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Related Party Transactions | 12 Months Ended
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Dec. 31, 2019
Related Party Transactions [Abstract] |
Related Party Transactions | NOTE 21—RELATED PARTY TRANSACTIONS As described in Note 5, the Company owned a 60% controlling interest in a joint venture formed with Swire. In 2018, the Company and Swire entered into an EITA, under which the Company committed to buy out the 40% non-controlling interest in the joint venture. The buyout was subject to various terms and conditions. As part of the buyout arrangement, in 2018, the Company placed $14.0 million in an escrow account as a portion of the funds needed to complete the buyout in early 2019. The escrow account is shown as Restricted cash on the Consolidated Balance Sheets at December 31, 2018. On January 2, 2019, the buyout transaction closed, and Swire was no longer considered to be a related party. Pursuant to the terms of the buyout arrangement, the escrow balance of $14.0 million was paid to Swire. In April 2019, the Company remitted a final payment of $3.9 million to Swire, based on the final outcome of certain accounting estimates associated with the China joint venture. As a result of the buyout, beginning in 2019, the consolidated financial statements of the Company do not separately reflect amounts related to the non-controlling interest. The Company engaged in the following related-party transactions with Swire for the years ended December 31, 2018 and 2017: Administrative, information technology and sourcing services The joint venture arrangement involved Transition Services Agreements with Swire, under which Swire provided administrative and information technology services to the joint venture. The fees incurred for these services by the joint venture were immaterial during the years ended December 31, 2018 and 2017. In addition, the joint venture paid Swire sourcing fees related to the purchase of certain inventory. These sourcing fees were capitalized into Inventories and expensed as Cost of sales when the inventories were sold. Loan repayment In 2014, both the Company and Swire funded long-term loans to the joint venture. In 2017, the Company repaid these loans, including the note with Swire in the principal amount of RMB97.6 million (approximately US$14.2 million). Interest expense related to this note was $0.4 million for the year ended December 31, 2017. Third-party distributor As a third-party distributor, Swire purchased the Company's products under the Company's standard third-party distributor terms and pricing, and sold to consumers in certain regions outside of mainland China. Dividends paid The China joint venture declared a cash dividend of RMB341.3 million (approximately US$53.3 million) in June 2018 to stockholders of record as of June 14, 2018 and paid the dividend in the third quarter of 2018. The dividend paid to Swire was RMB136.5 million (approximately US$21.3 million at the date of declaration, which equated to approximately US$20.0 million on the date of payment). The dividend paid to the Company of approximately $32.0 million was eliminated in consolidation.

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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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