the Health & Wellness segment (ViSalus), and the Catalog & Internet segment (Silver Star Brands).

Note 1. Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The Company's subsidiaries within the Catalog & Internet segment operate on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting only of items that are normal and recurring in nature) necessary for fair presentation of the Company's consolidated financial position as of June 30, 2014 and the consolidated results of its operations and cash flows for the three and six months ended June 30, 2014 and 2013. These interim statements should be read in conjunction with the Company's Consolidated Financial Statements for the year ended December 31, 2013, as set forth in the Company's Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

Recently Adopted Accounting Guidance

In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative

Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an

Investment in a Foreign Entity (“ASU 2013-05”). This amendment clarifies the applicable guidance for the release of

cumulative translation adjustment into net earnings. When an entity ceases to have a controlling financial interest in a

subsidiary or group of assets within a foreign entity, the entity is required to apply the guidance in FASB Accounting Standards

Codification (ASC) Topic 830-30 to release any related cumulative translation adjustment into net earnings. The Company adopted ASU 2013-01 as of January 1, 2014. This standard did not have an impact on the Company's consolidated financial condition or results of operations.

In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss

Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"), which provides guidance for the

financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a

tax credit carryforward exists. The Company adopted ASU 2013-11 as of January 1, 2014. This standard did not have a material impact on the Company's consolidated financial condition or results of operations.

Recently Issued Accounting Guidance

In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity", ("ASU 2014-08"). ASU 2014-08 changes the definition of reporting discontinued operations by limiting discontinued operations reporting to disposals that represent strategic shifts what will have a major effect on an entity's operations and financial results. The amendments of this update also require additional disclosures for discontinued operations. The Company is required to adopt ASU 2014-08 prospectively for all disposals classified as held for sale during fiscal periods beginning after December 15, 2014. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods and services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

Other Comprehensive Income

The following table discloses the tax effects allocated to each component of other comprehensive income in the financial statements:



	Six months ended
(In thousands)	June 30, 2014									June 30, 2013
	Before-Tax Amount			Tax (Expense) or Benefit			Net-of-tax Amount			Before-Tax Amount			Tax (Expense) or Benefit			Net-of-tax Amount
Foreign currency translation adjustments	$	551		$	(186	)	$	365		$	(288	)	$	(924	)	$	(1,212	)
Net unrealized gain (loss) on certain investments	(37		)	13			(24		)	(315		)	110			(205		)
Net unrealized gain (loss) on cash flow hedging instruments	16			(6		)	10			422			(148		)	274
Less: Reclassification adjustments for (gain) loss included in net income	186			(65		)	121			139			(49		)	90
Other comprehensive income (loss)	$	716		$	(244	)	$	472		$	(42	)	$	(1,011	)	$	(1,053	)

The components of accumulated other comprehensive income (loss), net of tax, for the six months ended June 30, 2014 is as follows:



(In thousands)	Foreign Currency Translation Adjustment		Net unrealized gain (loss) on certain investments			Net unrealized gain (loss) on cash flow hedging instruments			Net Investment Hedge gain (loss)			Total
Beginning balance at January 1, 2014	$	13,905	$	263		$	(110	)	$	2,304		$	16,362
Other comprehensive income (loss) before reclassifications	521		(24		)	10			(156		)	351
Amounts reclassified from accumulated other comprehensive income (loss) (1) (2)	—		(44		)	(77		)	—			(121		)
Net current period other comprehensive income (loss)	521		20			87			(156		)	472
Balance at June 30, 2014	$	14,426	$	283		$	(23	)	$	2,148		$	16,834

(1) All amounts net of a 35% tax rate.

(2) Reclassified from Accumulated other comprehensive income into Foreign exchange and other and Cost of goods sold.