SAFEGUARD SCIENTIFICS INC, 10-Q filed on 7/26/2013
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2013
Jul. 25, 2013
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
SFE 
 
Entity Registrant Name
SAFEGUARD SCIENTIFICS INC 
 
Entity Central Index Key
0000086115 
 
Current Fiscal Year End Date
--12-31 
 
Entity Well-known Seasoned Issuer
No 
 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
26,976,963 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Current Assets:
 
 
Cash and cash equivalents
$ 102,732 
$ 66,029 
Cash held in escrow
 
6,434 
Marketable securities
70,231 
110,957 
Restricted marketable securities
10 
Prepaid expenses and other current assets
1,334 
2,408 
Total current assets
174,303 
185,838 
Property and equipment, net
164 
193 
Ownership interests in and advances to partner companies and funds (of which $19,363 and $20,972 are measured at fair value at June 30, 2013 and December 31, 2012, respectively)
143,100 
148,639 
Loan participations receivable
8,310 
7,085 
Available-for-sale securities
18 
58 
Long-term marketable securities
7,146 
29,059 
Other assets
3,077 
3,272 
Total Assets
336,118 
374,144 
Current Liabilities:
 
 
Convertible senior debentures-current
470 
 
Accounts payable
203 
610 
Accrued compensation and benefits
3,634 
4,050 
Accrued expenses and other current liabilities
3,631 
2,601 
Total current liabilities
7,938 
7,261 
Other long-term liabilities
3,862 
3,921 
Convertible senior debentures-non-current
48,970 
48,991 
Total Liabilities
60,770 
60,173 
Commitments and contingencies
   
   
Equity:
 
 
Preferred stock, $0.10 par value; 1,000 shares authorized
   
   
Common stock, $0.10 par value; 83,333 shares authorized; 20,977 and 20,968 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively
2,098 
2,097 
Additional paid-in capital
817,384 
815,946 
Accumulated deficit
(544,134)
(504,072)
Total Equity
275,348 
313,971 
Total Liabilities and Equity
$ 336,118 
$ 374,144 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Ownership interests in and advances, to partner companies and funds, fair value
$ 19,363 
$ 20,972 
Preferred stock, par value
$ 0.10 
$ 0.10 
Preferred stock, shares authorized
1,000 
1,000 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
83,333 
83,333 
Common stock, shares issued
20,977 
20,968 
Common stock, shares outstanding
20,977 
20,968 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
General and administrative expense
$ 6,715 
$ 5,148 
$ 12,089 
$ 9,891 
Operating loss
(6,715)
(5,148)
(12,089)
(9,891)
Other income (loss), net
(2,724)
4,819 
(1,967)
7,903 
Interest income
790 
595 
1,524 
1,494 
Interest expense
(1,074)
(1,456)
(2,143)
(2,908)
Equity loss
(18,400)
(8,947)
(25,387)
(16,395)
Net loss before income taxes
(28,123)
(10,137)
(40,062)
(19,797)
Income tax benefit (expense)
Net loss
$ (28,123)
$ (10,137)
$ (40,062)
$ (19,797)
Net loss per share:
 
 
 
 
Basic
$ (1.33)
$ (0.48)
$ (1.90)
$ (0.95)
Diluted
$ (1.33)
$ (0.48)
$ (1.90)
$ (0.95)
Weighted average shares used in computing basic and diluted loss per share:
21,128 
20,927 
21,119 
20,903 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Net loss
$ (28,123)
$ (10,137)
$ (40,062)
$ (19,797)
Other comprehensive income (loss), before taxes:
 
 
 
 
Unrealized net gain (loss) on available-for-sale securities
(26)
734 
(40)
5,800 
Reclassification adjustment for other than temporary impairment of available-for-sale securities included in net loss
26 
144 
40 
144 
Total comprehensive loss
$ (28,123)
$ (9,259)
$ (40,062)
$ (13,853)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash Flows from Operating Activities:
 
 
Net cash used in operating activities
$ (11,540)
$ (9,624)
Cash Flows from Investing Activities:
 
 
Proceeds from sales of and distributions from companies and funds
1,403 
11,061 
Advances and loans to companies
(8,100)
(5,141)
Origination fees on mezzanine loans
42 
46 
Acquisitions of ownership interests in companies and funds
(15,131)
(16,190)
Increase in marketable securities
(29,913)
(141,997)
Decrease in marketable securities
92,552 
133,751 
Repayment of advances and loans to companies
928 
3,144 
Capital expenditures
(21)
(25)
Proceeds from sale of discontinued operations, net
6,434 
 
Net cash provided by (used in) investing activities
48,194 
(15,351)
Cash Flows from Financing Activities:
 
 
Repurchase of convertible senior debentures
(43)
 
Issuance of Company common stock, net
92 
513 
Net cash provided by financing activities
49 
513 
Net Increase (Decrease) in Cash and Cash Equivalents
36,703 
(24,462)
Cash and Cash Equivalents at beginning of period
66,029 
83,187 
Cash and Cash Equivalents at end of period
$ 102,732 
$ 58,725 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $)
In Thousands
Total
Accumulated Deficit
Common Stock
Additional Paid-in Capital
Balance at Dec. 31, 2012
$ 313,971 
$ (504,072)
$ 2,097 
$ 815,946 
Balance (in shares) at Dec. 31, 2012
 
 
20,968 
 
Net loss
(40,062)
(40,062)
 
 
Stock options exercised, net
92 
 
91 
Stock options exercised, net (in shares)
 
 
 
Issuance of restricted stock, net
49 
 
 
49 
Stock-based compensation expense
1,298 
 
 
1,298 
Balance at Jun. 30, 2013
$ 275,348 
$ (544,134)
$ 2,098 
$ 817,384 
Balance (in shares) at Jun. 30, 2013
 
 
20,977 
 
General
General

1. General

The accompanying unaudited interim Consolidated Financial Statements of Safeguard Scientifics, Inc. (“Safeguard” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America and the interim financial statement rules and regulations of the SEC. In the opinion of management, these statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Consolidated Financial Statements. The interim operating results are not necessarily indicative of the results for a full year or for any interim period. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The Consolidated Financial Statements included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-Q and with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s 2012 Annual Report on Form 10-K.

Ownership Interests in and Advances to Partner Companies and Funds
Ownership Interests in and Advances to Partner Companies and Funds

2. Ownership Interests in and Advances to Partner Companies and Funds

The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies and private equity funds.

 

 

June 30, 2013

 

  

December 31, 2012

 

 

 

(In thousands)

(Unaudited)

  

Fair value             

$

  19,363

  

  

$

  20,972

  

 

 

 

 

 

 

 

 

Equity Method:

 

 

 

  

 

 

 

Partner companies             

 

  98,997

  

  

 

  102,931

  

Private equity funds             

 

  3,714

  

  

 

  3,810

  

 

 

  102,711

  

  

 

  106,741

  

Cost Method:

 

 

 

  

 

 

 

Partner companies             

 

  13,030

  

  

 

  10,000

  

Private equity funds             

 

  2,484

  

  

 

  2,634

  

 

 

  15,514

  

  

 

  12,634

  

 

 

 

 

 

 

 

 

Advances to partner companies             

 

  5,512

  

  

 

  8,292

  

 

 

 

 

 

 

 

 

 

$

  143,100

  

  

$

  148,639

  

 

 

 

 

 

 

 

 

Loan participations receivable             

$

  8,310

  

  

$

  7,085

  

 

 

 

 

 

 

 

 

Available-for-sale securities             

$

  18

  

  

$

  58

  

The Company recognized impairment charges of $9.9 million and $3.7 million related to PixelOptics Inc. (“PixelOptics”) in the three months ended June 30, 2013 and 2012, respectively, which are reflected in Equity loss in the Consolidated Statements of Operations. The impairment in 2013 was based on the decision of PixelOptics to seek additional capital from independent sources as well as the Company’s decision to deploy no substantial additional capital in PixelOptics.  The impairment in 2012 was based upon launch delays and related supply chain issues, as well as the pricing of a transaction between other institutional shareholders in PixelOptics.

The Company recorded impairment charges of $0.3 million and $0.7 million related to its Penn Mezzanine debt and equity participations in the three months ended June 30, 2013 and 2012, respectively, which are reflected in Other income (loss), net in the Consolidated Statements of Operations. In the three months ended June 30, 2013, the charge included $0.2 million related to loan participations and $0.1 million representing an adjustment to the fair value of the Company’s participation in warrants.  In the three months ended June 30, 2012, the charge included $0.2 million related to loan participations, $0.4 million related to equity participations and $0.1 million representing an adjustment to the fair value of the Company’s participation in warrants.

The Company recognized impairment charges of $0.2 million and $0.4 million related to its interest in a legacy private equity fund in the first quarter of 2013 and 2012, respectively, which are reflected in Other income (loss), net in the Consolidated Statements of Operations.

For the three and six months ended June 30, 2013, the Company recognized an unrealized loss of $2.4 million and $1.6 million, respectively, on the mark-to-market of its holdings in NuPathe, Inc. (“NuPathe”), which is included in Other income (loss), net in the Consolidated Statements of Operations.

The following unaudited summarized results of operations for the three months ended March 31, 2013 and 2012 for PixelOptics have been compiled from the unaudited financial statements of PixelOptics.

The results of PixelOptics are reported on a one quarter lag.

 

 

Three Months Ended March 31,

 

 

2013

 

  

2012

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Results of Operations:

 

 

 

  

 

 

 

Revenue             

$

  539

 

  

$

  307

 

Operating loss             

$

(5,855

)

  

$

(8,721

)

Net loss             

$

(7,061

)

  

$

(9,012

)

 

Acquisitions of Ownership Interests in Partner Companies and Funds
Acquisitions of Ownership Interests in Partner Companies and Funds

 

 

3. Acquisitions of Ownership Interests in Partner Companies and Funds

During the six months ended June 30, 2013, the Company funded $2.3 million for participations in loan and equity interests initiated by Penn Mezzanine. Included in this funding were $2.2 million for participation in a loan and $0.1 million for participation in equity of the borrower acquired by Penn Mezzanine.

During the six months ended June 30, 2013, the Company funded an aggregate of $5.3 million of a convertible bridge loan to PixelOptics. The Company previously deployed an aggregate of $31.6 million in PixelOptics. PixelOptics provides electronic corrective eyeglasses designed to substantially reduce or eliminate the visual distortion and other limitations associated with multifocal lenses. The Company accounts for its interest in PixelOptics under the equity method. 

In June 2013, the Company deployed an additional $5.3 million into Medivo, Inc. (“Medivo”). The Company had previously acquired an interest in Medivo in November 2011 for $6.3 million. Medivo is a healthcare IT company that connects patients to a nationwide network of physicians, lab service centers and home testing services. The Company accounts for its interest in Medivo under the equity method. With respect to the June 2013 deployment, the difference between the Company’s cost and its interest in the underlying net assets of Medivo was preliminarily allocated to intangible assets and goodwill as reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.

In June 2013, the Company funded $0.3 million of a convertible bridge loan to Alverix, Inc (“Alverix”). The Company had previously deployed an aggregate of $8.8 million in Alverix. Alverix provides next-generation instrument and connectivity platforms for diagnostic Point-of-Care testing. The Company accounts for its interest in Alverix under the equity method.

In May 2013, the Company funded $0.2 million of a convertible bridge loan to Hoopla Software, Inc. (“Hoopla”). The Company had previously acquired an interest in Hoopla in December 2011 for $1.3 million. Hoopla helps organizations create high performance sales cultures through software-as-a-service solutions that integrate with customer relationship management systems. The Company accounts for its interest in Hoopla under the equity method.

In March 2013, the Company deployed an additional $1.7 million into Lumesis, Inc. (“Lumesis”). The Company had previously acquired an interest in Lumesis in February 2012 for $2.2 million. Lumesis is a financial technology company that is dedicated to delivering timely data and robust analytical tools for the fixed income marketplace. The Company accounts for its interest in Lumesis under the equity method. The difference between the Company’s cost and its interest in the underlying net assets of Lumesis was allocated to intangible assets and goodwill as reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets. 

In February 2013, the Company acquired a 6.5% ownership interest in Clutch Holdings, LLC (“Clutch”) for $0.5 million. Clutch is a mobile commerce platform that unifies applications associated with gifting, loyalty and shopping programs to improve the customer experience. The Company accounts for its interest in Clutch under the cost method.

In February 2013, the Company acquired a 27.6% ownership interest in Pneuron, Inc. (“Pneuron”) for $5.0 million. Pneuron helps enterprise companies reduce the time and cost of application development by building solutions across heterogeneous databases and applications. The Company accounts for its ownership interest in Pneuron under the equity method. The difference between the Company’s cost and its interest in the underlying net assets of Pneuron was preliminarily allocated to intangible assets and goodwill as reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.

In January 2013, the Company acquired a 7.7% interest in Sotera Wireless, Inc. (“Sotera”). The Company deployed $1.3 million into Sotera and acquired additional shares from a previous investor for $1.2 million. Sotera is a medical device company that has developed a wireless patient monitoring platform that is designed to keep clinicians connected to their patients. The Company accounts for its interest in Sotera under the cost method.

Fair Value Measurements
Fair Value Measurements

4. Fair Value Measurements

The Company categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets recorded at fair value on the Company’s Consolidated Balance Sheets are categorized as follows:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Include other inputs that are directly or indirectly observable in the marketplace.

Level 3—Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012:

 

 

Carrying
Value

 

  

Fair Value Measurement at June 30, 2013

 

 

  

Level 1

 

  

Level 2

 

  

Level 3

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Cash and cash equivalents             

$

  102,732

  

  

$

  102,732

  

  

$

  

  

$

  

Cash held in escrow             

 

  

  

 

  

  

 

  

  

 

  

Restricted marketable securities             

 

  6

  

  

 

  6

  

  

 

  

  

 

  

Ownership interest in common stock of NuPathe             

 

  15,791

  

  

 

  15,791

  

  

 

  

  

 

  

Ownership interest in warrants and options of NuPathe             

 

  3,572

  

  

 

  

  

 

  

  

 

  3,572

  

Available-for-sale securities             

 

  18

  

  

 

  18

  

  

 

  

  

 

  

Warrant participations             

 

  417

  

  

 

  

  

 

  

  

 

  417

  

Marketable securities—held-to-maturity:

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Commercial paper             

$

  19,237

  

  

$

  19,237

  

  

$

  

  

$

  

U.S. Treasury Bills             

 

  18,180

  

  

 

  18,180

  

  

 

  

  

 

  

Government agency bonds             

 

  22,166

  

  

 

  22,166

  

  

 

  

  

 

  

Certificates of deposit             

 

  17,794

  

  

 

  17,794

  

  

 

  

  

 

  

 Total marketable securities…………………………………………………

$

  77,377

  

  

$

  77,377

  

  

$

  

  

$

  

 

 

 

Carrying
Value

 

  

Fair Value Measurement at December 31, 2012

 

 

  

Level 1

 

  

Level 2

 

  

Level 3

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Cash and cash equivalents             

$

  66,029

  

  

$

  66,029

  

  

$

  

  

$

  

Cash held in escrow             

 

  6,434

  

  

 

  6,434

  

  

 

  

  

 

  

Restricted marketable securities             

 

  10

  

  

 

  10

  

  

 

  

  

 

  

Ownership interest in common stock of NuPathe             

 

  8,897

  

  

 

  8,897

  

  

 

  

  

 

  

Ownership interest in preferred stock, warrants and options of NuPathe             

 

  12,075

  

  

 

  

  

 

  

  

 

  12,075

  

Available-for-sale securities             

 

  58

  

  

 

  58

  

  

 

  

  

 

  

Warrant participations             

 

  423

  

  

 

  

  

 

  

  

 

  423

  

Marketable securities—held-to-maturity:

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Commercial paper             

$

  50,932

  

  

$

  50,932

  

  

$

  

  

$

  

U.S. Treasury Bills             

 

  21,352

  

  

 

  21,352

  

  

 

  

  

 

  

Government agency bonds             

 

  45,909

  

  

 

  45,909

  

  

 

  

  

 

  

Certificates of deposit             

 

  21,823

  

  

 

  21,823

  

  

 

  

  

 

  

 Total marketable securities…………………………………………………

$

  140,016

  

  

$

  140,016

  

  

$

  

  

$

  

As of June 30, 2013, $70.2 million of marketable securities had contractual maturities which were less than one year and $7.2 million of marketable securities had contractual maturities greater than one year. Held-to-maturity securities are carried at amortized cost, which, due to the short-term maturity of these instruments, approximates fair value using quoted prices in active markets for identical assets or liabilities defined as Level 1 inputs under the fair value hierarchy.

The Company recorded an impairment charge of $9.9 million related to PixelOptics in the three months ended June 30, 2013 measured as the amount by which PixelOptics’ carrying value exceeded its estimated fair value.  The fair market value of the Company’s equity ownership in PixelOptics was determined to be $3.3 million based on Level 3 inputs as defined above.  The inputs and valuation techniques used included primarily an evaluation of discounted cash flows for PixelOptics.

The Company’s Penn Mezzanine warrant participations are carried at fair value. The value of the Company’s holdings in warrant participations is measured by reference to Level 3 inputs. The inputs and valuation techniques used include discounted cash flows and valuation of comparable public companies.  The Company recorded an impairment charge of $0.3 million related to its Penn Mezzanine debt and equity participations in the three months ended June 30, 2013 measured as the amount by which the carrying value of the Company’s participation in the debt, equity and warrant interests acquired by Penn Mezzanine exceeded their estimated fair values. 

The Company’s ownership interests in NuPathe are accounted for at fair value. In February 2013, the Company converted its 2,500 shares of preferred stock units, acquired in October 2012, into 2.5 million shares of common stock in NuPathe. The preferred stock units had been valued using Level 3 inputs. The fair value of the Company’s ownership interest in NuPathe’s common stock was measured using quoted market prices for NuPathe’s common stock as traded on the NASDAQ Capital Market, which is considered a Level 1 input under the valuation hierarchy. The fair value of the Company’s ownership interest in NuPathe’s warrants and options was measured using a Black-Scholes option pricing model, which is based on Level 3 inputs as defined above.

 

Convertible Debentures and Credit Arrangements
Convertible Debentures and Credit Arrangements

5. Convertible Debentures and Credit Arrangements

The carrying values of the Company’s convertible senior debentures were as follows:

 

 

June 30, 2013

 

  

December 31, 2012

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Convertible senior debentures due 2018             

$

  48,970

  

  

$

  48,483

  

Convertible senior debentures due 2014             

 

  29

  

  

 

  67

  

Convertible senior debentures due 2024             

 

  441

  

  

 

  441

  

 

 

  49,440

 

 

 

  48,991

 

Less: current portion

 

(470

)

 

 

-

 

Convertible senior debentures – non current

$

  48,970

  

  

$

  48,991

  

Convertible Senior Debentures due 2018

In November 2012, Safeguard issued $55.0 million principal amount of its 5.25% convertible senior debentures due 2018 (the “2018 Debentures”). Proceeds from the offering were used to repurchase substantially all of the Company’s then outstanding 10.125% convertible senior debentures due 2014 (the “2014 Debentures”). Interest on the 2018 Debentures is payable semi-annually on May 15 and November 15.

Holders of the 2018 Debentures may convert their notes prior to November 15, 2017 at their option only under the following circumstances:

              during any calendar quarter commencing after the calendar quarter ending on December 31, 2012, if the last reported sale price of the common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

              during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on such trading day;

              if the notes have been called for redemption; or

              upon the occurrence of specified corporate events.

On or after November 15, 2017, until the close of business on the second business day immediately preceding the maturity date, holders may convert their notes at any time, regardless of whether any of the foregoing conditions has been met. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of our common stock, at the Company’s election.

The conversion rate of the 2018 Debentures is 55.17 shares of common stock per $1,000 principal amount of debentures, equivalent to a conversion price of approximately $18.13 per share of common stock. The closing price per share of the Company’s common stock at June 30, 2013 was $16.05.

On or after November 15, 2016, the Company may redeem for cash any of the 2018 Debentures if the last reported sale price of the Company’s common stock exceeds 140% of the conversion price for at least 20 trading days during the period of 30 consecutive trading days ending on the trading day before the date that notice of redemption is given, including the last trading day of such period. Upon any redemption of the 2018 Debentures, the Company will pay a redemption price of 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, and additional interest, if any.

The 2018 Debenture holders have the right to require the Company to repurchase the 2018 Debentures if the Company undergoes a fundamental change, which includes the sale of all or substantially all of the Company’s common stock or assets; liquidation; dissolution; a greater than 50% change in control; the delisting of the Company’s common stock from the New York Stock Exchange or the NASDAQ Global Market (or any of their respective successors); or a substantial change in the composition of the Company’s board of directors as defined in the governing agreement. Holders may require that the Company repurchase for cash all or part of their 2018 Debentures at a fundamental change repurchase price equal to 100% of the principal amount of the debentures to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Because the 2018 Debentures may be settled in cash or partially in cash upon conversion, the Company separately accounts for the liability and equity components of the 2018 Debentures. The carrying amount of the liability component was determined at the transaction date by measuring the fair value of a similar liability that does not have an associated equity component. The carrying amount of the equity component represented by the embedded conversion option was determined by deducting the fair value of the liability component from the initial proceeds of the 2018 Debentures as a whole. At June 30, 2013, the fair value of the $55.0 million outstanding 2018 Debentures was approximately $60.5 million, based on the midpoint of the bid and ask prices as of such date. At June 30, 2013, the carrying amount of the equity component was $6.4 million, the principal amount of the liability component was $55.0 million, the unamortized discount was $6.0 million and the net carrying value of the liability component was $49.0 million. The Company is amortizing the excess of the face value of the 2018 Debentures over their carrying value over their term as additional interest expense using the effective interest method and recorded $0.5 million for the six months ended June 30, 2013. The effective interest rate on the 2018 Debentures is 8.7%.

Convertible Senior Debentures due 2024

In 2004, the Company issued an aggregate of $150.0 million in face value of convertible senior debentures with a stated maturity date of March 15, 2024 (the “2024 Debentures”). At June 30, 2013, the fair value of the $0.4 million outstanding 2024 Debentures approximated their carrying value, based on the midpoint of bid and ask prices as of such date. Interest on the 2024 Debentures is payable semi-annually. At the debenture holders’ option, the 2024 Debentures are convertible into the Company’s common stock through March 14, 2024, subject to certain conditions. The adjusted conversion rate of the 2024 Debentures is $43.3044 of principal amount per share. The remaining 2024 Debenture holders have the right to require the Company to repurchase the 2024 Debentures on March 20, 2014 or March 20, 2019 at a repurchase price equal to 100% of their face amount, plus accrued and unpaid interest. In limited circumstances, the Company has the right to redeem all or some of the 2024 Debentures.

Convertible Senior Debentures due 2014

In March 2010, the Company issued an aggregate of $46.9 million of the 2014 Debentures. As noted above, in November 2012, the Company repurchased substantially all of the 2014 Debentures for $58.7 million plus accrued interest.

Credit Arrangements

The Company is party to a loan agreement with a commercial bank which provides it with a revolving credit facility in the maximum aggregate amount of $50 million in the form of borrowings, guarantees and issuances of letters of credit (subject to a $20 million sublimit). Actual availability under the credit facility is based on the amount of cash maintained at the bank as well as the value of the Company’s public and private partner company interests. This credit facility bears interest at the prime rate for outstanding borrowings, subject to an increase in certain circumstances. Other than for limited exceptions, the Company is required to maintain all of its depository and operating accounts and the lesser of $80 million or 75% of its investment and securities accounts at the bank. The credit facility, as amended December 21, 2012, matures on December 31, 2014. Under the credit facility, the Company provided a $6.3 million letter of credit expiring on March 19, 2019 to the landlord of CompuCom Systems, Inc.’s Dallas headquarters which was required in connection with the sale of CompuCom Systems in 2004. Availability under the Company’s revolving credit facility at June 30, 2013 was $43.7 million.

Stock-Based Compensation
Stock-Based Compensation

6. Stock-Based Compensation

Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows:

 

 

Three Months Ended June 30,

 

  

Six Months Ended June 30,

 

 

2013

 

  

2012

 

  

2013

 

  

2012

 

 

 

(In thousands)

  

  

 

(In thousands)

  

 

 

(Unaudited)

  

  

 

(Unaudited)

  

General and administrative expense             

$

  922

  

  

$

  846

  

  

$

  1,298

  

  

$

  1,229

  

 

$

  922

  

  

$

  846

  

  

$

  1,298

  

  

$

  1,229

  

The fair value of the Company’s stock-based awards to employees was estimated at the date of grant using the Black-Scholes option-pricing model. The risk-free rate was based on the U.S. Treasury yield curve in effect at the end of the quarter in which the grant occurred. The expected term of stock options granted was estimated using the historical exercise behavior of employees. Expected volatility was based on historical volatility measured using weekly price observations of the Company’s common stock for a period equal to the stock option’s expected term.

At June 30, 2013, the Company had outstanding options that vest based on three different types of vesting schedules:

1)              market–based;

2)              performance-based; and

3)              service-based.

Market-based awards entitle participants to vest in a number of options determined by achievement by the Company of certain target market capitalization increases (measured by reference to stock price increases on a specified number of outstanding shares) over an eight-year period. The requisite service periods for the market-based awards are based on the Company’s estimate of the dates on which the market conditions will be met as determined using a Monte Carlo simulation model. Compensation expense is recognized over the requisite service periods using the straight-line method but is accelerated if market capitalization targets are achieved earlier than estimated. During the six months ended June 30, 2013 and 2012, respectively, the Company did not issue any market-based option awards to employees. During the six months ended June 30, 2013 and 2012, respectively, no options vested based on achievement of market capitalization targets. The Company recorded compensation expense related to market-based option awards of $0.1 million in both the three months ended June 30, 2013 and 2012, and $0.1 million and $0.2 million for the six months ended June 30, 2013 and 2012, respectively. Depending on the Company’s stock performance, the maximum number of unvested shares at June 30, 2013 attainable under these grants was 956 thousand shares.

Performance-based awards entitle participants to vest in a number of awards determined by achievement by the Company of target capital returns based on net cash proceeds received by the Company on the sale, merger or other exit transaction of certain identified partner companies. Vesting may occur, if at all, once per year. The requisite service periods for the performance-based awards are based on the Company’s estimate of when the performance conditions will be met. Compensation expense is recognized for performance-based awards for which the performance condition is considered probable of achievement. Compensation expense is recognized over the requisite service periods using the straight-line method but is accelerated if capital return targets are achieved earlier than estimated. During the six months ended June 30, 2013 and 2012, respectively, the Company did not issue any performance-based awards to employees. During the six months ended June 30, 2013 and 2012, respectively, no performance-based awards vested. The Company recorded compensation expense related to performance-based option awards of $0.1 million for both the three months ended June 30, 2013 and 2012, and $0.2 million and $0.1 million for the six months ended June 30, 2013 and 2012, respectively. The maximum number of unvested shares at June 30, 2013 attainable under these option grants was 805 thousand shares.

All other outstanding options are service-based awards that generally vest over four years after the date of grant and expire eight years after the date of grant. Compensation expense is recognized over the requisite service period using the straight-line method. The requisite service period for service-based awards is the period over which the award vests. During the six months ended June 30, 2013 and 2012, respectively, the Company issued 28 thousand and 43 thousand service-based option awards to employees. The Company recorded compensation expense related to service-based option awards of $0.1 million and $0.3 million for the three months ended June 30, 2013 and 2012, and $0.2 million and $0.4 million for the six months ended June 30, 2013 and 2012, respectively.

During the six months ended June 30, 2013 and 2012, respectively, the Company issued 44 thousand and 22 thousand deferred stock units to non-employee directors for annual service grants or fees earned during the preceding quarter. Deferred stock units issued to directors in lieu of directors fees are 100% vested at the grant date; matching deferred stock units equal to 25% of directors’ fees deferred vest one year following the grant date or, if earlier, upon reaching age 65. Deferred stock units are payable in stock on a one-for-one basis. Payments related to the deferred stock units are generally distributable following termination of employment or service, death or permanent disability.

Total compensation expense for deferred stock units, performance-based stock units and restricted stock was approximately $0.6 million and $0.3 million for the three months ended June 30, 2013 and 2012, and $0.7 million and $0.5 million for the six months ended June 30, 2013 and 2012, respectively. During the six months ended June 30, 2012, the Company issued five thousand unrestricted shares to members of its advisory board, and recorded expense of $0.1 million related to these awards.

Income Taxes
Income Taxes

7. Income Taxes

The Company’s consolidated income tax benefit (expense) was $0.0 million for the three and six months ended June 30, 2013 and 2012. The Company has recorded a valuation allowance to reduce its net deferred tax asset to an amount that is more likely than not to be realized in future years. Accordingly, the tax benefit related to the net operating losses that would have been recognized in the three and six three months ended June 30, 2013 and 2012 were offset by changes in the valuation allowance.

During the three and six months ended June 30, 2013, the Company had no material changes in uncertain tax positions.

Net Loss Per Share
Net Loss Per Share

8. Net Loss Per Share

The calculations of net loss per share were as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2013

 

  

2012

 

 

2013

 

  

2012

 

 

 

(In thousands except per share data)

 

 

 

(Unaudited)

 

Basic:

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Net loss             

$

(28,123

)

  

$

(10,137

)

 

$

(40,062

)

  

$

(19,797

)

Weighted average common shares outstanding             

 

  21,128

 

  

 

  20,927

 

 

 

  21,119

 

  

 

  20,903

 

Net loss per share             

$

(1.33

)

  

$

(0.48

)

 

$

(1.90

)

  

$

(0.95

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Net loss              

$

(28,123

)

  

$

(10,137

)

 

$

(40,062

)

  

$

(19,797

)

Weighted average common shares outstanding             

 

  21,128

 

  

 

  20,927

 

 

 

  21,119

 

  

 

  20,903

 

Net loss per share             

$

(1.33

)

  

$

(0.48

)

 

$

(1.90

)

  

$

(0.95

)

Basic and diluted average common shares outstanding for purposes of computing net loss per share includes outstanding common shares and vested deferred stock units (DSUs).

If a consolidated or equity method partner company has dilutive stock options, unvested restricted stock, DSUs or warrants, diluted net loss per share is computed by first deducting the income attributable to the potential exercise of the dilutive securities of the partner company from net loss. Any impact is shown as an adjustment to net loss for purposes of calculating diluted net loss per share.

The following potential shares of common stock and their effects on loss were excluded from the diluted net loss per share calculation because their effect would be anti-dilutive:

  • For the three and six months ended June 30, 2013 and 2012, options to purchase 3.3 million and 3.2 million shares of common stock, respectively, at prices ranging from $3.93 to $18.80 for both periods, were excluded from the calculations.
  • For the three and six months ended June 30, 2013 and 2012, unvested restricted stock units, performance stock units and DSUs convertible into 0.4 million and 0.2 million shares of stock, respectively, were excluded from the calculations.
  • For the three and six months ended June 30, 2013 and 2012, 10 thousand shares of common stock representing the effect of the assumed conversion of the 2024 Debentures, were excluded from the calculations.
  • For the three and six months ended June 30, 2013 and 2012, 4 thousand and 2.8 million shares of common stock, respectively, representing the effect of the assumed conversion of the 2014 Debentures, were excluded from the calculations.
  • For the three and six months ended June 30, 2013, 3.0 million shares of common stock representing the effect of the assumed conversion of the 2018 Debentures, were excluded from the calculation.

 

Operating Segments
Operating Segments

9. Operating Segments

In the fourth quarter of 2012, the Company expanded its focus within the former Life Sciences segment to include companies in the HealthTech sector and renamed that segment “Healthcare.” The HealthTech sector had previously been included in the Company’s Technology segment. AdvantEdge Healthcare Solutions, a provider of physician billing and practice management services and software, which had previously been reported within the Technology segment, is now reported under the Healthcare segment. As a result of the change, the Company has restated its previously reported segment disclosure information, to include the results of AdvantEdge Healthcare Solutions within the Healthcare segment.

As of June 30, 2013, the Company held interests in 20 non-consolidated partner companies which are included in the Healthcare and Technology segments. Included in the Penn Mezzanine segment are the Company’s interests in the Penn Mezzanine management company and general partner and the Company’s participations in mezzanine loans and equity interests initiated by Penn Mezzanine.

The Company’s active partner companies by segment were as follows as of June 30, 2013:

 

Healthcare

 

  

 

Partner Company

Safeguard Primary Ownership
as of June 30, 2013

  

Accounting Method

AdvantEdge Healthcare Solutions, Inc.              

  40.2

%

  

Equity

Alverix, Inc.             

  49.2

%

  

Equity

Crescendo Bioscience, Inc.             

  12.6

%

 

Cost

Good Start Genetics, Inc.             

  30.0

%

  

Equity

Medivo, Inc.             

  34.5

%

  

Equity

NovaSom, Inc.             

  30.3

%

  

Equity

NuPathe, Inc.             

  16.6

%

  

Fair value (1)

PixelOptics, Inc.             

  24.6

%

  

Equity

Putney, Inc.             

  27.6

%

  

Equity

Sotera Wireless, Inc.             

  7.4

%

  

Cost

 

Technology

 

  

 

Partner Company

Safeguard Primary Ownership
as of June 30, 2013

  

Accounting Method

AppFirst, Inc.             

  35.0

%

  

Equity

Beyond.com, Inc.             

  38.3

%

  

Equity

Bridgevine, Inc.             

  22.5

%

  

Equity

DriveFactor, Inc.             

  35.4

%

  

Equity

Hoopla Software, Inc.             

  25.3

%

  

Equity

Lumesis, Inc.             

  44.2

%

  

Equity

MediaMath, Inc.             

  22.2

%

  

Equity

Pneuron, Inc.             

  27.6

%

  

Equity

Spongecell, Inc.             

  23.1

%

  

Equity

ThingWorx, Inc.             

  39.8

%

  

Equity

 

(1) The Company's ownership interest in NuPathe was accounted for as available-for-sale securities following NuPathe’s completion of an initial public offering in August 2010. In October 2012, the Company participated in a private placement of NuPathe preferred stock units, and in conjunction with this financing, the Company placed two persons on NuPathe's board of directors. As a result, the Company determined that it exercised significant influence over NuPathe which made the equity method of accounting applicable to its ownership interests. Instead, the Company elected the fair value option beginning in October 2012. Prior to August 2010, the Company accounted for NuPathe under the equity method.

As of June 30, 2013, in the Penn Mezzanine segment, the Company has a 36% ownership interest in the management company and general partner of Penn Mezzanine L.P. The Company accounts for its interest under the equity method.

Results of the Healthcare and Technology segments reflect the equity income (loss) of their respective equity method partner companies, other income (loss) associated with fair value method and cost method partner companies and the gains or losses on the sale of their respective partner companies. Results of the Penn Mezzanine segment includes interest, dividends and participation fees earned on the mezzanine interests in which the Company participates as well as equity income (loss) associated with the Company’s management company and general partner interest in the Penn Mezzanine platform.

Management evaluates the Healthcare 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, any impairment charges or gain (loss) on the sale of equity and cost method partner companies.

Management evaluates the Penn Mezzanine segment performance based on the performance of the mezzanine interests in which the Company participates. This includes an evaluation of the current and future cash flows associated with interest and dividend payments as well as estimated losses based on evaluating known and inherent risks in the investments in which the Company participates.

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 and other income (loss) and equity income (loss) related to certain private equity fund ownership interests. Other Items also include income taxes, which are reviewed by management independent of segment results.

As of June 30, 2013 and December 31, 2012, 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, and marketable securities of $180.1 million and $212.5 million, at June 30, 2013 and December 31, 2012, respectively.

 

 

Three Months Ended June 30, 2013

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(4

)

 

$

(4

)

 

$

(6,711

)

 

$

(6,715

)

Interest income             

 

-

 

 

 

-

 

 

 

  380

 

 

 

  380

 

 

 

  410

 

 

 

  790

 

Equity loss             

 

(14,850

)

 

 

(3,399

)

 

 

(94

)

 

 

(18,343

)

 

 

(57

)

 

 

(18,400

)

Net loss             

 

(17,275

)

 

 

(3,399

)

 

 

(13

)

 

 

(20,687

)

 

 

(7,436

)

 

 

(28,123

)

Segment Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013             

 

  75,154

 

 

 

  61,266

 

 

 

  13,186

 

 

 

  149,606

 

 

 

  186,512

 

 

 

  336,118

 

December 31, 2012             

 

  83,500

 

 

 

  58,753

 

 

 

  12,153

 

 

 

  154,406

 

 

 

  219,738

 

 

 

  374,144

 

 

 

 

Three Months Ended June 30, 2012

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(2

)

 

$

(2

)

 

$

(5,146

)

 

$

(5,148

)

Interest income             

 

-

 

 

 

-

 

 

 

  277

 

 

 

  277

 

 

 

  318

 

 

 

  595

 

Equity loss             

 

(8,820

)

 

 

(56

)

 

 

(69

)

 

 

(8,945

)

 

 

(2

)

 

 

(8,947

)

Net loss             

 

(3,270

)

 

 

(56

)

 

 

(533

)

 

 

(3,859

)

 

 

(6,278

)

 

 

(10,137

)

 

 

Six Months Ended June 30, 2013

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(9

)

 

$

(9

)

 

$

(12,080

)

 

$

(12,089

)

Interest income             

 

-

 

 

 

-

 

 

 

  724

 

 

 

  724

 

 

 

  800

 

 

 

  1,524

 

Equity (loss) income             

 

(20,750

)

 

 

(4,500

)

 

 

(164

)

 

 

(25,414

)

 

 

  27

 

 

 

(25,387

)

Net (loss) income             

 

(22,340

)

 

 

(4,500

)

 

 

  328

 

 

 

  (26,512

)

 

 

(13,550

)

 

 

(40,062

)

 

 

 

Six Months Ended June 30, 2012

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(4

)

 

$

(4

)

 

$

(9,887

)

 

$

(9,891

)

Interest income             

 

-

 

 

 

-

 

 

 

  848

 

 

 

  848

 

 

 

  646

 

 

 

  1,494

 

Equity loss             

 

(15,159

)

 

 

(1,045

)

 

 

(188

)

 

 

(16,392

)

 

 

(3

)

 

 

(16,395

)

Net loss             

 

(6,180

)

 

 

(1,045

)

 

 

(83

)

 

 

(7,308

)

 

 

(12,489

)

 

 

(19,797

)

 

Commitments and Contingencies
Commitments and Contingencies

10. Commitments and Contingencies

The Company and its partner companies are involved in various claims and legal actions arising in the ordinary course of business. While in the current opinion of the Company the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations, no assurance can be given as to the outcome of these actions, and one or more adverse rulings could have a material adverse effect on the Company’s consolidated financial position and results of operations or that of its partner companies. The Company records costs associated with legal fees as such services are rendered.

Not including the Laureate Biopharma, Inc. lease guaranty described below, the Company had outstanding guarantees of $3.8 million at June 30, 2013.

The Company has committed capital of approximately $0.1 million to a private equity fund. This commitment is expected to be funded during the next 12 months.

Under certain circumstances, the Company may be required to return a portion or all the distributions it received as a general partner of a private equity fund (“clawback”). The maximum clawback the Company could be required to return due to its general partner interest is approximately $1.3 million, of which $1.0 million was reflected in Accrued expenses and other current liabilities and $0.3 million was reflected in Other long-term liabilities on the Consolidated Balance Sheet at June 30, 2013. The Company’s ownership in the fund is 19%. The clawback liability is joint and several; therefore the Company may be required to fund the clawback for other general partners should they default. The Company believes its potential liability due to the possibility of default by other general partners is remote.

In connection with the Company’s May 2008 sale of its equity and debt interests in Acsis, Inc., Alliance Consulting Group Associates, Inc., Laureate Biopharma, Inc., ProModel Corporation and Neuronyx, Inc. (the “Bundle Transaction”), an aggregate of $6.4 million of the gross proceeds of the sale were placed in escrow pending the expiration of a predetermined notification period, subject to possible extension in the event of a claim against the escrowed amounts. On April 25, 2009, the purchaser in the Bundle Transaction notified the Company of claims being asserted against the entire escrowed amounts. In April 2013, the case was tried on the merits and the verdict in the case denied the purchaser’s claims against the escrowed funds. The escrow funds were released to the Company in June 2013.

The Company remains guarantor of Laureate Biopharma, Inc.’s Princeton, New Jersey facility lease. Such guarantee may extend through the lease expiration in 2016 under certain circumstances. However, the Company is entitled to indemnification in connection with the continuation of such guaranty. As of June 30, 2013, scheduled lease payments to be made by Laureate Biopharma, Inc. over the remaining lease term equaled $4.2 million.

In October 2001, the Company entered into an agreement with its former Chairman and Chief Executive Officer to provide for annual payments of $0.65 million per year and certain health care and other benefits for life. The related current liability of $0.8 million was included in Accrued expenses and other current liabilities and the long-term portion of $2.8 million was included in Other long-term liabilities on the Consolidated Balance Sheet at June 30, 2013.

The Company provided a $6.3 million letter of credit expiring on March 19, 2019 to the landlord of CompuCom Systems, Inc.’s Dallas headquarters as required in connection with the sale of CompuCom Systems in 2004.

The Company has agreements with certain employees that provide for severance payments to the employee in the event the employee is terminated without cause or an employee terminates his employment for “good reason.” The maximum aggregate exposure under the agreements was approximately $2.4 million at June 30, 2013.   During the three months ended June 30, 2013, a Company executive terminated his employment for “good reason.”  As a result of the termination, the Company recognized a severance charge of $0.9 million which is recorded in Accrued compensation and benefits on the Consolidated Balance Sheet at June 30, 2013.

 

Ownership Interests in and Advances to Partner Companies and Funds (Tables)

The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies and private equity funds.

 

 

June 30, 2013

 

  

December 31, 2012

 

 

 

(In thousands)

(Unaudited)

  

Fair value             

$

  19,363

  

  

$

  20,972

  

 

 

 

 

 

 

 

 

Equity Method:

 

 

 

  

 

 

 

Partner companies             

 

  98,997

  

  

 

  102,931

  

Private equity funds             

 

  3,714

  

  

 

  3,810

  

 

 

  102,711

  

  

 

  106,741

  

Cost Method:

 

 

 

  

 

 

 

Partner companies             

 

  13,030

  

  

 

  10,000

  

Private equity funds             

 

  2,484

  

  

 

  2,634

  

 

 

  15,514

  

  

 

  12,634

  

 

 

 

 

 

 

 

 

Advances to partner companies             

 

  5,512

  

  

 

  8,292

  

 

 

 

 

 

 

 

 

 

$

  143,100

  

  

$

  148,639

  

 

 

 

 

 

 

 

 

Loan participations receivable             

$

  8,310

  

  

$

  7,085

  

 

 

 

 

 

 

 

 

Available-for-sale securities             

$

  18

  

  

$

  58

  

 

The results of PixelOptics are reported on a one quarter lag.

 

 

Three Months Ended March 31,

 

 

2013

 

  

2012

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Results of Operations:

 

 

 

  

 

 

 

Revenue             

$

  539

 

  

$

  307

 

Operating loss             

$

(5,855

)

  

$

(8,721

)

Net loss             

$

(7,061

)

  

$

(9,012

)

 

Fair Value Measurements (Tables)
Carrying Value and Fair Value of Certain Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012:

 

 

Carrying
Value

 

  

Fair Value Measurement at June 30, 2013

 

 

  

Level 1

 

  

Level 2

 

  

Level 3

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Cash and cash equivalents             

$

  102,732

  

  

$

  102,732

  

  

$

  

  

$

  

Cash held in escrow             

 

  

  

 

  

  

 

  

  

 

  

Restricted marketable securities             

 

  6

  

  

 

  6

  

  

 

  

  

 

  

Ownership interest in common stock of NuPathe             

 

  15,791

  

  

 

  15,791

  

  

 

  

  

 

  

Ownership interest in warrants and options of NuPathe             

 

  3,572

  

  

 

  

  

 

  

  

 

  3,572

  

Available-for-sale securities             

 

  18

  

  

 

  18

  

  

 

  

  

 

  

Warrant participations             

 

  417

  

  

 

  

  

 

  

  

 

  417

  

Marketable securities—held-to-maturity:

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Commercial paper             

$

  19,237

  

  

$

  19,237

  

  

$

  

  

$

  

U.S. Treasury Bills             

 

  18,180

  

  

 

  18,180

  

  

 

  

  

 

  

Government agency bonds             

 

  22,166

  

  

 

  22,166

  

  

 

  

  

 

  

Certificates of deposit             

 

  17,794

  

  

 

  17,794

  

  

 

  

  

 

  

 Total marketable securities…………………………………………………

$

  77,377

  

  

$

  77,377

  

  

$

  

  

$

  

 

 

 

Carrying
Value

 

  

Fair Value Measurement at December 31, 2012

 

 

  

Level 1

 

  

Level 2

 

  

Level 3

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Cash and cash equivalents             

$

  66,029

  

  

$

  66,029

  

  

$

  

  

$

  

Cash held in escrow             

 

  6,434

  

  

 

  6,434

  

  

 

  

  

 

  

Restricted marketable securities             

 

  10

  

  

 

  10

  

  

 

  

  

 

  

Ownership interest in common stock of NuPathe             

 

  8,897

  

  

 

  8,897

  

  

 

  

  

 

  

Ownership interest in preferred stock, warrants and options of NuPathe             

 

  12,075

  

  

 

  

  

 

  

  

 

  12,075

  

Available-for-sale securities             

 

  58

  

  

 

  58

  

  

 

  

  

 

  

Warrant participations             

 

  423

  

  

 

  

  

 

  

  

 

  423

  

Marketable securities—held-to-maturity:

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Commercial paper             

$

  50,932

  

  

$

  50,932

  

  

$

  

  

$

  

U.S. Treasury Bills             

 

  21,352

  

  

 

  21,352

  

  

 

  

  

 

  

Government agency bonds             

 

  45,909

  

  

 

  45,909

  

  

 

  

  

 

  

Certificates of deposit             

 

  21,823

  

  

 

  21,823

  

  

 

  

  

 

  

 Total marketable securities…………………………………………………

$

  140,016

  

  

$

  140,016

  

  

$

  

  

$

  

 

Convertible Debentures and Credit Arrangements (Tables)
Convertible Senior Debentures

The carrying values of the Company’s convertible senior debentures were as follows:

 

 

June 30, 2013

 

  

December 31, 2012

 

 

 

(In thousands)

  

 

 

(Unaudited)

  

Convertible senior debentures due 2018             

$

  48,970

  

  

$

  48,483

  

Convertible senior debentures due 2014             

 

  29

  

  

 

  67

  

Convertible senior debentures due 2024             

 

  441

  

  

 

  441

  

 

 

  49,440

 

 

 

  48,991

 

Less: current portion

 

(470

)

 

 

-

 

Convertible senior debentures – non current

$

  48,970

  

  

$

  48,991

  

 

Stock-Based Compensation (Tables)
Stock-Based Compensation Expense

Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows:

 

 

Three Months Ended June 30,

 

  

Six Months Ended June 30,

 

 

2013

 

  

2012

 

  

2013

 

  

2012

 

 

 

(In thousands)

  

  

 

(In thousands)

  

 

 

(Unaudited)

  

  

 

(Unaudited)

  

General and administrative expense             

$

  922

  

  

$

  846

  

  

$

  1,298

  

  

$

  1,229

  

 

$

  922

  

  

$

  846

  

  

$

  1,298

  

  

$

  1,229

  

 

Net Loss Per Share (Tables)
Calculations of Net Loss Per Share

The calculations of net loss per share were as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2013

 

  

2012

 

 

2013

 

  

2012

 

 

 

(In thousands except per share data)

 

 

 

(Unaudited)

 

Basic:

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Net loss             

$

(28,123

)

  

$

(10,137

)

 

$

(40,062

)

  

$

(19,797

)

Weighted average common shares outstanding             

 

  21,128

 

  

 

  20,927

 

 

 

  21,119

 

  

 

  20,903

 

Net loss per share             

$

(1.33

)

  

$

(0.48

)

 

$

(1.90

)

  

$

(0.95

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Net loss              

$

(28,123

)

  

$

(10,137

)

 

$

(40,062

)

  

$

(19,797

)

Weighted average common shares outstanding             

 

  21,128

 

  

 

  20,927

 

 

 

  21,119

 

  

 

  20,903

 

Net loss per share             

$

(1.33

)

  

$

(0.48

)

 

$

(1.90

)

  

$

(0.95

)

 

Operating Segments (Tables)

The Company’s active partner companies by segment were as follows as of June 30, 2013:

 

Healthcare

 

  

 

Partner Company

Safeguard Primary Ownership
as of June 30, 2013

  

Accounting Method

AdvantEdge Healthcare Solutions, Inc.              

  40.2

%

  

Equity

Alverix, Inc.             

  49.2

%

  

Equity

Crescendo Bioscience, Inc.             

  12.6

%

 

Cost

Good Start Genetics, Inc.             

  30.0

%

  

Equity

Medivo, Inc.             

  34.5

%

  

Equity

NovaSom, Inc.             

  30.3

%

  

Equity

NuPathe, Inc.             

  16.6

%

  

Fair value (1)

PixelOptics, Inc.             

  24.6

%

  

Equity

Putney, Inc.             

  27.6

%

  

Equity

Sotera Wireless, Inc.             

  7.4

%

  

Cost

 

Technology

 

  

 

Partner Company

Safeguard Primary Ownership
as of June 30, 2013

  

Accounting Method

AppFirst, Inc.             

  35.0

%

  

Equity

Beyond.com, Inc.             

  38.3

%

  

Equity

Bridgevine, Inc.             

  22.5

%

  

Equity

DriveFactor, Inc.             

  35.4

%

  

Equity

Hoopla Software, Inc.             

  25.3

%

  

Equity

Lumesis, Inc.             

  44.2

%

  

Equity

MediaMath, Inc.             

  22.2

%

  

Equity

Pneuron, Inc.             

  27.6

%

  

Equity

Spongecell, Inc.             

  23.1

%

  

Equity

ThingWorx, Inc.             

  39.8

%

  

Equity

 

(1) The Company's ownership interest in NuPathe was accounted for as available-for-sale securities following NuPathe’s completion of an initial public offering in August 2010. In October 2012, the Company participated in a private placement of NuPathe preferred stock units, and in conjunction with this financing, the Company placed two persons on NuPathe's board of directors. As a result, the Company determined that it exercised significant influence over NuPathe which made the equity method of accounting applicable to its ownership interests. Instead, the Company elected the fair value option beginning in October 2012. Prior to August 2010, the Company accounted for NuPathe under the equity method.

 

 

Three Months Ended June 30, 2013

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(4

)

 

$

(4

)

 

$

(6,711

)

 

$

(6,715

)

Interest income             

 

-

 

 

 

-

 

 

 

  380

 

 

 

  380

 

 

 

  410

 

 

 

  790

 

Equity loss             

 

(14,850

)

 

 

(3,399

)

 

 

(94

)

 

 

(18,343

)

 

 

(57

)

 

 

(18,400

)

Net loss             

 

(17,275

)

 

 

(3,399

)

 

 

(13

)

 

 

(20,687

)

 

 

(7,436

)

 

 

(28,123

)

Segment Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013             

 

  75,154

 

 

 

  61,266

 

 

 

  13,186

 

 

 

  149,606

 

 

 

  186,512

 

 

 

  336,118

 

December 31, 2012             

 

  83,500

 

 

 

  58,753

 

 

 

  12,153

 

 

 

  154,406

 

 

 

  219,738

 

 

 

  374,144

 

 

 

 

Three Months Ended June 30, 2012

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(2

)

 

$

(2

)

 

$

(5,146

)

 

$

(5,148

)

Interest income             

 

-

 

 

 

-

 

 

 

  277

 

 

 

  277

 

 

 

  318

 

 

 

  595

 

Equity loss             

 

(8,820

)

 

 

(56

)

 

 

(69

)

 

 

(8,945

)

 

 

(2

)

 

 

(8,947

)

Net loss             

 

(3,270

)

 

 

(56

)

 

 

(533

)

 

 

(3,859

)

 

 

(6,278

)

 

 

(10,137

)

 

 

Six Months Ended June 30, 2013

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(9

)

 

$

(9

)

 

$

(12,080

)

 

$

(12,089

)

Interest income             

 

-

 

 

 

-

 

 

 

  724

 

 

 

  724

 

 

 

  800

 

 

 

  1,524

 

Equity (loss) income             

 

(20,750

)

 

 

(4,500

)

 

 

(164

)

 

 

(25,414

)

 

 

  27

 

 

 

(25,387

)

Net (loss) income             

 

(22,340

)

 

 

(4,500

)

 

 

  328

 

 

 

  (26,512

)

 

 

(13,550

)

 

 

(40,062

)

 

 

 

Six Months Ended June 30, 2012

 

 

 

 

 


Healthcare

 

 

Technology

 

 

Penn
Mezzanine

 

 

Total
Segments

 

 

Other
Items

 

 

Total

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Operating loss             

$

-

 

 

$

-

 

 

$

(4

)

 

$

(4

)

 

$

(9,887

)

 

$

(9,891

)

Interest income             

 

-

 

 

 

-

 

 

 

  848

 

 

 

  848

 

 

 

  646

 

 

 

  1,494

 

Equity loss             

 

(15,159

)

 

 

(1,045

)

 

 

(188

)

 

 

(16,392

)

 

 

(3

)

 

 

(16,395

)

Net loss             

 

(6,180

)

 

 

(1,045

)

 

 

(83

)

 

 

(7,308

)

 

 

(12,489

)

 

 

(19,797

)

 

Carrying Value of Ownership Interests in and Advances to Partner Companies and Private Equity Funds (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Investments In And Advances To Affiliates [Line Items]
 
 
Ownership interests in and advances, to partner companies and funds, fair value
$ 19,363 
$ 20,972 
Equity method investments
102,711 
106,741 
Cost method investments
15,514 
12,634 
Advances to partner companies
5,512 
8,292 
Ownership interests in and advances to partner companies and funds ($19,363 and $20,972 at fair value at June 30,2013 and December 31,2012, respectively)
143,100 
148,639 
Loan participations receivable
8,310 
7,085 
Available-for-sale securities
18 
58 
Partner companies
 
 
Investments In And Advances To Affiliates [Line Items]
 
 
Equity method investments
98,997 
102,931 
Cost method investments
13,030 
10,000 
Private equity funds
 
 
Investments In And Advances To Affiliates [Line Items]
 
 
Equity method investments
3,714 
3,810 
Cost method investments
$ 2,484 
$ 2,634 
Results of Operations of PixelOptics (Detail) (PixelOptics, Inc., USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
PixelOptics, Inc.
 
 
Results of Operations:
 
 
Revenue
$ 539 
$ 307 
Operating loss
(5,855)
(8,721)
Net loss
$ (7,061)
$ (9,012)
Ownership Interests in and Advances to Partner Companies and Funds - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended
Mar. 31, 2013
Private equity funds
Mar. 31, 2012
Private equity funds
Jun. 30, 2013
Nupathe
Jun. 30, 2013
Nupathe
Jun. 30, 2013
PixelOptics, Inc.
Private equity funds
Jun. 30, 2012
PixelOptics, Inc.
Private equity funds
Jun. 30, 2013
Penn Mezzanine
Jun. 30, 2012
Penn Mezzanine
Jun. 30, 2013
Penn Mezzanine
Impairment charge related to loan participation
Jun. 30, 2012
Penn Mezzanine
Impairment charge related to loan participation
Jun. 30, 2012
Penn Mezzanine
Equity participation
Jun. 30, 2013
Penn Mezzanine
Warrants
Jun. 30, 2012
Penn Mezzanine
Warrants
Investment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognized impairment charges
$ 0.2 
$ 0.4 
 
 
$ 9.9 
$ 3.7 
$ 0.3 
$ 0.7 
$ 0.2 
$ 0.2 
$ 0.4 
$ 0.1 
$ 0.1 
Recognition of unrealized loss (gain) on mark-to-market of ownership interests
 
 
$ 2.4 
$ 1.6 
 
 
 
 
 
 
 
 
 
Acquisitions of Ownership Interests in Partner Companies and Funds - Additional Information (Detail) (USD $)
6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Nov. 30, 2011
Mendivo, Inc.
Jun. 30, 2013
Mendivo, Inc.
May 31, 2013
Hoopla Software, Inc.
Dec. 31, 2011
Hoopla Software, Inc.
Jun. 30, 2013
Penn Mezzanine
Feb. 28, 2013
Clutch Holdings, LLC
Mar. 31, 2013
Lumesis, Inc.
Feb. 29, 2012
Lumesis, Inc.
Jun. 30, 2013
PixelOptics, Inc.
Feb. 28, 2013
Pneuron, Inc.
Jan. 31, 2013
Sotera Wireless, Inc.
Jun. 30, 2013
Alverix
Schedule Of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions of ownership interests in companies and funds, net of cash acquired
$ 15,131,000 
$ 16,190,000 
$ 6,300,000 
$ 5,300,000 
 
 
 
$ 500,000 
$ 1,700,000 
$ 2,200,000 
$ 31,600,000 
$ 5,000,000 
$ 1,300,000 
$ 8,800,000 
Fund amount for participations in loan
 
 
 
 
200,000 
 
2,200,000 
 
 
 
 
 
 
 
Fund amount for participations in equity interests
 
 
 
 
 
1,300,000 
100,000 
 
 
 
 
 
 
 
Fund amount for participations in loan and equity interests
 
 
 
 
 
 
2,300,000 
 
 
 
 
 
 
 
Ownership interest under equity method, percentage
 
 
 
 
 
 
 
6.50% 
 
 
 
27.60% 
7.70% 
 
Convertible bridge loan
 
 
 
 
 
 
 
 
 
 
5,300,000 
 
 
300,000 
Acquired additional shares from a previous investor
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,200,000 
 
Carrying Value and Fair Value of Certain Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Cash held in escrow
 
$ 6,434 
Restricted marketable securities
10 
Fair Value, Measurements, Recurring |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
102,732 
66,029 
Cash held in escrow
   
6,434 
Restricted marketable securities
10 
Available-for-sale securities
18 
58 
Warrant participations
417 
423 
Total marketable securities, Fair Value Measurement
77,377 
140,016 
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
102,732 
66,029 
Cash held in escrow
   
6,434 
Restricted marketable securities
10 
Available-for-sale securities
18 
58 
Warrant participations
   
   
Total marketable securities, Fair Value Measurement
77,377 
140,016 
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
   
   
Cash held in escrow
   
   
Restricted marketable securities
   
   
Available-for-sale securities
   
   
Warrant participations
   
   
Total marketable securities, Fair Value Measurement
   
   
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
 
   
Cash held in escrow
   
   
Restricted marketable securities
   
   
Available-for-sale securities
   
   
Warrant participations
417 
423 
Total marketable securities, Fair Value Measurement
   
   
NuPathe |
Fair Value, Measurements, Recurring |
Common Stock |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
15,791 
8,897 
NuPathe |
Fair Value, Measurements, Recurring |
Common Stock |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
15,791 
8,897 
NuPathe |
Fair Value, Measurements, Recurring |
Common Stock |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
   
   
NuPathe |
Fair Value, Measurements, Recurring |
Common Stock |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
   
   
NuPathe |
Fair Value, Measurements, Recurring |
Preferred stock, warrants and options |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
3,572 
 
NuPathe |
Fair Value, Measurements, Recurring |
Preferred stock, warrants and options |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
   
 
NuPathe |
Fair Value, Measurements, Recurring |
Preferred stock, warrants and options |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
   
 
NuPathe |
Fair Value, Measurements, Recurring |
Preferred stock, warrants and options |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
3,572 
 
NuPathe |
Fair Value, Measurements, Recurring |
Preferred Stock Warrants |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
12,075 
NuPathe |
Fair Value, Measurements, Recurring |
Preferred Stock Warrants |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
   
NuPathe |
Fair Value, Measurements, Recurring |
Preferred Stock Warrants |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
   
NuPathe |
Fair Value, Measurements, Recurring |
Preferred Stock Warrants |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
12,075 
Commercial paper |
Fair Value, Measurements, Recurring |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
19,237 
50,932 
Commercial paper |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
19,237 
50,932 
Commercial paper |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
Commercial paper |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
U.S. Treasury Bills |
Fair Value, Measurements, Recurring |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
18,180 
21,352 
U.S. Treasury Bills |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
18,180 
21,352 
U.S. Treasury Bills |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
U.S. Treasury Bills |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
Government agency bonds |
Fair Value, Measurements, Recurring |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
22,166 
45,909 
Government agency bonds |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
22,166 
45,909 
Government agency bonds |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
Government agency bonds |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
Certificates of deposit |
Fair Value, Measurements, Recurring |
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
17,794 
21,823 
Certificates of deposit |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 1
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
17,794 
21,823 
Certificates of deposit |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 2
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
Certificates of deposit |
Fair Value, Measurements, Recurring |
Fair Value Measurement |
Level 3
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Total marketable securities, Fair Value Measurement
   
   
Fair Value Measurements - Additional Information (Detail) (USD $)
3 Months Ended 1 Months Ended 3 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2013
PixelOptics, Inc.
Jun. 30, 2013
PixelOptics, Inc.
Level 3
Feb. 28, 2013
NuPathe
Jun. 30, 2013
Penn Mezzanine
Schedule Of Available For Sale Securities [Line Items]
 
 
 
 
 
 
Marketable securities, current
$ 70,231,000 
$ 110,957,000 
 
 
 
 
Marketable securities, non current
7,146,000 
29,059,000 
 
 
 
 
Number of convertible preferred stock units
 
 
 
 
2,500 
 
Number of common shares after conversion
 
 
 
 
2,500,000 
 
Impairment charges
 
 
9,900,000 
 
 
300,000 
Ownership interest
 
 
 
$ 3,300,000 
 
 
Convertible Debentures and Credit Arrangements - Convertible Senior Debentures due 2024 - Additional Information (Detail) (Convertible Senior Debentures due 2024, USD $)
In Millions, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Dec. 31, 2004
Debt Instrument [Line Items]
 
 
Convertible senior debentures, convertible latest date
Mar. 14, 2024 
 
Conversion price (in dollars per share)
$ 43.3044 
 
Fair value of Debentures outstanding
$ 0.4 
 
Aggregate face value of convertible senior debentures
 
$ 150.0 
Credit facility maturity date
Mar. 15, 2024 
 
Convertible senior debentures, interest payment description
Semi-annually 
 
Percentage of face amount which is equal to repurchase price for providing optional conversion of debentures
100.00% 
 
Description of conversion for convertible senior debentures
The remaining 2024 Debenture holders have the right to require the Company to repurchase the 2024 Debentures on March 20, 2014 or March 20, 2019 at a repurchase price equal to 100% of their face amount, plus accrued and unpaid interest. In limited circumstances, the Company has the right to redeem all or some of the 2024 Debentures. 
 
Scenario 1
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures, optional repurchase date
Mar. 20, 2014 
 
Scenario 2
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures, optional repurchase date
Mar. 20, 2019 
 
Convertible Debentures and Credit Arrangements - Convertible Senior Debentures due 2014 - Additional Information (Detail) (Convertible Senior Debentures due 2014, USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Nov. 30, 2012
Convertible Senior Debentures due 2014
 
 
Debt Instrument [Line Items]
 
 
Aggregate face value of convertible senior debentures
$ 46.9 
 
Repurchase of Debentures
 
$ 58.7 
Convertible Debentures and Credit Arrangements - Credit Arrangements - Additional Information (Detail) (Credit Arrangements, USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Debt Instrument [Line Items]
 
Maximum aggregate amount of revolving credit facility in the form of borrowings, guarantees and issuances of letters of credit (subject to a $20 million sublimit)
$ 50 
Sublimit facility attached on revolving credit facility
20 
Amount of depository, operating accounts, the lesser and investment and securities accounts required to be maintained at the lending bank
80 
Percentage of depository, operating accounts, the lesser and investment and securities accounts required to be maintained at the lending bank
75.00% 
Amount available for borrowing under revolving credit facility
43.7 
After Amendment
 
Debt Instrument [Line Items]
 
Credit facility maturity date
Dec. 31, 2014 
Landlord of CompuCom Systems
 
Debt Instrument [Line Items]
 
Letter of credit under the credit facility
$ 6.3 
Letter of credit expiration date
Mar. 19, 2019 
Convertible Debentures and Credit Arrangements - Convertible Senior Debentures due 2018 - Additional Information (Detail) (USD $)
1 Months Ended 6 Months Ended
Nov. 30, 2012
Jun. 30, 2013
Convertible Senior Debentures due 2018
 
 
Debt Instrument [Line Items]
 
 
Conversion rate of common stock
 
55.17 
Principal amount of convertible debentures
 
$ 1,000 
Conversion price (in dollars per share)
 
$ 18.13 
Closing price for common stock
 
$ 16.05 
Cash redemption description
 
On or after November 15, 2016, the Company may redeem for cash any of the 2018 Debentures if the last reported sale price of the Company’s common stock exceeds 140% of the conversion price for at least 20 trading days during the period of 30 consecutive trading days ending on the trading day before the date that notice of redemption is given, including the last trading day of such period. Upon any redemption of the 2018 Debentures, the Company will pay a redemption price of 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, and additional interest, if any. 
Debentures redemption price
 
100.00% 
Sales price of common stock to conversion price
 
140.00% 
Change in control due to debentures redemption
 
50.00% 
Percentage of principal amount and accrued and unpaid interest for repurchase of debt
 
100.00% 
Outstanding debentures
 
55,000,000 
Fair value of Debentures outstanding
 
60,500,000 
Gross carrying amount of equity component
 
6,400,000 
Principal amount of liability component
 
55,000,000 
Unamortized discount
 
6,000,000 
Carrying value of liability component
 
49,000,000 
Additional interest expenses
 
500,000 
Interest rate on debentures
5.25% 
8.70% 
Convertible senior debentures, convertible latest date
 
Nov. 15, 2017 
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock exceeded the conversion price giving the holders of the debentures an option (in days)
 
20 days 
Number of consecutive trading days during which the closing price of the entity's common stock exceeded the conversion price for at least 20 days giving the holders of the debentures an option (in days)
 
30 days 
Number of days after five consecutive trading days in which the trading price per $1,000 principal amount was less than 98% of the product of the closing sale price per share of Company common stock multiplied by the conversion rate on each such trading day (in days)
 
5 days 
Number of consecutive trading days during which the trading price per $1,000 principal amount for at least five days was less than 98% of the product of the closing sale price per share of Company common stock multiplied by the conversion rate on each such trading day (in days)
 
5 days 
Closing price is percentage of conversion price
 
98.00% 
Aggregate face value of convertible senior debentures
55,000,000 
 
Convertible senior debentures, expiration year
2018 
 
Convertible senior debentures, interest payment description
 
Interest on the 2018 Debentures is payable semi-annually on May 15 and November 15. 
Convertible Senior Debentures due 2018 |
Minimum
 
 
Debt Instrument [Line Items]
 
 
Percentage of the closing sales price of the entity's common stock that the conversion price exceeded giving the holders of the debentures an option (as a percent)
 
130.00% 
Convertible Senior Debentures due 2014
 
 
Debt Instrument [Line Items]
 
 
Interest rate on debentures
10.125% 
 
Aggregate face value of convertible senior debentures
 
$ 46,900,000 
Convertible senior debentures, expiration year
2014 
 
Carrying Values of Convertible Senior Debentures (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Convertible senior debentures
$ 49,440 
$ 48,991 
Less: current portion
(470)
 
Convertible senior debentures-non-current
48,970 
48,991 
Convertible Senior Debentures due 2018
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures
48,970 
48,483 
Convertible Senior Debentures due 2014
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures
29 
67 
Convertible Senior Debentures due 2024
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures
$ 441 
$ 441 
Stock-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 922 
$ 846 
$ 1,298 
$ 1,229 
General And Administrative Expenses
 
 
 
 
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 922 
$ 846 
$ 1,298 
$ 1,229 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2013
Market Based Awards
Jun. 30, 2012
Market Based Awards
Jun. 30, 2013
Market Based Awards
Jun. 30, 2012
Market Based Awards
Jun. 30, 2013
Performance Shares
Jun. 30, 2012
Performance Shares
Jun. 30, 2013
Performance Shares
Jun. 30, 2012
Performance Shares
Mar. 31, 2013
Service Based Award
Jun. 30, 2012
Service Based Award
Jun. 30, 2013
Service Based Award
Jun. 30, 2012
Service Based Award
Jun. 30, 2013
Deferred Stock Units
Jun. 30, 2012
Deferred Stock Units
Jun. 30, 2012
Unrestricted Shares
Jun. 30, 2013
Deferred stock units, performance-based stock units and restricted stock
Jun. 30, 2012
Deferred stock units, performance-based stock units and restricted stock
Jun. 30, 2013
Deferred stock units, performance-based stock units and restricted stock
Jun. 30, 2012
Deferred stock units, performance-based stock units and restricted stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options vested
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense
$ 0.1 
$ 0.1 
$ 0.1 
$ 0.2 
$ 0.1 
$ 0.1 
$ 0.2 
$ 0.1 
$ 0.1 
$ 0.3 
$ 0.2 
$ 0.4 
 
 
$ 0.1 
$ 0.6 
$ 0.3 
$ 0.7 
$ 0.5 
Options issued
 
 
 
 
 
 
28,000 
43,000 
 
 
 
 
 
 
 
Stock-based compensation, maximum number of unvested shares
 
 
956,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration period
 
 
8 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance based maximum number of unvested shares
 
 
 
 
 
 
805,000 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration term
 
 
 
 
 
 
 
 
 
 
8 years 
 
 
 
 
 
 
 
 
Vesting period
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
 
 
 
 
 
 
Deferred stock units issued to non-employee directors
 
 
 
 
 
 
 
 
 
 
 
 
44,000 
22,000 
 
 
 
 
 
Vesting term
 
 
 
 
 
 
 
 
 
 
 
 
Deferred stock units issued to directors in lieu of directors fees are 100% vested at the grant date; matching deferred stock units equal to 25% of directors’ fees deferred vest one year following the grant date or, if earlier, upon reaching age 65. 
 
 
 
 
 
 
Percentage of shares vested in lieu of directors fees at the grant date
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
Portion of Director fees matched to deferred stock units
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
Vesting period of deferred stock
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
Minimum age required for meeting directors fees deferred vest criteria
 
 
 
 
 
 
 
 
 
 
 
 
65 years 
 
 
 
 
 
 
Share based compensation arrangement by share based payment award equity instruments other than options issued in period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000 
 
 
 
 
Income Taxes - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Income Taxes [Line Items]
 
 
 
 
Income tax benefit (expense)
$ 0 
$ 0 
$ 0 
$ 0 
Calculations of Net Loss Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Basic:
 
 
 
 
Net loss
$ (28,123)
$ (10,137)
$ (40,062)
$ (19,797)
Weighted average common shares outstanding
21,128 
20,927 
21,119 
20,903 
Net loss per share
$ (1.33)
$ (0.48)
$ (1.90)
$ (0.95)
Diluted:
 
 
 
 
Net loss
$ (28,123)
$ (10,137)
$ (40,062)
$ (19,797)
Weighted average common shares outstanding
21,128 
20,927 
21,119 
20,903 
Net loss per share
$ (1.33)
$ (0.48)
$ (1.90)
$ (0.95)
Net Loss Per Share - Additional Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Shares of common stock at prices ranging, lower limit
$ 3.93 
$ 3.93 
$ 3.93 
$ 3.93 
Shares of common stock at prices ranging, upper limit
$ 18.80 
$ 18.80 
$ 18.80 
$ 18.80 
Stock Options
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
3,300 
3,200 
3,300 
3,200 
Deferred stock units, performance-based stock units and restricted stock
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
400 
200 
400 
200 
Convertible Senior Debentures due 2024
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
10 
10 
10 
10 
Convertible Senior Debentures due 2014
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
2,800 
2,800 
Convertible Senior Debentures due 2018
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
3,000 
 
3,000 
 
Operating Segments - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
Non-consolidated partner companies
20 
 
Other Items
 
 
Segment Reporting Information [Line Items]
 
 
Total assets included cash, cash equivalents, cash held in escrow, and marketable securities
$ 180.1 
$ 212.5 
Penn Mezzanine
 
 
Segment Reporting Information [Line Items]
 
 
Ownership interest under equity method, percentage
36.00% 
 
Active Partner Companies by Segment (Detail)
Jan. 31, 2013
Sotera Wireless, Inc.
Feb. 28, 2013
Pneuron, Inc.
Jun. 30, 2013
Healthcare
AdvantEdge Healthcare Solutions, Inc.
Jun. 30, 2013
Healthcare
Alverix, Inc.
Jun. 30, 2013
Healthcare
Crescendo Bioscience, Inc.
Jun. 30, 2013
Healthcare
Good Start Genetics, Inc.
Jun. 30, 2013
Healthcare
Medivo, Inc.
Jun. 30, 2013
Healthcare
NovaSom, Inc.
Jun. 30, 2013
Healthcare
NuPathe
Jun. 30, 2013
Healthcare
PixelOptics, Inc.
Jun. 30, 2013
Healthcare
Putney, Inc.
Jun. 30, 2013
Healthcare
Sotera Wireless, Inc.
Jun. 30, 2013
Technology
AppFirst, Inc.
Jun. 30, 2013
Technology
Beyond.com, Inc
Jun. 30, 2013
Technology
Bridgevine, Inc.
Jun. 30, 2013
Technology
DriveFactor Inc.
Jun. 30, 2013
Technology
Hoopla Software, Inc.
Jun. 30, 2013
Technology
Lumesis, Inc.
Jun. 30, 2013
Technology
MediaMath, Inc.
Jun. 30, 2013
Technology
Pneuron, Inc.
Jun. 30, 2013
Technology
Spongecell, Inc.
Jun. 30, 2013
Technology
ThingWorx, Inc.
Schedule Of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest under equity method, percentage
7.70% 
27.60% 
40.20% 
49.20% 
 
30.00% 
34.50% 
30.30% 
 
24.60% 
27.60% 
 
35.00% 
38.30% 
22.50% 
35.40% 
25.30% 
44.20% 
22.20% 
27.60% 
23.10% 
39.80% 
Ownership interest under cost method, percentage
 
 
 
 
12.60% 
 
 
 
 
 
 
7.40% 
 
 
 
 
 
 
 
 
 
 
Ownership interest under fair value method, percentage
 
 
 
 
 
 
 
 
16.60% 1
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Partner Companies by Segment (Parenthetical) (Detail) (NuPathe)
Oct. 31, 2012
Person
NuPathe
 
Schedule Of Equity Method Investments [Line Items]
 
Number of Board of directors
Segment Data from Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
$ (6,715)
$ (5,148)
$ (12,089)
$ (9,891)
 
Interest income
790 
595 
1,524 
1,494 
 
Equity loss
(18,400)
(8,947)
(25,387)
(16,395)
 
Net loss
(28,123)
(10,137)
(40,062)
(19,797)
 
Segment Assets
336,118 
 
336,118 
 
374,144 
Healthcare
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Equity loss
(14,850)
(8,820)
(20,750)
(15,159)
 
Net loss
(17,275)
(3,270)
(22,340)
(6,180)
 
Segment Assets
75,154 
 
75,154 
 
83,500 
Technology
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Equity loss
(3,399)
(56)
(4,500)
(1,045)
 
Net loss
(3,399)
(56)
(4,500)
(1,045)
 
Segment Assets
61,266 
 
61,266 
 
58,753 
Penn Mezzanine
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
(4)
(2)
(9)
(4)
 
Interest income
380 
277 
724 
848 
 
Equity loss
(94)
(69)
(164)
(188)
 
Net loss
(13)
(533)
328 
(83)
 
Segment Assets
13,186 
 
13,186 
 
12,153 
Total Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
(4)
(2)
(9)
(4)
 
Interest income
380 
277 
724 
848 
 
Equity loss
(18,343)
(8,945)
(25,414)
(16,392)
 
Net loss
(20,687)
(3,859)
(26,512)
(7,308)
 
Segment Assets
149,606 
 
149,606 
 
154,406 
Other Items
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
(6,711)
(5,146)
(12,080)
(9,887)
 
Interest income
410 
318 
800 
646 
 
Equity loss
(57)
(2)
27 
(3)
 
Net loss
(7,436)
(6,278)
(13,550)
(12,489)
 
Segment Assets
$ 186,512 
 
$ 186,512 
 
$ 219,738 
Commitments and Contingencies - Additional Information (Detail) (USD $)
1 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
May 31, 2008
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Jun. 30, 2013
Employee Severance
Jun. 30, 2013
Letter of credit
Jun. 30, 2013
Property lease guarantee Laureate Pharma's
Jun. 30, 2013
Clawback Liability
Jun. 30, 2013
Accrued expenses and other current liabilities
Jun. 30, 2013
Accrued expenses and other current liabilities
Clawback Liability
Jun. 30, 2013
Other long-term liabilities
Jun. 30, 2013
Other long-term liabilities
Clawback Liability
Jun. 30, 2013
Private equity funds
Commitment Contingencies And Guarantees [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Company outstanding guarantees
 
$ 3,800,000 
 
 
$ 2,400,000 
$ 6,300,000 
 
 
 
 
 
 
 
Committed capital of private equity funds
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
Accrued expenses and other current liabilities
 
 
 
 
 
 
 
1,300,000 
 
 
 
 
 
Accrued expenses and other current liabilities
 
3,631,000 
 
2,601,000 
 
 
 
 
 
1,000,000 
 
 
 
Other long-term liabilities
 
3,862,000 
 
3,921,000 
 
 
 
 
 
 
 
300,000 
 
Company's ownership in the funds
 
 
 
 
 
 
 
19.00% 
 
 
 
 
 
Proceeds from sales of and distributions from companies and funds
6,400,000 
1,403,000 
11,061,000 
 
 
 
 
 
 
 
 
 
 
Remaining lease payments
 
 
 
 
 
 
4,200,000 
 
 
 
 
 
 
Guarantee lease expiration year of Laureate Pharma's
 
2016 
 
 
 
 
 
 
 
 
 
 
 
Annual payments
 
650,000 
 
 
 
 
 
 
 
 
 
 
 
Liability to former chairman and chief executive officer, current
 
 
 
 
 
 
 
 
800,000 
 
 
 
 
Liability to former chairman and chief executive officer, non-current
 
 
 
 
 
 
 
 
 
 
2,800,000 
 
 
Letter of credit expiration date
 
 
 
 
 
Mar. 19, 2019 
 
 
 
 
 
 
 
Severance charge
 
 
 
 
$ 900,000