XML 47 R34.htm IDEA: XBRL DOCUMENT v3.20.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Unrealized Gain (Loss) on Investments Gross realized gains and losses from sales of equity securities, which are reported as a component of Realized and unrealized losses (gains) on securities, net in the Company's consolidated statements of operations, were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Gross realized gains$—  $—  $—  $—  
Gross realized losses(27,310) —  (43,662) —  
Realized losses, net$(27,310) $—  $(43,662) $—  
The amount of unrealized gains (losses) for the three and six months ended June 30, 2020 and 2019 that relate to equity securities still held as of June 30, 2020 and 2019, respectively, was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Net (losses) gains recognized during the period on equity securities$(8,482) $36,377  $(26,484) $38,486  
Less: Net losses recognized during the period on equity securities sold during the period(27,310) —  (43,662) —  
Unrealized gains recognized during the period on equity securities still held at the end of the period$18,828  $36,377  $17,178  $38,486  
Schedule of Available-for-sale Securities and Equity Method Investments
The following table summarizes the Company's long-term investments as of June 30, 2020 and December 31, 2019.
Ownership %Long-Term Investments Balance(Income) Loss Recorded in the Consolidated Statements of Operations
Three Months Ended
June 30,		Six Months Ended June 30,
June 30, 2020December 31, 2019June 30, 2020December 31, 20192020201920202019
Corporate securities (a), (d)
$158,233  $186,777  $(18,751) $(36,603) $(17,199) $(38,486) 
Collateralized debt securities655  855  $—  $—  $—  $—  
Steel Connect, Inc. ("STCN") convertible notes (b), (e)
8,525  11,839  $(337) $1,163  $3,314  $1,506  
STCN preferred stock (c), (e)
24,163  39,178  $(1,130) $2,049  $15,015  $(2,068) 
Equity method investments: (e)
Carried at fair value:
  STCN common stock
29.1 %29.4 %10,911  26,547  $2,419  $3,065  $13,870  $(1,474) 
  Aviat Networks, Inc. ("Aviat")12.4 %12.4 %12,232  9,417  $(5,845) $841  $(2,125) $(227) 
  Other— %43.8 %—  1,223  $—  $—  $(460) $—  
Total$214,719  $275,836  
(a) Cost basis totaled $12,753 and $58,495 at June 30, 2020 and December 31, 2019, respectively, and gross unrealized gains totaled $145,480 and $128,282 at June 30, 2020 and December 31, 2019, respectively. Primarily includes the Company's investments in the common stock of $156,578, or 5.0%, and $0, or 0.0%, of Aerojet Rocketdyne Holdings, Inc. and Babcock & Wilcox Enterprises, Inc., respectively, as of June 30, 2020 and $180,357, or 5.0%, and $4,989, or 3.0%, respectively, as of December 31, 2019.
(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, 2020 and the gross unrealized loss was $6,418 as of June 30, 2020. 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. Changes in fair value are recorded in the Company's consolidated statements of operations as the Company elected the fair value option to account for this investment. The New Notes, if converted as of June 30, 2020, 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 48.9% of STCN's outstanding shares.
(c) Represents investment in shares of STCN preferred stock with a cost basis of $35,633. 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 operations 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 losses (gains) on securities, net in the consolidated statements of operations.
(e) (Income) loss from these investments is included (Income) loss of associated companies, net of taxes in the consolidated statements of operations.
Schedule of Additional Disclosures of Associated Companies The following summary balance sheet amounts are for STCN as of April 30, 2020 and July 31, 2019, respectively, and the statement of operations amounts are for the three months and six months ended April 30, 2020 and 2019, respectively, which are both STCN's nearest corresponding fiscal quarters to the Company's fiscal quarters ended June 30, 2020 and 2019:
(Unaudited)
20202019
Summary of balance sheet amounts:
Current assets
$234,250  $213,324  
Non-current assets
550,416  518,239  
Total assets
$784,666  $731,563  
Current liabilities
$274,430  $256,850  
Non-current liabilities
430,910  386,835  
Total liabilities
705,340  643,685  
Contingently redeemable preferred stock35,175  35,186  
Equity44,151  52,692  
Total liabilities and equity
$784,666  $731,563  
Three Months Ended
April 30,		Six Months Ended
April 30,
(Unaudited)
2020201920202019
Summary operating results:
Net revenue$177,351  $194,003  $392,803  $400,226  
Gross profit$33,470  $34,861  $78,719  $74,404  
Net loss$(6,159) $(9,627) $(9,716) $(21,380) 
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, 2020
Amortized CostGross Unrealized Gains (Losses)Estimated Fair ValueCarrying Value
Collateralized securities$17,050  $10  $17,060  $17,050  
Contractual maturities within:
One year to five years3,958  
Five years to ten years11,238  
After ten years1,854  
Total$17,050  
December 31, 2019
Amortized CostGross Unrealized Gains (Losses)Estimated Fair ValueCarrying Value
Collateralized securities$37,896  $(3) $37,893  $37,896  
Contractual maturities within:
One year to five years23,339  
Five years to ten years12,373  
After ten years2,184  
Total$37,896