Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

The following table summarizes the Company's long-term investments as of September 30, 2022 and December 31, 2021.


	Ownership %				Long-Term Investments Balance

	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Aerojet Rocketdyne Holdings, Inc. (a)	4.9	%	4.9	%	$	162,719	$	184,678
Other long-term investments					4,920		1,850
Steel Connect, Inc. ("STCN") convertible notes (b)					13,736		14,841
STCN preferred stock (c)					34,353		34,255



STCN common stock	30.1	%	30.1	%	24,909		25,456
PCS-Mosaic	59.0	%			23,328		—


Total					$	263,965	$	261,080

(a) Gross unrealized gains for Aerojet Rocketdyne Holdings, Inc. ("Aerojet") totaled $151,608 and $157,395 at September 30, 2022 and 2021, respectively.

(b) Represents investment in STCN convertible notes, which the Company accounts for under the fair value option with changes in fair value recognized in the Company's consolidated statements of operations. The Company entered into a convertible note with STCN ("STCN Note") on February 28, 2019, which matures on March 1, 2024. The cost basis of the STCN Note totaled $14,943 as of both September 30, 2022 and December 31, 2021. The STCN 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 STCN 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 STCN Note, if converted as of September 30, 2022, 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 50.0% of STCN's outstanding shares.

(c) Represents investment in shares of STCN preferred stock, which the Company accounts for under the fair value option with changes in fair value recognized in the Company's consolidated statements of operations. The investment in STCN preferred stock had a cost basis of $35,688 at September 30, 2022 and December 31, 2021. 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.


	(Income) Loss of Associated Companies, Net of Taxes
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
STCN convertible notes	$	151	$	46	$	1,106	$	(577)
STCN preferred stock	(716)		(264)		(96)		(2,074)



STCN common stock	(323)		2,903		485		(19,726)
Aviat common stock (a)	—		—		—		(3,899)
PCS-Mosaic	272		—		272		—


Total	$	(616)	$	2,685	$	1,767	$	(26,276)

(a) During the nine months ended September 30, 2021, the Company sold its remaining investment in Aviat for total proceeds of approximately $24,100.

The amounts of unrealized gains (losses) for the three and nine months ended September 30, 2022 and 2021 that relate to equity securities still held as of September 30, 2022 and 2021, respectively, are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net gains (losses) recognized during the period on equity securities	$	3,641	$	(21,453)	$	(22,570)	$	(40,232)
Less: Net losses recognized during the period on equity securities sold during the period	—		—		—		36
Unrealized losses recognized during the period on equity securities still held at the end of the period	$	3,641	$	(21,453)	$	(22,570)	$	(40,268)

Equity Method Investments

The Company's investments in associated companies include STCN and PCS-Mosaic, which are accounted for under the equity method of accounting. STCN is accounted for using the fair value option, however, PCS-Mosaic will be carried at cost, plus or minus the Company’s share of net earnings or losses of the investment. Associated companies are included in the Corporate and Other segment. Certain associated companies have a fiscal year end that differs from December 31. Additional information for SPLP's significant investments in associated companies is as follows:

•STCN is a publicly-traded holding company, whose wholly-owned subsidiary, ModusLink Corporation, serves the supply chain management market.

•PCS-Mosaic is a private investment fund primarily invested in specialized software development and training services.

The following summary (unaudited) statements of operations amounts are for STCN for the three months and fiscal years ended July 31, 2022 and 2021, which are STCN's nearest corresponding full fiscal quarter to the Company's fiscal quarters ended September 30, 2022 and 2021, respectively.















	Three Months Ended July 31,				Fiscal Years Ended July 31,
	2022		2021		2022		2021
Summary operating results(a)
Net revenue	$	53,049	$	47,704	$	203,272	$	226,256
Gross profit	$	11,985	$	8,414	$	41,536	$	47,704
Net income (loss) from continuing operations	$	2,909	$	(354)	$	(9,256)	$	(11,835)
Net income (loss)	$	1,304	$	(11,015)	$	(10,968)	$	(44,391)

(a) STCN's summary operating results for the three months and fiscal year ended July 31, 2022, were restated by STCN to reclassify its IWCO Direct business as discontinued operations.

Other Investments

WebBank has held-to-maturity ("HTM") debt securities which are carried at amortized cost and included in Other non-current assets on the Company's consolidated balance sheets. The amount and contractual maturities of HTM debt securities are noted in the tables 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.


	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Estimated Fair Value		Carrying Value
Collateralized securities	$	156,637	$	339	$	156,976	$	156,637

Contractual maturities within:
One year to five years							149,725
Five years to ten years							5,433
After ten years							1,479
Total							$	156,637

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Estimated Fair Value		Carrying Value
Collateralized securities	$	54,932	$	225	$	55,157	$	54,932

Contractual maturities within:
One year to five years							42,218
Five years to ten years							11,199
After ten years							1,515
Total							$	54,932

WebBank regularly evaluates each HTM debt security whose value has declined below amortized cost to assess whether the decline in fair value is other-than-temporary. If there is an other-than-temporary impairment in the fair value of any individual security classified as HTM, WebBank writes down the security to fair value with a corresponding credit loss portion charged to earnings, and the corresponding non-credit portion charged to accumulated other comprehensive income.