Note 12. Loans to and Investments in Associated Companies

A summary of loans to and investments in associated companies at June 30, 2013 and December 31, 2012 accounted for under the equity method of accounting is as follows (in thousands):


		June 30,		December 31,
		2013		2012

Jefferies Finance, LLC ("Jefferies Finance")	$	300,924	$	–
Jefferies LoanCore LLC ("Jefferies LoanCore")		144,394		–
Berkadia Commercial Mortgage LLC ("Berkadia")		188,584		172,942
Garcadia companies		122,156		82,425
HomeFed Corporation ("HomeFed")		48,788		49,384
Brooklyn Renaissance Plaza		30,111		30,332
Linkem S.p.A. ("Linkem")		98,138		86,424
JHYH		–		351,835
Other		58,884		34,132

Total	$	991,979	$	807,474

Income (losses) related to associated companies includes the following for the three and six month periods ended June 30, 2013 and 2012 (in thousands):


		For the Three Month						For the Six Month
		Period Ended June 30,						Period Ended June 30,
		2013			2012			2013			2012

Berkadia	$	30,844		$	2,410		$	49,431		$	14,230
Garcadia companies		11,244			8,888			20,115			16,982
Linkem		(6,920	)		(4,078	)		(13,522	)		(8,268	)
HomeFed		(355	)		(447	)		(596	)		(562	)
Brooklyn Renaissance Plaza		203			1,540			995			1,981
JHYH		–			4,579			7,178			14,273
Other		(153	)		644			2,070			2,892
Total	$	34,863		$	13,536		$	65,671		$	41,528

For the three month period ended June 30, 2013, our share of Berkadia's income includes an out of period adjustment of $14.8 million to record income related to prior periods.

Income (losses) related to associated companies classified as Other revenue include the following for the three and six month periods ended June 30, 2013 (in thousands):


Jefferies Finance	$	11,969
Jefferies LoanCore		16,723
Other		(152	)

Total	$	28,540

Jefferies Finance

In October 2004, Jefferies entered into an agreement with Babson Capital Management LLC ("Babson Capital") and Massachusetts Mutual Life Insurance Company ("MassMutual") to form Jefferies Finance, a joint venture entity. Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt to middle market and growth companies in the form of term and revolving loans. Loans are originated primarily through the investment banking efforts of Jefferies, with Babson Capital providing primary credit analytics and portfolio management services. Jefferies Finance can also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market, including loans that are performing, stressed and distressed loan obligations.

Jefferies and MassMutual each have equity commitments to Jefferies Finance of $600.0 million. At June 30, 2013, approximately $299.4 million of Jefferies commitment was funded. The investment commitment is scheduled to mature on March 1, 2016 with automatic one year extensions subject to a 60 day termination notice by either party.

In addition, Jefferies and MassMutual have entered into a Secured Revolving Credit Facility, to be funded equally, to support loan underwritings by Jefferies Finance. The Secured Revolving Credit Facility bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. The total committed Secured Revolving Credit Facility is $700.0 million. At June 30, 2013, none of Jefferies $350.0 million commitment was funded.

Jefferies LoanCore

In February 2011, Jefferies entered into a joint venture agreement with the Government of Singapore Investment Corporation and LoanCore, LLC and formed Jefferies LoanCore, a commercial real estate finance company. Jefferies LoanCore originates and purchases commercial real estate loans throughout the United States with the support of the investment banking and securitization capabilities of Jefferies and the real estate and mortgage investment expertise of the Government of Singapore Investment Corporation and LoanCore, LLC. Jefferies LoanCore has aggregate equity commitments of $600.0 million. Jefferies has funded $107.5 million of its $291.0 million equity commitment and has a 48.5% voting interest in Jefferies LoanCore.

Berkadia

As more fully discussed in the 2012 10-K, we have agreed to reimburse Berkshire Hathaway Inc. for up to one-half of any losses incurred under a $2.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia. As of June 30, 2013, the aggregate amount of commercial paper outstanding was $2.47 billion.

JHYH

Under GAAP, JHYH was considered a variable interest entity that was consolidated by Jefferies, since Jefferies was the primary beneficiary. In connection with the Jefferies acquisition, we contributed our investment in JHYH to Jefferies, other third-party investors were redeemed and JHYH was effectively dissolved.