS
As discussed in Note 2, the Company’s Consolidated Financial Statements included the accounts of Clarient Inc. (“Clarient”) in continuing operations through May 14, 2009, the date of its deconsolidation. Clarient was acquired by GE Healthcare in December 2010. The Company had elected to apply the fair value option to account for its retained interest in Clarient upon deconsolidation. Unrealized gains and losses on the mark-to-market of its holdings in Clarient and realized gains and losses on the sale of any of its holdings in Clarient were recognized in Other income (loss), net in the Consolidated Statement of Operations for all periods subsequent to the date that Clarient was deconsolidated through the date of its disposition. The mark-to-market activity associated with Clarient was included in the Life Sciences segment through the date of its disposition.
As of September 30, 2011, the Company held an active interest in 13 non-consolidated partner companies. The Company’s reportable operating segments are Life Sciences and Technology.
The Company’s active partner companies by segment were as follows as of September 30, 2011:
Life Sciences
         
    Safeguard Primary Ownership    
Partner Company   as of September 30, 2011   Accounting Method
Alverix, Inc.
  49.6%   Equity
Good Start Genetics, Inc.
  26.3%   Equity
NovaSom, Inc.
  31.7%   Equity
NuPathe, Inc.
  17.9%   Available-for-sale (1)
PixelOptics, Inc.
  24.7%   Equity
Putney, Inc.
  30.1%   Equity
Tengion, Inc.
  2.5%   Available-for-sale (2)
     
(1)   The Company’s ownership interest in NuPathe is accounted for as available-for-sale securities following NuPathe’s completion of an initial public offering in August 2010.
 
(2)   The Company’s ownership interest in Tengion is accounted for as available-for-sale securities following Tengion’s completion of an initial public offering in April 2010.
Technology
         
    Safeguard Primary Ownership    
Partner Company   as of September 30, 2011   Accounting Method
 
       
Advantedge Healthcare Solutions, Inc.
  40.2%   Equity
Beyond.com, Inc.
  38.3%   Equity
Bridgevine, Inc.
  22.8%   Equity
MediaMath, Inc.
  22.5%   Equity (3)
Swap.com
  45.6%   Equity
ThingWorx, Inc.
  30.2%   Equity
 
     
(3)   In the first quarter of 2011, the Company’s ownership interest in MediaMath increased from 17.3% to 22.4%, a threshold at which the Company believes it exercises significant influence. Accordingly, the Company changed its accounting for MediaMath from the cost method to the equity method.
Management evaluates its Life Sciences and Technology segments’ performance based on net income (loss) which is based on the number of partner companies accounted for under the equity method, the Company’s voting ownership percentage in these partner companies and the net results of operations of these partner companies, mark-to-market gains and losses for companies accounted for under the fair value method, any impairment charges and gains (losses) on the sale of partner companies.
Other Items include certain expenses which are not identifiable to the operations of the Company’s operating business segments. Other Items primarily consist of general and administrative expenses related to corporate operations, including employee compensation, insurance and professional fees, including legal and finance, interest income, interest expense, other income (loss) and equity income (loss) related to private equity fund holdings. Other Items also include income taxes, which are reviewed by management independent of segment results.
As of September 30, 2011 and December 31, 2010, all of the Company’s assets were located in the United States.
Segment assets in Other Items included primarily cash, cash equivalents, cash held in escrow, restricted cash equivalents and marketable securities of $299.1 million and $249.0 million, at September 30, 2011 and December 31, 2010, respectively.
                                         
            Three Months Ended September 30, 2011        
                                    Total  
    Life             Total     Other     Continuing  
    Sciences     Technology     Segments     Items     Operations  
                    (In thousands)                  
                    (unaudited)                  
Operating loss
  $     $     $     $ (5,100 )   $ (5,100 )
Net income (loss)
    (4,188 )     32,896       28,708       (6,377 )     22,331  
 
                                       
Segment Assets:
                                       
September 30, 2011
    63,278       50,989       114,267       310,018       424,285  
December 31, 2010
    37,710       42,820       80,530       256,015       336,545  
                                         
            Three Months Ended September 30, 2010        
                                    Total  
    Life             Total     Other     Continuing  
    Sciences     Technology     Segments     Items     Operations  
                    (In thousands)                  
                    (unaudited)                  
Operating loss
  $     $     $     $ (4,256 )   $ (4,256 )
Net income (loss)
    7,311       (957 )     6,354       (5,758 )     596  
                                         
            Nine Months Ended September 30, 2011        
                                    Total  
    Life             Total     Other     Continuing  
    Sciences     Technology     Segments     Items     Operations  
                    (In thousands)                  
                    (unaudited)                  
 
                                       
Operating loss
  $     $     $     $ (15,554 )   $ (15,554 )
Net income (loss)
    126,238       28,149       154,387       (19,251 )     135,136  
                                         
            Nine Months Ended September 30, 2010        
                                    Total  
    Life             Total     Other     Continuing  
    Sciences     Technology     Segments     Items     Operations  
                    (In thousands)                  
                    (unaudited)                  
Operating loss
  $     $     $     $ (13,999 )   $ (13,999 )
Net income (loss)
    12,208       (5,259 )     6,949       (25,481 )     (18,532 )