SAFEGUARD SCIENTIFICS INC, 10-Q filed on 10/24/2014
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2014
Oct. 23, 2014
Document Documentand Entity Information [Abstract]
 
 
Entity Registrant Name
SAFEGUARD SCIENTIFICS INC 
 
Entity Central Index Key
0000086115 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
20,535,769 
Trading Symbol
SFE 
 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Current Assets:
 
 
Cash and cash equivalents
$ 116,684 
$ 139,318 
Marketable securities
35,217 
38,250 
Prepaid expenses and other current assets
1,494 
1,562 
Total current assets
153,395 
179,130 
Property and equipment, net
95 
138 
Ownership interests in and advances to partner companies and funds (of which $0 and $20,057 are measured at fair value at September 30, 2014 and December 31, 2013, respectively)
158,638 
148,579 
Loan participations receivable
4,184 
8,135 
Long-term marketable securities
13,840 
6,088 
Other assets
2,156 
3,926 
Total Assets
332,308 
345,996 
Current Liabilities:
 
 
Convertible senior debentures—current
0 
470 
Accounts payable
261 
245 
Accrued compensation and benefits
3,070 
5,028 
Accrued expenses and other current liabilities
3,335 
2,431 
Total current liabilities
6,666 
8,174 
Other long-term liabilities
3,471 
3,683 
Convertible senior debentures—non-current
50,283 
49,478 
Total Liabilities
60,420 
61,335 
Commitments and contingencies
   
   
Equity:
 
 
Preferred stock, $0.10 par value; 1,000 shares authorized
0 
0 
Common stock, $0.10 par value; 83,333 shares authorized; 21,573 and 21,553 shares issued at September 30, 2014 and December 31, 2013, respectively
2,157 
2,155 
Additional paid-in capital
822,512 
822,103 
Treasury stock, at cost; 1,103 and 4 shares at September 30, 2014 and December 31, 2013, respectively
(23,149)
0 
Accumulated deficit
(529,632)
(539,597)
Total Equity
271,888 
284,661 
Total Liabilities and Equity
$ 332,308 
$ 345,996 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Ownership interest in and advances, to partner companies and funds, fair value
$ 0 
$ 20,057 
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
21,573 
21,553 
Treasury stock
1,103 
4 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Statement [Abstract]
 
 
 
 
General and administrative expense
$ 4,177 
$ 4,835 
$ 14,485 
$ 16,924 
Operating loss
(4,177)
(4,835)
(14,485)
(16,924)
Other income (loss), net
(246)
(4,224)
31,580 
(6,191)
Interest income
482 
572 
1,494 
2,096 
Interest expense
(1,103)
(1,077)
(3,295)
(3,220)
Equity loss
(8,962)
(9,866)
(5,329)
(35,253)
Net income (loss) before income taxes
(14,006)
(19,430)
9,965 
(59,492)
Income tax benefit (expense)
0 
0 
0 
0 
Net loss
$ (14,006)
$ (19,430)
$ 9,965 
$ (59,492)
Net income (loss) per share:
 
 
 
 
Basic (in dollars per share)
$ (0.68)
$ (0.90)
$ 0.47 
$ (2.80)
Diluted (in dollars per share)
$ (0.68)
$ (0.90)
$ 0.47 
$ (2.80)
Weighted average shares used in computing income (loss) per share :
 
 
 
 
Basic (in shares)
20,678 
21,494 
21,042 
21,245 
Diluted (in shares)
20,678 
21,494 
21,418 
21,245 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ (14,006)
$ (19,430)
$ 9,965 
$ (59,492)
Other comprehensive income (loss), before taxes:
 
 
 
 
Unrealized net gain (loss) on available-for-sale securities
(8)
14 
(12)
(26)
Reclassification adjustment for other than temporary impairment of available-for-sale securities included in net income (loss)
8 
0 
12 
40 
Total comprehensive income (loss)
$ (14,006)
$ (19,416)
$ 9,965 
$ (59,478)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows from Operating Activities:
 
 
Net cash used in operating activities
$ (15,475)
$ (16,299)
Cash Flows from Investing Activities:
 
 
Proceeds from sales of and distributions from companies and funds
81,626 
2,603 
Acquisitions of ownership interests in companies and funds
(54,956)
(28,718)
Advances and loans to companies
(9,868)
(9,350)
Repayment of advances and loans to companies
5,509 
1,044 
Origination fees on mezzanine loans
0 
42 
Increase in marketable securities
(44,578)
(47,072)
Decrease in marketable securities
39,979 
129,664 
Capital expenditures
(11)
(37)
Other
5 
6,434 
Net cash provided by investing activities
17,706 
54,610 
Cash Flows from Financing Activities:
 
 
Issuance of Company common stock, net
612 
4,397 
Repurchase of convertible senior debentures
(441)
(43)
Repurchase of Company common stock
(25,036)
0 
Net cash provided by (used in) financing activities
(24,865)
4,354 
Net change in cash and cash equivalents
(22,634)
42,665 
Cash and cash equivalents at beginning of period
139,318 
66,029 
Cash and cash equivalents at end of period
$ 116,684 
$ 108,694 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $)
In Thousands, unless otherwise specified
Total
Accumulated Deficit [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Balance at Dec. 31, 2013
$ 284,661 
$ (539,597)
$ 2,155 
$ 822,103 
$ 0 
Balance (in shares) at Dec. 31, 2013
 
 
 
 
4 
Shares, Issued
 
 
21,573 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income
9,965 
9,965 
 
 
 
Stock options exercised, net
612 
 
2 
(842)
1,452 
Stock options exercised, net (in shares)
 
 
(18)
 
(76)
Issuance of restricted stock, net
74 
 
 
(361)
435 
Issuance of restricted stock, net (in shares)
 
 
 
 
(19)
Stock-based compensation expense
1,583 
 
 
1,583 
 
Repurchase of common stock
(25,036)
 
 
 
(25,036)
Repurchase of common stock (in shares)
 
 
 
 
1,194 
Conversion of 2014 Debentures to common stock
29 
 
 
29 
 
Conversion of 2014 Debentures to common stock (in shares)
 
 
2 
 
 
Balance at Sep. 30, 2014
$ 271,888 
$ (529,632)
$ 2,157 
$ 822,512 
$ (23,149)
Balance (in shares) at Sep. 30, 2014
 
 
 
 
1,103 
General
General
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 2013 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
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.
   
   
September 30, 2014
 
December 31, 2013
   
(Unaudited - In thousands)
Fair value
$
—

 
$
20,057

Equity Method:
   
 
 
Partner companies
141,073

 
108,872

Private equity funds
1,132

 
1,766

   
142,205

 
110,638

Cost Method:
   
 
 
Partner companies
6,050

 
13,480

Private equity funds
2,418

 
2,418

   
8,468

 
15,898

Advances to partner companies
7,965

 
1,986

   
$
158,638

 
$
148,579

Loan participations receivable
$
4,184

 
$
8,135

Available-for-sale securities
$
3

 
$
15



The Company’s share of the earnings or losses of partner companies, as well as any adjustments resulting from prior period finalizations of equity income or loss, are reflected in Equity income (loss) on the Consolidated Statements of Operations.  In the nine months ended September 30, 2014, the amount related to prior periods was $1.8 million, of which $0.3 million related to 2012 and $1.5 million related to 2013. The adjustments primarily related to a change in revenue recognition accounting at a partner company. Management evaluated the quantitative and qualitative impact of the corrections on previously reported periods as well as on the nine months ended September 30, 2014.  Based on this evaluation, management concluded that these adjustments were not material to the Company’s Consolidated Financial Statements.

In April 2014, the Company sold its ownership interests in Sotera Wireless, Inc., formerly a cost method partner company. The Company received $4.2 million in cash proceeds in connection with the transaction and recognized a gain of $1.5 million, which is included in Other income (loss), net in the Consolidated Statements of Operations for the nine months ended September 30, 2014.

In February 2014, Crescendo Bioscience, Inc., formerly a cost method partner company, was acquired by Myriad Genetics, Inc. The Company received $38.4 million in cash proceeds in connection with the transaction, excluding $2.9 million, net of claims paid through September 30, 2014, which will be held in escrow until approximately May 2015. The Company recognized a gain of $27.4 million on the transaction, which is included in Other income (loss), net in the Consolidated Statements of Operations for the nine months ended September 30, 2014.
In February 2014, NuPathe Inc., formerly a fair value method partner company, was acquired by Teva Pharmaceutical Industries Ltd. for $3.65 per share in cash. In addition to the upfront cash payment, NuPathe shareholders received rights to receive additional cash payments of up to $3.15 per share if specified milestones are achieved over time. The Company received initial net cash proceeds of $23.1 million as a result of the transaction. Depending on the achievement of certain milestones, the Company may receive up to an additional $24.2 million. The Company recognized a gain of $3.0 million, which is included in Other income (loss), net in the Consolidated Statements of Operations for the nine months ended September 30, 2014. For the three and nine months ended September 30, 2013, the Company recognized an unrealized loss of $4.8 million and $6.4 million, respectively, on the mark-to-market of its holdings in NuPathe, which is included in Other income (loss), net in the Consolidated Statements of Operations.

In January 2014, Alverix, Inc., formerly an equity method partner company, was acquired by Becton, Dickinson and Company. The Company received cash proceeds of $15.7 million, excluding $1.7 million which will be held in escrow until approximately July 2015. The Company recognized a gain of $15.7 million on the transaction, which is included in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2014.

In the second quarter of 2014, the Company’s primary ownership interest in Bridgevine, Inc. decreased from 22.7% to 17.3%.  As a result, the Company recognized an unrealized loss of $0.3 million which is reflected in Equity income (loss) in the Consolidated Statements of Operations for the nine months ended September 30, 2014.

In the nine months ended September 30, 2014, the Company received cash proceeds of $4.3 million from the repayment of loan participations receivable and $1.3 million from the sale of an equity interest initiated by Penn Mezzanine. The Company recorded an impairment charge of $0.3 million related to its Penn Mezzanine debt and equity participations in the nine months ended September 30, 2013, which is reflected in Other income (loss), net in the Consolidated Statements of Operations. 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.

The Company recognized an impairment charge of $1.3 million related to PixelOptics Inc., formerly an equity method partner company, in the three months ended September 30, 2013 which is reflected in Equity income (loss) in the Consolidated Statements of Operations. The impairment was based on PixelOptics' inability to raise additional capital to continue its operations. The Company previously recorded an impairment charge of $9.9 million in the second quarter of 2013. The adjusted carrying value of PixelOptics is $0 and the Company believes it will not recover any of its capital. On November 4, 2013, PixelOptics filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.  

The Company recognized an impairment charge of $0.2 million related to its interest in a legacy private equity fund in the nine months ended September 30, 2013, which is reflected in Other income (loss), net in the Consolidated Statements of Operations.

For the nine months ended September 30, 2014, four partner companies accounted for under the equity method were considered significant. The following summarized statement of operations information for those partner companies for the nine months ended September 30, 2014 and 2013 have been compiled from the financial statements of the respective partner companies and reflect certain historical adjustments. Results of operations of the partner companies are excluded for periods prior to their acquisition. The results of the four partner companies are reported on a one quarter lag.
 
Nine Months Ended
 
September 30, 2014
 
September 30, 2013
 
(In thousands)
Results of Operations:
 
 
 
Revenue
$
125,645

 
$
67,074

Gross profit
$
75,490

 
$
47,112

Net loss
$
(37,541
)
 
$
(15,702
)
Acquisitions of Ownership Interests in Partner Companies and Funds
Acquisitions of Ownership Interests in Partner Companies and Funds
Acquisitions of Ownership Interests in Partner Companies and Funds
In September and July 2014, the Company acquired a 31.9% interest in Trice Medical, Inc. for an aggregate of $5.0 million. Trice Medical is a diagnostics company focused on micro invasive technologies specifically targeting orthopedics. The Company accounts for its interest in Trice Medical under the equity method. The difference between the Company's cost and its interest in the underlying net assets of Trice Medical was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In August, July and April 2014, the Company funded an aggregate of $4.3 million of convertible bridge loans to Quantia, Inc. The Company had previously deployed an aggregate of $7.5 million in Quantia. Quantia provides a mobile and web-based physician relationship management platform, QuantiaMD, which enables principal participants throughout the healthcare spectrum, including health systems, payers, pharmaceutical companies and medical device companies, to engage and interact with their physicians. The Company accounts for its interest in Quantia under the equity method.
In August 2014, the Company acquired a 24.6% interest in Propeller Health, Inc. for $9.0 million. Propeller Health provides digital solutions to improve respiratory health. The Company accounts for its interest in Propeller Health under the equity method. The difference between the Company's cost and its interest in the underlying net assets of Propeller Health was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In August 2014, the Company acquired a 24.8% interest in Transactis, Inc. for $9.5 million. Transactis is a provider of electronic billing and payment solutions. The Company accounts for its interest in Transactis under the equity method. The difference between the Company's cost and its interest in the underlying net assets of Transactis was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In August 2014, the Company acquired a 29.2% interest in WebLinc, Inc. for $6.0 million. WebLinc is a commerce platform provider for fast growing online retailers. The Company accounts for its interest inWebLinc under the equity method. The difference between the Company's cost and its interest in the underlying net assets of WebLinc was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In June 2014, the Company acquired a 27.0% interest in Syapse, Inc. for $5.8 million. Syapse provides a precision medicine data platform that enables laboratories, registries, and hospitals to use molecular profiling to diagnose and treat patients. The Company accounts for its interest in Syapse under the equity method. The difference between the Company's cost and its interest in the underlying net assets of Syapse was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In June and April 2014, the Company deployed an aggregate of $5.0 million into Putney, Inc. The Company had previously deployed $10.0 million in Putney. Putney is a specialty pharmaceutical company focused on providing generic medicines for pets. The Company accounts for its interest in Putney under the equity method. The difference between the Company's cost and its interest in the underlying net assets of Putney was allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In May and January 2014, the Company deployed an aggregate of $1.7 million into Lumesis, Inc. The Company had previously deployed an aggregate of $3.9 million in Lumesis. Lumesis is a financial technology company that is dedicated to delivering software solutions and comprehensive, timely data to the municipal bond 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 goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In May 2014, the Company funded $0.1 million into New York Digital Health Accelerator II in exchange for a 12.5% limited partnership interest in the fund which is run by the New York eHealth Collaborative and the New York City Investment Fund for early- and growth-stage digital health companies that are developing technology products in care coordination, patient engagement, analytics and message alerts for healthcare providers. The Company accounts for its interest in New York Digital Health Accelerator II under the equity method.
In May 2014, the Company deployed an additional $2.0 million into Clutch Holdings, Inc. ("Clutch"). The Company had previously deployed an aggregate of $5.5 million in Clutch. Clutch is a provider of loyalty and gift card programs to retailers through its proprietary platform, and offers a mobile wallet application to consumers to track and store gift and loyalty cards, coupons and other retail shopping tools. The Company accounts for its interest in Clutch under the equity method. The difference between the Company's cost and its interest in the underlying net assets of Clutch was allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In May 2014, the Company funded $1.1 million of a convertible bridge loan to NovaSom, Inc. The Company had previously deployed $20.0 million in NovaSom. NovaSom provides diagnostic devices and services for home testing and evaluation of sleep-disordered breathing, including obstructive sleep apnea. The Company accounts for its interest in NovaSom under the equity method.
In May 2014, the Company deployed an additional $0.8 million into Dabo Health, Inc. ("Dabo"). The Company had previously deployed $0.8 million in Dabo. Dabo provides the healthcare community with a healthcare information platform that brings clarity to quality metrics, makes them actionable to hospitals and care providers, and facilitates collaboration for quality improvement. The Company accounts for its interest in Dabo under the cost method.
In May 2014, the Company deployed an additional $7.0 million into MediaMath, Inc. In connection with the May 2014 financing, the Company’s primary ownership interest decreased from 22.5% to 20.6%.  As a result, the Company recognized an unrealized gain of $7.0 million which is reflected in Equity income (loss) in the Consolidated Statements of Operations. The Company had previously deployed an aggregate of $18.6 million in MediaMath. MediaMath is an online media trading company that enables advertising agencies and their advertisers to optimize their ad spending across various exchanges through its proprietary algorithmic bidding platform and data integration technology. The Company accounts for its interest in MediaMath under the equity method.
In May 2014, the Company funded $2.1 million of a convertible bridge loan to AppFirst, Inc. The Company had previously deployed $6.5 million in AppFirst. AppFirst delivers application monitoring systems for development operations professionals and technology executives with visibility into systems, applications and business metrics. The Company accounts for its interest in AppFirst under the equity method.
In March 2014, the Company acquired a 20.4% interest in InfoBionic Inc. for $4.0 million. InfoBionic is an emerging digital health company focused on creating patient monitoring solutions for chronic disease management with an initial market focus on cardiac arrhythmias. The Company accounts for its interest in InfoBionic under the equity method. The difference between the Company's cost and its interest in the underlying net assets of InfoBionic was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
In March 2014, the Company funded $0.2 million of a convertible bridge loan to Sotera Wireless, Inc. The Company previously deployed $1.3 million into Sotera Wireless and acquired additional shares from a previous investor for $1.2 million. In April 2014, the Company sold its equity and debt interests in Sotera Wireless for $4.2 million. The Company accounted for its interest in Sotera Wireless under the cost method.
In January 2014, the Company deployed an additional $1.4 million into Hoopla Software, Inc. ("Hoopla"). The Company had previously deployed an aggregate of $1.8 million in Hoopla. 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. The difference between the Company's cost and its interest in the underlying net assets of Hoopla was preliminarily allocated to intangible assets and goodwill and is reflected in the carrying value in Ownership interests in and advances to partner companies and funds on the Consolidated Balance Sheets.
Fair Value Measurements
Fair Value Measurements
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 September 30, 2014 and December 31, 2013:
   
Carrying
Value
 
Fair Value Measurement at September 30, 2014
   
Level 1
 
Level 2
 
Level 3
 
(Unaudited - In thousands)
Cash and cash equivalents
$
116,684

 
$
116,684

 
$
—

 
$
—

Available-for-sale securities
3

 
3

 
—

 
—

Warrant participations
71

 
—

 
—

 
71

Marketable securities—held-to-maturity:
   
 
   
 
   
 
   
Commercial paper
$
6,592

 
$
6,592

 
$
—

 
$
—

U.S. treasury bills
1,504

 
1,504

 
—

 
—

Government agency bonds
13,503

 
13,503

 
—

 
—

Certificates of deposit
27,458

 
27,458

 
—

 
—

 Total marketable securities
$
49,057

 
$
49,057

 
$
—

 
$
—

 
Carrying
Value
 
Fair Value Measurement at December 31, 2013
   
Level 1
 
Level 2
 
Level 3
 
(Unaudited - In thousands)
Cash and cash equivalents
$
139,318

 
$
139,318

 
$
—

 
$
—

Restricted marketable securities
5

 
5

 
—

 
—

Ownership interest in common stock of NuPathe
16,874

 
16,874

 
—

 
—

Ownership interest in warrants and options of NuPathe
3,183

 
—

 
—

 
3,183

Available-for-sale securities
15

 
15

 
—

 
—

Warrant participations
1,563

 
—

 
—

 
1,563

Marketable securities—held-to-maturity:
   
 
 
 
 
 
 
Commercial paper
$
13,599

 
$
13,599

 
$
—

 
$
—

U.S. treasury bills
8,014

 
8,014

 
—

 
—

Government agency bonds
9,945

 
9,945

 
—

 
—

Certificates of deposit
12,780

 
12,780

 
—

 
—

 Total marketable securities
$
44,338

 
$
44,338

 
$
—

 
$
—


As of September 30, 2014, $35.2 million of marketable securities had contractual maturities which were less than one year and $13.8 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 $11.2 million related to PixelOptics, formerly an equity method partner company, in the nine months ended September 30, 2013 measured as the amount by which PixelOptics’ carrying value exceeded its estimated fair value.  The carrying value of the Company’s equity ownership in PixelOptics is $0 and the Company believes it will not recover any of its capital. On November 4, 2013, PixelOptics filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
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 nine months ended September 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 recognized an impairment charge of $0.2 million related to its interest in a legacy private equity fund in the nine months ended September 30, 2013 measured as the amount by which the carrying value of the Company’s interest in the fund exceeded its estimated fair value. The fair market value of the Company’s interest in the fund was determined to be $1.7 million based on the fair value of the Company’s pro rata portion of the fund’s net assets, which is a Level 3 input under the fair value hierarchy.
Convertible Debentures and Credit Arrangements
Convertible Debentures and Credit Arrangements
Convertible Debentures and Credit Arrangements
The carrying values of the Company’s convertible senior debentures were as follows:
   
September 30, 2014
 
December 31, 2013
 
(Unaudited - In thousands)
Convertible senior debentures due 2018
$
50,283

 
$
49,478

Convertible senior debentures due 2024
—

 
441

Convertible senior debentures due 2014
—

 
29

   
50,283

 
49,948

Less: current portion
—

 
(470
)
Convertible senior debentures – non current
$
50,283

 
$
49,478



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 September 30, 2014 was $18.40.
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 September 30, 2014, the fair value of the $55.0 million outstanding 2018 Debentures was approximately $68.5 million, based on the midpoint of the bid and ask prices as of such date. At September 30, 2014, 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 $4.7 million and the net carrying value of the liability component was $50.3 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 $0.8 million and $0.7 million of such expense for the nine months ended September 30, 2014 and 2013, respectively. 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") of which approximately $0.4 million remained outstanding as of December 31, 2013. The Company repurchased or redeemed all of the remaining 2024 Debentures in the second quarter of 2014.
Convertible Senior Debentures due 2014
In 2010, the Company issued an aggregate of $46.9 million of the 2014 Debentures. In November 2012, the Company repurchased substantially all of the 2014 Debentures for $58.7 million plus accrued interest. The remaining $29 thousand outstanding principal amount of the 2014 Debentures was converted into the Company's common stock in March 2014.  
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, 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 September 30, 2014 was $43.7 million.
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation expense was recognized in the Consolidated Statements of Operations as follows:
   
   
Three months ended September 30,
 
Nine months ended September 30,
   
2014
 
2013
 
2014
 
2013
 
(Unaudited - In thousands)
General and administrative expense
$
176

 
$
510

 
$
1,583

 
$
1,808

   
$
176

 
$
510

 
$
1,583

 
$
1,808


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 September 30, 2014, 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 nine months ended September 30, 2014 and 2013, respectively, the Company did not issue any market-based option awards to employees. During the nine months ended September 30, 2014 and 2013, 22 thousand and 0 options, respectively, vested based on achievement of market capitalization targets. During the nine months ended September 30, 2014, 107 thousand unvested market-based awards expired by their terms. The Company recorded compensation expense related to market-based option awards of $0.0 million for both the three months ended September 30, 2014 and 2013, and $0.0 million and $0.2 million for the nine months ended September 30, 2014 and 2013, respectively. Depending on the Company’s stock performance, the maximum number of unvested shares at September 30, 2014 attainable under these grants was 273 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 nine months ended September 30, 2014 and 2013, the Company did not issue any performance-based awards to employees. During the nine months ended September 30, 2014 and 2013, respectively, 7 thousand and 0 performance-based awards vested. During the nine months ended September 30, 2014 and 2013, respectively, 16 thousand and 13 thousand performance based awards were canceled or forfeited. The Company recorded compensation expense related to performance-based option awards of $0.0 million and $0.1 million for the three months ended September 30, 2014 and 2013, respectively, and $0.1 million and $0.3 million for the nine months ended September 30, 2014 and 2013, respectively. The maximum number of unvested shares at September 30, 2014 attainable under these option grants was 429 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 nine months ended September 30, 2014 and 2013, respectively, the Company issued 5 thousand and 39 thousand service-based option awards to employees. The Company recorded compensation expense related to service-based option awards of $0.1 million and $0.2 million for the three months ended September 30, 2014 and 2013, respectively, and $0.3 million and $0.4 million for the nine months ended September 30, 2014 and 2013, respectively.
During the nine months ended September 30, 2014 and 2013, respectively, the Company issued 45 thousand and 46 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 $0.1 million and $0.3 million for the three months ended September 30, 2014 and 2013, respectively, and $1.2 million and $1.0 million for the nine months ended September 30, 2014 and 2013, respectively.

In May 2014, the Company’s shareholders approved an amendment and restatement of the 2004 Equity Compensation Plan to increase the number of shares of common stock reserved for issuance by 2.2 million shares, to rename the plan the 2014 Equity Compensation Plan, and to make certain other clarifying changes and updates to the plan.
Income Taxes
Income Taxes
Income Taxes
The Company’s consolidated income tax benefit (expense) was $0.0 million for the three and nine months ended September 30, 2014 and 2013. 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 expense that would have been recognized in the nine months ended September 30, 2014 was offset by changes in the valuation allowance. The benefit of the net operating loss that would have been recognized in the three months ended September 30, 2014 and 2013 and the nine months ended September 30, 2013 was also offset by changes in the valuation allowance.
During the nine months ended September 30, 2014, the Company had no material changes in uncertain tax positions.
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Net Income (Loss) Per Share
The calculations of net income (loss) per share were as follows:
   
Three months ended September 30,
 
Nine months ended September 30,
   
2014
 
2013
 
2014
 
2013
 
(Unaudited - In thousands, except per share data)
Basic:
   
 
   
 
   
 
   
Net income (loss)
$
(14,006
)
 
$
(19,430
)
 
$
9,965

 
$
(59,492
)
Weighted average common shares outstanding
20,678

 
21,494

 
21,042

 
21,245

Net income (loss) per share
$
(0.68
)
 
$
(0.90
)
 
$
0.47

 
$
(2.80
)
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Net income (loss) for dilutive share computation
$
(14,006
)
 
$
(19,430
)
 
$
9,965

 
$
(59,492
)
 
 
 
 
 
 
 
 
Number of shares used in basic per share computation
20,678

 
21,494

 
21,042

 
21,245

Unvested restricted stock and DSUs
—

 
—

 
354

 
—

Employee stock options
—

 
—

 
22

 
—

Weighted average common shares outstanding
20,678

 
21,494

 
21,418

 
21,245

 
 
 
 
 
 
 
 
Net income (loss) per share
$
(0.68
)
 
$
(0.90
)
 
$
0.47

 
$
(2.80
)
 
 
 
 
 
 
 
 

Basic and diluted average common shares outstanding for purposes of computing net income (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 income (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 income (loss). Any impact is shown as an adjustment to net income (loss) for purposes of calculating diluted net income (loss) per share.
Diluted earnings per share for the three months ended September 30, 2014 and 2013 do not reflect the following potential shares of common stock that would have an anti-dilutive effect or have unsatisfied performance or market conditions:
•
At September 30, 2014 and 2013, options to purchase 1.7 million and 2.3 million shares of common stock at prices ranging from $3.93 to $18.80 for both periods were excluded from the calculations.
•
At both September 30, 2014 and 2013, unvested restricted stock, performance stock units and DSUs convertible into 0.3 million shares of stock were excluded from the calculations.
•
At September 30, 2014 and 2013, 3.0 million shares of common stock, representing the effect of the assumed conversion of the 2018 Debentures, were excluded from the calculation.
Diluted earnings per share for the nine months ended September 30, 2014 and 2013 do not reflect the following potential shares of common stock that would have an anti-dilutive effect or have unsatisfied performance or market conditions:
•
At September 30, 2014 and 2013, options to purchase 0.8 million and 2.3 million shares of common stock at prices ranging from $7.41 to $18.78 and $3.93 to $18.80, respectively, were excluded from the calculations.
•
At both September 30, 2014 and 2013, unvested restricted stock, performance stock units and DSUs convertible into 0.3 million shares of stock were excluded from the calculations.
•
At both September 30, 2014 and 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
Operating Segments
As of September 30, 2014, the Company held interests in 24 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 September 30, 2014:
Healthcare
   
 
   
Partner Company
Safeguard Primary Ownership as of September 30, 2014
 
Accounting Method
AdvantEdge Healthcare Solutions, Inc.
40.1%
 
Equity
Dabo Health, Inc.
12.9%
 
Cost
Good Start Genetics, Inc.
29.9%
 
Equity
InfoBionic Inc.
18.0%
 
Equity (1)
Medivo, Inc.
34.5%
 
Equity
NovaSom, Inc.
30.3%
 
Equity
Propeller Health, Inc.
24.4%
 
Equity
Putney, Inc.
28.3%
 
Equity
Quantia, Inc.
42.3%
 
Equity
Syapse, Inc.
27.0%
 
Equity
Trice Medical, Inc.
31.9%
 
Equity
   
Technology
   
 
   
Partner Company
Safeguard Primary Ownership as of September 30, 2014
 
Accounting Method
AppFirst, Inc.
34.3%
 
Equity
Apprenda, Inc.
21.6%
 
Equity
Beyond.com, Inc.
38.2%
 
Equity
Bridgevine, Inc.
17.2%
 
Cost (2)
Clutch Holdings, Inc.
29.6%
 
Equity
DriveFactor, Inc.
40.6%
 
Equity
Hoopla Software, Inc.
25.6%
 
Equity
Lumesis, Inc.
48.5%
 
Equity
MediaMath, Inc.
20.5%
 
Equity
Pneuron Corporation
27.6%
 
Equity
Spongecell, Inc.
23.0%
 
Equity
Transactis, Inc.
24.8%
 
Equity
WebLinc, Inc.
29.2%
 
Equity


(1) The decrease in the Company's primary ownership below 20.0% in the third quarter of 2014 is considered temporary because the Company expects to deploy additional capital in InfoBionic in the fourth quarter of 2014. Accordingly, the Company continues to exercise significant influence over InfoBionic and account for it under the equity method.

(2) In the second quarter of 2014, the Company’s ownership interest in Bridgevine decreased from 22.7% to 17.3%, below the threshold at which the Company believes it exercises significant influence. Accordingly, the Company changed its method of accounting for Bridgevine from the equity method to the cost method at such time.
As of September 30, 2014, the Company has a 36% ownership interest in the management company and general partner of Penn Mezzanine L.P., which is included in the Penn Mezzanine segment. 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 include 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 impacted by 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 and 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 September 30, 2014 and December 31, 2013, all of the Company’s assets were located in the United States.
Segment assets in Other Items included primarily cash, cash equivalents, and marketable securities of $165.7 million and $183.7 million, at September 30, 2014 and December 31, 2013, respectively.
   
Three months ended September 30, 2014
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(3
)
 
$
(3
)
 
$
(4,174
)
 
$
(4,177
)
Other income (loss), net
(8
)
 
—

 
(238
)
 
(246
)
 
—

 
(246
)
Interest income
—

 
—

 
307

 
307

 
175

 
482

Equity income (loss)
(4,734
)
 
(4,109
)
 
(158
)
 
(9,001
)
 
39

 
(8,962
)
Net loss
(4,742
)
 
(4,109
)
 
(92
)
 
(8,943
)
 
(5,063
)
 
(14,006
)
Segment Assets:
   

 
   

 
   

 
   

 
   

 
   

September 30, 2014
62,066

 
93,025

 
6,490

 
161,581

 
170,727

 
332,308

December 31, 2013
74,939

 
69,471

 
12,783

 
157,193

 
188,803

 
345,996

   
Three months ended September 30, 2013
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(4
)
 
$
(4
)
 
$
(4,831
)
 
$
(4,835
)
Other income (loss), net
(4,772
)
 
—

 
547

 
(4,225
)
 
1

 
(4,224
)
Interest income
—

 
—

 
394

 
394

 
178

 
572

Equity income (loss)
(6,553
)
 
(3,490
)
 
(92
)
 
(10,135
)
 
269

 
(9,866
)
Net income (loss)
(11,325
)
 
(3,490
)
 
845

 
(13,970
)
 
(5,460
)
 
(19,430
)
   
   
Nine months ended September 30, 2014
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(8
)
 
$
(8
)
 
$
(14,477
)
 
$
(14,485
)
Other income (loss), net
31,823

 
—

 
(243
)
 
31,580

 
—

 
31,580

Interest income
—

 
—

 
1,087

 
1,087

 
407

 
1,494

Equity income (loss)
1,341

 
(6,108
)
 
(596
)
 
(5,363
)
 
34

 
(5,329
)
Net income (loss)
33,164

 
(6,108
)
 
240

 
27,296

 
(17,331
)
 
9,965

   
Nine months ended September 30, 2013
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(13
)
 
$
(13
)
 
$
(16,911
)
 
$
(16,924
)
Other income (loss), net
(6,362
)
 
—

 
324

 
(6,038
)
 
(153
)
 
(6,191
)
Interest income
—

 
—

 
1,118

 
1,118

 
978

 
2,096

Equity income (loss)
(27,303
)
 
(7,990
)
 
(256
)
 
(35,549
)
 
296

 
(35,253
)
Net income (loss)
(33,665
)
 
(7,990
)
 
1,173

 
(40,482
)
 
(19,010
)
 
(59,492
)
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
The Company and its partner companies are involved in various claims and legal actions arising in the ordinary course of business. 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, however, 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.
The Company had outstanding guarantees of $3.8 million at September 30, 2014 which related to one of the Company's private equity holdings.
The Company also has committed capital of approximately $0.2 million to other private equity funds. These commitments are 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 Sheets at September 30, 2014. 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 October 2001, the Company entered into an agreement with a former Chairman and Chief Executive Officer of the Company, 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 $2.5 million was included in Other long-term liabilities on the Consolidated Balance Sheet at September 30, 2014.
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 $3.0 million at September 30, 2014.
Equity
Equity
Equity
In February 2014, the Company's Board of Directors authorized the Company, from time to time and depending on market conditions, to repurchase up to $25.0 million of the Company's outstanding common stock. During the nine months ended September 30, 2014, the Company repurchased 1.2 million shares at an aggregate cost of $25.0 million. This share repurchase program was completed in May 2014.
Ownership Interests in and Advances to Partner Companies and Funds (Tables)
Ownership Interests in and Advances to Partner Companies and Private Equity Funds 
The following summarizes the carrying value of the Company’s ownership interests in and advances to partner companies and private equity funds.
   
   
September 30, 2014
 
December 31, 2013
   
(Unaudited - In thousands)
Fair value
$
—

 
$
20,057

Equity Method:
   
 
 
Partner companies
141,073

 
108,872

Private equity funds
1,132

 
1,766

   
142,205

 
110,638

Cost Method:
   
 
 
Partner companies
6,050

 
13,480

Private equity funds
2,418

 
2,418

   
8,468

 
15,898

Advances to partner companies
7,965

 
1,986

   
$
158,638

 
$
148,579

Loan participations receivable
$
4,184

 
$
8,135

Available-for-sale securities
$
3

 
$
15

Equity Method Investments, Results of Operations 
The following summarized statement of operations information for those partner companies for the nine months ended September 30, 2014 and 2013 have been compiled from the financial statements of the respective partner companies and reflect certain historical adjustments. Results of operations of the partner companies are excluded for periods prior to their acquisition. The results of the four partner companies are reported on a one quarter lag.
 
Nine Months Ended
 
September 30, 2014
 
September 30, 2013
 
(In thousands)
Results of Operations:
 
 
 
Revenue
$
125,645

 
$
67,074

Gross profit
$
75,490

 
$
47,112

Net loss
$
(37,541
)
 
$
(15,702
)
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 September 30, 2014 and December 31, 2013:
   
Carrying
Value
 
Fair Value Measurement at September 30, 2014
   
Level 1
 
Level 2
 
Level 3
 
(Unaudited - In thousands)
Cash and cash equivalents
$
116,684

 
$
116,684

 
$
—

 
$
—

Available-for-sale securities
3

 
3

 
—

 
—

Warrant participations
71

 
—

 
—

 
71

Marketable securities—held-to-maturity:
   
 
   
 
   
 
   
Commercial paper
$
6,592

 
$
6,592

 
$
—

 
$
—

U.S. treasury bills
1,504

 
1,504

 
—

 
—

Government agency bonds
13,503

 
13,503

 
—

 
—

Certificates of deposit
27,458

 
27,458

 
—

 
—

 Total marketable securities
$
49,057

 
$
49,057

 
$
—

 
$
—

 
Carrying
Value
 
Fair Value Measurement at December 31, 2013
   
Level 1
 
Level 2
 
Level 3
 
(Unaudited - In thousands)
Cash and cash equivalents
$
139,318

 
$
139,318

 
$
—

 
$
—

Restricted marketable securities
5

 
5

 
—

 
—

Ownership interest in common stock of NuPathe
16,874

 
16,874

 
—

 
—

Ownership interest in warrants and options of NuPathe
3,183

 
—

 
—

 
3,183

Available-for-sale securities
15

 
15

 
—

 
—

Warrant participations
1,563

 
—

 
—

 
1,563

Marketable securities—held-to-maturity:
   
 
 
 
 
 
 
Commercial paper
$
13,599

 
$
13,599

 
$
—

 
$
—

U.S. treasury bills
8,014

 
8,014

 
—

 
—

Government agency bonds
9,945

 
9,945

 
—

 
—

Certificates of deposit
12,780

 
12,780

 
—

 
—

 Total marketable securities
$
44,338

 
$
44,338

 
$
—

 
$
—

Convertible Debentures and Credit Arrangements (Tables)
Convertible Senior Debentures
The carrying values of the Company’s convertible senior debentures were as follows:
   
September 30, 2014
 
December 31, 2013
 
(Unaudited - In thousands)
Convertible senior debentures due 2018
$
50,283

 
$
49,478

Convertible senior debentures due 2024
—

 
441

Convertible senior debentures due 2014
—

 
29

   
50,283

 
49,948

Less: current portion
—

 
(470
)
Convertible senior debentures – non current
$
50,283

 
$
49,478

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 September 30,
 
Nine months ended September 30,
   
2014
 
2013
 
2014
 
2013
 
(Unaudited - In thousands)
General and administrative expense
$
176

 
$
510

 
$
1,583

 
$
1,808

   
$
176

 
$
510

 
$
1,583

 
$
1,808

Types of Vesting Schedules 
At September 30, 2014, 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.
Net Income (Loss) Per Share (Tables)
Calculations of Net Loss Per Share
The calculations of net income (loss) per share were as follows:
   
Three months ended September 30,
 
Nine months ended September 30,
   
2014
 
2013
 
2014
 
2013
 
(Unaudited - In thousands, except per share data)
Basic:
   
 
   
 
   
 
   
Net income (loss)
$
(14,006
)
 
$
(19,430
)
 
$
9,965

 
$
(59,492
)
Weighted average common shares outstanding
20,678

 
21,494

 
21,042

 
21,245

Net income (loss) per share
$
(0.68
)
 
$
(0.90
)
 
$
0.47

 
$
(2.80
)
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Net income (loss) for dilutive share computation
$
(14,006
)
 
$
(19,430
)
 
$
9,965

 
$
(59,492
)
 
 
 
 
 
 
 
 
Number of shares used in basic per share computation
20,678

 
21,494

 
21,042

 
21,245

Unvested restricted stock and DSUs
—

 
—

 
354

 
—

Employee stock options
—

 
—

 
22

 
—

Weighted average common shares outstanding
20,678

 
21,494

 
21,418

 
21,245

 
 
 
 
 
 
 
 
Net income (loss) per share
$
(0.68
)
 
$
(0.90
)
 
$
0.47

 
$
(2.80
)
 
 
 
 
 
 
 
 
Operating Segments (Tables)
Active Partner Companies by Segment 
The Company’s active partner companies by segment were as follows as of September 30, 2014:
Healthcare
   
 
   
Partner Company
Safeguard Primary Ownership as of September 30, 2014
 
Accounting Method
AdvantEdge Healthcare Solutions, Inc.
40.1%
 
Equity
Dabo Health, Inc.
12.9%
 
Cost
Good Start Genetics, Inc.
29.9%
 
Equity
InfoBionic Inc.
18.0%
 
Equity (1)
Medivo, Inc.
34.5%
 
Equity
NovaSom, Inc.
30.3%
 
Equity
Propeller Health, Inc.
24.4%
 
Equity
Putney, Inc.
28.3%
 
Equity
Quantia, Inc.
42.3%
 
Equity
Syapse, Inc.
27.0%
 
Equity
Trice Medical, Inc.
31.9%
 
Equity
   
Technology
   
 
   
Partner Company
Safeguard Primary Ownership as of September 30, 2014
 
Accounting Method
AppFirst, Inc.
34.3%
 
Equity
Apprenda, Inc.
21.6%
 
Equity
Beyond.com, Inc.
38.2%
 
Equity
Bridgevine, Inc.
17.2%
 
Cost (2)
Clutch Holdings, Inc.
29.6%
 
Equity
DriveFactor, Inc.
40.6%
 
Equity
Hoopla Software, Inc.
25.6%
 
Equity
Lumesis, Inc.
48.5%
 
Equity
MediaMath, Inc.
20.5%
 
Equity
Pneuron Corporation
27.6%
 
Equity
Spongecell, Inc.
23.0%
 
Equity
Transactis, Inc.
24.8%
 
Equity
WebLinc, Inc.
29.2%
 
Equity


(1) The decrease in the Company's primary ownership below 20.0% in the third quarter of 2014 is considered temporary because the Company expects to deploy additional capital in InfoBionic in the fourth quarter of 2014. Accordingly, the Company continues to exercise significant influence over InfoBionic and account for it under the equity method.

(2) In the second quarter of 2014, the Company’s ownership interest in Bridgevine decreased from 22.7% to 17.3%, below the threshold at which the Company believes it exercises significant influence. Accordingly, the Company changed its method of accounting for Bridgevine from the equity method to the cost method at such time.
Segment Data from Operations 
   
Three months ended September 30, 2014
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(3
)
 
$
(3
)
 
$
(4,174
)
 
$
(4,177
)
Other income (loss), net
(8
)
 
—

 
(238
)
 
(246
)
 
—

 
(246
)
Interest income
—

 
—

 
307

 
307

 
175

 
482

Equity income (loss)
(4,734
)
 
(4,109
)
 
(158
)
 
(9,001
)
 
39

 
(8,962
)
Net loss
(4,742
)
 
(4,109
)
 
(92
)
 
(8,943
)
 
(5,063
)
 
(14,006
)
Segment Assets:
   

 
   

 
   

 
   

 
   

 
   

September 30, 2014
62,066

 
93,025

 
6,490

 
161,581

 
170,727

 
332,308

December 31, 2013
74,939

 
69,471

 
12,783

 
157,193

 
188,803

 
345,996

   
Three months ended September 30, 2013
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(4
)
 
$
(4
)
 
$
(4,831
)
 
$
(4,835
)
Other income (loss), net
(4,772
)
 
—

 
547

 
(4,225
)
 
1

 
(4,224
)
Interest income
—

 
—

 
394

 
394

 
178

 
572

Equity income (loss)
(6,553
)
 
(3,490
)
 
(92
)
 
(10,135
)
 
269

 
(9,866
)
Net income (loss)
(11,325
)
 
(3,490
)
 
845

 
(13,970
)
 
(5,460
)
 
(19,430
)
   
   
Nine months ended September 30, 2014
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(8
)
 
$
(8
)
 
$
(14,477
)
 
$
(14,485
)
Other income (loss), net
31,823

 
—

 
(243
)
 
31,580

 
—

 
31,580

Interest income
—

 
—

 
1,087

 
1,087

 
407

 
1,494

Equity income (loss)
1,341

 
(6,108
)
 
(596
)
 
(5,363
)
 
34

 
(5,329
)
Net income (loss)
33,164

 
(6,108
)
 
240

 
27,296

 
(17,331
)
 
9,965

   
Nine months ended September 30, 2013
   
Healthcare
 
Technology
 
Penn
Mezzanine
 
Total
Segments
 
Other
Items
 
Total
 
(Unaudited - In thousands)
Operating loss
$
—

 
$
—

 
$
(13
)
 
$
(13
)
 
$
(16,911
)
 
$
(16,924
)
Other income (loss), net
(6,362
)
 
—

 
324

 
(6,038
)
 
(153
)
 
(6,191
)
Interest income
—

 
—

 
1,118

 
1,118

 
978

 
2,096

Equity income (loss)
(27,303
)
 
(7,990
)
 
(256
)
 
(35,549
)
 
296

 
(35,253
)
Net income (loss)
(33,665
)
 
(7,990
)
 
1,173

 
(40,482
)
 
(19,010
)
 
(59,492
)
Carrying Value of Ownership Interests in and Advances to Partner Companies and Private Equity Funds (Detail) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Investments In And Advances To Affiliates [Line Items]
 
 
Fair value
$ 0 
$ 20,057,000 
Equity method investments
142,205,000 
110,638,000 
Cost method investments
8,468,000 
15,898,000 
Advances to partner companies
7,965,000 
1,986,000 
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)
158,638,000 
148,579,000 
Loan participations receivable
4,184,000 
8,135,000 
Available-for-sale securities
3,000 
15,000 
Partner companies [Member]
 
 
Investments In And Advances To Affiliates [Line Items]
 
 
Equity method investments
141,073,000 
108,872,000 
Cost method investments
6,050,000 
13,480,000 
Private equity funds [Member]
 
 
Investments In And Advances To Affiliates [Line Items]
 
 
Equity method investments
1,132,000 
1,766,000 
Cost method investments
$ 2,418,000 
$ 2,418,000 
Ownership Interests in and Advances to Partner Companies and Funds - Narrative (Detail) (USD $)
9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended
Sep. 30, 2014
partner_company
Sep. 30, 2013
Dec. 31, 2013
Apr. 30, 2014
Sotera [Member]
Sep. 30, 2014
Sotera [Member]
Feb. 28, 2014
Crescendo Bioscience, Inc. [Member]
Sep. 30, 2014
Crescendo Bioscience, Inc. [Member]
Feb. 28, 2014
Nupathe [Member]
Sep. 30, 2013
Nupathe [Member]
Sep. 30, 2014
Nupathe [Member]
Sep. 30, 2013
Nupathe [Member]
Jan. 31, 2014
Alverix, Inc. [Member]
Sep. 30, 2014
Alverix, Inc. [Member]
Sep. 30, 2014
Penn Mezzanine [Member]
Sep. 30, 2013
Penn Mezzanine [Member]
Sep. 30, 2013
Legacy Private Equity Fund [Member]
Sep. 30, 2013
Pixel Optics Inc [Member]
Jun. 30, 2013
Pixel Optics Inc [Member]
Sep. 30, 2013
Pixel Optics Inc [Member]
Sep. 30, 2014
Bridgevine, Inc. [Member]
Jun. 30, 2014
Bridgevine, Inc. [Member]
Mar. 31, 2014
Bridgevine, Inc. [Member]
Sep. 30, 2014
Equity Income (Loss) [Member]
Dec. 31, 2013
Equity Income (Loss) [Member]
Dec. 31, 2012
Equity Income (Loss) [Member]
Sep. 30, 2013
Loan participations [Member]
Penn Mezzanine [Member]
Sep. 30, 2013
Warrant [Member]
Penn Mezzanine [Member]
Investment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Immaterial prior period adjustment made in current period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,800,000 
$ 1,500,000 
$ 300,000 
 
 
Proceeds from sale of business
81,626,000 
2,603,000 
 
4,200,000 
 
38,400,000 
 
23,100,000 
 
 
 
15,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains on cost method investment
 
 
 
 
1,500,000 
 
27,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds sale of business (in dollars per share)
 
 
 
 
 
 
 
$ 3.65 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from milestone payments (in dollars per share)
 
 
 
 
 
 
 
$ 3.15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from milestone payments
 
 
 
 
 
 
 
24,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of business
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
15,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized loss on securities
 
 
 
 
 
 
 
 
4,800,000 
 
6,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount held in escrow
 
 
 
 
 
 
2,900,000 
 
 
 
 
1,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest under equity method, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.30% 
22.70% 
 
 
 
 
 
Equity method investment, additional information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
 
 
 
 
 
 
 
Proceeds from repayments of loan receivable
 
 
 
 
 
 
 
 
 
 
 
 
 
4,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of equity interests
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset impairment charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
200,000 
1,300,000 
9,900,000 
11,200,000 
 
 
 
 
 
 
200,000 
100,000 
Equity method investments
$ 142,205,000 
 
$ 110,638,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
 
$ 0 
 
 
 
 
 
 
 
 
Number of partner companies that meet conditions of a significant subsidiary
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership Interests in and Advances to Partner Companies and Funds Aggregate Partner Company Income Statement Disclosures (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]
 
 
Equity method investment, revenue
$ 125,645 
$ 67,074 
Equity method investment, gross profit (loss)
75,490 
47,112 
Equity method investment, net income (loss)
$ (37,541)
$ (15,702)
Acquisitions of Ownership Interests in Partner Companies and Funds Narrative (Detail) (USD $)
9 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 27 Months Ended 5 Months Ended 23 Months Ended 1 Months Ended 10 Months Ended 1 Months Ended 30 Months Ended 1 Months Ended 2 Months Ended 1 Months Ended 9 Months Ended 53 Months Ended 1 Months Ended 13 Months Ended 5 Months Ended 6 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 24 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Trice [Member]
Jun. 30, 2014
Syapse, Inc. [Member]
Jun. 30, 2014
Putney, Inc. [Member]
Dec. 31, 2013
Putney, Inc. [Member]
May 31, 2014
Lumesis, Inc. [Member]
Dec. 31, 2013
Lumesis, Inc. [Member]
May 31, 2014
New York Digital Health Accelerator II [Member]
May 31, 2014
Clutch [Member]
Dec. 31, 2013
Clutch [Member]
May 31, 2014
Novasom, Inc. [Member]
Dec. 31, 2013
Novasom, Inc. [Member]
May 31, 2014
Dabo [Member]
Dec. 31, 2013
Dabo [Member]
May 31, 2014
MediaMath, Inc. [Member]
Sep. 30, 2014
MediaMath, Inc. [Member]
Dec. 31, 2013
MediaMath, Inc. [Member]
Apr. 30, 2014
MediaMath, Inc. [Member]
May 31, 2014
AppFirst, Inc. [Member]
Dec. 31, 2013
AppFirst, Inc. [Member]
Dec. 31, 2013
Quantia [Member]
Sep. 30, 2014
Quantia [Member]
Aug. 31, 2014
Propeller [Member]
Sep. 30, 2014
Propeller [Member]
Aug. 31, 2014
Transactis [Member]
Sep. 30, 2014
Transactis [Member]
Aug. 31, 2014
WebLinc [Member]
Sep. 30, 2014
WebLinc [Member]
Mar. 31, 2014
InfoBionic, Inc. [Member]
Apr. 30, 2014
Sotera Wireless, Inc. [Member]
Mar. 31, 2014
Sotera Wireless, Inc. [Member]
Dec. 31, 2013
Sotera Wireless, Inc. [Member]
Jan. 31, 2014
Hoopla Software, Inc. [Member]
Dec. 31, 2013
Hoopla Software, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest under equity method, percentage
 
 
31.90% 
27.00% 
 
 
 
 
12.50% 
 
 
 
 
 
 
20.60% 
 
 
22.50% 
 
 
 
 
 
24.60% 
 
24.80% 
 
29.20% 
20.40% 
 
 
 
 
 
Payments to acquire equity method investments
$ 54,956,000 
$ 28,718,000 
$ 5,000,000 
$ 5,800,000 
$ 5,000,000 
$ 10,000,000 
$ 1,700,000 
$ 3,900,000 
$ 100,000 
$ 2,000,000 
$ 5,500,000 
 
$ 20,000,000 
 
 
$ 7,000,000 
 
$ 18,600,000 
 
 
$ 6,500,000 
$ 7,500,000 
 
$ 9,000,000 
 
$ 9,500,000 
 
$ 6,000,000 
 
$ 4,000,000 
 
 
 
$ 1,400,000 
$ 1,800,000 
Equity method investment, additional information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to acquire cost method investments
 
 
 
 
 
 
 
 
 
 
 
 
 
800,000 
800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
 
 
Convertible bridge loan
 
 
 
 
 
 
 
 
 
 
 
1,100,000 
 
 
 
 
 
 
 
2,100,000 
 
 
4,300,000 
 
 
 
 
 
 
 
 
200,000 
 
 
 
Cost of shares acquired from previous investor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000 
 
 
Proceeds from sales of and distributions from companies and funds
$ 81,626,000 
$ 2,603,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,200,000 
 
 
 
 
Carrying Value and Fair Value of Certain Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
$ 116,684 
$ 139,318 
Restricted marketable securities
 
5 
Available-for-sale securities
3 
15 
Warrant participations
0 
0 
Total marketable securities
49,057 
44,338 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
0 
0 
Restricted marketable securities
 
0 
Available-for-sale securities
0 
0 
Warrant participations
0 
0 
Total marketable securities
0 
0 
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
0 
0 
Restricted marketable securities
 
0 
Available-for-sale securities
0 
0 
Warrant participations
71 
1,563 
Total marketable securities
0 
0 
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash and cash equivalents
116,684 
139,318 
Restricted marketable securities
 
5 
Available-for-sale securities
3 
15 
Warrant participations
71 
1,563 
Total marketable securities
49,057 
44,338 
NuPathe [Member] |
Common stock [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
16,874 
NuPathe [Member] |
Common stock [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
0 
NuPathe [Member] |
Common stock [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
0 
NuPathe [Member] |
Common stock [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
16,874 
NuPathe [Member] |
Warrants and options [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
0 
NuPathe [Member] |
Warrants and options [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
0 
NuPathe [Member] |
Warrants and options [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
3,183 
NuPathe [Member] |
Warrants and options [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Ownership interest
 
3,183 
Commercial paper [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
6,592 
13,599 
Commercial paper [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
Commercial paper [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
Commercial paper [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
6,592 
13,599 
U.S. Treasury Bills [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
1,504 
8,014 
U.S. Treasury Bills [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
U.S. Treasury Bills [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
U.S. Treasury Bills [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
1,504 
8,014 
Government agency bonds [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
13,503 
9,945 
Government agency bonds [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
Government agency bonds [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
Government agency bonds [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
13,503 
9,945 
Certificates of deposit [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
27,458 
12,780 
Certificates of deposit [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
Certificates of deposit [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
0 
0 
Certificates of deposit [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total marketable securities
$ 27,458 
$ 12,780 
Fair Value Measurements - Narrative (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2013
Pixel Optics Inc [Member]
Jun. 30, 2013
Pixel Optics Inc [Member]
Sep. 30, 2013
Pixel Optics Inc [Member]
Sep. 30, 2013
Penn Mezzanine [Member]
Sep. 30, 2013
Legacy Private Equity Fund [Member]
Sep. 30, 2014
Legacy Private Equity Fund [Member]
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Marketable securities, current
$ 35,217,000 
$ 38,250,000 
 
 
 
 
 
 
Marketable securities, non current
13,840,000 
6,088,000 
 
 
 
 
 
 
Investments, Fair Value Disclosure
 
 
 
 
 
 
 
1,700,000 
Asset impairment charges
 
 
1,300,000 
9,900,000 
11,200,000 
300,000 
200,000 
 
Equity method investments
$ 142,205,000 
$ 110,638,000 
$ 0 
 
$ 0 
 
 
 
Carrying Values of Convertible Senior Debentures (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Convertible senior debentures
$ 50,283 
$ 49,948 
Less: current portion
0 
(470)
Convertible senior debentures – non current
50,283 
49,478 
Convertible Senior Debentures due 2018 [Member]
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures
50,283 
49,478 
Convertible Senior Debentures due 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures
0 
441 
Convertible Senior Debentures due 2014 [Member]
 
 
Debt Instrument [Line Items]
 
 
Convertible senior debentures
$ 0 
$ 29 
Convertible Debentures and Credit Arrangements Convertible Senior Debentures due 2018 Narrative (Detail) (USD $)
9 Months Ended
Sep. 30, 2014
Convertible Senior Debentures due 2018 [Member]
D
Sep. 30, 2013
Convertible Senior Debentures due 2018 [Member]
Nov. 30, 2012
Convertible Senior Debentures due 2018 [Member]
Nov. 30, 2012
Convertible Senior Debentures due 2014 [Member]
Dec. 31, 2010
Convertible Senior Debentures due 2014 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
Aggregate face value of convertible senior debentures
$ 55,000,000 
 
$ 55,000,000.0 
 
$ 46,900,000.0 
Interest rate on debentures
 
 
5.25% 
10.125% 
 
Number of trading days
20 
 
 
 
 
Consecutive trading days
30 days 
 
 
 
 
Threshold percentage of stock trigger
130.00% 
 
 
 
 
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 
 
 
 
 
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 
 
 
 
 
Principal amount of convertible debentures
1,000 
 
 
 
 
Closing price is percentage of conversion price
98.00% 
 
 
 
 
Conversion rate of common stock (in shares)
55.17 
 
 
 
 
Conversion price (in dollars per share)
$ 18.13 
 
 
 
 
Closing price for common stock
$ 18.40 
 
 
 
 
Sales price of common stock to conversion price
140.00% 
 
 
 
 
Debentures redemption price
100.00% 
 
 
 
 
Change in control due to debentures redemption
50.00% 
 
 
 
 
Percentage of principal amount and accrued and unpaid interest for repurchase of debt
100.00% 
 
 
 
 
Fair value of debentures outstanding
68,500,000 
 
 
 
 
Gross carrying amount of equity component
6,400,000 
 
 
 
 
Unamortized discount
4,700,000 
 
 
 
 
Carrying value of liability component
50,300,000 
 
 
 
 
Amortization of debt discount (premium)
$ 800,000 
$ 700,000 
 
 
 
Debt instrument, interest rate, effective percentage
8.70% 
 
 
 
 
Convertible Debentures and Credit Arrangements Convertible Senior Debentures due 2024 Narrative (Detail) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Dec. 31, 2004
Debt Instrument [Line Items]
 
 
 
Convertible debt outstanding
$ 50,283,000 
$ 49,948,000 
 
Convertible Senior Debentures due 2024 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Aggregate face value of convertible senior debentures
 
 
150,000,000.0 
Outstanding debentures
 
400,000 
 
Convertible debt outstanding
$ 0 
$ 441,000 
 
Convertible Debentures and Credit Arrangements Convertible Senior Debentures due 2014 Narrative (Detail) (Convertible Senior Debentures due 2014 [Member], USD $)
Mar. 31, 2014
Nov. 30, 2012
Dec. 31, 2010
Convertible Senior Debentures due 2014 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Aggregate face value of convertible senior debentures
 
 
$ 46,900,000.0 
Repurchase of debentures
 
58,700,000 
 
Principal converted to common stock
$ 29,000 
 
 
Convertible Debentures and Credit Arrangements Credit Arrangements Narrative (Detail) (Credit Arrangements [Member], USD $)
9 Months Ended
Sep. 30, 2014
Credit Arrangements [Member]
 
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)
$ 50,000,000 
Sublimit facility attached on revolving credit facility
20,000,000 
Amount of depository, operating accounts, the lesser and investment and securities accounts required to be maintained at the lending bank
80,000,000 
Percentage of depository, operating accounts, the lesser and investment and securities accounts required to be maintained at the lending bank
75.00% 
Credit facility maturity date
Dec. 31, 2014 
Letter of credit under the credit facility
6,300,000 
Letter of credit expiration date
Mar. 19, 2019 
Amount available for borrowing under revolving credit facility
$ 43,700,000 
Stock-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 176 
$ 510 
$ 1,583 
$ 1,808 
General And Administrative Expenses [Member]
 
 
 
 
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 176 
$ 510 
$ 1,583 
$ 1,808 
Stock-Based Compensation - Narrative (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
May 31, 2014
Sep. 30, 2014
vesting_type
Sep. 30, 2014
Market Based Awards [Member]
Sep. 30, 2013
Market Based Awards [Member]
Sep. 30, 2014
Market Based Awards [Member]
Sep. 30, 2013
Market Based Awards [Member]
Sep. 30, 2014
Performance Shares [Member]
Sep. 30, 2013
Performance Shares [Member]
Sep. 30, 2014
Performance Shares [Member]
Sep. 30, 2013
Performance Shares [Member]
Sep. 30, 2014
Service Based Award [Member]
Sep. 30, 2013
Service Based Award [Member]
Sep. 30, 2014
Service Based Award [Member]
Sep. 30, 2013
Service Based Award [Member]
Sep. 30, 2014
Deferred Stock Units [Member]
Y
Sep. 30, 2014
Deferred stock units, performance-based stock units and restricted stock [Member]
Sep. 30, 2013
Deferred stock units, performance-based stock units and restricted stock [Member]
Sep. 30, 2014
Deferred stock units, performance-based stock units and restricted stock [Member]
Sep. 30, 2013
Deferred stock units, performance-based stock units and restricted stock [Member]
Sep. 30, 2014
Director [Member]
Deferred Stock Units [Member]
Sep. 30, 2013
Director [Member]
Deferred Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of award vesting types
 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration period
 
 
 
 
 
 
 
 
 
 
 
 
8 years 
 
 
 
 
 
 
 
 
Number of shares vested in period
 
 
 
 
22,000 
0 
 
 
7,000 
0 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period
 
 
 
 
 
 
 
 
16,000 
13,000 
 
 
 
 
 
 
 
 
 
 
 
Number of nonvested options expired
 
 
 
 
107,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
 
$ 0 
$ 0 
$ 0 
$ 0.2 
$ 0 
$ 0.1 
$ 0.1 
$ 0.3 
$ 0.1 
$ 0.2 
$ 0.3 
$ 0.4 
 
$ 0.1 
$ 0.3 
$ 1.2 
$ 1.0 
 
 
Stock-based compensation, maximum number of unvested shares
 
 
 
 
273,000 
 
 
 
429,000 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting period
 
 
 
 
8 years 
 
 
 
 
 
 
 
4 years 
 
 
 
 
 
 
 
 
Options issued
 
 
 
 
 
 
 
 
 
 
 
 
5,000 
39,000 
 
 
 
 
 
 
 
Shares issued to non-employee individual
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,000 
46,000 
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 
 
 
 
 
 
 
Increase in number of shares reserved for issuance
2,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes - Narrative (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
Income tax benefit (expense)
$ 0 
$ 0 
$ 0 
$ 0 
Calculations of Net Income (Loss) Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Basic:
 
 
 
 
Net income (loss)
$ (14,006)
$ (19,430)
$ 9,965 
$ (59,492)
Weighted average common shares outstanding (in shares)
20,678 
21,494 
21,042 
21,245 
Net income (loss) per share (in dollars per share)
$ (0.68)
$ (0.90)
$ 0.47 
$ (2.80)
Diluted:
 
 
 
 
Net income (loss) attributable to parent, diluted
$ (14,006)
$ (19,430)
$ 9,965 
$ (59,492)
Number of shares used in basic per share computation (in shares)
20,678 
21,494 
21,042 
21,245 
Weighted average common shares outstanding (in shares)
20,678 
21,494 
21,418 
21,245 
Net income (loss) per share (in dollars per share)
$ (0.68)
$ (0.90)
$ 0.47 
$ (2.80)
Restricted Stock Unit And Performance Stock Unit And Deferred Stock Unit [Member]
 
 
 
 
Diluted:
 
 
 
 
Stock options (in shares)
0 
0 
354 
0 
Employee stock options [Member]
 
 
 
 
Diluted:
 
 
 
 
Stock options (in shares)
0 
0 
22 
0 
Net Income (Loss) Per Share - Narrative (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
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
1.7 
2.3 
0.8 
2.3 
Shares of common stock at prices ranging, lower limit
$ 3.93 
$ 3.93 
$ 7.41 
$ 3.93 
Shares of common stock at prices ranging, upper limit
$ 18.80 
$ 18.80 
$ 18.78 
$ 18.80 
Deferred stock units, performance-based stock units and restricted stock [Member]
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
0.3 
0.3 
0.3 
0.3 
Convertible Senior Debentures due 2018 [Member]
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
 
Share of common stock excluded from diluted net loss per share calculation
3.0 
3.0 
 
3.0 
Operating Segments - Narrative (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
Non-consolidated partner companies
24 
 
Other Items [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Total assets included cash, cash equivalents, cash held in escrow, and marketable securities
$ 165.7 
$ 183.7 
Penn Mezzanine [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Ownership interest under equity method, percentage
36.00% 
 
Clutch [Member] |
Technology [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Ownership interest under equity method, percentage
29.60% 
 
Active Partner Companies by Segment (Detail)
Mar. 31, 2014
InfoBionic [Member]
Sep. 30, 2014
Propeller [Member]
Jun. 30, 2014
Syapse, Inc. [Member]
Jun. 30, 2014
Bridgevine, Inc. [Member]
Mar. 31, 2014
Bridgevine, Inc. [Member]
May 31, 2014
MediaMath, Inc. [Member]
Apr. 30, 2014
MediaMath, Inc. [Member]
Sep. 30, 2014
Trice [Member]
Sep. 30, 2014
Transactis [Member]
Sep. 30, 2014
WebLinc [Member]
Sep. 30, 2014
Healthcare [Member]
AdvantEdge Healthcare Solutions, Inc. [Member]
Sep. 30, 2014
Healthcare [Member]
Dabo [Member]
Sep. 30, 2014
Healthcare [Member]
Good Start Genetics, Inc. [Member]
Sep. 30, 2014
Healthcare [Member]
InfoBionic [Member]
Sep. 30, 2014
Healthcare [Member]
Medivo, Inc. [Member]
Sep. 30, 2014
Healthcare [Member]
Novasom, Inc. [Member]
Sep. 30, 2014
Healthcare [Member]
Propeller [Member]
Sep. 30, 2014
Healthcare [Member]
Putney, Inc. [Member]
Sep. 30, 2014
Healthcare [Member]
Quantia [Member]
Sep. 30, 2014
Healthcare [Member]
Syapse, Inc. [Member]
Sep. 30, 2014
Healthcare [Member]
Trice [Member]
Sep. 30, 2014
Technology [Member]
AppFirst, Inc. [Member]
Sep. 30, 2014
Technology [Member]
Apprenda [Member]
Sep. 30, 2014
Technology [Member]
Beyond.com, Inc [Member]
Sep. 30, 2014
Technology [Member]
Bridgevine, Inc. [Member]
Jun. 30, 2014
Technology [Member]
Bridgevine, Inc. [Member]
Mar. 31, 2014
Technology [Member]
Bridgevine, Inc. [Member]
Sep. 30, 2014
Technology [Member]
Clutch Holdings, LLC [Member]
Sep. 30, 2014
Technology [Member]
DriveFactor Inc. [Member]
Sep. 30, 2014
Technology [Member]
Hoopla Software, Inc. [Member]
Sep. 30, 2014
Technology [Member]
Lumesis, Inc. [Member]
Sep. 30, 2014
Technology [Member]
MediaMath, Inc. [Member]
Sep. 30, 2014
Technology [Member]
Pneuron, Inc. [Member]
Sep. 30, 2014
Technology [Member]
Spongecell, Inc. [Member]
Sep. 30, 2014
Technology [Member]
Transactis [Member]
Sep. 30, 2014
Technology [Member]
WebLinc [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method threshold
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest under equity method, percentage
20.40% 
24.60% 
27.00% 
17.30% 
22.70% 
20.60% 
22.50% 
31.90% 
24.80% 
29.20% 
40.10% 
 
29.90% 
18.00% 1
34.50% 
30.30% 
24.40% 
28.30% 
42.30% 
27.00% 
31.90% 
34.30% 
21.60% 
38.20% 
 
17.30% 
22.70% 
29.60% 
40.60% 
25.60% 
48.50% 
20.50% 
27.60% 
23.00% 
24.80% 
29.20% 
Ownership interest under cost method, percentage
 
 
 
 
 
 
 
 
 
 
 
12.90% 
 
 
 
 
 
 
 
 
 
 
 
 
17.20% 2
 
 
 
 
 
 
 
 
 
 
 
Segment Data from Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
$ (4,177)
$ (4,835)
$ (14,485)
$ (16,924)
 
Other income (loss), net
(246)
(4,224)
31,580 
(6,191)
 
Interest income
482 
572 
1,494 
2,096 
 
Equity income (loss)
(8,962)
(9,866)
(5,329)
(35,253)
 
Net loss
(14,006)
(19,430)
9,965 
(59,492)
 
Segment assets
332,308 
 
332,308 
 
345,996 
Total Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
(3)
(4)
(8)
(13)
 
Other income (loss), net
(246)
(4,225)
31,580 
(6,038)
 
Interest income
307 
394 
1,087 
1,118 
 
Equity income (loss)
(9,001)
(10,135)
(5,363)
(35,549)
 
Net loss
(8,943)
(13,970)
27,296 
(40,482)
 
Segment assets
161,581 
 
161,581 
 
157,193 
Healthcare [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
0 
0 
0 
0 
 
Other income (loss), net
(8)
(4,772)
31,823 
(6,362)
 
Interest income
0 
0 
0 
0 
 
Equity income (loss)
(4,734)
(6,553)
1,341 
(27,303)
 
Net loss
(4,742)
(11,325)
33,164 
(33,665)
 
Segment assets
62,066 
 
62,066 
 
74,939 
Technology [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
0 
0 
0 
0 
 
Other income (loss), net
0 
0 
0 
0 
 
Interest income
0 
0 
0 
0 
 
Equity income (loss)
(4,109)
(3,490)
(6,108)
(7,990)
 
Net loss
(4,109)
(3,490)
(6,108)
(7,990)
 
Segment assets
93,025 
 
93,025 
 
69,471 
Penn Mezzanine [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
(3)
(4)
(8)
(13)
 
Other income (loss), net
(238)
547 
(243)
324 
 
Interest income
307 
394 
1,087 
1,118 
 
Equity income (loss)
(158)
(92)
(596)
(256)
 
Net loss
(92)
845 
240 
1,173 
 
Segment assets
6,490 
 
6,490 
 
12,783 
Other Items [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating loss
(4,174)
(4,831)
(14,477)
(16,911)
 
Other income (loss), net
0 
1 
0 
(153)
 
Interest income
175 
178 
407 
978 
 
Equity income (loss)
39 
269 
34 
296 
 
Net loss
(5,063)
(5,460)
(17,331)
(19,010)
 
Segment assets
$ 170,727 
 
$ 170,727 
 
$ 188,803 
Commitments and Contingencies (Detail) (USD $)
1 Months Ended 9 Months Ended 9 Months Ended
Oct. 31, 2001
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2014
Employee Severance
Sep. 30, 2014
Letter of credit
Sep. 30, 2014
Accrued expenses and other current liabilities
Sep. 30, 2014
Other long-term liabilities
Sep. 30, 2014
Clawback Liability
Sep. 30, 2014
Private equity funds [Member]
Commitment Contingencies And Guarantees [Line Items]
 
 
 
 
 
 
 
 
 
Company outstanding guarantees
 
 
 
 
 
 
 
 
$ 3,800,000 
Committed capital of private equity funds
 
 
 
 
 
 
 
 
200,000 
Funding period
 
 
 
 
 
 
 
 
12 months 
Accrued expenses and other current liabilities
 
 
 
 
 
 
 
1,300,000 
 
Accrued expenses
 
3,335,000 
2,431,000 
 
 
 
 
1,000,000 
 
Other long-term liabilities
 
3,471,000 
3,683,000 
 
 
 
 
300,000 
 
Company's ownership in the funds
 
 
 
 
 
 
 
19.00% 
 
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
 
 
 
 
 
 
2,500,000 
 
 
Letter of credit under the credit facility
 
 
 
 
6,300,000 
 
 
 
 
Maximum severance payments
 
 
 
$ 3,000,000 
 
 
 
 
 
Equity (Details) (USD $)
Share data in Thousands, unless otherwise specified
1 Months Ended 9 Months Ended
Feb. 28, 2014
Sep. 30, 2014
Class of Stock [Line Items]
 
 
Repurchase of common stock
 
$ 25,036,000 
Common Stock [Member]
 
 
Class of Stock [Line Items]
 
 
Authorized repurchase amount
25,000,000 
 
Repurchase of common stock (in shares)
 
1,200 
Repurchase of common stock
 
$ 25,000,000