Investments

The Company’s investments as of September 30, 2013 consisted of a number of financial securities including certificates of deposit, shares in mutual funds invested in short term bonds, and a cost investment. The Company accounts for its investments in debt and equity instruments in accordance with ASC 320, “Investments – Debt & Equity Securities.” The Company accounts for its cost investment in accordance with ASC 325, “Investments – Other.”

The following table summarizes, by major security type, the amortized costs and fair value of the Company’s investments:



	September 30, 2013							December 31, 2012
(In thousands)	Cost Basis⁽¹⁾		Fair Value		Net unrealized loss in AOCI (2)			Cost Basis⁽¹⁾		Fair Value		Net unrealized gain (loss) in AOCI
Pre-refunded and municipal bonds	$	—	$	—	$	—		$	15,047	$	14,877	$	(170	)
Short-term bond mutual funds	6,993		6,858		(135		)	17,014		17,196		182
Certificates of deposit	1,652		1,652		—			1,779		1,779		—
Other investment	362		362		—			362		362		—
Total investments	$	9,007	$	8,872	$	(135	)	$	34,202	$	34,214	$	12

(1) The cost basis represents the actual amount paid less any permanent impairment recorded on that asset.

(2) The Company believes these short-term losses are temporary in nature therefore no permanent impairment is required.

As of September 30, 2013 and December 31, 2012, the Company held $6.9 million and $17.2 million of short-term bond mutual funds, which are classified as short-term available for sale investments. Unrealized gains and losses on these investments that are considered temporary are recorded in AOCI. These securities are valued based on quoted prices in active markets. As of September 30, 2013 and December 31, 2012, the Company recorded unrealized losses, net of tax of $0.1 million, and unrealized gains, net of tax of $0.1 million for each reporting period, respectively.

Also included in long-term investments are certificates of deposit that are held as collateral for the Company’s outstanding standby letters of credit and for foreign operations of $1.7 million and $1.8 million as of September 30, 2013 and December 31, 2012, respectively. These investments are recorded at fair value which approximates cost. Interest earned on these investments is recorded in Interest income in the Consolidated Statements of Earnings (Loss).

The Company holds a $0.4 million investment obtained through its ViSalus acquisition. As of September 30, 2013 and December 31, 2012, the Company accounts for this investment on a cost basis under ASC 325. This investment involves related parties as discussed in Note 12.

As of December 31, 2012, the Company held $14.9 million of available for sale municipal bonds and advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. These investments are valued based on quoted prices of similar instruments in inactive markets; interest earned on these investments is realized in Interest income in the Consolidated Statements of Earnings (Loss). As of December 31, 2012, the Company recorded unrealized losses, net of tax of $0.1 million in AOCI.

In addition to the investments noted above, the Company holds mutual funds as part of a deferred compensation plan which are classified as available for sale. As of September 30, 2013 and December 31, 2012, the fair value of these securities was $0.9 million and $0.8 million, respectively. These securities are valued based on quoted prices in an active market. Unrealized gains and losses on these securities are recorded in AOCI. These mutual funds are included in Other assets in the Consolidated Balance Sheets.

The following table summarizes the proceeds and realized gains on the sale of available for sale investments recorded in Foreign exchange and other within the Consolidated Statements of Earnings (Loss) for the three and nine months ended September 30, 2013 and 2012. Gains and losses reclassified from AOCI, net to foreign exchange, in the Consolidated Statement of Earnings (Loss) are calculated using the specific identification method.



	Three months ended					Nine months ended
(In thousands)	September 30, 2013			September 30, 2012		September 30, 2013			September 30, 2012
Net proceeds	$	9,585		$	19,991	$	37,861		$	53,251
Realized Gains (Losses)	$	(48	)	$	185	$	(105	)	$	919