Investments

The Company’s investments as of March 31, 2014 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:



	March 31, 2014							December 31, 2013
(In thousands)	Cost Basis⁽¹⁾		Fair Value		Net unrealized loss in AOCI (2)			Cost Basis⁽¹⁾		Fair Value		Net unrealized loss in AOCI (2)
Short-term bond mutual funds	$	8,000	$	7,989	$	(11	)	$	8,000	$	7,985	$	(15	)
Certificates of deposit	1,644		1,644		—			1,634		1,634		—
Other investment	621		621		—			612		612		—
Total investments	$	10,265	$	10,254	$	(11	)	$	10,246	$	10,231	$	(15	)

(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 March 31, 2014 and December 31, 2013, the Company held $8.0 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 March 31, 2014 and December 31, 2013, the Company recorded insignificant unrealized 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 as of March 31, 2014 and December 31, 2013. 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).

Included in Other investments is a $0.4 million investment obtained through its ViSalus acquisition. As of March 31, 2014 and December 31, 2013, the Company accounts for this investment on a cost basis under ASC 325. This investment involves related parties as discussed in Note 12.

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. As of March 31, 2014, the Company 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 March 31, 2014 and net assets as of March 31, 2014 are not significant to the Company. On April 1, 2014, ViSalus purchased the remaining 50% interest for $0.2 million bringing the total cost of acquisition to $0.5 million.

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 March 31, 2014 and December 31, 2013, the fair value of these securities was $1.0 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 on the sale of available for sale investments recorded in Foreign exchange and other within the Consolidated Statements of Earnings (Loss) for the three months ended March 31, 2014 and 2013. Gains and losses reclassified from AOCI, net to foreign exchange, in the Consolidated Statement of Earnings (Loss) are calculated using the specific identification method.



(In thousands)	March 31, 2014		March 31, 2013
Net proceeds	$	—	$	7,570
Realized gains	$	—	$	38