Investments

The Company’s investments as of September 30, 2014 consisted of a number of financial securities including certificates of deposit, shares in mutual funds invested in short term bonds, and its noncontrolling interest cost investment in ViSalus. 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 ViSalus 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, 2014							December 31, 2013
(In thousands)	Cost Basis		Fair Value		Net unrealized loss in AOCI (1)			Cost Basis		Fair Value		Net unrealized loss in AOCI (1)
Short-term bond mutual funds	$	24,000	$	23,917	$	(83	)	$	8,000	$	7,985	$	(15	)
Certificates of deposit	1,101		1,101		—			1,070		1,070		—
Investment in ViSalus	9,750		9,750		—			—		—		—
Total investments	$	34,851	$	34,768	$	(83	)	$	9,070	$	9,055	$	(15	)

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

As of September 30, 2014 and December 31, 2013, the Company held $23.9 million and $8.0 million, respectively, 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, 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 $1.1 million as of September 30, 2014 and December 31, 2013, 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).

As of September 30, 2014, the Company accounts for its noncontrolling interest in ViSalus on a cost basis under ASC 325, which approximates its fair value. On October 17, 2014 the Company and ViSalus entered into a revolving loan agreement pursuant to which the Company agreed to lend ViSalus up to $6.0 million. Loans under the revolving credit agreement will bear interest at a rate of 10% per annum. Interest will be paid monthly and there will be no higher default rate of interest. In August 2014, the Company made a $3.0 million short-term loan to ViSalus, which amount was repaid by ViSalus in October 2014 with a borrowing in the same amount under the Blyth Revolving Loan Agreement. This investment and any outstanding loan balance will be reviewed periodically for impairment to ensure it is properly stated. These transactions involve related parties as discussed in Note 12.

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, 2014 and December 31, 2013, the fair value of these securities was $0.9 million and $1.0 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 losses 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, 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.



	Three months ended					Nine months ended
(In thousands)	September 30, 2014		September 30, 2013			September 30, 2014		September 30, 2013
Net proceeds	$	—	$	9,585		$	4,000	$	37,861
Realized losses	$	—	$	(48	)	$	—	$	(105	)