ServiceMagic 2014 Annual Report Download - page 86

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IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Gross realized gains and losses from the maturities and sales of available-for-sale marketable securities are included in "Other (expense)
income, net" in the accompanying consolidated statement of operations.
NOTE 6—LONG-TERM INVESTMENTS
Long-term investments consist of:
Cost method investments
In 2014, the Company recorded $66.6 million of other-than-temporary impairment charges for certain cost method investments as a result of
our assessment of the near-term prospects and financial condition of the investees.
In 2013, the Company recorded a $5.0 million other-than-temporary impairment charge related to a cost method investment. The decline in
fair value was due to the investees continued losses, negative working capital and significant debt financing.
These charges are included in "Other (expense) income, net" in the accompanying consolidated statement of operations.
The Company has a 20% interest in the voting common stock of Zhenai Inc. ("Zhenai"), a leading provider of online matchmaking services in
China. Our voting power is limited by a shareholders agreement. In light of this limitation and the significance of our interest relative to other
shareholders, we do not have the ability to exercise significant influence over the operating and financial matters of Zhenai and this investment is
accounted for as a cost method investment.
Equity method investments
In 2014 , the Company recorded a $4.2 million other-than-temporary impairment charge on one of its investments following the sale of a
majority of the investee's assets.
In 2013 , the Company recorded a non-cash charge of $18.6 million related to the re-measurement of the carrying value of our equity method
investment in The Daily Beast to fair value in connection with the acquisition of a controlling interest.
These charges are included in "Equity in losses of unconsolidated affiliates" in the accompanying consolidated statement of operations.
December 31,
2014
2013
2012
(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities
$
25,223
$
82,160
$
205,944
Gross realized gains
3,362
35,692
4,075
Gross realized losses
—
—
(
5
)
December 31,
2014
2013
(In thousands)
Cost method investments
$
90,910
$
137,286
Equity method investments
10,593
22,073
Long-term marketable equity securities
7,410
11,711
Auction rate security
6,070
8,920
Total long-term investments
$
114,983
$
179,990