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Related Party Transactions | 6 Months Ended
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Jun. 30, 2018
Related Party Transactions [Abstract] |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company owns a 60% controlling interest in a joint venture formed with Swire, which is a related party. The joint venture arrangement involves Transition Services Agreements ("TSAs") with Swire, under which Swire provides administrative and information technology services to the joint venture. The Company continues to reduce its costs under the TSAs as it internalizes the back-office functions and related personnel, including the transition of the joint venture's systems to the Company's ERP platform in the second quarter of 2017. The joint venture incurred service fees, valued under the TSAs at Swire's cost, of $73,000 and $329,000 during the three months ended June 30, 2018 and 2017, respectively, and $144,000 and $845,000 during the six months ended June 30, 2018 and 2017, respectively. These fees are included in SG&A expenses in the Condensed Consolidated Statements of Operations. As of June 30, 2018 and 2017, and December 31, 2017, net payables to Swire for service fees, interest expense and miscellaneous expenses totaled $83,000, $340,000 and $89,000, respectively, and were included in Accounts payable in the Condensed Consolidated Balance Sheets. In addition to the transactions described above, Swire is also a third-party distributor of the Company's brands in certain regions outside of mainland China and purchases products from the Company under the Company's standard third-party distributor terms and pricing. In April 2018, the Company announced its intent to buy out the remaining 40% non-controlling interest in the joint venture under the terms of the initial agreement. The buyout is subject to various terms and conditions, including regulatory approval in China, and is expected to be completed in early 2019. On June 14, 2018, the joint venture declared a cash dividend of RMB 341,347,000 ($53,330,000 USD) anticipated to be paid by the end of the third quarter of 2018 to stockholders of record as of June 14, 2018. The Company's share of this dividend will be $31,998,000 and is eliminated in consolidation. As of June 30, 2018, the Company recorded an Accrued liability for the dividend payable to Swire and a corresponding reduction to Non-controlling interest of $21,332,000 in the Condensed Consolidated Balance Sheets.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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