Investments (Tables)

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

The amount of unrealized gains (losses) for the three and six months ended June 30, 2019 and 2018 that relate to equity securities still held as of June 30, 2019 and June 30, 2018, respectively, was as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Net gains (losses) recognized during the period on equity securities	$	36,377	$	(11,824	)	$	38,486	$	(25,613	)
Less: Net gains recognized during the period on equity securities sold during the period	—		4,197			—		10,961
Unrealized gains (losses) recognized during the period on equity securities still held at the end of the period	$	36,377	$	(16,021	)	$	38,486	$	(36,574	)

Gross realized gains and losses from sales of marketable securities, which are reported as a component of Realized and unrealized (gains) losses on securities, net in the Company's consolidated statements of income, were as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Gross realized gains	$	—	$	6,416		$	—	$	16,090
Gross realized losses	—		(2,219		)	—		(5,129		)
Realized gains, net	$	—	$	4,197		$	—	$	10,961

Schedule of Available-for-sale Securities and Equity Method Investments

The following table summarizes the Company's long-term investments as of June 30, 2019 and December 31, 2018.



	Ownership %				Long-Term Investments Balance				(Income) Loss Recorded in the Consolidated Statements of Income
									Three Months Ended June 30,						Six Months Ended June 30,
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018		2019			2018			2019			2018
Corporate securities ^{(a), (d)}					$	199,259	$	159,841	$	(36,603	)	$	8,317		$	(38,486	)	$	24,014
Collateralized debt securities					1,443		1,958		$	—		$	—		$	—		$	—
STCN convertible notes ^{(b), (e)}					13,437		14,943		$	1,163		$	(272	)	$	1,506		$	42
STCN preferred stock ^{(c), (e)}					41,809		39,420		$	2,049		$	(827	)	$	(2,068	)	$	(8,276	)
Equity method investments: ^(e)
Carried at fair value:
STCN common stock	29.4	%	29.6	%	33,093		31,457		$	3,065		$	(649	)	$	(1,474	)	$	5,350
Aviat Networks, Inc. ("Aviat")	12.5	%	12.4	%	9,182		8,881		$	841		$	147		$	(227	)	$	(702	)
Other	43.8	%	43.8	%	1,223		1,223		$	—		$	—		$	—		$	—
Long-term investments carried at fair value					299,446		257,723
Other equity method investments					—		321		$	—		$	14		$	—		$	44
Total					$	299,446	$	258,044


(a)	Cost basis totaled $98,969 as of June 30, 2019 and $98,037 as of December 31, 2018 and gross unrealized gains totaled $100,290 and $61,804 as of June 30, 2019 and December 31, 2018, respectively.

(b)

Represents investment in STCN convertible notes. The convertible notes outstanding as of December 31, 2018 matured on March 1, 2019. The Company entered into a new convertible note with STCN ("New Note") on February 28, 2019, which matures on March 1, 2024. The cost basis of the New Note totaled $14,943 as of June 30, 2019 and the gross unrealized loss was $1,506 as of June 30, 2019. The New Note is convertible into shares of STCN's common stock at an initial conversion rate of 421.2655 shares of common stock per $1,000 principal amount of the New Note (which is equivalent to an initial conversion price of approximately $2.37 per share), subject to adjustment upon the occurrence of certain events. The cost basis of the Company's prior investment was $13,262 as of December 31, 2018 and gross unrealized gains totaled $1,681 as of December 31, 2018. Changes in fair value are recorded in the Company's consolidated statements of income as the Company elected the fair value option to account for this investment. The New Notes, if converted as of June 30, 2019, when combined with STCN common and preferred shares, also if converted, owned by the Company, would result in the Company having a direct interest of approximately 49.3% of STCN's outstanding shares.

(c)

Represents investment in shares of STCN preferred stock with a cost basis of $35,321. Each share of preferred stock can be converted into shares of STCN's common stock at an initial conversion price equal to $1.96 per share, subject to adjustment upon the occurrence of certain events. Changes in fair value are recorded in the Company's consolidated statements of income as the Company elected the fair value option to account for this investment.


(d)	(Income) loss from these investments is included in Realized and unrealized (gains) losses on securities, net in the consolidated statements of income.


(e)	(Income) loss from these investments is included in Loss (income) of associated companies, net of taxes in the consolidated statements of

Schedule of Additional Disclosures of Associated Companies

The following summary balance sheet amounts are for STCN as of April 30, 2019 and July 31, 2018, respectively, and the statement of income amounts are for the three and six months ended April 30, 2019 and 2018, respectively, which are both STCN's nearest corresponding fiscal quarters to the Company's fiscal quarters ended June 30, 2019 and 2018:



(Unaudited)	2019			2018
Summary of balance sheet amounts:
Current assets	$	202,441		$	264,281
Non-current assets	532,309			562,769
Total assets	$	734,750		$	827,050

Current liabilities	$	220,499		$	290,612
Non-current liabilities	386,667			393,618
Total liabilities	607,166			684,230
Contingently redeemable preferred stock	35,198			35,192
Equity	92,386			107,628
Total liabilities and equity	$	734,750		$	827,050

	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2019			2018			2019			2018
Summary operating results: ^(a)
Net revenue	$	194,003		$	188,922		$	400,226		$	340,041
Gross profit	$	36,861		$	39,005		$	74,404		$	55,955
Net (loss) income ^(a)	$	(9,627	)	$	(10,333	)	$	(21,380	)	$	54,497


(a)	Net income in the 2018 period was favorably impacted by an income tax benefit related to STCN's acquisition of IWCO in December 2017.

Schedule of Held-to-Maturity Securities

The amount and contractual maturities of HTM debt securities are noted in the table below. Actual maturities may differ from expected or contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. The securities are collateralized by unsecured consumer loans.



	June 30, 2019
	Amortized Cost		Gross Unrealized Gains (Losses)			Estimated Fair Value		Carrying Value
Collateralized securities	$	58,144	$	123		$	58,267	$	58,144

Contractual maturities within:
One year to five years								42,188
Five years to ten years								14,172
After ten years								1,784
Total								$	58,144

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains (Losses)			Estimated Fair Value		Carrying Value
Collateralized securities	$	48,005	$	(119	)	$	47,886	$	48,005

Contractual maturities within:
One year to five years								22,866
Five years to ten years								23,189
After ten years								1,950
Total								$	48,005