Fair Value Measurements
 12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Abstract]  
Fair Value Measurements
FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements as of December 31, 2012 and 2011 are summarized by type of inputs applicable to the fair value measurements as follows:

December 31, 2012
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Marketable securities (a)
$
128,123

 
$
69,222

 
$
1,783

 
$
199,128

Long-term investments (a)
112,030

 
59,383

 
21,784

 
193,197

Non-controlling interests in certain funds (b)
—

 
—

 
1,021

 
1,021

Commodity contracts on precious metals
127

 
—

 
—

 
127

Total
$
240,280

 
$
128,605

 
$
24,588

 
$
393,473

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Financial instruments
$
—

 
$
24,742

 
$
—

 
$
24,742

Derivative features of subordinated notes
—

 
—

 
184

 
184

Commodity contracts on precious metals
—

 
27

 
—

 
27

Total
$
—

 
$
24,769

 
$
184

 
$
24,953

December 31, 2011
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Long-term investments (a)
$
225,001

 
$
32,672

 
$
56,276

 
$
313,949

Total
$
225,001

 
$
32,672

 
$
56,276

 
$
313,949

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Financial instruments
$
—

 
$
23,736

 
$
—

 
$
23,736

Deferred fee liability to related party
—

 
—

 
58,747

 
58,747

Derivative features of subordinated notes
—

 
—

 
694

 
694

Commodity contracts on precious metals
165

 
64

 
—

 
229

Total
$
165

 
$
23,800

 
$
59,441

 
$
83,406

(a) For additional detail of the marketable securities and long-term investments see Note 5 - "Investments."
(b) Recorded within Other non-current assets.
Investments with a fair value of $32,243 were transferred from Level 1 to Level 2 based upon a reduction in the number of shares traded. Investments with a fair value of $2,735 were transferred from Level 2 to Level 1 based upon an increase in the number of shares traded. The futures contracts are Level 1 measurements since they are traded on a commodity exchange. The forward contracts are entered into with a counterparty, and are considered Level 2 measurements.




















Following is a summary of changes in financial assets measured using Level 3 inputs:
 
Investments in Associated Companies
 
Other Investments - Related Party
 
Other Investments
 
Total
Assets
 
 
 
 
 
 
 
Balance at December 31, 2010
$
—

 
$
62,553

 
$
7,668

 
$
70,221

Purchases
—

 
—

 
6,138

 
6,138

Sales
—

 
(4,156
)
 
—

 
(4,156
)
Unrealized gains
—

 
636

 
—

 
636

Unrealized losses
—

 
(16,380
)
 
(183
)
 
(16,563
)
Balance at December 31, 2011
—

 
42,653

 
13,623

 
56,276

Purchases
10,923

 
—

 
—

 
10,923

Sales
—

 
(23,061
)
 
(15,731
)
 
(38,792
)
Unrealized gains
—

 
3,265

 
2,108

 
5,373

Unrealized losses
(402
)
 
(11,594
)
 
—

 
(11,996
)
Balance at December 31, 2012
$
10,521

 
$
11,263

 
$
—

 
$
21,784



The Company and the SPII Liquidating Trust use specific valuation metrics appropriate for each investment to estimate the fair value of their debt and equity securities measured using Level 3 inputs. The Company estimates the value of its interest in Trust D and its indirect investment in Fox & Hound primarily using a discounted cash flow method using a market risk premium of 25%. Trust I is valued on a market multiple basis, primarily using an EBITDA multiple of three times trailing twelve months earnings. Trust's G and H are valued based on the net asset value of such funds, which hold investments all of which are valued based on Level 1 or Level 2 inputs. The investments held in these two trusts are not redeemable and distributions will be received from the SPII Liquidating Trust as the underlying assets held are sold over a period which is not determinable. Trust H's term ends in May 2013 and may be extended for up to one additional year at the discretion of its general partner. There are no unfunded capital commitments with respect to these investments.

The change in unrealized gains (losses) for investments still held at December 31, 2012 and 2011 was reported in the consolidated statements of operations as follows:

 
Investments in Associated Companies
 
Other Investments - Related Party
 
Other Investments
 
Total
Year Ended December 31, 2012
 
 
 
 
 
 
 
Gains
 
 
 
 
 
 
 
Income from other investments - related party
$
—

 
$
3,265

 
$
—

 
$
3,265

Income from investments held at fair value
—

 
—

 
2,108

 
2,108

 
—

 
3,265

 
2,108

 
5,373

Losses
 
 
 
 
 
 
 
Losses from associated companies
(402
)
 
—

 
—

 
(402
)
Losses from other investments - related party
—

 
(11,594
)
 
—

 
(11,594
)
 
(402
)
 
(11,594
)
 
—

 
(11,996
)
Total
$
(402
)
 
$
(8,329
)
 
$
2,108

 
$
(6,623
)
Year Ended December 31, 2011
 
 
 
 
 
 
 
Gains
 
 
 
 
 
 
 
Gains from other investments - related party
$
—

 
$
636

 
$
—

 
$
636

Losses
 
 
 
 
 
 
 
Losses from other investments - related party
—

 
(16,380
)
 
—

 
(16,380
)
 Investment and other loss
—

 
—

 
(183
)
 
(183
)
 
—

 
(16,380
)
 
(183
)
 
(16,563
)
Total
$
—

 
$
(15,744
)
 
$
(183
)
 
$
(15,927
)
Year Ended December 31, 2010
 
 
 
 
 
 
 
Gains
 
 
 
 
 
 
 
Gains from other investments - related party
—

 
4,054

 
—

 
4,054

 
—

 
4,054

 
—

 
4,054

Losses
 
 
 
 
 
 
 
Losses from other investments - related party
—

 
(7,274
)
 
—

 
(7,274
)
Investment and other loss
—

 
—

 
(411
)
 
(411
)
 
—

 
(7,274
)
 
(411
)
 
(7,685
)
Total
$
—

 
$
(3,220
)
 
$
(411
)
 
$
(3,631
)

The realized and unrealized gains and losses in financial assets measured using Level 3 inputs are reported in the consolidated statement of operations are presented in the following table. There were no realized losses recorded in 2012, 2011 or 2010.
 
Realized Gains
 
Unrealized Gains
 
Unrealized Losses
 
Total
Year Ended December 31, 2012:
 
 
 
 
 
 
 
Loss of associated companies
$
—

 
$
—

 
$
(402
)
 
$
(402
)
Income (loss) from other investments - related party
—

 
3,265

 
(11,594
)
 
(8,329
)
Income from investments held at fair value
—

 
2,108

 
—

 
2,108

Total
$
—

 
$
5,373

 
$
(11,996
)
 
$
(6,623
)
Year Ended December 31, 2011:
 
 
 
 
 
 
 
Investment and other loss
$
—

 
$
—

 
$
(183
)
 
$
(183
)
Income (loss) from other investments- related party
—

 
636

 
(16,380
)
 
(15,744
)
Total
$
—

 
$
636

 
$
(16,563
)
 
$
(15,927
)
Year Ended December 31, 2010:
 
 
 
 
 
 
 
Investment and other loss
$
—

 
$
—

 
$
(411
)
 
$
(411
)
Net investment gains
810

 
—

 
—

 
810

Income (loss) from other investments - related party
—

 
4,054

 
(7,274
)
 
(3,220
)
Total
$
810

 
$
4,054

 
$
(7,685
)
 
$
(2,821
)











Following is a summary of changes in financial liabilities measured using Level 3 inputs:
 
Distribution Payable (a)
 
Deferred Fee Liability to Related Party (b)
 
Derivative Feature of Subordinated Notes (c)
 
Common Unit Option Liability (d)
 
Total
Balance at December 31, 2010
$
29,869

 
$
64,854

 
$
2,866

 
$
1,785

 
$
99,374

Decrease in fair value reported in the consolidated statement of operations as income
—

 
(6,107
)
 
(839
)
 
(1,785
)
 
(8,731
)
Cash distribution on April 6, 2011
(29,869
)
 
—

 
—

 
—

 
(29,869
)
Settlements
—

 
—

 
(1,333
)
 
—

 
(1,333
)
Balance at December 31, 2011
—

 
58,747

 
694

 
—

 
59,441

Increase (decrease) in fair value reported in the consolidated statement of operations as expense (income)
—

 
11,448

 
(831
)
 
—

 
10,617

Deferred fee settlement
—

 
(70,195
)
 
—

 
—

 
(70,195
)
Other
—

 
—

 
(47
)
 
—

 
(47
)
Balance at December 31, 2012
$
—

 
$
—

 
$
(184
)
 
$
—

 
$
(184
)

(a)
See Note 16 - “Capital and Accumulated Other Comprehensive (Loss) Income" - Common Unit Distributions.
(b)
See Note 13 - “Related Party Transactions”
(c)
See Note 7 - “Financial Instruments”
(d)
See Note 16 - “Capital and Accumulated Other Comprehensive (Loss) Income" - Common Unit Option Liability.

Assets Measured at Fair Value on a Nonrecurring Basis

The Company’s non-financial assets measured at fair value in 2012 and 2011 on a non-recurring basis include the assets acquired and liabilities assumed in the acquisitions described in Note 3 – “Acquisitions”. Significant judgments and estimates are made to determine the acquisition date fair values which may include the use of appraisals, discounted cash flow techniques or other information the Company considers relevant to the fair value measurement. Subsequent to initial measurement, the Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate, in management’s judgment, that carrying values may not be recoverable. Circumstances that could trigger an interim impairment test include but are not limited to: the occurrence of a significant change in circumstances, such as continuing adverse business conditions or legal factors; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; the likelihood that a reporting unit or significant portion of a reporting unit will be sold or otherwise disposed; or results of testing for recoverability of a significant asset group within a reporting unit.

As of December 31, 2012 and 2011, WebBank has impaired loans of $2,915, of which $2,328 is guaranteed by the USDA or SBA and $3,789, of which $2,354 is guaranteed by the USDA or SBA, respectively. These loans are measured at fair value on a nonrecurring basis using Level 3 inputs. Loans are considered impaired when, based on current information and events, it is probable that WebBank will be unable to collect all amounts due according to the contractual terms of loan agreements, including scheduled interest payments. When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, when appropriate, the loan’s observable fair value or the fair value of the collateral (less any selling costs) if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs and unamortized premium or discount), an impairment is recognized by creating or adjusting an existing allocation of the allowance for loan losses, or by charging down the loan to its value determined in accordance with generally accepted accounting principles. Amounts charged against the allowance for loan losses were $1 and $1,589 for the years ended December 31, 2012 and 2011, respectively.