(6) Investments in Unconsolidated Subsidiaries

The Company has investments in Acquisition Partnerships and various servicing and operating entities that are accounted for under the equity method of accounting (refer to Note 1). The condensed combined financial position and results of operations of the Acquisition Partnerships (which include our U.S. and foreign Acquisition Partnerships) and the servicing and operating entities (collectively, the “Equity Investees”), are summarized as follows:

Condensed Combined Balance Sheets

	March 31,		December 31,
	2013		2012
	(Dollars in thousands)
Acquisition Partnerships:
Assets	$	467,574	$	437,176
Liabilities	$	54,622	$	14,783
Net equity	412,952		422,393
	$	467,574	$	437,176
Servicing and operating entities:
Assets	$	31,975	$	45,676
Liabilities	$	22,300	$	22,818
Net equity	9,675		22,858
	$	31,975	$	45,676
Total:
Assets	$	499,549	$	482,852
Liabilities	$	76,922	$	37,601
Net equity	422,627		445,251
	$	499,549	$	482,852

Equity investment in Acquisition Partnerships	$	60,543	$	60,581
Equity investment in servicing and operating entities	6,676		16,885
	$	67,219	$	77,466

Condensed Combined Summary of Operations

	Three Months Ended
	March 31,
	2013			2012
	(Dollars in thousands)
Acquisition Partnerships:
Revenues	$	11,471		$	26,954
Costs and expenses	8,416			5,703
Net earnings (loss)	$	3,055		$	21,251

Servicing and operating entities:
Revenues	$	9,994		$	26,059
Costs and expenses	10,314			21,313
Net earnings (loss)	$	(320	)	$	4,746

Equity income (loss) from Acquisition Partnerships	$	935		$	2,328
Equity income (loss) from servicing and operating entities	(136		)	2,139
	$	799		$	4,467

At March 31, 2013 and December 31, 2012, the Acquisition Partnerships’ total carrying value of loans accounted for under non-accrual methods of accounting (i.e. cost-recovery or cash basis method) approximated $380.9 million and $350.3 million, respectively.

The combined assets and equity of the Equity Investees, and the Company’s carrying value of its equity investments in the Equity Investees, are summarized by geographic region below.

	March 31,		December 31,
	2013		2012
	(Dollars in thousands)
Combined assets of the Equity Investees:
Domestic:
Acquisition Partnerships	$	382,589	$	352,123
Operating entities	27,288		40,531
Latin America:
Acquisition Partnerships	84,985		85,053
Servicing entities	1,830		2,057
Europe - servicing entities	2,857		3,088
	$	499,549	$	482,852

	March 31,		December 31,
	2013		2012
	(Dollars in thousands)
Combined equity of the Equity Investees:
Domestic:
Acquisition Partnerships	$	335,725	$	344,045
Operating entities	6,358		19,511
Latin America:
Acquisition Partnerships	77,227		78,348
Servicing entities	909		828
Europe - servicing entities	2,408		2,519
	$	422,627	$	445,251

Company’s carrying value of its investments in the Equity Investees:
Domestic:
Acquisition Partnerships	$	57,323	$	57,802
Operating entities	2,939		13,199
Latin America:
Acquisition Partnerships	3,220		2,779
Servicing entities	3,087		3,008
Europe - servicing entities	650		678
	$	67,219	$	77,466

Revenues and net earnings (losses) of the Equity Investees, and the Company’s share of equity income (loss) of those entities, are summarized by geographic region below. The tables below include individual entities and combined entities under common management that are considered to be significant Equity Investees of FirstCity at March 31, 2013.

	Three Months Ended
	March 31,
	2013		2012
	(Dollars in thousands)
Revenues of the Equity Investees:
Domestic:
Combined Värde Acquisition Partnerships	$	9,407	$	22,597
Other Acquisition Partnerships	212		29
FC Crestone Oak LLC (operating entity) (1)	56		1,711
Other operating entities	6,698		5,718
Latin America:
Acquisition Partnerships	1,852		4,328
Servicing entity	2,227		2,273
Europe:
MCS et Associes (servicing entity)	—		15,117
Other servicing entities	1,013		1,240
	$	21,465	$	53,013

	Three Months Ended
	March 31,
	2013			2012
	(Dollars in thousands)
Net earnings (loss) of the Equity Investees:
Domestic:
Combined Värde Acquisition Partnerships	$	3,233		$	13,628
Other Acquisition Partnerships	82			(827		)
FC Crestone Oak LLC (operating entity) (1)	56			640
Other operating entities	(409		)	(635		)
Latin America:
Acquisition Partnerships	(260		)	8,450
Servicing entity	69			175
Europe:
MCS et Associes (servicing entity)	—			4,370
Other servicing entities	(36		)	196
	$	2,735		$	25,997

Company’s equity income (loss) from the Equity Investees:
Domestic:
Combined Värde Acquisition Partnerships	$	344		$	2,524
Other Acquisition Partnerships	45			(405		)
FC Crestone Oak LLC (operating entity) (1)	27			313
Other operating entities	(188		)	(378		)
Latin America:
Acquisition Partnerships	546			209
Servicing entity	34			87
Europe:
MCS et Associes (servicing entity)	—			2,069
Other servicing entities	(9		)	48
	$	799		$	4,467

(1) FC Crestone Oak LLC operated in the prefabricated building manufacturing industry.