nd the Catalog & Internet segment (Silver Star Brands, formerly known as the Miles Kimball Company).

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 September 30, 2014 and the consolidated results of its operations and cash flows for the three and nine months ended September 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 nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

On September 4, 2014, the Company entered into an agreement with the ViSalus founders and certain other preferred stockholders to exchange the ViSalus redeemable preferred stock for ViSalus common stock, reducing the Company’s ownership interest in ViSalus from approximately 80.9% to 10.0%. As a result of its reduced ownership in ViSalus, the Company will no longer consolidate ViSalus's results in the Company's financial statements; rather, the ViSalus investment will be recorded on a cost basis. Accordingly, the operating results of ViSalus have been presented as discontinued operations for all periods presented as more fully detailed in Note 2 to the Consolidated Financial Statements.

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 a material impact on the Company's consolidated financial position 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 position 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 that 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 position or results of operations.

In May 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 position or results of operations.

Other Comprehensive Income

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



	Nine months ended
(In thousands)	September 30, 2014									September 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	$	3,247		$	(5,965	)	$	(2,718	)	$	(583	)	$	1,939		$	1,356
Net unrealized gain (loss) on certain investments	(158		)	55			(103		)	(251		)	87			(164		)
Net unrealized gain (loss) on cash flow hedging instruments	502			(176		)	326			(79		)	28			(51		)
Less: Reclassification adjustments for (gain) loss included in net income	149			(52		)	97			237			(83		)	154
Other comprehensive income (loss)	$	3,740		$	(6,138	)	$	(2,398	)	$	(676	)	$	1,971		$	1,295

The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 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		Total
Beginning balance at January 1, 2014	$	13,905		$	263		$	(110	)	$	2,304	$	16,362
Other comprehensive income (loss) before reclassifications	(3,582		)	(103		)	326			864		(2,495		)
Amounts reclassified from accumulated other comprehensive loss (1) (2)	—			(44		)	(53		)	—		(97		)
Net current period other comprehensive income (loss)	(3,582		)	(59		)	379			864		(2,398		)
Balance at September 30, 2014	$	10,323		$	204		$	269		$	3,168	$	13,964

(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.