Delaware | 13-3727655 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
590 Madison Avenue, 32nd Floor | |
New York, New York | 10022 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o |
(Do not check if a smaller reporting company) |
PART I — FINANCIAL INFORMATION | Page | |
Item 1. | Financial Statements (unaudited) | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II — OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 5. | ||
Item 6. | ||
June 30, 2012 | December 31, 2011 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 237,149 | $ | 127,027 | |||
Restricted cash | 26,421 | 23,736 | |||||
Marketable securities | 188,207 | — | |||||
Trade and other receivables (net of allowance for doubtful accounts of $2,422 in 2012 and $2,504 in 2011) | 129,904 | 90,239 | |||||
Receivable from related parties | 4,174 | 116 | |||||
Loans receivable, net | 23,509 | 34,820 | |||||
Inventories, net | 57,669 | 53,776 | |||||
Deferred income taxes | 19,687 | 20,038 | |||||
Prepaid and other current assets | 18,708 | 16,123 | |||||
Assets of discontinued operations | — | 35,387 | |||||
Total current assets | 705,428 | 401,262 | |||||
Long-term loans receivable, net | 10,721 | 8,942 | |||||
Goodwill | 61,701 | 42,797 | |||||
Other intangibles, net | 149,186 | 135,341 | |||||
Deferred income taxes | 69,783 | 70,625 | |||||
Other non-current assets | 20,619 | 22,143 | |||||
Investments at fair value | 129,762 | 150,020 | |||||
Property, plant and equipment, net | 179,159 | 127,842 | |||||
Investments in associated companies | 49,445 | 128,218 | |||||
Other investments at fair value - related party | 33,643 | 42,653 | |||||
Total Assets | $ | 1,409,447 | $ | 1,129,843 |
June 30, 2012 | December 31, 2011 | ||||||
LIABILITIES AND CAPITAL | (unaudited) | ||||||
Current liabilities: | |||||||
Accounts payable | $ | 56,808 | $ | 37,843 | |||
Accrued liabilities | 53,046 | 40,944 | |||||
Financial instruments | 23,996 | 23,736 | |||||
Deposits | 62,973 | 38,293 | |||||
Payable to related parties | 6,467 | 4,930 | |||||
Current portion of deferred fee liability to related party | — | 1,107 | |||||
Short-term debt | 22,617 | 24,168 | |||||
Current portion of long-term debt | 8,533 | 8,531 | |||||
Deferred income taxes | 1,096 | 736 | |||||
Other current liabilities | 2,445 | 3,239 | |||||
Liabilities of discontinued operations | — | 15,310 | |||||
Total current liabilities | 237,981 | 198,837 | |||||
Long-term deposits | 43,785 | 56,589 | |||||
Deferred fee liability to related party | — | 57,640 | |||||
Long-term debt | 121,762 | 130,955 | |||||
Accrued pension liability | 177,930 | 186,212 | |||||
Deferred income taxes | 11,647 | 6,231 | |||||
Other liabilities | 24,688 | 12,959 | |||||
Total Liabilities | 617,793 | 649,423 | |||||
Commitments and Contingencies | — | — | |||||
Capital: | |||||||
Partners’ capital common units: 32,122,686 and 25,183,039 issued and outstanding (after deducting 2,808,725 held in treasury, at cost of $48,099) at June 30, 2012 and December 31, 2011, respectively. | 555,004 | 427,534 | |||||
Accumulated other comprehensive loss | (14,995 | ) | (11,737 | ) | |||
Total Partners’ Capital | 540,009 | 415,797 | |||||
Noncontrolling interests in consolidated entities | 251,645 | 64,623 | |||||
Total Capital | 791,654 | 480,420 | |||||
Total Liabilities and Capital | $ | 1,409,447 | $ | 1,129,843 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | |||||||||||||||
Diversified industrial net sales | $ | 209,421 | $ | 195,746 | $ | 388,952 | $ | 354,153 | |||||||
Financial services revenue | 4,099 | 3,076 | 8,135 | 6,337 | |||||||||||
Investment and other income | 9 | 432 | 125 | 806 | |||||||||||
Net investment gains (losses) | 13,931 | (2,080 | ) | 16,270 | 10,978 | ||||||||||
Total revenue | 227,460 | 197,174 | 413,482 | 372,274 | |||||||||||
Costs and expenses | |||||||||||||||
Diversified industrial cost of goods sold | 146,423 | 145,143 | 275,234 | 262,503 | |||||||||||
Selling, general and administrative expenses | 46,919 | 36,833 | 88,425 | 69,315 | |||||||||||
Finance interest expense | 393 | 419 | 713 | 765 | |||||||||||
(Recovery of) provision for loan losses | (99 | ) | (52 | ) | (244 | ) | 64 | ||||||||
Interest expense | 3,696 | 2,239 | 7,004 | 5,454 | |||||||||||
Realized and unrealized (gain) loss on derivatives | (970 | ) | (3,284 | ) | (1,541 | ) | 254 | ||||||||
Management fees - related party | 1,743 | 2,051 | 3,302 | 4,218 | |||||||||||
(Decrease) Increase in deferred fee liability to related party | (314 | ) | 2,810 | 11,448 | 3,299 | ||||||||||
Other income | (477 | ) | — | (884 | ) | — | |||||||||
Total costs and expenses | 197,314 | 186,159 | 383,457 | 345,872 | |||||||||||
Income from continuing operations before income taxes and equity method income (loss) | 30,146 | 11,015 | 30,025 | 26,402 | |||||||||||
Income tax (provision) benefit | (16,791 | ) | (1,323 | ) | (18,663 | ) | 4,284 | ||||||||
Income (loss) from equity method investments and investments held at fair value: | |||||||||||||||
(Loss) Income of associated companies, net of taxes | (21,921 | ) | 12,983 | 28,619 | 14,841 | ||||||||||
Income (Loss) from other investments - related party | 1,790 | (905 | ) | (9,010 | ) | (9,189 | ) | ||||||||
Income (loss) from investments held at fair value | 340 | 8 | 8,978 | (1,556 | ) | ||||||||||
Net (loss) income from continuing operations | (6,436 | ) | 21,778 | 39,949 | 34,782 | ||||||||||
Discontinued operations: | |||||||||||||||
(Loss) Income from discontinued operations, net of taxes | — | (126 | ) | 601 | (733 | ) | |||||||||
(Loss) Gain on sale of discontinued operations, net of taxes | (567 | ) | (154 | ) | 2,585 | 2,580 | |||||||||
(Loss) Income from discontinued operations | (567 | ) | (280 | ) | 3,186 | 1,847 | |||||||||
Net (loss) income | (7,003 | ) | 21,498 | 43,135 | 36,629 | ||||||||||
Net (income) loss attributable to noncontrolling interests in consolidated entities: | |||||||||||||||
Continuing operations | (3,509 | ) | (8,930 | ) | (5,856 | ) | (10,549 | ) | |||||||
Discontinued operations | 275 | 29 | (1,546 | ) | (992 | ) | |||||||||
(3,234 | ) | (8,901 | ) | (7,402 | ) | (11,541 | ) | ||||||||
Net (loss) income attributable to common unitholders | $ | (10,237 | ) | $ | 12,597 | $ | 35,733 | $ | 25,088 | ||||||
Net (loss) income per common unit - basic | |||||||||||||||
Net (loss) income from continuing operations | $ | (0.32 | ) | $ | 0.51 | $ | 1.21 | $ | 0.96 | ||||||
Net (loss) income from discontinued operations | (0.01 | ) | (0.01 | ) | 0.06 | 0.03 | |||||||||
Net (loss) income attributable to common unitholders | $ | (0.33 | ) | $ | 0.50 | $ | 1.27 | $ | 0.99 | ||||||
Net (loss) income per common unit - diluted | |||||||||||||||
Net (loss) income from continuing operations | $ | (0.32 | ) | $ | 0.51 | $ | 1.21 | $ | 0.92 | ||||||
Net (loss) income from discontinued operations | (0.01 | ) | (0.01 | ) | 0.06 | 0.03 | |||||||||
Net (loss) income attributable to common unitholders | $ | (0.33 | ) | $ | 0.50 | $ | 1.27 | $ | 0.95 | ||||||
Weighted average number of common units outstanding - basic | 31,183,171 | 25,265,734 | 28,183,105 | 25,259,511 | |||||||||||
Weighted average number of common units outstanding - diluted | 31,210,346 | 25,265,734 | 28,210,280 | 29,897,682 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net (loss) income | $ | (7,003 | ) | $ | 21,498 | $ | 43,135 | $ | 36,629 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized loss on available for sale securities (a) | (11,516 | ) | (8,660 | ) | (6,225 | ) | (3,261 | ) | |||||||
Currency translation adjustment | (839 | ) | 666 | (1,796 | ) | 1,030 | |||||||||
Other comprehensive loss | (12,355 | ) | (7,994 | ) | (8,021 | ) | (2,231 | ) | |||||||
Comprehensive (loss) income | (19,358 | ) | 13,504 | 35,114 | 34,398 | ||||||||||
Comprehensive income (loss) attributable to non-controlling interests | 996 | (8,823 | ) | (2,639 | ) | (11,826 | ) | ||||||||
Comprehensive (loss) income attributable to common unit holders | (18,362 | ) | 4,681 | $ | 32,475 | $ | 22,572 |
Six Months Ended | |||||||
June 30, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 43,135 | $ | 36,629 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Net investment gains | (16,270 | ) | (10,978 | ) | |||
(Recovery of) Provision for loan losses | (244 | ) | 64 | ||||
Income of associated companies | (28,619 | ) | (14,841 | ) | |||
Loss from other investments - related party | 9,010 | 9,189 | |||||
(Income) Loss from investments held at fair value | (8,978 | ) | 1,556 | ||||
Gain on sale of discontinued operations | (2,585 | ) | (2,580 | ) | |||
Depreciation and amortization | 13,646 | 12,543 | |||||
Non-cash income from derivatives | — | (1,403 | ) | ||||
Reclassification of net cash settlements on derivative instruments | (597 | ) | 1,604 | ||||
Stock based compensation | 3,619 | 1,736 | |||||
Deferred income taxes | 12,548 | 2,556 | |||||
Income tax benefit from release of deferred tax valuation allowance | — | (9,026 | ) | ||||
Other | 381 | 1,945 | |||||
Net change in operating assets and liabilities: | |||||||
Receivables | (22,222 | ) | (37,560 | ) | |||
Receivables from related parties | (3,469 | ) | — | ||||
Inventories | (3,811 | ) | (11,282 | ) | |||
Prepaid and other assets | (1,065 | ) | 2,237 | ||||
Accounts payable, accrued and other liabilities | 3,373 | (4,529 | ) | ||||
Payable to related parties | 1 | (197 | ) | ||||
Increase in deferred fee liability to related party | 11,448 | 3,299 | |||||
Net decrease (increase) in loans held for sale | 10,145 | (8,092 | ) | ||||
Net cash provided by (used in) operating activities of discontinued operations | 636 | (4,545 | ) | ||||
Net cash provided by (used in) operating activities | 20,082 | (31,675 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of investments | (52,824 | ) | (98,348 | ) | |||
Proceeds from sales of investments | 104,349 | 112,339 | |||||
Net (increase) decrease in loans receivable | (369 | ) | 1,740 | ||||
Purchases of property and equipment | (15,222 | ) | (7,635 | ) | |||
Reclassification of restricted cash | (260 | ) | 13,395 | ||||
Net cash settlements on derivative instruments | 597 | (1,604 | ) | ||||
Proceeds from sale of assets | 5,826 | — | |||||
Acquisitions, net of cash acquired | 45,848 | (57,374 | ) | ||||
Purchase of subsidiary shares from noncontrolling interests | (1,573 | ) | (1,715 | ) | |||
Investments in associated companies | (16,567 | ) | (9,404 | ) | |||
Proceeds from sales of discontinued operations | 22,194 | 26,543 | |||||
Other | 1,011 | 379 | |||||
Net cash provided by (used in) investing activities | 93,010 | (21,684 | ) |
Six Months Ended | |||||||
June 30, | |||||||
2012 | 2011 | ||||||
Cash flows from financing activities: | |||||||
Common unit cash distributions | — | (29,869 | ) | ||||
Net revolver borrowings | (2,042 | ) | 19,465 | ||||
Net borrowings of term loans - foreign | 1,400 | 746 | |||||
Repayments of term loans - domestic | (5,267 | ) | (10,645 | ) | |||
Return of capital paid to noncontrolling interest holders | (10,316 | ) | — | ||||
Net change in overdrafts | 4,305 | 3,832 | |||||
Net increase (decrease) in deposits | 11,876 | (8,587 | ) | ||||
Other | (3,009 | ) | (661 | ) | |||
Net cash used in financing activities | (3,053 | ) | (25,719 | ) | |||
Net change for the period | 110,039 | (79,078 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 83 | 228 | |||||
Cash and cash equivalents at beginning of period | 127,027 | 180,684 | |||||
Cash and cash equivalents at end of period | $ | 237,149 | $ | 101,834 | |||
Cash paid during the period for: | |||||||
Interest | $ | 6,659 | $ | 7,709 | |||
Taxes | $ | 2,868 | $ | 3,875 | |||
Non-cash investing activities: | |||||||
Net (increase) decrease in restricted cash from purchase of foreign currency financial instruments | $ | (260 | ) | $ | 27,392 | ||
Net transfers between loans and other assets | $ | — | $ | 200 | |||
Purchase of equipment through capital lease obligations | $ | — | $ | 969 | |||
Non-cash financing activities: | |||||||
Obligation to repurchase Subordinated Notes | $ | (5,492 | ) | $ | — | ||
Common units issued for directors compensation | $ | — | $ | 275 |
Common | Accumulated Other Comprehensive | Treasury Units | Partners’ | Non-controlling | Total | ||||||||||||||||||||||||||
Units | Loss | Units | Dollars | Capital | Total | Interests | Capital | ||||||||||||||||||||||||
Balance at December 31, 2011 | 27,991,764 | $ | (11,737 | ) | (2,808,725 | ) | $ | (48,099 | ) | $ | 427,534 | $ | 415,797 | $ | 64,623 | $ | 480,420 | ||||||||||||||
Net income | — | — | — | — | 35,733 | 35,733 | 7,402 | 43,135 | |||||||||||||||||||||||
Unrealized loss on available-for-sale investments | — | (2,304 | ) | — | — | — | (2,304 | ) | (3,921 | ) | (6,225 | ) | |||||||||||||||||||
Currency translation adjustment | — | (954 | ) | — | — | — | (954 | ) | (842 | ) | (1,796 | ) | |||||||||||||||||||
Deferred fee liability settlement | 6,939,647 | — | — | — | — | — | 70,195 | 70,195 | — | 70,195 | |||||||||||||||||||||
Steel Excel Acquisition | — | — | — | — | — | — | — | — | 189,598 | 189,598 | |||||||||||||||||||||
Return of capital to noncontrolling interest holders | — | — | — | — | — | — | — | — | (10,316 | ) | (10,316 | ) | |||||||||||||||||||
Excess of fair value received over carrying value of Sun Well in the Steel Excel Acquisition | — | — | — | — | — | — | 22,278 | 22,278 | 3,959 | 26,237 | |||||||||||||||||||||
Purchases of subsidiary shares, net of issuances | — | — | — | — | (1,197 | ) | (1,197 | ) | 1,142 | (55 | ) | ||||||||||||||||||||
Other, net | — | — | — | — | 461 | 461 | — | 461 | |||||||||||||||||||||||
Balance at June 30, 2012 | 34,931,411 | $ | (14,995 | ) | (2,808,725 | ) | $ | (48,099 | ) | $ | 555,004 | $ | 540,009 | $ | 251,645 | $ | 791,654 |
• | Completion of valuation reports associated with long-lived tangible and intangible assets which may result in further adjustments or recording of additional assets or liabilities; or |
• | Adjustments to deferred tax assets and liabilities, which may be based upon additional information, including adjustments to fair value estimates of underlying assets or liabilities. |
• | Adjustments to the fair value of the non-cash consideration received for Steel Excel. |
Consideration Paid | |||
Acquisition-date fair value of previously held equity interest | $ | 137,532 | |
Fair value of SWH transferred to Steel Excel | 68,747 | ||
Less: cash received from Steel Excel for SWH | (7,922 | ) | |
Total | $ | 198,357 |
Amount | |||
Assets: | |||
Cash and cash equivalents | $ | 45,360 | |
Marketable securities | 217,526 | ||
Accounts receivable | 23,435 | ||
Prepaid expenses and other current assets | 3,081 | ||
Property, plant and equipment | 75,021 | ||
Goodwill | 43,750 | ||
Identifiable intangible assets | 26,869 | ||
Other assets | 4,181 | ||
Total assets acquired | $ | 439,223 | |
Liabilities: | |||
Accounts payable and accrued liabilities | $ | 10,693 | |
Debt | 17,569 | ||
Other long-term liabilities (tax related) | 23,006 | ||
Total liabilities assumed | 51,268 | ||
Fair value of non-controlling interests | 189,598 | ||
Net assets acquired | $ | 198,357 |
Amount | Amortization Period (Years) | |||
Products and customer relationships | $ | 20,643 | 5 to 10 Years | |
Trademarks | 4,990 | Indefinite | ||
Trademarks | 720 | 5 to 7 Years | ||
Favorable lease | 47 | 2 Years | ||
Non-compete agreement | 469 | 5 Years | ||
Total identifiable intangible assets | $ | 26,869 |
• | On July 5, 2011, SPH acquired for cash 193,305 additional shares of DGT common stock for $1,933, bringing total shares owned as of July 5, 2011 to 1,977,023 representing 51.1% of the outstanding shares. Accordingly, the accounting for the investment in DGT was changed from the equity method to a majority-owned controlled subsidiary and is consolidated with SPH from that date. DGT operates through its subsidiary, RFI Corporation (“RFI”), which comprises DGT's Power Conversion Group. RFI designs, manufactures, markets and sells high voltage precision components and sub-assemblies and electronic noise suppression components for a variety of applications. The acquisition of the controlling interest in DGT was to further the Company's position as a global diversified holding company. |
• | On March 23, 2011, a subsidiary of HNH acquired certain assets and assumed certain liabilities of Tiger Claw, Inc. (“Tiger Claw”), a company that, among other businesses, develops and manufactures hidden fastening systems for deck construction. HNH believes this acquisition enhances its product offerings of fastening systems for deck construction. The initial purchase price of $8,761 was subsequently adjusted by approximately $254 in the fourth quarter of 2011, resulting in a final purchase price of $8,507. Revenue and net income of Tiger Claw in the Consolidated statement of operations from March 23, 2011 through June 30, 2011 are $3,700 and $800, respectively. |
• | On February 2, 2011, BNS acquired all of the capital stock of SWH. The initial purchase price of $50,806 was subsequently adjusted by approximately $343, resulting in a final purchase price of $50,463 in cash. SWH owns all of the capital stock of Sun Well, its sole asset. Sun Well is a work-over rig provider to oil and gas exploration companies throughout the Williston Basin in North Dakota. SWH was acquired to further the Company's position as a global diversified holding company. Revenue and net income of SWH included in the Consolidated statement of operations for the three and six months ended June 30, 2011 are $8,292 and $1,408, and $13,370 and $2,911, respectively. |
Six Months Ended | |||||||
June 30, | |||||||
2012 | 2011 | ||||||
Revenue | $ | 444,654 | $ | 405,587 | |||
Net income attributable to common unitholders | 36,497 | 33,348 | |||||
Net income per common unit - basic | 1.30 | 1.32 | |||||
Net income per common unit - diluted | 1.30 | 1.23 |
December 31, | |||
2011 | |||
Assets of discontinued operations: | |||
Cash and cash equivalents | $ | — | |
Trade and other receivables | 13,256 | ||
Inventories | 11,403 | ||
Other current assets | 1,711 | ||
Other intangibles, net | 8,469 | ||
Property, plant and equipment, net | 499 | ||
Other assets | 49 | ||
Total assets | $ | 35,387 | |
Liabilities of discontinued operations: | |||
Trade payables and accrued liabilities | $ | 7,486 | |
Other current liabilities | 5,982 | ||
Other liabilities | 1,842 | ||
Total liabilities | $ | 15,310 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Sales | $ | — | $ | 3,768 | $ | 5,322 | $ | 15,795 | |||||||
Net (loss) income | — | (126 | ) | 601 | (733 | ) | |||||||||
Loss after taxes and noncontrolling interests | — | (98 | ) | 309 | (413 | ) | |||||||||
(Loss) Gain on sale of discontinued operations after taxes and noncontrolling interests | (292 | ) | (154 | ) | 1,331 | 1,268 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Investments in associated companies: | |||||||
CoSine | $ | 6,817 | $ | 6,944 | |||
Fox & Hound | 29,561 | — | |||||
SL Industries, Inc. | 13,067 | 16,049 | |||||
Steel Excel (a) | — | 105,225 | |||||
$ | 49,445 | $ | 128,218 | ||||
Summary of balance sheet amounts: | |||||||
Current assets | $ | 99,731 | $ | 443,740 | |||
Noncurrent assets | 256,444 | 55,540 | |||||
Total assets | $ | 356,175 | $ | 499,280 | |||
Current liabilities | $ | 60,278 | $ | 39,727 | |||
Noncurrent liabilities | 169,739 | 26,504 | |||||
Total liabilities | 230,017 | 66,231 | |||||
Parent equity | 126,158 | 433,049 | |||||
Total liabilities and equity | $ | 356,175 | $ | 499,280 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Summary income statement amounts: | |||||||||||||||
Revenue | $ | 130,892 | $ | 152,844 | $ | 256,666 | $ | 230,276 | |||||||
Gross profit | 25,964 | 40,252 | 37,491 | 63,591 | |||||||||||
Income (loss) from continuing operations | (3,218 | ) | 3,800 | (1,207 | ) | 10,039 | |||||||||
Net income (loss) after noncontrolling interests | (3,064 | ) | 15,299 | (8,716 | ) | 21,348 | |||||||||
Amounts recognized in the consolidated financial statements: | |||||||||||||||
SPH share of net income | (80 | ) | (374 | ) | (176 | ) | 5 | ||||||||
Unrealized gain (loss) on associated companies accounted for at fair value | (21,841 | ) | 13,357 | 28,795 | 14,836 | ||||||||||
SPH’s equity in other comprehensive loss | — | 794 | — | 401 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair value | ||||||||||||
June 30, 2012 | |||||||||||||||
Available for sale securities | |||||||||||||||
Short-term deposits | $ | 44,592 | $ | — | $ | — | $ | 44,592 | |||||||
Mutual funds | 10,000 | 135 | — | 10,135 | |||||||||||
United States government securities | 118,069 | 7 | (37 | ) | 118,039 | ||||||||||
Government agencies | 2,507 | — | (3 | ) | 2,504 | ||||||||||
Equity securities | 4,701 | 4 | (149 | ) | 4,556 | ||||||||||
Commercial paper | 35,827 | 3 | (3 | ) | 35,827 | ||||||||||
Corporate obligations | 33,814 | 25 | (1 | ) | 33,838 | ||||||||||
Total marketable securities | 249,510 | 174 | (193 | ) | 249,491 | ||||||||||
Amounts classified as cash equivalents | (61,284 | ) | — | — | (61,284 | ) | |||||||||
Amounts classified as marketable securities | $ | 188,226 | $ | 174 | $ | (193 | ) | $ | 188,207 |
Cost | Estimated Fair Value | |||||
Mature in one year or less | $ | 229,865 | $ | 229,682 | ||
Mature after one year through three years | 19,645 | 19,809 | ||||
$ | 249,510 | $ | 249,491 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair value | ||||||||||||
June 30, 2012 | |||||||||||||||
Equity securities - U.S. | |||||||||||||||
Computer Software and Services | $ | 4,953 | $ | 215 | $ | (1,645 | ) | $ | 3,523 | ||||||
Aerospace/Defense | 10,811 | 15,722 | — | 26,533 | |||||||||||
Manufacturing | 16,279 | 11,645 | — | 27,924 | |||||||||||
Restaurants | 5,974 | 7,167 | — | 13,141 | |||||||||||
Other | 27,935 | 60 | $ | (7,774 | ) | 20,221 | |||||||||
Total available-for-sale securities | $ | 65,952 | $ | 34,809 | $ | (9,419 | ) | $ | 91,342 | ||||||
December 31, 2011 | |||||||||||||||
Equity securities - U.S. | |||||||||||||||
Computer Software and Services | $ | 27,649 | $ | 3,132 | $ | (2,146 | ) | $ | 28,635 | ||||||
Aerospace/Defense | 10,746 | 10,884 | — | 21,630 | |||||||||||
Manufacturing | 16,495 | 14,960 | — | 31,455 | |||||||||||
Restaurants | 5,974 | 3,390 | — | 9,364 | |||||||||||
Other | 21,600 | 8,754 | (859 | ) | 29,495 | ||||||||||
Total available-for-sale securities | $ | 82,464 | $ | 41,120 | $ | (3,005 | ) | $ | 120,579 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Proceeds from sales | $ | 1,753 | $ | 24,294 | $ | 28,737 | $ | 80,430 | |||||||
Gross gains from sales | $ | 33 | $ | 9,141 | 2,912 | 14,599 | |||||||||
Gross losses from sales | — | — | — | (507 | ) | ||||||||||
Net investment gain | $ | 33 | $ | 9,141 | $ | 2,912 | $ | 14,092 | |||||||
Change in net unrealized holding gains (losses) included in other comprehensive income | $ | (17,843 | ) | $ | (8,363 | ) | $ | (12,725 | ) | $ | (2,965 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Unrealized gains | $ | 23 | $ | 8,966 | $ | 3,052 | $ | 7,112 | |||||||
Unrealized losses | — | — | — | — | |||||||||||
Total | $ | 23 | $ | 8,966 | $ | 3,052 | $ | 7,112 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Other investments - related party: | |||||||
SPII Liquidating Trust - Series B (a) | $ | 18,437 | $ | 16,408 | |||
SPII Liquidating Trust - Series D (b) | 610 | 11,783 | |||||
SPII Liquidating Trust - Series G (c) | 10,029 | 9,552 | |||||
SPII Liquidating Trust - Series H (d) | 3,474 | 3,496 | |||||
SPII Liquidating Trust - Series I (e) | 1,093 | 1,414 | |||||
Total | $ | 33,643 | $ | 42,653 | |||
Summary of balance sheet amounts: | |||||||
Total assets | $ | 76,853 | $ | 97,502 | |||
Total liabilities | 83 | — | |||||
Net Asset Value | $ | 76,770 | $ | 97,502 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Summary income statement amounts: | |||||||||||||||
Net increase (decrease) in net assets from operations | $ | 3,949 | $ | (2,075 | ) | $ | (20,733 | ) | $ | (20,999 | ) | ||||
Amounts recognized in the consolidated financial statements: | |||||||||||||||
Gains (Loss) from other investments - related party | $ | 1,790 | $ | (905 | ) | $ | (9,010 | ) | $ | (9,189 | ) | ||||
Proceeds from sales | — | — | — | 4,156 | |||||||||||
Gross gains from sales | $ | — | $ | — | $ | — | $ | — | |||||||
Gross losses from sales | — | — | — | — | |||||||||||
Net investment gain | $ | — | $ | — | $ | — | $ | — |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Gross Assets | $ | 76,853 | $ | 97,502 | |||
Financial Obligations (a) | — | — | |||||
SPH Investment | 33,643 | 42,653 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Available-for-sale securities | $ | 33 | $ | 9,141 | $ | 2,912 | $ | 14,092 | |||||||
Financial instruments (a) | 374 | (11,125 | ) | (166 | ) | (2,778 | ) | ||||||||
Securities sold, not yet purchased | — | (96 | ) | — | (378 | ) | |||||||||
Gain on re-measurement of investment in Steel Excel (See Note 3) | 13,524 | — | 13,524 | — | |||||||||||
Other | — | — | — | 42 | |||||||||||
Total | $ | 13,931 | $ | (2,080 | ) | $ | 16,270 | $ | 10,978 |
Carrying Value | Fair Value | ||||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Assets: | |||||||||||||||
Marketable securities (see Note 6) | $ | 188,207 | $ | — | $ | 188,207 | $ | — | |||||||
Equity securities (see Note 6) | 91,342 | 120,579 | 91,342 | 120,579 | |||||||||||
Other investments held at fair value (see Note 6) | 38,420 | 29,441 | 38,420 | 29,441 | |||||||||||
Investments at fair value | 129,762 | 150,020 | 129,762 | 150,020 | |||||||||||
Loans receivable (see Note 9) | 34,230 | 43,762 | 35,063 | 44,031 | |||||||||||
Investments in associated companies (a) | 42,628 | 121,275 | 42,628 | 121,275 | |||||||||||
Other investments - related party (b) | 33,643 | 42,653 | 33,643 | 42,653 | |||||||||||
Total | $ | 428,470 | $ | 357,710 | $ | 429,303 | $ | 357,979 | |||||||
Liabilities: | |||||||||||||||
Financial instruments (see Note 8) | $ | 23,996 | $ | 23,736 | $ | 23,996 | $ | 23,736 | |||||||
Deposits (see Note 13) | 106,758 | 94,882 | 108,568 | 96,013 | |||||||||||
Deferred fee liability to related party (see Note 14) (c) | — | 58,747 | — | 58,747 | |||||||||||
Derivative features of subordinated notes (see Note 8) | (178 | ) | 694 | (178 | ) | 694 | |||||||||
Commodity contracts on precious metals (see Note 8) | 74 | 229 | 74 | 229 | |||||||||||
Total | $ | 130,650 | $ | 178,288 | $ | 132,460 | $ | 179,419 |
June 30, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Marketable securities | $ | 135,343 | $ | 52,864 | $ | — | $ | 188,207 | |||||||
Investments (a) | 63,161 | 28,181 | — | 91,342 | |||||||||||
Investments in associated companies | 13,067 | — | 29,561 | 42,628 | |||||||||||
Other investments - related party (b) | — | — | 33,643 | 33,643 | |||||||||||
Other investments | 23,008 | — | 15,412 | 38,420 | |||||||||||
Commodity contracts on precious metals | — | — | — | — | |||||||||||
Total | $ | 234,579 | $ | 81,045 | $ | 78,616 | $ | 394,240 | |||||||
Liabilities: | |||||||||||||||
Financial instruments | $ | — | $ | 23,996 | $ | — | $ | 23,996 | |||||||
Deferred fee liability to related party | — | — | — | — | |||||||||||
Derivative features of subordinated notes | — | — | (178 | ) | (178 | ) | |||||||||
Commodity contracts on precious metals | 14 | 60 | — | 74 | |||||||||||
Total | $ | 14 | $ | 24,056 | (178 | ) | $ | 23,892 |
December 31, 2011 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Investments (a) | $ | 87,907 | $ | 32,672 | $ | — | $ | 120,579 | |||||||
Investments in associated companies | 121,275 | — | — | 121,275 | |||||||||||
Other investments - related party (b) | — | — | 42,653 | 42,653 | |||||||||||
Other investments | 15,819 | — | 13,623 | 29,442 | |||||||||||
Total | $ | 225,001 | $ | 32,672 | $ | 56,276 | $ | 313,949 | |||||||
Liabilities: | |||||||||||||||
Financial instruments | $ | — | $ | 23,736 | $ | — | $ | 23,736 | |||||||
Deferred fee liability to related party | — | — | 58,747 | 58,747 | |||||||||||
Derivative features of subordinated notes | — | — | 694 | 694 | |||||||||||
Commodity contracts on precious metals | 165 | 64 | — | 229 | |||||||||||
Total | $ | 165 | $ | 23,800 | $ | 59,441 | $ | 83,406 |
(b) | Other investments - related party are entirely comprised of the interests held by the Company in each series of the SPII Liquidating Trust (see Note 6 - “Investments” and Note 14 - “Related Party Transactions”). Each series of the SPII Liquidating Trust generally holds the securities related to a specific investment and cash for operating expenses of the series. The investments in the SPII Liquidating Trust are not redeemable and distributions will be received as the underlying assets of the SPII Liquidating Trust are liquidated over a period which is not determinable. There are no unfunded capital commitments with respect to these investments. The fair values for the investments in the SPII Liquidating Trust held by the Company have been estimated using the net asset value of such interests as reported by the SPII Liquidating Trust. Changes in the fair values of investments in the SPII Liquidating Trust are reported in the consolidated statement of operations as loss from other investments - related party. |
Investments in Associated Companies | Debt-Securities -Corporate | Other Investments - Related Party | Other Investments | Total | ||||||||||||||
Assets | ||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | — | $ | 42,653 | $ | 13,622 | $ | 56,275 | ||||||||
Purchases | 10,923 | — | — | — | 10,923 | |||||||||||||
Sales | — | — | — | — | — | |||||||||||||
Unrealized gains | 18,638 | — | 2,506 | 1,790 | 22,934 | |||||||||||||
Unrealized losses | — | — | (11,516 | ) | — | (11,516 | ) | |||||||||||
Balance at June 30, 2012 | $ | 29,561 | $ | — | $ | 33,643 | $ | 15,412 | $ | 78,616 | ||||||||
Assets | ||||||||||||||||||
Balance at December 31, 2010 | $ | — | $ | — | $ | 62,553 | $ | 7,797 | $ | 70,350 | ||||||||
Purchases | — | 1,264 | — | — | 1,264 | |||||||||||||
Sales | — | — | (4,156 | ) | — | (4,156 | ) | |||||||||||
Unrealized gains | — | — | 601 | — | 601 | |||||||||||||
Unrealized losses | — | — | (9,790 | ) | (1,556 | ) | (11,346 | ) | ||||||||||
Balance at June 30, 2011 | $ | — | $ | 1,264 | $ | 49,208 | $ | 6,241 | $ | 56,713 |
Investments in Associated Companies | Other Investments - Related Party | Other Investments | Total | ||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||
Gains | |||||||||||||||
Income of associated companies | $ | 18,638 | $ | — | $ | — | $ | 18,638 | |||||||
Income from other investments-related party | — | 2,506 | — | 2,506 | |||||||||||
Income from investments held at fair value | — | — | 1,790 | 1,790 | |||||||||||
18,638 | 2,506 | 1,790 | 22,934 | ||||||||||||
Losses | |||||||||||||||
Losses from other investments-related party | — | (11,516 | ) | — | (11,516 | ) | |||||||||
Total | $ | 18,638 | $ | (9,010 | ) | $ | 1,790 | $ | 11,418 | ||||||
Six Months Ended June 30, 2011 | |||||||||||||||
Gains | |||||||||||||||
Gains from other investments - related party | $ | — | $ | 601 | $ | — | $ | 601 | |||||||
Losses | |||||||||||||||
Losses from other investments - related party | 1 | (9,790 | ) | — | (9,790 | ) | |||||||||
Investment and other loss | 1 | — | (1,556 | ) | (1,556 | ) | |||||||||
2 | (9,790 | ) | (1,556 | ) | (11,346 | ) | |||||||||
Total | $ | 2 | $ | (9,189 | ) | $ | (1,556 | ) | $ | (10,745 | ) |
Realized Gains | Realized Losses | Unrealized Gains | Unrealized Losses | Total | |||||||||||||||
Three Months Ended June 30, 2012: | |||||||||||||||||||
Income of associated companies | $ | — | $ | — | $ | — | $ | (11,122 | ) | $ | (11,122 | ) | |||||||
Income from other investments-related party | — | — | 2,067 | (277 | ) | 1,790 | |||||||||||||
Income from investments held at fair value | — | — | 1,694 | — | 1,694 | ||||||||||||||
Total | $ | — | $ | — | $ | 3,761 | $ | (11,399 | ) | $ | (7,638 | ) | |||||||
Three Months Ended June 30, 2011: | |||||||||||||||||||
Investment and other gains | $ | — | $ | — | $ | 8 | $ | — | $ | 8 | |||||||||
Income (loss) from other investments- related party | — | — | 521 | (1,426 | ) | (905 | ) | ||||||||||||
Total | $ | — | $ | — | $ | 529 | $ | (1,426 | ) | $ | (897 | ) |
Realized Gains | Realized Losses | Unrealized Gains | Unrealized Losses | Total | |||||||||||||||
Six Months Ended June 30, 2012: | |||||||||||||||||||
Income of associated companies | $ | — | $ | — | $ | 18,638 | $ | — | $ | 18,638 | |||||||||
Income from other investments-related party | — | — | 2,506 | (11,516 | ) | (9,010 | ) | ||||||||||||
Income from investments held at fair value | — | — | 1,790 | — | 1,790 | ||||||||||||||
Total | $ | — | $ | — | $ | 22,934 | $ | (11,516 | ) | $ | 11,418 | ||||||||
Six Months Ended June 30, 2011: | |||||||||||||||||||
Investment and other loss | $ | — | $ | — | $ | — | $ | (1,556 | ) | $ | (1,556 | ) | |||||||
Income (loss) from other investments- related party | — | — | 601 | (9,790 | ) | (9,189 | ) | ||||||||||||
Total | $ | — | $ | — | $ | 601 | $ | (11,346 | ) | $ | (10,745 | ) |
Distribution Payable (a) | Deferred Fee Liability to Related Party (b) | Derivative Feature of Subordinated Notes (c) | Common Unit Option Liability (d) | Total | |||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 58,747 | $ | 694 | $ | — | $ | 59,441 | |||||||||
Increase (decrease) in fair value reported in the consolidated statement of operations as expense (income) | — | 11,448 | (789 | ) | — | 10,659 | |||||||||||||
Deferred fee settlement | — | (70,195 | ) | — | (70,195 | ) | |||||||||||||
Other | — | — | (83 | ) | — | (83 | ) | ||||||||||||
Balance at June 30, 2012 | $ | — | $ | — | $ | (178 | ) | $ | — | $ | (178 | ) | |||||||
Balance at December 31, 2010 | $ | 29,869 | $ | 64,854 | $ | 2,866 | $ | 1,785 | $ | 99,374 | |||||||||
Increase in fair value reported in the consolidated statement of operations as expense (income) | — | 3,299 | (1,164 | ) | (1,669 | ) | 466 | ||||||||||||
Cash distribution on April 6, 2011 | (29,869 | ) | — | — | — | (29,869 | ) | ||||||||||||
Settlements | — | — | (562 | ) | — | (562 | ) | ||||||||||||
Balance at June 30, 2011 | $ | — | $ | 68,153 | $ | 1,140 | $ | 116 | $ | 69,409 |
(a) | See Note 17 - “Capital and Accumulated Other Comprehensive (Loss) Income" Common Unit Distributions. |
(b) | See Note 14 - “Related Party Transactions” |
(c) | See Note 8 - “Financial Instruments” |
(d) | See Note 17 - “Capital and Accumulated Other Comprehensive (Loss) Income" Common Unit Option Liability. |
June 30, 2012 | December 31, 2011 | |||||||||||
Currency | Carrying Amount | Notional Amount | Carrying Amount | Notional Amount | ||||||||
Japanese Yen | $ | 1,835 | ¥146,558 | $ | 1,899 | ¥146,241 | ||||||
Pound Sterling | 22,161 | £14,112 | 21,837 | £14,055 | ||||||||
Total | $ | 23,996 | $ | 23,736 |
Foreign exchange transactions: | ||||||||
June 30, 2012 | June 30, 2011 | |||||||
Balance, beginning of year | $ | 23,736 | $ | 137,823 | ||||
Purchases of foreign currency financial instruments | — | (29,874 | ) | |||||
Net investment losses | 166 | 1,205 | ||||||
Receipt of dividends, net of interest expense | 94 | 309 | ||||||
Other | — | 968 | ||||||
Balance of foreign currency financial instruments liability and related restricted cash, end of period | $ | 23,996 | $ | 110,431 |
Commodity | Amount |
Silver | 100,000 ounces |
Gold | 1,400 ounces |
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2011 | 2011 | ||||||
Proceeds from sales | $ | 781 | $ | 15,893 | |||
Realized gains (losses): | |||||||
Gross gains from sales | $ | — | $ | 1,459 | |||
Gross losses from sales | — | (730 | ) | ||||
Net realized investment gain | — | 729 | |||||
Unrealized gains (losses): | |||||||
Change in unrealized gains | 1,325 | 3,756 | |||||
Change in unrealized losses | (9,538 | ) | (6,058 | ) | |||
Net unrealized investment loss | (8,213 | ) | (2,302 | ) | |||
Net investment loss | $ | (8,213 | ) | $ | (1,573 | ) |
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2011 | 2011 | ||||||
Proceeds from sales | $ | 4,146 | $ | 11,859 | |||
Realized gains (losses): | |||||||
Gross gains from sales | $ | — | $ | 12 | |||
Gross losses from sales | — | (295 | ) | ||||
Net realized investment loss | — | (283 | ) | ||||
Unrealized gains (losses): | |||||||
Change in unrealized gains | — | 1 | |||||
Change in unrealized losses | (96 | ) | (96 | ) | |||
Net unrealized investment loss | (96 | ) | (95 | ) | |||
Net investment loss | $ | (96 | ) | $ | (378 | ) |
June 30, | December 31, | |||||||||
Derivative | Balance Sheet Location | 2012 | 2011 | |||||||
Foreign currency financial instruments | Financial instruments - current liabilities | $ | 23,996 | $ | 23,736 | |||||
Commodity contracts | Other current assets | $ | — | $ | — | |||||
Commodity contracts | Other current liabilities | $ | 74 | $ | 229 | |||||
Derivative features of subordinated notes | Long-term debt | $ | (178 | ) | $ | 694 |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Derivative | Statement of Operations Location | Gain (loss) | Gain (loss) | Gain (loss) | Gain (loss) | |||||||||||||
Foreign currency financial instruments | Net investment (loss) gain | $ | 374 | $ | (2,912 | ) | $ | (166 | ) | $ | (1,205 | ) | ||||||
Commodity contracts | Realized and unrealized gain (loss) on derivatives | 495 | 1,315 | 752 | (1,418 | ) | ||||||||||||
Call options | Net investment gain (loss) | — | (6,255 | ) | — | (3,303 | ) | |||||||||||
Put options | Net investment gain (loss) | — | (1,958 | ) | — | 1,730 | ||||||||||||
Securities sold, not yet purchased | Net investment gain (loss) | — | (96 | ) | — | (378 | ) | |||||||||||
Derivative features of subordinated notes | Realized and unrealized gain (loss) on derivatives | 476 | 1,969 | 789 | 1,164 | |||||||||||||
Total derivatives | $ | 1,345 | $ | (7,937 | ) | $ | 1,375 | $ | (3,410 | ) |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Trade accounts receivable, net of allowance for doubtful accounts of $2,422 in 2012 and $2,504 in 2011 | $ | 127,571 | $ | 84,987 | |||
Other receivables | 2,333 | 5,252 | |||||
Total | $ | 129,904 | $ | 90,239 |
Total | Current | Non-current | |||||||||||||||||||||||||||
June 30, 2012 | % | December 31, 2011 | % | June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | ||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Commercial - owner occupied | $ | 8,213 | 24 | % | $ | 8,340 | 19 | % | $ | 290 | $ | 302 | $ | 7,923 | $ | 8,038 | |||||||||||||
Commercial – other | 294 | 1 | % | 300 | — | % | 9 | 9 | 285 | 291 | |||||||||||||||||||
Total real estate loans | 8,507 | 25 | % | 8,640 | 19 | % | 299 | 311 | 8,208 | 8,329 | |||||||||||||||||||
Commercial and industrial | 4,905 | 14 | % | 4,344 | 10 | % | 2,392 | 3,731 | 2,513 | 613 | |||||||||||||||||||
Loans held for sale | 21,218 | 61 | % | 31,363 | 71 | % | 21,218 | 31,363 | — | — | |||||||||||||||||||
Total loans | 34,630 | 100 | % | 44,347 | 100 | % | 23,909 | 35,405 | 10,721 | 8,942 | |||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Deferred fees and discounts | (14 | ) | (56 | ) | (14 | ) | (56 | ) | — | — | |||||||||||||||||||
Allowance for loan losses | (386 | ) | (529 | ) | (386 | ) | (529 | ) | — | — | |||||||||||||||||||
Total loans receivable, net | $ | 34,230 | $ | 43,762 | $ | 23,509 | $ | 34,820 | $ | 10,721 | $ | 8,942 |
• | Asset quality trends |
• | Risk management and loan administration practices |
• | Risk identification practices |
• | Effect of changes in the nature and volume of the portfolio |
• | Existence and effect of any portfolio concentrations |
• | National economic and business conditions |
• | Regional and local economic and business conditions |
• | Data availability and applicability |
Real Estate | ||||||||||||||||||||
Commercial - Owner Occupied | Commercial - Other | Commercial & Industrial | Unallocated | Total | ||||||||||||||||
Beginning balance - December 31, 2011 | $ | 347 | $ | 46 | $ | 136 | $ | — | $ | 529 | ||||||||||
Charge-offs | 1 | — | — | — | 1 | |||||||||||||||
Recoveries | 11 | 22 | 67 | — | 100 | |||||||||||||||
Provision | (92 | ) | (47 | ) | (105 | ) | — | (244 | ) | |||||||||||
Ending Balance – June 30, 2012 | $ | 267 | $ | 21 | $ | 98 | $ | — | $ | 386 |
Real Estate | ||||||||||||||||
Commercial - Owner Occupied | Commercial - Other | Commercial & Industrial | Total | |||||||||||||
Allowance for loan losses: | ||||||||||||||||
Individually evaluated for impairment | $ | 25 | $ | — | $ | — | $ | 25 | ||||||||
Collectively evaluated for impairment | 242 | 21 | 98 | 361 | ||||||||||||
Total | $ | 267 | $ | 21 | $ | 98 | $ | 386 | ||||||||
Outstanding Loan balances: | ||||||||||||||||
Individually evaluated for impairment (1) | $ | 3,507 | $ | — | $ | 196 | $ | 3,703 | ||||||||
Collectively evaluated for impairment | 4,706 | 294 | 4,709 | 9,709 | ||||||||||||
Total | $ | 8,213 | $ | 294 | $ | 4,905 | $ | 13,412 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Real Estate Loans: | |||||||
Commercial - Owner Occupied | $ | 910 | $ | 914 | |||
Total Real Estate Loans | 910 | 914 | |||||
Commercial and Industrial | 94 | 97 | |||||
Total Loans | $ | 1,004 | $ | 1,011 |
Current | 30-89 days past due | 90+ days past due | Total past due (2) | Total loans | Recorded investment in accruing loans 90+ days past due | Nonaccrual loans that are current (1) | ||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||
Commercial - Owner Occupied | $ | 5,201 | $ | 2,138 | $ | 874 | $ | 3,012 | $ | 8,213 | $ | — | $ | 36 | ||||||||||||||
Commercial - Other | 294 | — | — | — | 294 | — | — | |||||||||||||||||||||
Total Real Estate Loans | 5,495 | 2,138 | 874 | 3,012 | 8,507 | — | 36 | |||||||||||||||||||||
Commercial and Industrial | 4,770 | 41 | 94 | 135 | 4,905 | — | — | |||||||||||||||||||||
Total Loans | $ | 10,265 | $ | 2,179 | $ | 968 | $ | 3,147 | $ | 13,412 | $ | — | $ | 36 |
• | Pass: A Pass asset is a higher quality asset and does not fit any of the other categories described below. The likelihood of loss is considered remote. |
• | Special Mention: A receivable in this category has a specific weakness or problem but does not currently present a significant risk of loss or default as to any material term of the loan or financing agreement. |
• | Substandard: A substandard receivable has a developing or currently minor weakness or weaknesses that could result in loss or default if deficiencies are not corrected or adverse conditions arise. |
• | Doubtful: A doubtful receivable has an existing weakness or weaknesses that have developed into a serious risk of significant loss or default with regard to a material term of the financing agreement. |
Pass | Special Mention | Sub- standard (1) | Doubtful | Total loans | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||
Construction | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial - Owner Occupied | 4,568 | 138 | 3,507 | — | 8,213 | |||||||||||||||
Commercial - Other | 294 | — | — | — | 294 | |||||||||||||||
Total Real Estate Loans | 4,862 | 138 | 3,507 | — | 8,507 | |||||||||||||||
Commercial and Industrial | 4,709 | — | 196 | — | 4,905 | |||||||||||||||
Total Loans | $ | 9,571 | $ | 138 | $ | 3,703 | $ | — | $ | 13,412 |
Recorded investment | ||||||||||||||||||||||||
Unpaid principle balance | with no allowance | with allowance | Total recorded investment (1) | Related Allowance | Average recorded investment | |||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Commercial - Owner Occupied | $ | 3,760 | $ | 2,745 | $ | 762 | $ | 3,507 | $ | 25 | $ | 3,540 | ||||||||||||
Total Real Estate Loans | 3,760 | 2,745 | 762 | 3,507 | 25 | 3,540 | ||||||||||||||||||
Commercial and Industrial | 551 | 196 | — | 196 | — | 206 | ||||||||||||||||||
Total Loans | $ | 4,311 | $ | 2,941 | $ | 762 | $ | 3,703 | $ | 25 | $ | 3,746 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Finished products | $ | 20,002 | $ | 20,527 | |||
In – process | 9,688 | 8,775 | |||||
Raw materials | 19,638 | 19,577 | |||||
Fine and fabricated precious metal in various stages of completion | 11,836 | 8,658 | |||||
61,164 | 57,537 | ||||||
Inventory reserve | (3,495 | ) | (3,761 | ) | |||
$ | 57,669 | $ | 53,776 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Supplemental inventory information: | |||||||
Precious metals stated at LIFO cost | $ | 9,409 | $ | 6,044 | |||
Market value per ounce: | |||||||
Silver | 27.64 | 27.95 | |||||
Gold | 1,604.00 | 1,565.80 | |||||
Palladium | 584.55 | 655.40 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Land | $ | 9,360 | $ | 8,257 | |||
Buildings and improvements | 49,858 | 38,143 | |||||
Machinery, equipment and other | 144,222 | 95,602 | |||||
Construction in progress | 8,820 | 10,589 | |||||
212,260 | 152,591 | ||||||
Accumulated depreciation and amortization | (33,101 | ) | (24,749 | ) | |||
Net property, plant and equipment | $ | 179,159 | $ | 127,842 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Balance at beginning of year | $ | 42,797 | $ | 16,212 | |||
BNS sale of SWH to Steel Excel | (24,836 | ) | — | ||||
Acquisition of Steel Excel | 43,750 | — | |||||
Acquisition of SWH | — | 24,836 | |||||
Acquisition of Tiger Claw | — | 1,753 | |||||
Other | (10 | ) | (4 | ) | |||
Balance at end of period/year | $ | 61,701 | $ | 42,797 |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Product and customer relationships | $ | 116,045 | $ | 13,709 | $ | 96,810 | $ | 8,959 | |||||||
Trademarks | 25,500 | 1,744 | 26,390 | 1,078 | |||||||||||
Patents and technology | 21,605 | 3,842 | 21,432 | 2,868 | |||||||||||
Other | 6,421 | 1,090 | 4,631 | 1,017 | |||||||||||
$ | 169,571 | $ | 20,385 | $ | 149,263 | $ | 13,922 |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Time deposits year of maturity: | |||||||
2012 | $ | 15,968 | $ | 28,017 | |||
2013 | 25,814 | 22,866 | |||||
2014 | 12,042 | 18,514 | |||||
2015 | 12,044 | 15,209 | |||||
2016 | 5,532 | — | |||||
Total time deposits | 71,400 | 84,606 | |||||
Money market deposits | 35,358 | 10,276 | |||||
Total deposits | $ | 106,758 | $ | 94,882 | |||
Current | $ | 62,973 | $ | 38,293 | |||
Long-term | 43,785 | 56,589 | |||||
Total deposits | $ | 106,758 | $ | 94,882 | |||
Time deposit accounts under $100 | $ | 58,040 | $ | 70,800 | |||
Time deposit accounts $100 and over | 13,360 | 13,806 | |||||
Total time deposits | $ | 71,400 | $ | 84,606 |
• | Pursuant to a services agreement (the “Services Agreement”) with SP Corporate, an affiliate of the Manager, effective as of July 1, 2007, SP Corporate provided SPH with certain management, consulting and advisory services. In consideration of the services rendered, a fixed annual fee totaling $310 was charged, adjustable annually upon agreement. Effective as of July 15, 2009, the Services Agreement was amended to provide for the provision of accounting, investor relations, compliance and other services related to the operation of SPH. The fee to be paid is agreed upon by the parties from time to time. For the three and six months ended June 30, 2011, SP Corporate earned $298 and $646, respectively. Unpaid amounts under the Services Agreement are included in Payable to related parties and were $181 at December 31, 2011. |
• | On January 24, 2011, a special committee of the Board of Directors of HNH, composed entirely of independent directors, approved a management and services fee to be paid to SP Corporate in the amount of $1,950 for services performed in 2010. This fee was the only consideration paid for the services of the five directors who are associated with the Manager for their service on the Board of Directors of HNH and as the Chairman of the Board, the Vice Chairman and Chief Executive Officer, and the Vice President of HNH, as well as other assistance from SP Corporate and its affiliates. The services provided included management and advisory services with respect to operations, strategic planning, finance and accounting, sale and acquisition activities and other aspects of the businesses of HNH. For the three and six months ended June 30, 2011, HNH incurred $435 and $870 under the management and services fee. Unpaid amounts under the management services fee are included in Payable to related parties and were $435 at December 31, 2011. |
• | On March 9, 2010, WebBank and SP Corporate entered into a servicing agreement. SP Corporate receives $63 quarterly and provides certain services to WebBank. The agreement is effective January 1, 2010, continues for three years and automatically renews for successive one-year terms unless terminated in accordance with the agreement. For the three and six months ended June 30, 2011, WebBank incurred $63 and $126, respectively under the servicing agreement. There were no unpaid amounts at December 31, 2011. |
• | Effective July 1, 2007, BNS contracted with SP Corporate to provide BNS with financial management and administrative services, including the services of a chief financial officer and corporate secretary. Under the terms of an amended and restated services agreement effective as of May 12, 2010, SP Corporate receives $42 monthly for the provision of officers, financial management and administrative services. BNS incurred $333 for the period November 1, 2010 through June 30, 2011 (as discussed in Note 1 – “Basis of Presentation”, BNS changed its fiscal year to a calendar year and six months ended June 30, 2011 includes two additional months of statement of operations activity). There were no unpaid amounts at December 31, 2011. |
• | Effective September 1, 2009, DGT contracted with SP Corporate to provide DGT with executive management services. Under the terms of an amended and restated services agreement effective as of October 1, 2011, SP Corporate receives $48 monthly for the provision of such services. |
• | Effective October 1, 2011, Steel Excel contracted with SP Corporate to provide Steel Excel with financial management and administrative services, including the services of a chief financial officer. Under the terms of the services agreement, SP Corporate receives $35 monthly for the provision of such services. Effective August 1, 2012, the agreement was amended and restated. See Note 23 - "Subsequent Events". On April 30, 2012, Steel Excel and BNS entered into a definitive Share Acquisition Agreement, pursuant to which on May 31, 2012, Steel Excel acquired all of the capital stock of SWH, the parent company of Sun Well. As a result of the transaction, Steel Excel became a majority-owned controlled subsidiary and is consolidated with SPH from that date (for additional information on the transaction between Steel Excel and BNS, see Note 3 - "Acquisitions"). Any Fees charged to Steel Excel subsequent to May 31, 2012 are eliminated in consolidation. |
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Short term debt: | |||||||
First Lien Revolver | $ | 21,807 | $ | 23,850 | |||
Foreign | 464 | 318 | |||||
3/4% Convertible Senior Subordinated Notes | 346 | — | |||||
Total short-term debt | 22,617 | 24,168 | |||||
Long-term debt - non related party: | |||||||
First Lien Term Loans | 31,379 | 36,518 | |||||
Second Lien Term Loans | 75,000 | 75,000 | |||||
10% Subordinated Notes, net of unamortized discount | 13,379 | 18,559 | |||||
Other debt - domestic | 6,908 | 7,034 | |||||
Foreign loan facilities | 3,254 | 2,000 | |||||
Total debt to non related party | 129,920 | 139,111 | |||||
Less portion due within one year | 8,533 | 8,531 | |||||
Long-term debt to non related party | 121,387 | 130,580 | |||||
Long-term debt - related party: | |||||||
10% Subordinated Notes, net of unamortized discount | 375 | 375 | |||||
Total long-term debt | 121,762 | 130,955 | |||||
Total debt | $ | 152,912 | $ | 163,654 | |||
Capital lease facility | |||||||
Current portion of capital lease | $ | 823 | $ | 817 | |||
Long-term portion of capital lease | 1,814 | 2,183 | |||||
$ | 2,637 | $ | 3,000 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Service cost | $ | — | $ | 55 | $ | — | $ | 111 | |||||||
Interest cost | 5,406 | 5,600 | 10,754 | 11,200 | |||||||||||
Expected return on plan assets | (6,764 | ) | (6,923 | ) | (13,510 | ) | (13,846 | ) | |||||||
Amortization of actuarial loss | 637 | — | 1,265 | — | |||||||||||
$ | (721 | ) | $ | (1,268 | ) | $ | (1,491 | ) | $ | (2,535 | ) |
Unrealized gain on available-for-sale securities | Cumulative translation adjustment | Change in net pension and other benefit obligations | Total | ||||||||||||
Balance at December 31, 2011 | $ | 32,351 | $ | (1,649 | ) | $ | (42,439 | ) | $ | (11,737 | ) | ||||
Current period other comprehensive loss | (2,307 | ) | (951 | ) | — | (3,258 | ) | ||||||||
Balance at June 30, 2012 | $ | 30,044 | $ | (2,600 | ) | $ | (42,439 | ) | $ | (14,995 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net (loss) income from continuing operations | $ | (6,436 | ) | $ | 21,778 | $ | 39,949 | $ | 34,782 | ||||||
Increase in deferred fee liability (a) | — | — | — | 3,299 | |||||||||||
Restricted stock expense | 31 | — | 62 | — | |||||||||||
Net income attributable to noncontrolling interests in consolidated entities | (3,509 | ) | (8,930 | ) | (5,856 | ) | (10,549 | ) | |||||||
Net (loss) income from continuing operations | (9,914 | ) | 12,848 | 34,155 | 27,532 | ||||||||||
(Loss) Income from discontinued operations | (567 | ) | (280 | ) | 3,186 | 1,847 | |||||||||
Net loss (income) attributable to noncontrolling interests | 275 | 29 | (1,546 | ) | (992 | ) | |||||||||
(292 | ) | (251 | ) | 1,640 | 855 | ||||||||||
Net (loss) income attributable to common unitholders | $ | (10,206 | ) | $ | 12,597 | $ | 35,795 | $ | 28,387 | ||||||
Net (loss) income per common unit - basic | |||||||||||||||
Net (loss) income from continuing operations | $ | (0.32 | ) | $ | 0.51 | $ | 1.21 | $ | 0.96 | ||||||
Net (loss) income from discontinued operations | (0.01 | ) | (0.01 | ) | 0.06 | 0.03 | |||||||||
Net (loss) income attributable to common unitholders | $ | (0.33 | ) | $ | 0.50 | $ | 1.27 | $ | 0.99 | ||||||
Net (loss) income per common unit – diluted | |||||||||||||||
Net (loss) income from continuing operations | $ | (0.32 | ) | $ | 0.51 | $ | 1.21 | $ | 0.92 | ||||||
Net (loss) income from discontinued operations | (0.01 | ) | (0.01 | ) | 0.06 | 0.03 | |||||||||
Net (loss) income attributable to common unitholders | $ | (0.33 | ) | $ | 0.50 | $ | 1.27 | $ | 0.95 | ||||||
Weighted average common units outstanding - basic | 31,183,171 | 25,265,734 | 28,183,105 | 25,259,511 | |||||||||||
Adjustment for deferred fee liabilities (a) | — | — | — | 3,840,714 | |||||||||||
Adjustment for distribution payable (b) | — | — | — | 797,457 | |||||||||||
Unvested restricted stock | 27,175 | — | 27,175 | — | |||||||||||
Denominator for net income per common unit - diluted | 31,210,346 | 25,265,734 | 28,210,280 | 29,897,682 |
(a) | Includes common units assuming a common unit settlement of the deferred fee liability as described in Note 14 - “Related Party Transactions.” |
(b) | Includes common units assuming a common unit settlement of the distribution payable. The Target Distribution liability described in Note 17 may be settled in common units. The distribution was paid in April 2011 so is not applicable to 2012. |
• | HNH is a diversified holding company with strategic businesses encompassing precious metals, tubing, engineered materials, electronic materials, coated materials, and cutting replacement products and services. |
• | DGT, through its subsidiary RFI, manufactures and sells electronic systems and components for a variety of applications. |
• | Steel Excel owns several oilfield services companies providing premium well services to exploration and production (“E&P”) companies operating primarily in the Williston Basin in North Dakota and eastern Montana. Steel Excel provides critical services needed by E&P operators, including well completion, well maintenance and workover, well recompletion, hydrostatic tubular testing and plug and abandonment services. In addition, Steel Excel owns several sports businesses. The results of Steel Excel are included in the Diversified segment for the one month ended June 30, 2012. |
• | BNS is a holding company that currently has no business operations due to the recent sale of its SWH subsidiary to Steel Excel (see Note 3 - "Acquisitions"). BNS' results include the operations of SWH from January 1, 2012 through May 31, 2012, the date of sale. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue: | |||||||||||||||
Diversified industrial | $ | 209,421 | $ | 195,746 | $ | 388,952 | $ | 354,153 | |||||||
Financial services | 4,099 | 3,076 | 8,135 | 6,337 | |||||||||||
Corporate | 13,940 | (1,648 | ) | 16,395 | 11,784 | ||||||||||
Total | $ | 227,460 | $ | 197,174 | $ | 413,482 | $ | 372,274 | |||||||
Income (loss) from continuing operations before income taxes: | |||||||||||||||
Diversified industrial | $ | 7,217 | $ | 29,415 | $ | 47,799 | $ | 35,791 | |||||||
Financial services | 2,070 | 1,280 | 4,366 | 2,415 | |||||||||||
Corporate | 1,068 | (7,594 | ) | 6,447 | (7,708 | ) | |||||||||
Income from continuing operations before income taxes | 10,355 | 23,101 | 58,612 | 30,498 | |||||||||||
Income tax (provision) benefit | (16,791 | ) | (1,323 | ) | (18,663 | ) | 4,284 | ||||||||
Net (loss) income from continuing operations | $ | (6,436 | ) | $ | 21,778 | $ | 39,949 | $ | 34,782 | ||||||
(Loss) Income from equity method investments: | |||||||||||||||
Diversified industrial | $ | (10,720 | ) | $ | 9,785 | $ | 10,157 | $ | 11,429 | ||||||
Corporate | (9,411 | ) | 2,293 | 9,452 | (5,777 | ) | |||||||||
Total | $ | (20,131 | ) | $ | 12,078 | $ | 19,609 | $ | 5,652 |
Diversified Industrial | Financial Services | Corporate |
Handy & Harman Ltd. ("HNH") (1) | WebBank (1) | SPH Services, Inc. ("SPH Services") (1) |
BNS Holding, Inc. ("BNS") (1), (3) | CoSine Communications, Inc. ("CoSine")(2) | |
DGT Holdings Corp. ("DGT") (1) | Barbican Group Holdings Limited ("Barbican") (4), (5) | |
SL Industries, Inc. ("SLI") (2) | Fox & Hound Acquisition Corp. ("Fox & Hound") (2) | |
Steel Excel Inc. ("Steel Excel") (1), (3) | GenCorp Inc. (4), (6) | |
API Group PLC ("API")(4) | ||
JPS Industries, Inc. ("JPS")(4) |
(1) | Consolidated subsidiary |
(2) | Associated company |
(4) | Other core company |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues: | |||||||||||||||
Diversified industrial | $ | 209,421 | $ | 195,746 | $ | 388,952 | $ | 354,153 | |||||||
Financial services | 4,099 | 3,076 | 8,135 | 6,337 | |||||||||||
Corporate | 13,940 | (1,648 | ) | 16,395 | 11,784 | ||||||||||
Total Revenues | $ | 227,460 | $ | 197,174 | $ | 413,482 | $ | 372,274 | |||||||
Net income (loss) from continuing operations before income taxes: | |||||||||||||||
Diversified industrial | $ | 7,217 | $ | 29,415 | $ | 47,799 | $ | 35,791 | |||||||
Financial services | 2,070 | 1,280 | 4,366 | 2,415 | |||||||||||
Corporate | 1,068 | (7,594 | ) | 6,447 | (7,708 | ) | |||||||||
Total | 10,355 | 23,101 | 58,612 | 30,498 | |||||||||||
Income tax (provision) benefit | (16,791 | ) | (1,323 | ) | (18,663 | ) | 4,284 | ||||||||
Net (loss) income from continuing operations | (6,436 | ) | 21,778 | 39,949 | 34,782 | ||||||||||
(Loss) Income from discontinued operations | (567 | ) | (280 | ) | 3,186 | 1,847 | |||||||||
Net income attributable to noncontrolling interests in consolidated entities | (3,234 | ) | (8,901 | ) | (7,402 | ) | (11,541 | ) | |||||||
Net (loss) income attributable to common unitholders | (10,237 | ) | 12,597 | 35,733 | 25,088 | ||||||||||
Other comprehensive loss | (8,125 | ) | (7,916 | ) | (3,258 | ) | (2,516 | ) | |||||||
Comprehensive (loss) income attributable to common unitholders | $ | (18,362 | ) | $ | 4,681 | $ | 32,475 | $ | 22,572 |
• | HNH is a diversified holding company with strategic businesses encompassing precious metals, tubing, engineered materials, electronic materials, coated materials, and cutting replacement products and services. |
• | DGT, through its subsidiary RFI, manufactures and sells electronic systems and components for a variety of applications. |
• | Steel Excel owns several oil field services companies, providing premium well services to exploration and production (“E&P”) companies operating primarily in the Williston Basin in North Dakota and eastern Montana. Steel Excel provides critical services needed by E&P operators, including well completion, well maintenance and workover, well recompletion, hydrostatic tubular testing and plug and abandonment services. Steel Excel was previously accounted for as an associated company at fair value prior to SPH increasing its ownership over 50%. In addition, Steel Excel owns several sports businesses. The results of Steel Excel are included in the Diversified industrial segment for the one month ended June 30, 2012. |
• | BNS is a holding company with no operations as of June 30, 2012 due to the sale of Sun Well to Steel Excel in the second quarter of 2012 (see Note 3 - "Acquisitions" to the SPH financial statements found elsewhere in this Form 10-Q). BNS' results include the operations of Sun Well prior to the sale of Sun Well to Steel Excel on May 31, 2012 (five months in the year to date June 30, 2012 period). On June 18, 2012, BNS completed a distribution to its shareholders, pursuant to shareholder approval noted above, and distributed cash of approximately $10,300 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue: | |||||||||||||||
HNH | $ | 187,213 | $ | 187,454 | $ | 351,349 | $ | 340,783 | |||||||
BNS | 8,070 | 8,292 | 20,432 | 13,370 | |||||||||||
DGT | 2,942 | — | 5,975 | — | |||||||||||
Steel Excel | 11,196 | — | 11,196 | — | |||||||||||
Total Revenue | $ | 209,421 | $ | 195,746 | $ | 388,952 | $ | 354,153 | |||||||
Net income (loss) from continuing operations before income taxes: | |||||||||||||||
HNH | $ | 18,583 | $ | 18,947 | $ | 27,395 | $ | 22,693 | |||||||
BNS | 946 | 683 | 3,678 | 1,669 | |||||||||||
DGT | (607 | ) | — | (988 | ) | — | |||||||||
Steel Excel | 368 | — | 368 | — | |||||||||||
(Loss) Income of associated companies | (10,720 | ) | 9,785 | 10,157 | 11,429 | ||||||||||
(Loss) Income from investments held at fair value | (1,353 | ) | — | 7,189 | — | ||||||||||
Total | $ | 7,217 | $ | 29,415 | $ | 47,799 | $ | 35,791 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Sales | $ | 187,213 | $ | 187,454 | $ | 351,349 | $ | 340,783 | |||||||
Cost of sales | 132,542 | 139,666 | 252,841 | 254,107 | |||||||||||
Gross profit | 54,671 | 47,788 | 98,508 | 86,676 | |||||||||||
Selling, general and administrative expenses | 33,245 | 29,896 | 65,634 | 58,274 | |||||||||||
Interest expense, net | 3,663 | 2,217 | 6,823 | 5,443 | |||||||||||
Derivative activity (income) loss | (970 | ) | (3,282 | ) | (1,541 | ) | 256 | ||||||||
Other expense, net | 150 | 10 | 197 | 10 | |||||||||||
Net income from continuing operations before income taxes | $ | 18,583 | $ | 18,947 | $ | 27,395 | $ | 22,693 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 (a) | 2011 | 2012 (b) | 2011 (c) | ||||||||||||
Revenues | $ | 8,070 | $ | 8,292 | $ | 20,432 | $ | 13,370 | |||||||
Cost of revenues | 4,703 | 5,477 | 11,251 | 8,396 | |||||||||||
Gross profit | 3,367 | 2,815 | 9,181 | 4,974 | |||||||||||
Selling, general and administrative expenses | 2,590 | 2,112 | 5,481 | 3,296 | |||||||||||
Interest expense, net | 130 | 22 | 322 | 11 | |||||||||||
Other income, net | (299 | ) | (2 | ) | (300 | ) | (2 | ) | |||||||
Net income from continuing operations before income taxes | $ | 946 | $ | 683 | $ | 3,678 | $ | 1,669 |
Ownership at | Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30, | June 30, | |||||||||||||||
2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||
DGT (a) | 51.7% | $ | — | $ | (162 | ) | $ | — | $ | 362 | |||||||
JPS (b) | 39.3% | — | — | — | — | ||||||||||||
API (c) | 32.4% | — | 5,088 | — | 5,447 | ||||||||||||
SLI (d) | 24.0% | (6,321 | ) | 4,859 | (2,982 | ) | 5,620 | ||||||||||
Steel Excel (e) | 51.1% | (4,399 | ) | — | 13,139 | — | |||||||||||
$ | (10,720 | ) | $ | 9,785 | $ | 10,157 | $ | 11,429 |
(a) | Effective July 5, 2011, we consolidated DGT. Prior to this date the investment in DGT was accounted for under the equity method. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue: | |||||||||||||||
Interest income (including fees) | $ | 2,985 | $ | 2,181 | $ | 5,966 | $ | 4,360 | |||||||
Non-interest income | 1,114 | 895 | 2,169 | 1,977 | |||||||||||
4,099 | 3,076 | 8,135 | 6,337 | ||||||||||||
Costs and expenses: | |||||||||||||||
Interest | 336 | 202 | 617 | 417 | |||||||||||
(Recovery of) provision for loan losses | (99 | ) | (52 | ) | (244 | ) | 64 | ||||||||
Selling, general and administrative expenses | 1,792 | 1,646 | 3,396 | 3,441 | |||||||||||
2,029 | 1,796 | 3,769 | 3,922 | ||||||||||||
Net income from continuing operations before taxes | $ | 2,070 | $ | 1,280 | $ | 4,366 | $ | 2,415 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue: | |||||||||||||||
Investment and other income | $ | 9 | $ | 432 | $ | 125 | $ | 806 | |||||||
Net investment gains (losses) | 13,931 | (2,080 | ) | 16,270 | 10,978 | ||||||||||
13,940 | (1,648 | ) | 16,395 | 11,784 | |||||||||||
Costs and expenses: | |||||||||||||||
Interest | 57 | 217 | 95 | 348 | |||||||||||
Selling, general and administrative expenses | 4,075 | 3,169 | 7,203 | 4,294 | |||||||||||
Management fees - related party | 1,743 | 2,051 | 3,302 | 4,218 | |||||||||||
(Decrease) Increase in deferred fee liability to related party | (314 | ) | 2,810 | 11,448 | 3,299 | ||||||||||
Other income | (407 | ) | — | (859 | ) | — | |||||||||
5,154 | 8,247 | 21,189 | 12,159 | ||||||||||||
Income (loss) from continuing operations before income (loss) from equity method investments and investments held at fair value | 8,786 | (9,895 | ) | (4,794 | ) | (375 | ) | ||||||||
(Loss) Income of associated companies | (11,201 | ) | 3,198 | 18,462 | 3,412 | ||||||||||
Income (Loss) from other investments - related party | 1,790 | (905 | ) | (9,010 | ) | (9,189 | ) | ||||||||
Income (loss) from investments held at fair value | 1,693 | 8 | 1,789 | (1,556 | ) | ||||||||||
Net income (loss) from continuing operations | $ | 1,068 | $ | (7,594 | ) | $ | 6,447 | $ | (7,708 | ) |
Ownership at | Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||
2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Steel Excel(a) | 51.1% | $ | — | $ | 3,410 | $ | — | $ | 3,769 | ||||||||
CoSine | 46.8% | (79 | ) | (153 | ) | (176 | ) | (298 | ) | ||||||||
Fox & Hound (b) | 50.0% | (11,122 | ) | — | 18,638 | — | |||||||||||
Other | — | (59 | ) | — | (59 | ) | |||||||||||
$ | (11,201 | ) | $ | 3,198 | $ | 18,462 | $ | 3,412 |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Net cash provided by (used in) operating activities | $ | 20,082 | $ | (31,675 | ) | ||
Net cash provided by (used in) investing activities | 93,010 | (21,684 | ) | ||||
Net cash used in financing activities | (3,053 | ) | (25,719 | ) | |||
$ | 110,039 | (79,078 | ) |
Exhibit No. | Description | |
Exhibit 31.1 | Certification of Principal Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 and Rule 13a-14(a) of the Securities Exchange Act of 1934. | |
Exhibit 31.2 | Certification of Principal Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 and Rule 13a-14(a) of the Securities Exchange Act of 1934. | |
Exhibit 32.1 | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and Rule 13a-14(b) of the Securities Exchange Act of 1934. | |
Exhibit 32.2 | Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and Rule 13a-14(b) of the Securities Exchange Act of 1934. | |
Exhibit 101.INS | XBRL Instance Document | |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema | |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase | |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
Dated: | August 14, 2012 | STEEL PARTNERS HOLDINGS L.P. | |
By: | Steel Partners Holdings GP Inc. | ||
Its General Partner | |||
By: | /s/ James F. McCabe, Jr. | ||
James F. McCabe, Jr. | |||
Chief Financial Officer | |||
(Principal Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of Steel Partners Holdings L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | ||||
August 14, 2012 | /s/ Warren G. Lichtenstein | |||
Warren G. Lichtenstein Chief Executive Officer of Steel Partners Holdings GP Inc. |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of Steel Partners Holdings L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
c) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
d) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | ||||
August 14, 2012 | /s/ James F. McCabe, Jr. | |||
James F. McCabe, Jr. Chief Financial Officer of Steel Partners Holdings GP Inc. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
Date: | ||||
August 14, 2012 | /s/ Warren G. Lichtenstein | |||
Warren G. Lichtenstein Chief Executive Officer of Steel Partners Holdings GP Inc. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: | |||||
August 14, 2012 | /s/ James F. McCabe, Jr. | ||||
James F. McCabe, Jr. Chief Financial Officer of Steel Partners Holdings GP Inc. |
Financial Instruments (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Schedule of Derivative Instruments | The foreign currency financial instrument liabilities at June 30, 2012 and December 31, 2011 are as follows:
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Change in Financial Instrument Balance | Information is summarized below for foreign currency financial liabilities and related restricted cash:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Fair Value of Derivative Instruments in the Consolidated Balance Sheets:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Effect of derivative instruments on the Consolidated Statements of Operations:
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Option Contracts [Member]
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Derivative [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity of Financial Instruments | Information is summarized below for the option contracts for the three and six months ended June 30, 2011:
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Securities Sold, Not yet Purchased [Member]
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Derivative [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity of Financial Instruments | Information is summarized below for securities sold, not yet purchased for the three and six months ended June 30, 2011:
|
Subsequent Events (Details) (USD $)
In Thousands, unless otherwise specified |
8 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | ||
---|---|---|---|---|---|---|---|
May 31, 2012
Steel Excel [Member]
SP Corporate [Member]
|
Jun. 30, 2012
Other Affiliates [Member]
|
Jun. 30, 2012
Other Affiliates [Member]
|
Aug. 01, 2012
Subsequent Event [Member]
Steel Excel [Member]
SP Corporate [Member]
|
Aug. 01, 2012
Subsequent Event [Member]
Other Affiliates [Member]
SP Corporate [Member]
|
Jun. 06, 2012
Subsequent Event [Member]
Divestiture of Business [Member]
DGT [Member]
|
Jun. 06, 2012
Subsequent Event [Member]
Divestiture of Business [Member]
DGT [Member]
Forecast [Member]
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Subsequent Event [Line Items] | |||||||
Sale price of disposal group | $ 12,500 | ||||||
Escrow related to disposal group held as security for payments of certain obligations | 1,250 | ||||||
Escrow related to disposal group held for pending working capital adjustments | 237 | ||||||
Termination fee | 725 | ||||||
Related party provision of services, monthly | 35 | 300 | |||||
Revenue from related parties | $ 311 | $ 681 | $ 10 |
Acquisitions Pro forma results (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
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Business Combinations [Abstract] | ||
Revenue | $ 444,654 | $ 405,587 |
Net income attributable to common unitholders | $ 36,497 | $ 33,348 |
Net income per common unit - basic (in dollars per share) | $ 1.30 | $ 1.32 |
Net income per common unit - diluted (in dollars per share) | $ 1.30 | $ 1.23 |
Net Income Per Common Unit (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following data was used in computing net income (loss) per common unit shown in the consolidated statements of operations:
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Discontinued Operations - Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
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Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||||
Total assets | $ 0 | $ 0 | $ 35,387 | ||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||||
Total liabilities | 0 | 0 | 15,310 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Sales | 0 | 3,768 | 5,322 | 15,795 | |
Net (loss) income | 0 | (126) | 601 | (733) | |
Loss after taxes and noncontrolling interests | 0 | (98) | 309 | (413) | |
(Loss) Gain on sale of discontinued operations after taxes and noncontrolling interests | (292) | (154) | 1,331 | 1,268 | |
Villa [Member]
|
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Assets of Disposal Group, Including Discontinued Operation [Abstract] | |||||
Cash and cash equivalents | 0 | ||||
Trade and other receivables | 13,256 | ||||
Inventories | 11,403 | ||||
Other current assets | 1,711 | ||||
Other intangibles, net | 8,469 | ||||
Property, plant and equipment, net | 499 | ||||
Other assets | 49 | ||||
Total assets | 35,387 | ||||
Liabilities of Disposal Group, Including Discontinued Operation [Abstract] | |||||
Trade payables and accrued liabilities | 7,486 | ||||
Other current liabilities | 5,982 | ||||
Other liabilities | 1,842 | ||||
Total liabilities | $ 15,310 |
Other Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Selling, General and Administrative Expenses [Member]
Undisbursed Loan Commitment [Member]
|
Jun. 30, 2011
Selling, General and Administrative Expenses [Member]
Undisbursed Loan Commitment [Member]
|
Jun. 30, 2012
Selling, General and Administrative Expenses [Member]
Undisbursed Loan Commitment [Member]
|
Jun. 30, 2011
Selling, General and Administrative Expenses [Member]
Undisbursed Loan Commitment [Member]
|
Jun. 30, 2012
WebBank [Member]
|
Dec. 31, 2011
WebBank [Member]
|
Jun. 30, 2012
WebBank [Member]
Other Current Liabilities [Member]
Undisbursed Loan Commitment [Member]
|
Dec. 31, 2011
WebBank [Member]
Other Current Liabilities [Member]
Undisbursed Loan Commitment [Member]
|
|
Loss Contingencies [Line Items] | ||||||||
Undisbursed loan commitment | $ 149,869 | $ 113,350 | ||||||
Accrual for credit exposure | 1,070 | 1,696 | ||||||
Credit loss exposure expense (benefit) | $ 0 | $ 0 | $ (110) | $ 0 |
Capital and Accumulated Other Comprehensive (Loss) Income Common Units Issuance (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 11, 2012
Class B Common Units [Member]
|
Apr. 11, 2012
Class B Common Units [Member]
|
Jun. 30, 2012
Vesting Period, Current Year [Member]
|
Jun. 30, 2012
Vesting Period, Year Two [Member]
|
Jun. 30, 2012
Vesting Period, Year Three [Member]
|
Dec. 31, 2011
Director [Member]
Steel Partners II, L.P. [Member]
Restricted Common Units [Member]
|
Jun. 30, 2012
Director [Member]
Steel Partners II, L.P. [Member]
Common Unit [Member]
|
Jun. 30, 2011
Director [Member]
Steel Partners II, L.P. [Member]
Common Unit [Member]
|
Jun. 30, 2012
Director [Member]
Steel Partners II, L.P. [Member]
Common Unit [Member]
|
Jun. 30, 2011
Director [Member]
Steel Partners II, L.P. [Member]
Common Unit [Member]
|
Nov. 28, 2011
Director [Member]
Steel Partners II, L.P. [Member]
Common Unit [Member]
|
Mar. 20, 2011
Director [Member]
Steel Partners II, L.P. [Member]
September 30 2010 NAV [Member]
Common Unit [Member]
|
Mar. 20, 2011
Director [Member]
Steel Partners II, L.P. [Member]
December 31 2010 NAV [Member]
Common Unit [Member]
|
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Partners' Capital [Line Items] | |||||||||||||
Common units issued, directors | 7,315 | 6,865 | |||||||||||
Common units issued, directors, value per unit | $ 13.80 | $ 18.80 | $ 20.03 | ||||||||||
Restricted common units vesting percentage | 33.33% | 33.33% | 33.33% | ||||||||||
Equity compensation, directors, annual | $ 75 | ||||||||||||
Common units issuance expense | $ 31 | $ 0 | $ 62 | $ 275 | |||||||||
Market price discount applied to common units issued | 15.00% | ||||||||||||
Common units issued, related party | 536,645 | 6,403,002 |
Pension Benefit Plans (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The following table presents the components of net periodic pension cost for the HNH pension plans for the three and six months ended June 30, 2012 and 2011.
|
Recently Adopted Accounting Pronouncements (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy | Testing Goodwill for Impairment – In September 2011, the FASB issued guidance relating to testing goodwill for impairment, to allow entities to use a qualitative approach to test goodwill for impairment. The new guidance permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. The guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company adopted this amendment in 2012. The adoption did not have a material impact on the Company’s consolidated financial statements. Comprehensive Income (Topic 220): Presentation of Comprehensive Income – In June 2011, the FASB issued guidance on presentation of comprehensive income. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. Instead, an entity will be required to present either a continuous statement of net income and other comprehensive income, or two separate but consecutive statements. The Company adopted this guidance in the first quarter of 2012, which resulted in presentation changes only. Fair Value Measurement – In May 2011, the FASB issued guidance related to fair value measurements. This guidance changes the wording used to describe many of the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. For many of the requirements, the guidance does not result in a change in the application of the current fair value measurement and disclosure requirements. Some of the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The guidance, which was effective for the Company on January 1, 2012, did not have a material impact on the Company’s consolidated financial statements. |
Trade and Other Receivables (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Receivables [Abstract] | ||
Trade accounts receivable, net of allowance for doubtful accounts of $2,422 in 2012 and $2,504 in 2011 | $ 127,571 | $ 84,987 |
Other receivables | 2,333 | 5,252 |
Total | 129,904 | 90,239 |
Receivables (Textual) [Abstract] | ||
Allowance for doubtful accounts | $ 2,422 | $ 2,504 |
Financial Instruments Foreign Exchange Rollforward (Details) (Not Designated as Hedging Instrument [Member], Foreign currency financial instruments [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Not Designated as Hedging Instrument [Member] | Foreign currency financial instruments [Member]
|
||
Derivative [Line Items] | ||
Balance, beginning of year | $ 23,736 | $ 137,823 |
Purchases of foreign currency financial instruments | 0 | (29,874) |
Net investment losses | 166 | 1,205 |
Receipt of dividends, net of interest expense | 94 | 309 |
Other | 0 | 968 |
Balance, end of the year | $ 23,996 | $ 110,431 |
Supplemental Inventory Information (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Inventory Disclosure [Abstract] | ||
Precious metals stated at LIFO cost | $ 9,409 | $ 6,044 |
Market value per ounce, Silver | 27.64 | 27.95 |
Market value per ounce, Gold | 1,604.00 | 1,565.80 |
Market value per ounce, Palladium | 584.55 | 655.40 |
HNH’s Discontinued Operations (Details)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2011
USD ($)
|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2011
USD ($)
|
Mar. 31, 2011
Arlon Engineered Coated Products Division / Signtech Sale [Member]
USD ($)
|
Mar. 25, 2011
Arlon Engineered Coated Products Division / Signtech Sale [Member]
USD ($)
|
Sep. 30, 2011
Handy and Harman LTD [Member]
Eurokasco [Member]
EUR (€)
|
Dec. 31, 2011
Handy and Harman LTD [Member]
Arlon Engineered Coated Products Division / Signtech Sale [Member]
USD ($)
|
Mar. 31, 2011
Arlon LLC [Member]
Adhesive Film Division of Arlon [Member]
USD ($)
|
Feb. 04, 2011
Arlon LLC [Member]
Adhesive Film Division of Arlon [Member]
USD ($)
|
Mar. 25, 2011
Arlon LLC [Member]
Arlon Engineered Coated Products Division / Signtech Sale [Member]
USD ($)
|
|
Schedule of Sale of Discontinued Operation [Line Items] | |||||||||||
Sale of stock on discontinued operations, sale price, cash received | € 1 | ||||||||||
Sale of stock on discontinued operations, nature of consideration received, percentage | 25.00% | ||||||||||
Sale of stock on discontinued operations, term (in years) | 3 years | ||||||||||
Suppy agreement, term (in years) | 5 years | ||||||||||
Sale price of discontinued operations | 26,543,000 | 2,500,000 | |||||||||
Proceeds from sales of discontinued operations | 22,194,000 | 26,543,000 | 24,200,000 | ||||||||
(Loss) Gain on sale of discontinued operations after taxes and noncontrolling interests | (567,000) | (154,000) | 2,585,000 | 2,580,000 | 5,106,000 | 7,782,000 | |||||
Proceeds from sale of equipment | 500,000 | ||||||||||
Amounts held in escrow | $ 3,000,000 |
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 227,460 | $ 197,174 | $ 413,482 | $ 372,274 |
Income (loss) from continuing operations before income taxes | 10,355 | 23,101 | 58,612 | 30,498 |
Income tax (provision) benefit | (16,791) | (1,323) | (18,663) | 4,284 |
Net (loss) income from continuing operations | (6,436) | 21,778 | 39,949 | 34,782 |
(Loss) Income from equity method investments | (20,131) | 12,078 | 19,609 | 5,652 |
Diversified Industrial [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 209,421 | 195,746 | 388,952 | 354,153 |
Income (loss) from continuing operations before income taxes | 7,217 | 29,415 | 47,799 | 35,791 |
(Loss) Income from equity method investments | (10,720) | 9,785 | 10,157 | 11,429 |
Financial Services [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,099 | 3,076 | 8,135 | 6,337 |
Income (loss) from continuing operations before income taxes | 2,070 | 1,280 | 4,366 | 2,415 |
Corporate [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 13,940 | (1,648) | 16,395 | 11,784 |
Income (loss) from continuing operations before income taxes | 1,068 | (7,594) | 6,447 | (7,708) |
(Loss) Income from equity method investments | $ (9,411) | $ 2,293 | $ 9,452 | $ (5,777) |
Financial Instruments Balance Sheet Location (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|
Foreign currency financial instruments [Member]
|
||||
Derivatives, Fair Value [Line Items] | ||||
Derivative instruments, liabilities | $ 23,996 | $ 23,736 | $ 110,431 | $ 137,823 |
Foreign currency financial instruments [Member] | Financial Instruments, Current Liabilities [Member]
|
||||
Derivatives, Fair Value [Line Items] | ||||
Derivative instruments, liabilities | 23,996 | 23,736 | ||
Commodity contracts [Member] | Other Current Assets [Member]
|
||||
Derivatives, Fair Value [Line Items] | ||||
Deriviative instruments, assets | 0 | 0 | ||
Commodity contracts [Member] | Other Current Liabilities [Member]
|
||||
Derivatives, Fair Value [Line Items] | ||||
Derivative instruments, liabilities | 74 | 229 | ||
Derivative features of subordinated notes [Member] | Liabilities, Long-Term Debt [Member]
|
||||
Derivatives, Fair Value [Line Items] | ||||
Derivative instruments, assets (liabilities) | $ (178) | $ 694 |
Impaired Loans (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
||||
Receivable [Line Items] | |||||
Unpaid principal balance | $ 4,311 | ||||
Recorded investment with no allowance | 2,941 | ||||
Recorded investment with allowance | 762 | ||||
Total recorded investment | 3,703 | [1] | 3,789 | ||
Related allowance | 25 | ||||
Average recorded investment | 3,746 | ||||
Narrative [Abstract] | |||||
Guarantee by USDA or SBA | 2,332 | ||||
Commercial Real Estate Portfolio Segment [Member]
|
|||||
Receivable [Line Items] | |||||
Unpaid principal balance | 3,760 | ||||
Recorded investment with no allowance | 2,745 | ||||
Recorded investment with allowance | 762 | ||||
Total recorded investment | 3,507 | [1] | |||
Related allowance | 25 | ||||
Average recorded investment | 3,540 | ||||
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loans, Commercial, Owner-Occupied [Member]
|
|||||
Receivable [Line Items] | |||||
Unpaid principal balance | 3,760 | ||||
Recorded investment with no allowance | 2,745 | ||||
Recorded investment with allowance | 762 | ||||
Total recorded investment | 3,507 | [1] | |||
Related allowance | 25 | ||||
Average recorded investment | 3,540 | ||||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
|
|||||
Receivable [Line Items] | |||||
Unpaid principal balance | 551 | ||||
Recorded investment with no allowance | 196 | ||||
Recorded investment with allowance | 0 | ||||
Total recorded investment | 196 | [1] | |||
Related allowance | 0 | ||||
Average recorded investment | $ 206 | ||||
|
Allowance for Loan and Lease Losses (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Beginning balance | $ 529 |
Charge-offs | 1 |
Recoveries | 100 |
Provision | (244) |
Ending balance | 386 |
Narrative [Abstract] | |
Historical period for loss rates used in loan grading system | 36 months |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loans, Commercial, Owner-Occupied [Member]
|
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Beginning balance | 347 |
Charge-offs | 1 |
Recoveries | 11 |
Provision | (92) |
Ending balance | 267 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loans, Commercial-Other [Member]
|
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Beginning balance | 46 |
Charge-offs | 0 |
Recoveries | 22 |
Provision | (47) |
Ending balance | 21 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
|
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Beginning balance | 136 |
Charge-offs | 0 |
Recoveries | 67 |
Provision | (105) |
Ending balance | 98 |
Unallocated Segment [Member] | Unallocated [Member]
|
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Beginning balance | 0 |
Charge-offs | 0 |
Recoveries | 0 |
Provision | 0 |
Ending balance | $ 0 |
Summary of Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 20,002 | $ 20,527 |
In - process | 9,688 | 8,775 |
Raw materials | 19,638 | 19,577 |
Fine and fabricated precious metal in various stages of completion | 11,836 | 8,658 |
Inventory, before LIFO reserve | 61,164 | 57,537 |
Inventory reserve | (3,495) | (3,761) |
Inventory, Net | $ 57,669 | $ 53,776 |
Financial Instruments Income Statement Location (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | $ 1,345 | $ (7,937) | $ 1,375 | $ (3,410) |
Foreign currency financial instruments [Member] | Net investment (loss) gain [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | 374 | (2,912) | (166) | (1,205) |
Commodity contracts [Member] | Realized and unrealized gain (loss) on derivatives [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | 495 | 1,315 | 752 | (1,418) |
Call options [Member] | Net investment (loss) gain [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | 0 | (6,255) | 0 | (3,303) |
Put options [Member] | Net investment (loss) gain [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | 0 | (1,958) | 0 | 1,730 |
Securities sold, not yet purchased [Member] | Net investment (loss) gain [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | 0 | (96) | 0 | (378) |
Derivative features of subordinated notes [Member] | Realized and unrealized gain (loss) on derivatives [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) | $ 476 | $ 1,969 | $ 789 | $ 1,164 |
Fair Value Measurements Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
investments
|
Jun. 30, 2011
|
Jun. 30, 2012
investments
|
Jun. 30, 2011
|
Dec. 31, 2011
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Number of investments, Level 2 to Level 1 transfers | 1 | 1 | |||||||
Asset, Level 2 to Level 1 transfers | $ 324 | $ 324 | |||||||
Gains (Loss) from other investments - related party | 1,790 | (905) | (9,010) | (9,189) | |||||
Number of investment funds | 2 | 2 | |||||||
Term of extension period related to underlying investment fund | 1 year | ||||||||
Impaired loan recorded investment | 3,703 | [1] | 3,703 | [1] | 3,789 | ||||
Loans guaranteed | 2,332 | 2,332 | 2,354 | ||||||
Write-offs against allowance for loan losses | 1 | 0 | 1 | 353 | |||||
Level 3 [Member]
|
|||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Fair value of investments calculated using net assets | $ 33,643 | $ 33,643 | $ 42,653 | ||||||
|
Capital and Accumulated Other Comprehensive (Loss) Income
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital and Accumulated Other Comprehensive (Loss) Income | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Common Unit Distributions In connection with the Exchange Transaction, SPH agreed to distribute to the holders of its common units up to $87,506 (the “Target Distribution”), subject to certain limitations, during the period from July 16, 2009 to April 30, 2011. On April 1, 2010, SPH distributed to its unitholders of record as of March 26, 2010, $54,409 or $1.95 per common unit including $5,307 relating to treasury units. On April 6, 2011, SPH distributed to its unitholders of record as of March 25, 2011, $33,097 or $1.18 per common unit, including $3,228 relating to treasury units. With the Target Distribution having been met, the Company may, at its option, make future distributions to unitholders, although it currently has no plans to make any future distributions. Common Units Issuance Effective as of March 21, 2011, SPH issued to its independent directors an aggregate of 7,315 common units at a per unit value of $18.80, which was determined based on the net asset value of SPH common units as of September 30, 2010 and an aggregate of 6,865 common units at a per unit value of $20.03, which was determined based on the net asset value of SPH common units as of December 31, 2010. For the year ended December 31, 2011 each director earned annual equity compensation in the amount of $75 in the form of restricted common units of SPH, with one-third of such restricted common units vesting on November 28, 2012, one-third on November 28, 2013 and one-third on November 28, 2014. The per unit value of such restricted common units is $13.80, determined based on the fair market value of SPH common units as of November 28, 2011. Total expense for the common units issued was approximately $31 and $0 for the three months ended June 30, 2012 and 2011, respectively and $62 and $275 for the six months ended June 30, 2012. On April 11, 2012, the Company and the Investment Manager terminated the Investor Services Agreement, dated as of July 15, 2009, by mutual consent. As a result of the termination of the Investor Services Agreement the full amount of the Deferred Fee Liability became immediately payable - see Note 14 - "Related Party Transactions". Instead of receiving the deferred fee in cash, the Investment Manager elected for the total amount to be paid in common units of the Company. Under the Deferred Fee Agreement, the number of common units issued is determined by applying a 15% discount to the market price of the common units, which represents the fair value of the common units giving effect to the discount for lack of marketability. As a result, the Company issued 6,403,002 Class B common units to the Investment Manager on April 11, 2012 and on May 11, 2012, the Company issued an additional 536,645 Class B common units to the Investment Manager reflecting an adjustment based on the deferred fee liability as of March 31, 2012. These Class B common units have the same rights as the common units, except that they may not be sold in the public market until the capital account allocable to such Class B common units is equal to the capital account allocable to the common units. In connection with the termination of the Investor Services Agreement, the Investment Manager agreed not to sell any of the common units issued as payment for the deferred fee during the one year period following the Termination Date. Common Unitholders — Allocation of Net Income (Loss) For each period presented net (loss) income attributable to common unit holders is allocated to the common unitholders on a pro rata basis based on the number of units held. Accumulated Other Comprehensive Loss Changes, net of tax, in Accumulated other comprehensive loss are as follows:
For the three and six months ended June 30, 2012, there was no impact on comprehensive income related to companies accounted for under the equity method. At June 30, 2012 and December 31, 2011, Accumulated other comprehensive loss includes amounts for these companies of $1 and $2, respectively, for unrealized loss on available-for-sale securities. For the three and six months ended June 30, 2011, comprehensive income includes amounts for companies accounted for under the equity method of $21 for unrealized loss on available-for-sale securities and $33 and $426 for currency translation adjustments, respectively. Noncontrolling Interests in Consolidated Entities Noncontrolling interests in consolidated entities at June 30, 2012 and December 31, 2011 represent the interests held by the noncontrolling shareholders of BNS, HNH, DGT and Steel Excel. Incentive Compensation Effective January 1, 2012, the Manager was granted incentive units which may entitle the Manager to receive Class B common units of SPH upon the attainment of specified performance goals. These Class B common units have the same rights as the common units, except that they may not be sold in the public market until the capital account allocable to such Class B common units is equal to the capital account allocable to the common units. The number of incentive units granted is equal to 100% of the sum of the common units outstanding and the number of notional units used to determine the deferred fee accounts in accordance with the Deferred Fee Agreement, each as of January 1, 2012. On the last day of each fiscal year SPH will issue to the Manager Class B common units equal to a percentage of the incentive units, on a fully diluted basis, based on the performance measurements. If the performance measurements are not met, no units will be issued. SPH shall make any adjustment that it determines is equitably required by reason of the raising of new capital, including, without limitation, adjusting the performance measurements to account for changes in the capital structure. The incentive units are measured and paid on an annual basis and is accrued on a quarterly basis. Accordingly, the expense accrued is adjusted to reflect the fair value of the units on the measurement date when the final calculation of the total annual incentive units is determined. In the event the calculated cumulative incentive unit expense accrued quarterly or for the full year is an amount less than the total previously accrued, the Company would record a negative incentive unit expense in the quarter when such over accrual is determined. There was no accrual for the three and six months ended June 30, 2012. If any issuance of common units, options, convertible securities or any other right to acquire common units by us results in an increase in the number of common units outstanding on a fully diluted basis as compared to the number outstanding as of the date of the most recent issuance (or, in the case of the first issuance, since the initial incentive unit grant date), the Manager will be issued additional incentive units so that as of the grant date of the additional incentive units, after taking into account the number of outstanding common units on a fully diluted basis and all incentive units granted since the initial incentive units grant date, the Manager holds outstanding incentive units (in the aggregate) equal to 100% of the sum of the common units outstanding and the number of notional units used to determine the deferred fee accounts in accordance with the Deferred Fee Agreement, on a fully diluted basis. Each additional incentive unit shall otherwise be subject to the same terms as the incentive units, unless the Manager otherwise agrees. Common Unit Option Liability The common unit options expired on December 31, 2011. Therefore, there are no common unit options outstanding as of June 30, 2012 or December 31, 2011. During 2011, prior to the options expiring, the options were accounted for as a derivative liability at fair value with changes in fair value recognized during the period reported in Selling, General and Administrative expenses (“SG&A”) in the consolidated statements of operations. During the six months ended June 30, 2011, the derivative liability decreased resulting in a reduction of SG&A expenses of $1,670. The fair value was estimated using the Black Scholes option pricing model that used assumptions as of June 30, 2011 for volatility of 26.5%, a term of 6 months, a risk free interest rate of 0.10% based on the U.S. Treasury bill yield, and an expected dividend of 0%. The intrinsic value of the options was $0 as of June 30, 2011. The net asset value used in the fair value estimate was $18.81 at June 30, 2011, and was adjusted for a liquidity discount. Because the SPH common units have not significantly traded internally or in a public or non-public market, there was no practical means of estimating expected volatility. The volatility assumption was based on a calculated diversified industrial company peer group average of historical volatility. BNS Liquidating Trust On May 29, 2012, BNS shareholders approved a sale of SWH as well as a distribution to shareholders and a plan of liquidation, whereby BNS would be dissolved. On May 31, 2012 BNS sold its interest in SWH to Steel Excel. The sale proceeds included 2,027,500 shares of Steel Excel common stock and cash of $7,922. On June 18, 2012, BNS completed a distribution to its shareholders, pursuant to shareholder approval noted above, and distributed cash of approximately $10,300 to its minority shareholders and 2,027,500 shares Steel Excel common stock to its majority shareholder. In June 2012, BNS formed a liquidating trust, the BNS Holdings Liquidating Trust (“Liquidating Trust”), assigned its assets and liabilities to the Liquidating Trust, and BNS initiated its dissolution. The Liquidating Trust is owned by the BNS former shareholders, in the same proportion as their former shareholdings. The Liquidating Trust will continue to be included in the consolidated financial statements of SPH, as SPH owns approximately 85% of the Trust. SPH has provided a contingent promissory note to the Liquidating Trust in an amount not to exceed $3,000. This note will only be funded to the extent that the Liquidating Trust is unable to meet its ongoing obligations and is eliminated in SPH's consolidated financial statements. The Liquidating Trust had assets of approximately $5,900 and liabilities of approximately $2,300 at June 30, 2012. |
Acquisitions (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
May 31, 2012
Steel Excel [Member]
|
Jul. 31, 2011
DGT [Member]
|
Jul. 05, 2011
DGT [Member]
|
May 31, 2012
Steel Excel [Member]
|
Jun. 30, 2012
Steel Excel [Member]
|
Jun. 30, 2012
Steel Excel [Member]
Net Investment (Loss) Gain [Member]
|
May 31, 2012
Steel Excel [Member]
Common Stock [Member]
|
May 31, 2012
Steel Excel [Member]
|
May 31, 2012
Steel Excel [Member]
SWH [Member]
|
May 31, 2012
Steel Excel [Member]
SWH [Member]
Common Stock [Member]
|
Jun. 30, 2011
Handy and Harman LTD [Member]
Tiger Claw [Member]
|
Dec. 31, 2011
Handy and Harman LTD [Member]
Tiger Claw [Member]
|
Jun. 30, 2011
BNS [Member]
SWH [Member]
|
Jun. 30, 2011
BNS [Member]
SWH [Member]
|
Feb. 02, 2011
BNS [Member]
SWH [Member]
|
Mar. 23, 2011
Previously Reported [Member]
Handy and Harman LTD [Member]
Tiger Claw [Member]
|
Feb. 02, 2011
Previously Reported [Member]
BNS [Member]
SWH [Member]
|
Dec. 31, 2011
Adjustment [Member]
Handy and Harman LTD [Member]
Tiger Claw [Member]
|
Feb. 02, 2011
Adjustment [Member]
BNS [Member]
SWH [Member]
|
|
Business Acquisition [Line Items] | ||||||||||||||||||||||
Purchase price | $ 85,000 | $ 8,507 | $ 50,463 | $ 8,761 | $ 50,806 | |||||||||||||||||
Purchase price net of cash acquired and debt assumed | 68,747 | |||||||||||||||||||||
Equity interest issued in acquisition (in shares) | 2,027,500 | 2,027,500 | ||||||||||||||||||||
Acquisition share price (in dollars per share) | $ 30 | |||||||||||||||||||||
Acquisition price, portion paid in cash | 1,933 | 7,922 | ||||||||||||||||||||
Excess of fair value received over carrying value of Sun Well in the Steel Excel Acquisition | 26,237 | 26,237 | ||||||||||||||||||||
Investment owned (in shares) | 4,584,399 | 1,977,023 | 6,611,899 | |||||||||||||||||||
Noncontrolling interest, parent ownership percentage | 42.00% | |||||||||||||||||||||
Noncontrolling interest percent | 51.10% | 51.10% | ||||||||||||||||||||
Previously held equity and noncontrolling acquisition interest (fair value per share) | $ 30 | |||||||||||||||||||||
Weighted average cost of capital rates, percentage | 17.00% | |||||||||||||||||||||
Terminal value based on long-term sustainable growth rates, percentage | 3.00% | |||||||||||||||||||||
Acquisition-date fair value of previously held equity interest | 137,532 | |||||||||||||||||||||
Net investment gains | 13,524 | |||||||||||||||||||||
Goodwill | 61,701 | 42,797 | 16,212 | 43,750 | ||||||||||||||||||
Amortizaton of intangible assets, acquisition, next six months | 2,000 | |||||||||||||||||||||
Amortization of intangible assets, acquisition, year two | 3,300 | |||||||||||||||||||||
Amortization of intangible assets, acquisition, year three | 2,600 | |||||||||||||||||||||
Amortization of intangible assets, acquisition, year four | 2,200 | |||||||||||||||||||||
Amortization of intangible assets, acquisition, year five | 1,700 | |||||||||||||||||||||
Revenues since acquisition date, pro forma | 11,196 | 3,700 | 8,292 | 13,370 | ||||||||||||||||||
Pretax income from continuing operations since acquisition date, pro forma | 368 | 800 | 1,408 | 2,911 | ||||||||||||||||||
Additional shares of common stock acquired | 193,305 | |||||||||||||||||||||
Purchase price adjustment | $ 254 | $ 343 |
Property, Plant and Equipment, Net (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | A summary of property, plant and equipment, net is as follows:
|
Financial Instruments Proceeds and Gain/Loss Activity (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Derivative [Line Items] | ||||
Proceeds from sales | $ 104,349 | $ 112,339 | ||
Net investment loss | 13,931 | (2,080) | 16,270 | 10,978 |
Not Designated as Hedging Instrument [Member] | Option Contracts [Member]
|
||||
Derivative [Line Items] | ||||
Proceeds from sales | 781 | 15,893 | ||
Gross gains from sales | 0 | 1,459 | ||
Gross losses from sales | 0 | (730) | ||
Net realized investment gain | 0 | 729 | ||
Change in unrealized gains | 1,325 | 3,756 | ||
Change in unrealized losses | (9,538) | (6,058) | ||
Net unrealized investment loss | (8,213) | (2,302) | ||
Net investment loss | (8,213) | (1,573) | ||
Not Designated as Hedging Instrument [Member] | Securities Sold, Not yet Purchased [Member]
|
||||
Derivative [Line Items] | ||||
Proceeds from sales | 4,146 | 11,859 | ||
Gross gains from sales | 0 | 12 | ||
Gross losses from sales | 0 | (295) | ||
Net realized investment gain | 0 | (283) | ||
Change in unrealized gains | 0 | 1 | ||
Change in unrealized losses | (96) | (96) | ||
Net unrealized investment loss | (96) | (95) | ||
Net investment loss | $ (96) | $ (378) |
Related Party Transactions SPII Liquidating Trust, Mutual Securities and Other (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||||||||||
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Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2012
SPII Liquidating Trust [Member]
|
Dec. 31, 2011
SPII Liquidating Trust [Member]
|
Jun. 30, 2012
Mutual Services [Member]
|
Jun. 30, 2011
Mutual Services [Member]
|
Jun. 30, 2012
Mutual Services [Member]
|
Jun. 30, 2011
Mutual Services [Member]
|
Jun. 30, 2012
Director [Member]
|
Jun. 30, 2011
Director [Member]
|
Jun. 30, 2012
Director [Member]
|
Jun. 30, 2011
Director [Member]
|
Dec. 31, 2011
Director [Member]
|
Jun. 30, 2012
Director [Member]
Restricted Stock Units (RSUs) [Member]
|
Jun. 30, 2012
Audit Committee, Chairman [Member]
|
Jun. 30, 2012
Corporate Governance and Nominating Committee, Chairman [Member]
|
Jun. 30, 2012
Compensation Committee, Chairman [Member]
|
Jun. 30, 2012
SPJSF [Member]
|
Jun. 30, 2011
SPJSF [Member]
|
Jun. 30, 2012
SPJSF [Member]
|
Jun. 30, 2011
SPJSF [Member]
|
Dec. 31, 2011
SPJSF [Member]
|
Jun. 30, 2012
SPCA [Member]
|
Jun. 30, 2011
SPCA [Member]
|
Jun. 30, 2012
SPCA [Member]
|
Jun. 30, 2011
SPCA [Member]
|
Dec. 31, 2011
SPCA [Member]
|
Jun. 30, 2012
Steel Partners, Ltd [Member]
SPH Services [Member]
|
Mar. 31, 2012
Steel Partners, Ltd [Member]
SPH Services [Member]
|
Jun. 30, 2012
WebBank [Member]
NOVT Corporation [Member]
|
Dec. 31, 2011
WebBank [Member]
NOVT Corporation [Member]
|
|
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||
Investments in affiliates | $ 33,643 | $ 42,653 | $ 33,643 | $ 42,653 | $ 3,473 | $ 3,473 | $ 3,496 | $ 10,030 | $ 10,030 | $ 9,552 | |||||||||||||||||||||
Unrealized gain (loss) on investments in affiliates | 112 | (375) | (23) | (634) | (189) | (143) | 477 | (63) | |||||||||||||||||||||||
Services fees and reimbursable expenses | 26 | 125 | 105 | 402 | 145 | 137 | 285 | 291 | 254 | ||||||||||||||||||||||
Lease payment obligations | 3,286 | ||||||||||||||||||||||||||||||
Related party fees per services agreements | 1,203 | ||||||||||||||||||||||||||||||
Collateral held for investment | 31,782 | 47,605 | |||||||||||||||||||||||||||||
Annual retainer | 150 | 150 | |||||||||||||||||||||||||||||
Vesting of restricted units to directors | 3 years | ||||||||||||||||||||||||||||||
Annual retainer, portion paid in cash | 75 | 75 | |||||||||||||||||||||||||||||
Annual retainer, portion paid in restricted common units | 75 | 75 | |||||||||||||||||||||||||||||
Board compensation fee, per meeting | 1 | 1 | |||||||||||||||||||||||||||||
Related party services fees, annual | 15 | 5 | 5 | ||||||||||||||||||||||||||||
Deferred fees payable to related party | 0 | 0 | 437 | ||||||||||||||||||||||||||||
Factoring facility, maximum amount | 2,000 | ||||||||||||||||||||||||||||||
Factoring facility participation amount | 0 | 0 | |||||||||||||||||||||||||||||
Indemnification assets | $ 116 | $ 116 |
Investments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities, by Maturity Date | The amortized cost and estimated fair value of investments in available-for-sale securities as June 30, 2012, by contractual maturity, were as follows:
|
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Accumulated Other Comprehensive Loss | Investment information is summarized below for available-for-sale securities included in non-current assets:
|
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Unrealized Gain (Loss) on Investments | Reclassified out of Accumulated other comprehensive loss:
|
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Schedule of Investments in and Advances to Affiliates, Schedule of Investments | The following tables provide combined summarized data with respect to the other investments - related party accounted for under the equity method, which as discussed above the Company elected to account for at fair value commencing on the date the investment became subject to equity method accounting:
(a) Represents the Company’s interest in the series of the SPII Liquidating Trust that holds preference shares and ordinary shares in Barbican Group Holdings Limited. (b) Represents the Company’s interest in the series of the SPII Liquidating Trust that holds common shares in F&H. On March 19, 2012, in conjunction with a long-term refinancing of its debt, Fox & Hound issued new common equity. As a result of the transaction, our interest in F&H through the SPII Liquidating Trust was diluted and reduced by approximately $11,200 in the first quarter of 2012, which is included in Loss from other investments in our consolidated statement of operations. (c) Represents the Company’s interest in the series of the SPII Liquidating Trust that holds the limited partnership interest in Steel Partners China Access I L.P. (“SPCA”) (see Note 14 - “Related Party Transactions”). (d) Represents the Company’s interest in the series of the SPII Liquidating Trust that holds the limited partnership interest in Steel Partners Japan Strategic Fund, L.P. (“SPJSF”) (see Note 14 - “Related Party Transactions”). (e) Represents the Company’s interest in the series of the SPII Liquidating Trust that holds certain other investments. |
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Net Investment Gains (Losses) | Net Investment Gains (Losses) Net investment gains (losses) in the consolidated statements of operations consist of the following:
(a) The losses from financial instruments are primarily from the foreign currency financial instruments described in Note 8 - “Financial Instruments”. |
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Variable Interest Entity, Not Primary Beneficiary [Member]
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Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments in and Advances to Affiliates, Schedule of Investments | The following table sets forth certain information regarding the series of the SPII Liquidating Trust, in the aggregate, in which the Company holds a variable interest as of June 30, 2012 and December 31, 2011 and is not a primary beneficiary. The amounts presented below are included in, and not in addition to, the other investments - related party tables above.
(a) The SPII Liquidating Trust did not have any financial obligations as of June 30, 2012 and December 31, 2011 and the Company did not have any financial obligation to the SPII Liquidating Trust as of such dates. |
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Available for Sale Securities, Current [Member]
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Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | The Company’s portfolio of marketable securities at June 30, 2012 was as follows:
|
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Available for Sale Securities, Noncurrent [Member]
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Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Available-for-sale securities by industry classification at June 30, 2012 and December 31, 2011 are as follows:
|
Acquisitions Fair values assets acquired and liabilities assumed (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
May 31, 2012
Steel Excel [Member]
|
---|---|---|---|---|
Assets | ||||
Cash and cash equivalents | $ 45,360 | |||
Marketable securities | 217,526 | |||
Accounts receivable | 23,435 | |||
Prepaid expenses and other current assets | 3,081 | |||
Property, plant and equipment | 75,021 | |||
Goodwill | 61,701 | 42,797 | 16,212 | 43,750 |
Indentifiable intangible assets | 26,869 | |||
Other assets | 4,181 | |||
Total assets acquired | 439,223 | |||
Liabilities | ||||
Accounts payable and accrued liabilities | 10,693 | |||
Debt | 17,569 | |||
Other long-term liabilities (tax related) | 23,006 | |||
Total liabilities assumed | 51,268 | |||
Fair value of non-controlling interests | 189,598 | |||
Net assets acquired | $ 198,357 |
Fair Value Measurements Hierarchy Table (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Assets [Abstract] | ||||||||
Other investments | $ 38,420 | $ 29,441 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
|
||||||||
Assets [Abstract] | ||||||||
Marketable securities | 135,343 | |||||||
Investments | 63,161 | [1] | 87,907 | [1] | ||||
Investments in associated companies | 13,067 | 121,275 | ||||||
Other investments - related party | 0 | [2] | 0 | [2] | ||||
Other investments | 23,008 | 15,819 | ||||||
Commodity contracts on precious metals | 0 | |||||||
Total | 234,579 | 225,001 | ||||||
Liabilities [Abstract] | ||||||||
Deferred fee liability to related party | 0 | 0 | ||||||
Total | 14 | 165 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
|
||||||||
Assets [Abstract] | ||||||||
Marketable securities | 52,864 | |||||||
Investments | 28,181 | [1] | 32,672 | [1] | ||||
Investments in associated companies | 0 | 0 | ||||||
Other investments - related party | 0 | [2] | 0 | [2] | ||||
Other investments | 0 | 0 | ||||||
Commodity contracts on precious metals | 0 | |||||||
Total | 81,045 | 32,672 | ||||||
Liabilities [Abstract] | ||||||||
Deferred fee liability to related party | 0 | 0 | ||||||
Total | 24,056 | 23,800 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
|
||||||||
Assets [Abstract] | ||||||||
Marketable securities | 0 | |||||||
Investments | 0 | [1] | 0 | [1] | ||||
Investments in associated companies | 29,561 | 0 | ||||||
Other investments - related party | 33,643 | [2] | 42,653 | [2] | ||||
Other investments | 15,412 | 13,623 | ||||||
Commodity contracts on precious metals | 0 | |||||||
Total | 78,616 | 56,276 | ||||||
Liabilities [Abstract] | ||||||||
Deferred fee liability to related party | 0 | 58,747 | ||||||
Total | (178) | 59,441 | ||||||
Fair Value, Measurements, Recurring [Member] | Total [Member]
|
||||||||
Assets [Abstract] | ||||||||
Marketable securities | 188,207 | |||||||
Investments | 91,342 | [1] | 120,579 | [1] | ||||
Investments in associated companies | 42,628 | 121,275 | ||||||
Other investments - related party | 33,643 | [2] | 42,653 | [2] | ||||
Other investments | 38,420 | 29,442 | ||||||
Commodity contracts on precious metals | 0 | |||||||
Total | 394,240 | 313,949 | ||||||
Liabilities [Abstract] | ||||||||
Deferred fee liability to related party | 0 | 58,747 | ||||||
Total | 23,892 | 83,406 | ||||||
Financial instruments [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 0 | 0 | ||||||
Financial instruments [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 23,996 | 23,736 | ||||||
Financial instruments [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 0 | 0 | ||||||
Financial instruments [Member] | Fair Value, Measurements, Recurring [Member] | Total [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 23,996 | 23,736 | ||||||
Derivative features of subordinated notes [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 0 | 0 | ||||||
Derivative features of subordinated notes [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 0 | 0 | ||||||
Derivative features of subordinated notes [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | (178) | 694 | ||||||
Derivative features of subordinated notes [Member] | Fair Value, Measurements, Recurring [Member] | Total [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | (178) | 694 | ||||||
Commodity contracts on precious metals [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 14 | 165 | ||||||
Commodity contracts on precious metals [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 60 | 64 | ||||||
Commodity contracts on precious metals [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | 0 | 0 | ||||||
Commodity contracts on precious metals [Member] | Fair Value, Measurements, Recurring [Member] | Total [Member]
|
||||||||
Liabilities [Abstract] | ||||||||
Financial instruments | $ 74 | $ 229 | ||||||
|
Commitments and Contingencies Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 318 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 222 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2012
Handy & Harman [Member]
|
Jun. 30, 2012
Handy & Harman Electronics Material Corporation [Member]
|
Jun. 30, 2012
BNS Subsidiary [Member]
claim
|
Dec. 31, 2011
BNS Subsidiary [Member]
claim
|
Jun. 30, 2012
BNS Subsidiary [Member]
Insurance Claims [Member]
|
Dec. 31, 2011
BNS Subsidiary [Member]
Insurance Claims [Member]
|
Dec. 31, 2010
BNS Subsidiary [Member]
Insurance Claims [Member]
|
Jun. 30, 2012
Minimum [Member]
|
Jun. 30, 2012
Maximum [Member]
BNS Subsidiary [Member]
|
|
Loss Contingencies [Line Items] | |||||||||||
Accrual for environmental matters | $ 5,726 | $ 6,574 | |||||||||
Environmental Exit Costs, Anticipated Cost | 300 | ||||||||||
Investigation and remediation costs | 3,200 | ||||||||||
Claims, litigation matters | 1,069 | 1,020 | |||||||||
Loss contingency, number of defendants | 100 | ||||||||||
Number of claims, dismissed, settled or granted summary judgement and closed | 890 | 694 | |||||||||
Claims settled, average settlement value | 3 | ||||||||||
Insurance, coverage limit | 183,000 | ||||||||||
Self insurance retention | 1,660 | 2,220 | |||||||||
Accrual relating to open and active claims | $ 1,000 | $ 635 |
Investments Marketable Securities (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Schedule of Available-for-sale Securities [Line Items] | |
Investment program, authorized amount | $ 10,000 |
Available for Sale Securities, Current [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 249,510 |
Gross unrealized gains | 174 |
Gross unrealized losses | (193) |
Available-for-sale securities, fair value | 249,491 |
Available for Sale Securities, Current [Member] | Short-term deposits [Memer]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 44,592 |
Gross unrealized gains | 0 |
Gross unrealized losses | 0 |
Available-for-sale securities, fair value | 44,592 |
Available for Sale Securities, Current [Member] | Mutual funds [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 10,000 |
Gross unrealized gains | 135 |
Gross unrealized losses | 0 |
Available-for-sale securities, fair value | 10,135 |
Available for Sale Securities, Current [Member] | United States government securities [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 118,069 |
Gross unrealized gains | 7 |
Gross unrealized losses | (37) |
Available-for-sale securities, fair value | 118,039 |
Available for Sale Securities, Current [Member] | Government agencies [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 2,507 |
Gross unrealized gains | 0 |
Gross unrealized losses | (3) |
Available-for-sale securities, fair value | 2,504 |
Available for Sale Securities, Current [Member] | Equity Securities [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 4,701 |
Gross unrealized gains | 4 |
Gross unrealized losses | (149) |
Available-for-sale securities, fair value | 4,556 |
Available for Sale Securities, Current [Member] | Commercial paper [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 35,827 |
Gross unrealized gains | 3 |
Gross unrealized losses | (3) |
Available-for-sale securities, fair value | 35,827 |
Available for Sale Securities, Current [Member] | Corporate obligations [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 33,814 |
Gross unrealized gains | 25 |
Gross unrealized losses | (1) |
Available-for-sale securities, fair value | 33,838 |
Cash Equivalents [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 61,284 |
Gross unrealized gains | 0 |
Gross unrealized losses | 0 |
Available-for-sale securities, fair value | 61,284 |
Marketable Securities [Member]
|
|
Available-for-sale Securities, Balance Sheet, Reported Amounts [Abstract] | |
Cost | 188,226 |
Gross unrealized gains | 174 |
Gross unrealized losses | (193) |
Available-for-sale securities, fair value | $ 188,207 |
Capital and Accumulated Other Comprehensive (Loss) Income (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Changes, net of tax, in Accumulated other comprehensive loss are as follows:
|
Nature of the Business and Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Accounting Policies [Abstract] | |
Nature of the Business and Basis of Presentation | NATURE OF THE BUSINESS AND BASIS OF PRESENTATION Nature of the Business Steel Partners Holdings L.P. (“SPH” or the “Company”) is a global diversified holding company that engages in multiple businesses through consolidated subsidiaries, associated companies and other interests. The Company seeks to work with its businesses to increase corporate value over the long term for all stakeholders and shareholders by implementing Steel Partners Operational Excellence programs, the Steel Partners Purchasing Council, Steel Partners Corporate Services, balance sheet improvements, capital allocation policies and growth initiatives. The Company operates through consolidated subsidiaries and associated companies, which represent significant equity interests in operating businesses. SPH also owns interests directly and indirectly in other companies. As of June 30, 2012, the Company's operations are conducted primarily through its Diversified Industrial and Financial Services segments. The Company also reports certain other investments and investment activity and unallocated corporate expenses within its Corporate segment. Steel Partners Holdings GP Inc. (“SPH GP”), a Delaware corporation, is the general partner of SPH and is wholly-owned by SPH. Until December 31, 2011, Steel Partners LLC (“SPLLC”) was the manager of SPH (the “Manager”). Effective January 1, 2012, SPLLC assigned its interests in the management agreement to SP General Services LLC (“SPGS”), formerly an affiliate of SPLLC. The unitholders of SPH have limited liability with respect to their interest in the Company. Basis of Presentation The consolidated financial statements include the consolidated financial results of SPH, WebFinancial Holding Corporation (“WebFinancial”), Handy & Harman Ltd. (“HNH”), BNS Holding, Inc. (“BNS”), DGT Holdings Corp. (“DGT”), Steel Excel Inc. ("Steel Excel") and SPH Services, Inc. ("SPH Services"). Acquired companies are presented from their dates of acquisition (see Note 3 - "Acquisitions" for information on the acquisition of Steel Excel during the second quarter of 2012). The consolidated statement of operations for the three and six months of 2012 includes one month of Steel Excel's results of operations. DGT’s financial statements are recorded on a two-month lag, and as a result the statement of operations for the three and six months ended June 30, 2012 includes DGT’s activity for its three and six months ended April 30, 2012. In 2011, BNS changed its fiscal year end from October 31 to December 31. The six months ended June 30, 2011 includes two additional months for BNS, November and December of 2010. The accompanying unaudited consolidated financial statements, in accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, do not contain all of the footnotes or other financial information that is normally required by accounting principles generally accepted in the United States of America ("GAAP") and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2011. The Company believes that the disclosures made in this Form 10-Q are adequate to make the information not misleading. In the opinion of the Company, the interim financial statements reflect all normal and recurring adjustments necessary to present fairly the consolidated financial position and the results of operations and changes in cash flows for the interim periods. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2012 and 2011 are not necessarily indicative of the operating results for the full year. SPH Services SPH Services is a newly-formed subsidiary of SPH, which commenced operations on January 1, 2012, that was created to consolidate the executive and corporate functions of SPH and certain of our affiliates, including SP Corporate Services LLC ("SP Corporate") and SPLLC, to provide such services, including, without limitation, legal, tax, accounting, treasury, consulting, auditing, administration, compliance, environmental health and safety, human resources, marketing, investor relations and other similar services, to other companies. In connection with the formation of SPH Services, we acquired the membership interests in SP Corporate and SPLLC, and certain assets from Steel Partners, Ltd., a related party, as well as certain assets from HNH, on January 1, 2012. Prior to our acquisition of SPLLC, our former manager, SPLLC transferred certain assets, including its interest in our management agreement, to SPGS, a related party. See Note 14, "Related Party Transactions", for further information. SPH Services operates through its wholly owned subsidiaries, SP Corporate and SPLLC. SP Corporate has management services agreements with HNH, BNS, CoSine Communications, Inc. ("Cosine"), DGT, Fox & Hound Acquisition Corp. ("Fox & Hound"), Steel Excel and WebBank, a wholly owned subsidiary of WebFinancial. In addition, SP Corporate has management services agreements with NOVT Corporation (“NOVT”), Steel Partners, Ltd., J. Howard Inc. and Ore Holdings, Inc., which are affiliated companies. |
Investments Marketable Securities Maturities (Details) (Available for Sale Securities, Current [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Available for Sale Securities, Current [Member]
|
|
Schedule of Available-for-sale Securities [Line Items] | |
Mature in one year or less, cost | $ 229,865 |
Mature after one year through three years, cost | 19,645 |
Available-for-sale securities, cost | 249,510 |
Mature in one year of less, fair value | 229,682 |
Mature after one year through three years, fair value | 19,809 |
Available-for-sale securities, fair value | $ 249,491 |