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Investments In Equity Method Affiliates | 12 Months Ended
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Dec. 31, 2013
Investments in Equity Method Affiliates [Abstract] |
Investments In Equity Method Affiliates | 15. INVESTMENTS IN EQUITY METHOD AFFILIATES The Company has several investments that are accounted for under the equity method. Equity method accounting requires that the Company record its investment on the consolidated balance sheets and recognize its share of the affiliate’s net income as earnings each year. Investment in equity method affiliates is included as a component of other assets on the Company’s consolidated balance sheets. The Company has certain equity method affiliates for which it has elected the fair value option. See note 3-F. Those affiliates are excluded from the table below. Those investees are included as a component of other investments, at fair value in the consolidated balance sheets. All gains and losses (unrealized and realized) from securities classified as other investments, at fair value in the consolidated balance sheets are recorded as a component of principal transactions and other income in the consolidated statements of operations. Effective in March 2013, the Company acquired 100% control of Star Asia Manager as a result of the Star Asia Manager Repurchase Transaction. See note 4. Prior to March 1, 2013, the Company accounted for its investment in Star Asia Manager under the equity method. Following March 1, 2013, the Company has included Star Asia Manager in its consolidated financial statements. As of December 31, 2013, the Company had the following equity method investees (excluding equity method affiliates for which it had adopted the fair value option): (i) Star Asia Opportunity; (ii) Star Asia Capital Management; (iii) SAA Manager; and (i v) SAP GP. During the years ended December 31, 2013 and 2012, the Company did not make an investment in SAP GP or recognize any income or loss under the equity method related to SAP GP. During the second quarter of 2013, the Company received its investment return up to an agreed upon maximum from Star Asia SPV and the Company no longer has an ownership interest in Star Asia SPV. During the third quarter of 2013, the Company received its final liquidating distribution from Deep Value GP. During the fourth quarter of 2013, the Company received its final liquidating distribution from the Deep Value GP II. The following table summarizes the activity and the earnings of the Company’s equity method affiliates and includes the activity for Star Asia Manager during the period that the Company accounted for its investment in Star Asia Manager under the equity method.
INVESTMENTS IN EQUITY METHOD AFFILIATES
(Dollars in Thousands)
| Star |  | Deep |  | Deep |  | Star |  | Star |  | Star Asia |  | Star |  |  |  |  |  |
| Asia |  | Value |  | Value |  | Asia |  | Asia |  | Capital |  | Asia |  | SAA |  |  |  |
| Manager (3) |  | GP |  | GP II |  | SPV (3) |  | Opportunity (3) |  | Management (3) |  | Opportunity II (3) |  | Manager (3) |  | Other |  | Total
December 31, 2010 | $ | 202 |  | $ | 269 |  | $ | 31 |  | $ | 1,604 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 2,106
Investment / advances |  | - |  |  | - |  |  | - |  |  | 6 |  |  | 4,055 |  |  | 6 |  |  | - |  |  | - |  |  | 964 |  |  | 5,031
Distributions / repayments |  | (850) |  |  | (4,597) |  |  | - |  |  | (1,846) |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (7,293)
Earnings / (loss) realized |  | 1,694 |  |  | 4,349 |  |  | 2 |  |  | 702 |  |  | 405 |  |  | 44 |  |  | - |  |  | - |  |  | (964) |  |  | 6,232
December 31, 2011 |  | 1,046 |  |  | 21 |  |  | 33 |  |  | 466 |  |  | 4,460 |  |  | 50 |  |  | - |  |  | - |  |  | - |  |  | 6,076
Investment / advances |  | - |  |  | - |  |  | - |  |  | 10 |  |  | - |  |  | 6 |  |  | 4,700 |  |  | - |  |  | - |  |  | 4,716
Distributions / repayments |  | (1,600) |  |  | - |  |  | (1,720) |  |  | (662) |  |  | (4,982) |  |  | (652) |  |  | (2,477) |  |  | - |  |  | - |  |  | (12,093)
Reorganization (1) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (1,841) |  |  | - |  |  | - |  |  | (1,841)
Earnings / (loss) realized |  | 1,101 |  |  | (14) |  |  | 1,726 |  |  | 1,581 |  |  | 544 |  |  | 504 |  |  | (382) |  |  | (8) |  |  | - |  |  | 5,052
December 31, 2012 |  | 547 |  |  | 7 |  |  | 39 |  |  | 1,395 |  |  | 22 |  |  | (92) |  |  | - |  |  | (8) |  |  | - |  |  | 1,910
Investments / advances |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 10 |  |  | 20 |  |  | 30
Distributions / repayments |  | - |  |  | (7) |  |  | (26) |  |  | (2,682) |  |  | - |  |  | (134) |  |  | - |  |  | (245) |  |  | - |  |  | (3,094)
Acquisition (2) |  | (705) |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (705)
Earnings / (loss) realized |  | 158 |  |  | - |  |  | (13) |  |  | 1,287 |  |  | (5) |  |  | 145 |  |  | - |  |  | 255 |  |  | 1 |  |  | 1,828
December 31, 2013 | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 17 |  | $ | (81) |  | $ | - |  | $ | 12 |  | $ | 21 |  | $ | (31)
(1)On December 20, 2012, Star Asia Opportunity II completed a reorganization whereby its assets were contributed into a subsidiary of the Star Asia Special Situations Fund. The net effect of the reorganization to the Company was that the Company exchanged its ownership interest in Star Asia Opportunity II for cash and an interest in the Star Asia Special Situations Fund. The Star Asia Special Situations Fund is carried at fair value and included as a component of other investments, at fair value. The cash received by the Company in the reorganization is included as distributions / repayments above. The remaining carrying value of the Company’s equity method investment in Star Asia Opportunity II was $1,841 after taking into account the cash distribution from the reorganization. This amount was reclassified from investments in equity method affiliates to other investments, at fair value. It is shown as reorganization in the table above and is treated as the cost basis of the Company’s investment in the Star Asia Special Situations Fund. Any difference between the cost basis assigned and the fair value of the Company’s investment in the Star Asia Special Situations Fund is included as a component of principal transactions, and other income. See notes 8, 9, 28, and 29. (2)See note 4. (3)See note 31. On February 20, 2014, the Company announced the completion of the sale of the Company’s ownership interests in the Star Asia Group which includes Star Asia Manager, Star Asia Capital Management, and SAA Manager from the table above. As of December 31, 2013, the Company had no interest in the earnings of Star Asia SPV and Star Asia Opportunity II. Star Asia Opportunity is in liquidation and a small additional distribution is expected in 2014. See note 31. During the second quarter of 2011, a Strategos Deep Value fund for which Deep Value GP served as the general partner was substantially liquidated. In conjunction with this liquidation and distribution of funds to investors, the Deep Value GP recognized an incentive fee in the amount of $8,719 during the second quarter of 2011. Since the Company own ed 50% of the Deep Value GP, the Company’s share of this incentive fee was $4,359 and was included as a component of income from equity method affiliates. This incentive fee was included in the earnings / (loss) realized line item, which was $4,349 for the year ended December 31, 2011, in the table above. During the fourth quarter of 2012, a Strategos Deep Value fund for which Deep Value GP II served as the general partner was substantially liquidated. In conjunction with this liquidation and distribution of funds to investors, the Deep Value GP II recognized an incentive fee in the amount of $4,301 during the fourth quarter of 2012. Since the Company own ed 40% of the Deep Value GP II, the Company’s share of this incentive fee was $1,720 and was inclu ded as a component of income from equity method affiliates. This incentive fee was included in the earnings / (loss) realized line item, which was $1,726 for the year ended December 31, 2012, in the table above. The following table summarizes the combined financial information for all equity method investees, including equity method investees for which the fair value option was elected. This aggregated summarized financial data does not represent the Company’s proportionate share of equity method investees’ assets or earnings.
SUMMARY DATA OF EQUITY METHOD INVESTEES
(Dollars in Thousands)
|  |  | December 31, 2013 |  |  | December 31, 2012
Total Assets |  | $ | 370,388 |  | $ | 279,874
Liabilities |  | $ | 144,578 |  | $ | 96,981
Equity attributable to the investees |  |  | 225,810 |  |  | 182,277
Non-controlling interest |  |  | - |  |  | 616
Total Liabilities & Equity |  | $ | 370,388 |  | $ | 279,874
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Net income / (loss) | $ | 28,885 |  | $ | 2,248 |  | $ | 12,786
Net income / (loss) attributable to the investees | $ | 29,501 |  | $ | 2,667 |  | $ | 12,818
See note 29 for information regarding transactions with the Company’s equity method investees.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 + Details
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