LONG-TERM INVESTMENTS

Long-term investments consist of the following:



	December 31, 2014		December 31, 2013
Investment partnerships	$	31,541	$	20,041
Real estate partnership	698		747
Long-term investments at Cost	32,239		20,788

Investment partnership accounted for under the equity method	8,053		8,595
	$	40,292	$	29,383

Long-term investments consist of the following investments accounted for at cost:



	December 31, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investment partnerships	$	31,541	$	38,039	$	20,041	$	24,095
Real estate partnership	698		1,108		747		1,067
	$	32,239	$	39,147	$	20,788	$	25,162

The principal business of these investment partnerships is investing in investment securities and real estate. The estimated fair value of the investment partnerships was provided by the partnerships based on the indicated market values of the underlying assets or investment portfolio. The investments in these investment partnerships are illiquid and the ultimate realization of these investments is subject to the performance of the underlying partnership and its management by the general partners. In the future, the Company may invest in other investments, including limited partnerships, real estate investments, equity securities, debt securities, derivatives and certificates of deposit, depending on risk factors and potential rates of return.

If it is determined that an other-than-temporary decline in fair value exists in long-term investments, the Company records an impairment charge with respect to such investment in its consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur.

The Company’s investments constituted greater than 5% of the invested funds of the partnerships for one partnership at December 31, 2014 and 2013. This partnership was accounted for on the equity method. In accordance with authoritative guidance for accounting for limited partnership investments, the Company has accounted for the remaining investments using the cost method of accounting because the investments did not meet the requirements for equity method accounting.

The Company invested $2,000 and $5,000 in two additional investment partnerships, respectively, in 2014. The principal business of these investment partnerships is investing in investment securities. The Company made a $5,000 additional investment in an existing investment partnership in 2014. The Company received cash distributions of $549, $769 and $207 from limited partnerships in 2014, 2013 and 2012, respectively.

The long-term investments are carried on the consolidated balance sheet at cost. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 17 if such assets were recorded on the consolidated balance sheet at fair value. The fair values were determined based on unobservable inputs and were based on company assumptions, and information obtained from the partnerships based on the indicated market values of the underlying assets of the investment portfolio.

The changes in the fair value of these investments were as follows:



	2014			2013
Balance as of January 1	$	25,162		$	18,353
Contributions	12,000			5,000
Distributions	(549		)	(769		)
Realized gain on liquidation of long-term investments	—			189

Unrealized gains reclassified into net income	—			(189		)
Unrealized gain on long-term investments	2,534			2,578
Net change in long-term investments	2,534			2,389
Balance as of December 31	$	39,147		$	25,162

Long-term investments consist of the following investments accounted for under the equity method:



	December 31, 2014		December 31, 2013
Investment partnership	$	8,053	$	8,595

The changes in the fair value of these investments were as follows:



	2014			2013
Balance as of January 1	$	8,595		$	6,432
Equity income on long-term investments accounted for under the equity method	1,242			2,066

Unrealized (loss) gain on long-term investments	(1,784		)	97
Net change in long-term investments	(1,784		)	97
Balance as of December 31	$	8,053		$	8,595

The principal business of the investment partnership is investing in investment securities. Fair value approximates carrying value. The estimated fair value of the investment partnership was provided by the partnership based on the indicated market values of the underlying assets or investment portfolio. The investment in the investment partnership is illiquid and the ultimate realization of the investment is subject to the performance of the underlying partnership and its management by the general partners. In the future, the Company may invest in other investments, including limited partnerships, real estate investments, equity securities, debt securities, derivatives and certificates of deposit, depending on risk factors and potential rates of return.