Investments

The Company considers all money market funds and debt instruments, including certificates of deposit and commercial paper, purchased with an original maturity of three months or less to be cash equivalents, unless the assets are restricted. The carrying value of cash and cash equivalents approximates its fair value.

The Company’s investments as of December 31, 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 investments 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:



	December 31, 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
Short-term bond mutual funds	$	8,000	$	7,985	$	(15	)	$	17,014	$	17,196	$	182
Certificates of deposit	1,634		1,634		—			1,779		1,779		—
Pre-refunded and municipal bonds	—		—		—			15,047		14,877		(170		)
Other investments	612		612		—			362		362		—
Total investments	$	10,246	$	10,231	$	(15	)	$	34,202	$	34,214	$	12

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

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

As of December 31, 2013 and 2012, the Company held $8.0 million and $17.2 million of short-term bond mutual funds, which are classified as short-term available for sale investments. Unrealized 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 December 31, 2013 and 2012, the Company recorded insignificant unrealized gains and losses, net of tax.

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 $1.6 million and $1.8 million as of December 31, 2013 and 2012, respectively. These investments are recorded at fair value which approximates cost and interest earned on these is recorded in Interest income in the Consolidated Statements of Earnings (Loss).

Included in Other investments is a $0.4 million investment obtained through the Company's ViSalus acquisition. The Company accounts for this investment on a cost basis under ASC 325. This investment involves related parties as discussed in Note 16.

On November 26, 2013, ViSalus entered into an agreement with a healthy snack manufacturer to acquire a 50% interest in the company for $0.3 million in cash. ViSalus has the option to purchase all of the company's assets for a total purchase price of $0.5 million. As of December 31, 2013, the Company has concluded that it does not have control of the company in accordance with ASC 810 and therefore has accounted for this as an equity investment. Operating results through December 31, 2013 and net assets as of December 31, 2013 are not significant to the Company.

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 an unrealized loss, 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 December 31, 2013 and 2012, the fair value of these securities was $1.0 million and $0.8 million. 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 and losses on the sale of available for sale investments recorded in Foreign exchange and other within the Consolidated Statements of Earnings (Loss) for the year ended December 31, 2013 and 2012. Gains and losses reclassified from AOCI, net to foreign exchange, in the Consolidated Statement of Earnings are calculated using the specific identification method.



(In thousands)	December 31, 2013			December 31, 2012
Net proceeds	$	44,655		$	69,740
Realized Gains (Losses)	$	(304	)	$	960