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	)