Investments

Marketable Securities

All of the Company's marketable securities at June 30, 2015, and December 31, 2014, were classified as "available-for-sale" securities. Changes in fair value are recognized in stockholders' equity as "other comprehensive income (loss)", except for other-than-temporary impairments, which are reflected as a reduction of cost and charged to operations. The Company's marketable securities at June 30, 2015, include investments in the common units of Steel Partners Holdings L.P. ("SPLP"), which beneficially owned approximately 57.1% of the Company's common stock as of June 30, 2015. The SPLP common units held by the Company are classified as "available-for-sale" securities. As of June 30, 2015, the Company held 204,712 SPLP common units that had a fair value of approximately $3.6 million and an unrealized loss of approximately $33,000.

Marketable securities at June 30, 2015, consisted of the following:



	Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Short-term deposits	$	39,697		$	—	$	—		$	39,697
Mutual funds	11,835			4,526		—			16,361
Corporate securities	68,333			7,636		(2,532		)	73,437
Corporate obligations	35,205			659		(1,566		)	34,298
Total available-for-sale securities	155,070			12,821		(4,098		)	163,793
Amounts classified as cash equivalents	(39,697		)	—		—			(39,697		)
Amounts classified as marketable securities	$	115,373		$	12,821	$	(4,098	)	$	124,096

Marketable securities at December 31, 2014, consisted of the following:



	Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Short-term deposits	$	42,681		$	—	$	—		$	42,681
Mutual funds	17,030			4,262		(322		)	20,970
Corporate securities	103,761			7,821		(23,732		)	87,850
Corporate obligations	32,486			592		(3,441		)	29,637
Total available-for-sale securities	195,958			12,675		(27,495		)	181,138
Amounts classified as cash equivalents	(42,681		)	—		—			(42,681		)
Amounts classified as marketable securities	$	153,277		$	12,675	$	(27,495	)	$	138,457

Proceeds from sales of marketable securities were $16.7 million and $95.7 million for the six months ended June 30, 2015 and 2014, respectively, and $9.9 million and $55.2 million for the three months ended June 30, 2015 and 2014, respectively. The Company determines gains and losses from sales of marketable securities based on specific identification of the securities sold. Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of "Other income (expense), net" in the consolidated statements of operations for the three and six months ended June 30, 2015 and 2014, were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Gross realized gains	$	2,246		$	3,196		$	2,756		$	6,396
Gross realized losses	(418		)	(1,120		)	(793		)	(1,329		)
Realized gains (losses), net	$	1,828		$	2,076		$	1,963		$	5,067

The fair value of the Company’s marketable securities with unrealized losses at June 30, 2015, and the duration of time that such losses had been unrealized, were as follows:



	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(in thousands)
Corporate securities	$	22,387	$	(2,532	)	$	—	$	—		$	22,387	$	(2,532	)
Corporate obligations	8,507		(1,412		)	4,692		(154		)	13,199		(1,566		)
Total	$	30,894	$	(3,944	)	$	4,692	$	(154	)	$	35,586	$	(4,098	)

The fair value of the Company’s marketable securities with unrealized losses at December 31, 2014, all of which had unrealized losses for periods of less than twelve months, were as follows:



	Fair Value		Gross Unrealized Losses
	(in thousands)
Corporate securities	$	39,869	$	(23,732	)
Corporate obligations	13,530		(3,441		)
Mutual funds	4,873		(322		)
Total	$	58,272	$	(27,495	)

Gross unrealized losses primarily related to losses on corporate securities and corporate obligations, which primarily consist of investments in equity and debt securities of publicly-traded entities. Based on the Company's evaluation of such securities, it has determined that certain unrealized losses represented other-than-temporary impairments as of June 30, 2015. This determination was based on several factors, including adverse changes in the market conditions and economic environments in which the entities operate. The Company recognized an impairment charge of approximately $22.7 million for the three and six months ended June 30, 2015, equal to the excess of the costs basis of such securities in excess of their fair values. The Company has determined that there was no indication of other-than-temporary impairments on its other investments with unrealized losses as of June 30, 2015. This determination was based on several factors, including the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the entity, and the Company's intent and ability to hold the corporate securities for a period of time sufficient to allow for any anticipated recovery in market value.

The amortized cost and estimated fair value of available-for-sale debt securities and marketable securities with no contractual maturities at June 30, 2015, by contractual maturity, were as follows:



	Cost		Estimated Fair Value
	(in thousands)
Debt securities that mature in more than three years	$	35,205	$	34,298
Securities with no contractual maturities	119,865		129,495
Total	$	155,070	$	163,793

Financial Instrument Obligations

Financial instrument obligations consisted of the following:



	June 30, 2015				December 31, 2014
	Initial Obligation		Estimated Fair Value		Initial Obligation		Estimated Fair Value
	(in thousands)
Corporate securities	$	675	$	868	$	666	$	621
Market indices	18,685		20,482		18,685		20,451
Covered call options	39		35		7		4
Naked put options	—		—		109		235
Total	$	19,399	$	21,385	$	19,467	$	21,311

For the three months ended June 30, 2015 and 2014, the Company incurred losses on the financial instrument obligations totaling $0.1 million and $0.7 million, respectively, and for the six months ended June 30, 2015 and 2014, the Company incurred losses on the financial instrument obligations totaling $0.3 million and $0.7 million, respectively, all which are included as a component of "Other income (expense), net" in the Company's consolidated statements of operations.

Equity-Method Investments

In January 2013, the Company acquired a 40% membership interest in Again Faster LLC ("Again Faster"), a fitness equipment company. In August 2013, the Company acquired approximately 44.7% of the common stock of iGo, Inc. (“iGo”), a provider of accessories for mobile devices. Both Again Faster and iGo are accounted for using the traditional method of accounting for equity-method investments, with the Company recognizing its equity in the income and losses of each entity on a one-quarter lag basis.

In May 2014, the Company increased its holdings of the common stock of API Technologies Corp. (“API”), a designer and manufacturer of high performance systems, subsystems, modules, and components, to 11,377,192 shares through the acquisition of 1,666,666 shares on the open market. Upon acquiring such shares the Company held approximately 20.6% of the total outstanding common stock of API. Effective as of that date the investment in API has been accounted for as an equity-method investment using the fair value option, with changes in fair value based on the market price of API's common stock recognized currently as income or loss from equity method investees. The Company elected the fair value option to account for its investment in API in order to more appropriately reflect the value of API in its financial statements. Prior to such time the investment in API was accounted for as an available-for-sale security, and upon the change in classification the Company recognized a loss of approximately $0.6 million that had previously been included as a component of "accumulated other comprehensive income".

In January 2015, two members of the Company's board of directors were appointed to the eight-member board of directors of Aviat Networks, Inc. ("Aviat"), a global provider of microwave networking solutions. At the time of the appointment, the Company held 8,041,892 shares of Aviat, or approximately 12.9% of the total outstanding common stock. Effective as of the date of the appointment, the investment in Aviat has been accounted for as an equity-method investment as the Company’s voting interest and board representation provide it with significant influence over Aviat's operations. The Company elected the fair value option to account for its investment in Aviat, with changes in fair value based on the market price of Aviat's common stock recognized currently as income or loss from equity method investees, in order to more appropriately reflect the value of Aviat in its financial statements. Prior to such time the investment in Aviat was accounted for as an available-for-sale security, and upon the change in classification the Company recognized a loss of approximately $2.8 million that had previously been included as a component of "accumulated other comprehensive income".

The following table summarizes the Company's equity-method investments.



	Ownership				Carrying Value				Income (Loss) Recognized
									Three Months Ended						Six Months Ended
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
					(in thousands)
Traditional equity method
Again Faster	40.0	%	40.0	%	$	2,549	$	3,105	$	(135	)	$	(164	)	$	(557	)	$	(293	)
iGo	46.9	%	46.9	%	2,870		2,600		(14		)	(501		)	271			(1,805		)

Fair value option
API	20.6	%	20.6	%	28,700		24,355		5,031			3,539			4,345			3,539
Aviat	12.9	%			10,134				563			—			(724		)	—
Total					$	44,253	$	30,060	$	5,445		$	2,874		$	3,335		$	1,441

Based on the closing market price of iGo’s publicly-traded shares, the value of the Company’s investment in iGo was approximately $3.8 million at June 30, 2015.

The following table presents summarized income statement information for the Company's significant equity-method investees for the six months ended June 30, 2014; none of the equity-method investees met the significance test for disclosure for the six months ended June 30, 2015. The summarized income statement information is for the most recent practicable period for equity-method investments accounted for using the fair value option and as of the date through which Company has recognized its equity in the income of the investee for equity-method investments accounted for using the traditional method. The summarized income statement information is included for the periods during which such significant equity-method investments were accounted for as equity-method investments.



	Amount
	(in thousands)
Revenues	$	53,169
Gross profit	$	10,410
Loss from continuing operations	$	(14,984	)
Net loss	$	(14,984	)
Net loss attributable to investees	$	(14,984	)

Other Investments

The Company's other investments at June 30, 2015, include a $25.0 million cost-method investment in a limited partnership that co-invested with other private investment funds in a public company. This investment is reported as "Other short-term investments" at June 30, 2015, as the limited partnership will be liquidated in August 2015, with the Company to receive either cash or its proportionate share of equity of the public company investee. Upon liquidation, the Company will recognize a gain or loss equal to the difference between the fair value of the assets received and the carrying value. The investment in the limited partnership had an approximate fair value of $33.4 million at June 30, 2015, based on the net asset value indicated in the monthly statement received from the partnership.

The Company's other long-term investments at June 30, 2015, include an investment in a venture capital fund totaling $0.5 million and a promissory note with an amortized cost of $3.0 million, which is a reasonable approximation of fair value at June 30, 2015.