Note 12. Loans to and Investments in Associated Companies

A summary of loans to and investments in associated companies at March 31, 2013 and December 31, 2012 accounted for under the equity method of accounting is as follows (in thousands):


	March 31,		December 31,
	2013		2012

JHYH	$	–	$	351,835
Jefferies Finance, LLC ("Jefferies Finance")		510,684		–
Jefferies LoanCore LLC ("Jefferies LoanCore")		217,298		–
Berkadia Commercial Mortgage LLC ("Berkadia")		189,554		172,942
Garcadia companies		100,180		82,425
HomeFed Corporation ("HomeFed")		49,143		49,384
Brooklyn Renaissance Plaza		29,908		30,332
Linkem S.p.A. ("Linkem")		78,248		86,424
Other		65,608		34,132

Total	$	1,240,623	$	807,474

Income (losses) related to associated companies includes the following for the three month periods ended March 31, 2013 and 2012 (in thousands):


	March 31,			March 31,
	2013			2012

Jefferies	$	182,719		$	299,601
Mueller Industries, Inc.		–			74,315
JHYH		7,178			9,694
Berkadia		18,587			11,820
Garcadia companies		8,871			8,094
HomeFed		(241	)		(115	)
Brooklyn Renaissance Plaza		792			441
Linkem		(6,602	)		(4,190	)
Other		2,223			2,248
Income related to associated companies
before income taxes		213,527			401,908
Income tax provision (benefit)		(19,595	)		139,369
Income related to associated companies,
net of taxes	$	233,122		$	262,539

As of December 31, 2012, we had recorded a deferred tax liability related to our investment in Jefferies of $33.0 million. For the three month period ended March 31, 2013, the income tax provision (benefit) includes the reversal of that deferred tax liability. In addition, no net income tax provision was recorded for income related to Jefferies for the three month period ended March 31, 2013.

As discussed above, we elected the fair value option for our investment in Jefferies for periods prior to the Jefferies acquisition in March 2013, and for our investment in Mueller prior to its sale in September 2012. Our investment in HomeFed is the only other investment accounted for under the equity method of accounted that is also a publicly traded company for which we did not elect the fair value option. HomeFed's common stock is not listed on any stock exchange, and price information for the common stock is not regularly quoted on any automated quotation system. It is traded in the over-the-counter market with high and low bid prices published by the National Association of Securities Dealers OTC Bulletin Board Service; however, trading volume is minimal. For these reasons we did not elect the fair value option for HomeFed.

Jefferies

The following tables provide summarized data with respect to our investment in Jefferies. The information is provided because Jefferies current relative significance could result in our including separate audited financial statements for Jefferies in our Annual Report on Form 10-K for the year ended December 31, 2013. The information is for the three month periods ended February 28, 2013 and February 29, 2012.


	2013		2012
	(In thousands)

Jefferies:
Total revenues	$	1,006,800	$	1,006,800
Income from continuing operations before extraordinary items		74,800		77,100
Net income		74,800		77,100

JHYH

Under GAAP, JHYH was considered a variable interest entity that was consolidated by Jefferies, since Jefferies was the primary beneficiary. In connection with the Jefferies acquisition, we contributed our investment in JHYH to Jefferies, other third-party investors were redeemed and JHYH was effectively dissolved.

Berkadia

As more fully discussed in the 2012 10-K, we have agreed to reimburse Berkshire Hathaway Inc. for up to one-half of any losses incurred under a $2.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia. As of March 31, 2013, the aggregate amount of commercial paper outstanding was $2.47 billion.

Jefferies Finance

On October 7, 2004, Jefferies entered into an agreement with Babson Capital Management LLC ("Babson Capital") and Massachusetts Mutual Life Insurance Company ("MassMutual") to form Jefferies Finance, a joint venture entity. Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt to middle market and growth companies in the form of term and revolving loans. Loans are originated primarily through the investment banking efforts of Jefferies, with Babson Capital providing primary credit analytics and portfolio management services. Jefferies Finance can also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market, including loans that are performing, stressed and distressed loan obligations.

Jefferies and MassMutual each have equity commitments to Jefferies Finance of $500.0 million for total committed equity capital to Jefferies Finance of $1.0 billion. At March 31, 2013, approximately $107.5 million of Jefferies $500.0 million commitment was funded.

In addition, Jefferies and MassMutual have entered into a $1.0 billion Secured Revolving Credit Facility, to be funded equally, to support loan underwritings by Jefferies Finance. The Secured Revolving Credit Facility bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. At March 31, 2013, $221.7 million of Jefferies $500.0 million commitment was funded.

Jefferies LoanCore

On February 23, 2011, Jefferies entered into a joint venture agreement with the Government of Singapore Investment Corporation and LoanCore, LLC and formed Jefferies LoanCore, a commercial real estate finance company. Jefferies LoanCore originates and purchases commercial real estate loans throughout the United States with the support of the investment banking and securitization capabilities of Jefferies and the real estate and mortgage investment expertise of the Government of Singapore Investment Corporation and LoanCore, LLC. Jefferies LoanCore is currently capitalized solely with equity and has aggregate equity commitments of $600.0 million. Jefferies has funded $193.4 million of its $291.0 million equity commitment and has a 48.5% voting interest in Jefferies LoanCore.