LONG-TERM INVESTMENTS

Long-term investments consisted of the following:



	September 30, 2017		December 31, 2016
Investments accounted at cost	$	60,450	$	35,476
Investments accounted for under the equity method	14,026		17,721
	$	74,476	$	53,197

(a) Cost-Method Investments:

Long-term investments accounted at cost consisted of the following:



	September 30, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Investment partnerships	$	60,450	$	69,324	$	34,975	$	40,569
Real estate partnership	—		—		501		494
	$	60,450	$	69,324	$	35,476	$	41,063

The principal business of the investment partnerships is investing in investment securities. 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 condensed consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s condensed consolidated financial statements. Thus, future impairment charges may occur.

The Company has accounted for these investments using the cost method of accounting because the investments did not meet the requirements for equity method accounting.

The Company invested $25,000 in five new investments and made an additional contribution of $1,500 to three of its existing investments during the nine months ended September 30, 2017. There were no cash contributions during the nine months ended September 30, 2016. The Company received cash distributions of $1,163 and $1,000 from the Company’s investments in long-term investments under the cost method for the nine months ended September 30, 2017 and 2016, respectively.

The long-term investments are carried on the condensed consolidated balance sheet at cost. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 10 if such assets were recorded on the condensed consolidated balance sheet at fair value. The fair value determinations disclosed above were based on company assumptions, and information obtained from the partnerships based on the indicated market values of the underlying assets of their investment portfolio.

(b) Equity-Method Investments:

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



	September 30, 2017		December 31, 2016
Indian Creek Investors LP (“Indian Creek”)	$	2,871	$	5,248
Boyar Value Fund (“Boyar”)	8,475		7,816
Ladenburg Thalmann Financial Services Inc. (“LTS”)	2,680		4,657
Castle Brands, Inc. (“Castle”)	—		—
	$	14,026	$	17,721

At September 30, 2017, the Company’s ownership percentages in Indian Creek, Boyar, LTS and Castle were 20.04%, 32.43%, 7.75% and 7.88%, respectively. The Company accounted for its Indian Creek and Boyar interests as equity-method investments because the Company’s ownership percentage meets the threshold for equity-method accounting. The Company accounted for its LTS and Castle interests as equity-method investments because the Company has the ability to exercise significant influence over their operating and financial policies.

The value of Boyar, based on the quoted market price as of September 30, 2017, was $8,475, equal to its carrying value. Ladenburg Thalmann Fund Management, LLC, an indirect subsidiary of LTS, is the manager of Boyar.

At September 30, 2017, the aggregate values of the LTS and Castle investments based on the quoted market price were $43,751 and $16,979, respectively.

The principal business of Indian Creek 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.

The Company received cash distributions of $847 and $834 from the Company’s investments in long-term investments under the equity method for the nine months ended September 30, 2017 and 2016, respectively. The Company recognized equity in losses from investments under the equity method of $303 and $1,526 for the three months ended September 30, 2017 and 2016, respectively. The Company recognized equity in losses from investments under the equity method of $2,823 and $2,108 for the nine months ended September 30, 2017 and 2016, respectively. The Company has suspended its recognition of equity in losses from Castle to the extent such losses exceed its basis.

The long-term investments are carried on the condensed consolidated balance sheet at cost under the equity method of accounting. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 10 if such assets were recorded on the condensed consolidated balance sheet at fair value.