Note 8 - Nonconsolidated Variable Interest Entities

The Company’s equity method investments, for which the Company has determined it is not the primary beneficiary, consist of interests in the following companies, which directly or indirectly operate restaurants:

Bagatelle Investors is a holding company that has interests in two restaurants, Bagatelle NY and Bagatelle LA. All three entities were formed in 2011. The Company has determined that it is not the primary beneficiary of these entities as it does not have the power to direct the day to day activities of these entities, but it is able to exercise influence over these entities. During the years ended December 31, 2017 and 2016, the Company provided no additional types of support to these entities than what was contractually required. The restaurant associated with the Company’s investment in Bagatelle LA closed in 2016, at which time the Company wrote off its investment in Bagatelle LA to $0.

One 29 Park, formed in 2009, operates a restaurant and manages the rooftop of a hotel located in New York, NY. Until the fourth quarter of 2017, the Company accounted for its investment in One 29 Park under the equity method of accounting based on management’s assessment that the Company had significant influence over One 29 Park’s operations. In the fourth quarter of 2017, the majority ownership of One 29 Park changed. As a result of this ownership change, the Company believes that it no longer has significant influence over the operations of One 29 Park. The Company did not record any income or losses during the fourth quarter of 2017 related to One 29 Park as it now accounts for its investment in One 29 Park under the cost method. No dividends or distributions were received from One 29 Park in 2017. In March 2018, the Company entered into an agreement to sell its 10% interest in One 29 Park to the new ownership group for $0.6 million.

At December 31, 2017 and 2016, the carrying values of these investments were (in thousands):

The Company has entered into management agreements with Bagatelle NY and Bagatelle LA (the “Bagatelle Entities”) and One 29 Park. For the Bagatelle Entities, the Company recorded management fee revenue of $0.2 million and $0.3 million for the years ended December 31, 2017 and 2016, respectively. For One 29 Park, the Company recorded management fee revenue of $0.5 million for each of the years ended December 31, 2017 and 2016, respectively. The Company receives rental income from Bagatelle NY for restaurant space that it subleases to Bagatelle NY. Rental income of $0.5 million was recorded from this entity for each of the years ended December 31, 2017 and 2016, respectively.

Receivables from the Bagatelle Entities and One 29 Park of $0.1 million and $0.5 million are included in due to related parties, net on the December 31, 2017 consolidated balance sheet and in due from related parties, net on the 2016 consolidated balance sheet. These receivables, combined with the Company’s equity in each of these investments, represent the Company’s maximum exposure to loss.

Summarized financial data for these investments is presented below (in thousands):

* For the nine months ended September 30, 2017.