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RESTATEMENT | 3 Months Ended
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Mar. 31, 2014
RESTATEMENT [Abstract] |
RESTATEMENT |
15. | RESTATEMENT
The consolidated financial statements as of March 31, 2014 and for the three-month period ended March 31, 2014 have been restated to correct the accounting related to (i) hyper-inflationary adjustments with respect to operations in Venezuela, and (ii) tax rebates related to the Company's new China headquarters. The hyper-inflationary currency translation adjustments should have been recorded as charges to Other Income (Expense) rather than as adjustments to Accumulated Other Comprehensive Loss. The Company also should have recorded income to Other Income (Expense) for the China tax rebates. The restatement makes these corrections by including a $21 million charge to Other Income (Expense) related to the hyper-inflationary accounting error and $7 million of income related to the China tax rebate. All other adjustments relate to the applicable income tax effects of these errors. With respect to the hyper-inflationary correction, $15 million related to the first quarter of 2014, and $6 million related to periods prior to 2014. With respect to the China tax rebates correction, $2 million related to the first quarter of 2014, and $5 million related to periods prior to 2014. The Company does not plan to amend financial statements for periods prior to 2014 as the amounts were determined to be immaterial. These changes, net of tax, negatively impacted net income for the three-month period ended March 31, 2014 by $9 million. The following tables reconcile the amounts as originally reported in the Company's Original Form 10-Q for the quarter ended March 31, 2014 compared to the amounts as restated in this Form 10-Q/A. NU SKIN ENTERPRISES, INC. Consolidated Statements of Income (Unaudited) For the Three Month Period Ended March 31, 2014 (U.S. dollars in thousands, except per share amounts)
|  | As Reported |  |  | As Restated |  |  | Difference |
Revenue |  | $ | 671,061 |  |  | $ | 671,061 |  |  | $ | - |
Cost of sales |  |  | 106,644 |  |  |  | 106,644 |  |  |  | - |
Gross profit |  |  | 564,417 |  |  |  | 564,417 |  |  |  | - |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling expenses |  |  | 313,101 |  |  |  | 313,101 |  |  |  | - |
General and administrative expenses |  |  | 150,119 |  |  |  | 150,119 |  |  |  | - |
Total operating expenses |  |  | 463,220 |  |  |  | 463,220 |  |  |  | - |
Operating income |  |  | 101,197 |  |  |  | 101,197 |  |  |  | - |
Other income (expense), net |  |  | (3,604 | ) |  |  | (17,508 | ) |  |  | (13,904 | )
Income before provision for income taxes |  |  | 97,593 |  |  |  | 83,689 |  |  |  | (13,904 | )
Provision for income taxes |  |  | 33,332 |  |  |  | 28,835 |  |  |  | (4,497 | )
Net income |  | $ | 64,261 |  |  | $ | 54,854 |  |  | $ | (9,407 | )
Net income per share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1.09 |  |  | $ | 0.93 |  |  | $ | (0.16 | )
Diluted |  | $ | 1.05 |  |  | $ | 0.90 |  |  | $ | (0.15 | )
Weighted average common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 58,869 |  |  |  | 58,869 |  |  |  | - |
Diluted |  |  | 61,227 |  |  |  | 61,227 |  |  |  | - |
NU SKIN ENTERPRISES, INC. Consolidated Balance Sheets (Unaudited) March 31, 2014 (U.S. dollars in thousands)
| As Reported |  | As Restated |  | Difference
ASSETS |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 284,580 |  | $ | 284,580 |  | $ | -
Current investments |  | 18,703 |  |  | 18,703 |  |  | -
Accounts receivable |  | 56,644 |  |  | 56,644 |  |  | -
Inventories, net |  | 410,668 |  |  | 410,668 |  |  | -
Prepaid expenses and other |  | 149,523 |  |  | 150,375 |  |  | 852
|  | 920,118 |  |  | 920,970 |  |  | 852
Property and equipment, net |  | 411,929 |  |  | 411,929 |  |  | -
Goodwill |  | 112,446 |  |  | 112,446 |  |  | -
Other intangible assets, net |  | 81,377 |  |  | 81,377 |  |  | -
Other assets |  | 115,751 |  |  | 115,751 |  |  | -
Total assets | $ | 1,641,621 |  | $ | 1,642,473 |  | $ | 852
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable | $ | 51,276 |  | $ | 51,276 |  |  | -
Accrued expenses |  | 449,434 |  |  | 439,815 |  |  | (9,619)
Current portion of debt |  | 88,031 |  |  | 88,031 |  |  | -
|  | 588,741 |  |  | 579,122 |  |  | (9,619)
Long-term debt |  | 109,882 |  |  | 109,882 |  |  | -
Other liabilities |  | 79,418 |  |  | 77,910 |  |  | (1,508)
Total liabilities |  | 778,041 |  |  | 766,914 |  |  | (11,127)
Stockholders' equity: |  |  |  |  |  |  |  |
Class A common stock |  | 91 |  |  | 91 |  |  | -
Additional paid-in capital |  | 399,677 |  |  | 399,677 |  |  | -
Treasury stock, at cost |  | (848,335) |  |  | (848,335) |  |  | -
Accumulated other comprehensive loss |  | (66,250) |  |  | (44,864) |  |  | 21,386
Retained earnings |  | 1,378,397 |  |  | 1,368,990 |  |  | (9,407)
|  | 863,580 |  |  | 875,559 |  |  | 11,979
Total liabilities and stockholders' equity | $ | 1,641,621 |  | $ | 1,642,473 |  | $ | 852
NU SKIN ENTERPRISES, INC. Consolidated Statements of Comprehensive Income (Unaudited) For the Three Month Period Ended March 31, 2014 (U.S. dollars in thousands)
| As Reported |  | As Restated |  | Difference
Net Income | $ | 64,261 |  | $ | 54,854 |  | $ | (9,407)
Other comprehensive income, net of tax: |  |  |  |  |  |  |  |
Foreign currency translation adjustment |  | (19,528) |  |  | 1,858 |  |  | 21,386
Net unrealized gains on foreign currency cash flow hedges |  | (257) |  |  | (257) |  |  | -
Reclassification adjustment for realized losses (gains) in current earnings |  | (237) |  |  | (237) |  |  | -
|  | (20,022) |  |  | 1,364 |  |  | 21,386
Comprehensive income | $ | 44,239 |  | $ | 56,218 |  | $ | 11,979
NU SKIN ENTERPRISES, INC. Consolidated Statements of Cash Flows (Unaudited) For the Three Month Period Ended March 31, 2014 (U.S. dollars in thousands)
|  | As Reported |  |  | As Restated |  |  | Difference |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
Net income |  | $ | 64,261 |  |  | $ | 54,854 |  |  | $ | (9,407 | )
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 12,251 |  |  |  | 12,251 |  |  |  | - |
Foreign currency losses (gains) |  |  | 3,445 |  |  |  | 24,831 |  |  |  | 21,386 |
Stock-based compensation |  |  | 8,682 |  |  |  | 8,682 |  |  |  | - |
Deferred taxes |  |  | 9,023 |  |  |  | 6,663 |  |  |  | (2,360 | )
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 11,597 |  |  |  | 11,597 |  |  |  | - |
Inventories, net |  |  | (76,730 | ) |  |  | (76,730 | ) |  |  | - |
Prepaid expenses and other |  |  | 9,533 |  |  |  | 9,533 |  |  |  | - |
Other assets |  |  | (3,752 | ) |  |  | (3,752 | ) |  |  | - |
Accounts payable |  |  | (30,692 | ) |  |  | (30,692 | ) |  |  | - |
Accrued expenses |  |  | (166,830 | ) |  |  | (176,449 | ) |  |  | (9,619 | )
Other liabilities |  |  | (1,388 | ) |  |  | (1,388 | ) |  |  | - |
Net cash provided by (used in) operating activities |  |  | (160,600 | ) |  |  | (160,600 | ) |  |  | - |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Purchases of property and equipment |  |  | (30,538 | ) |  |  | (30,538 | ) |  |  | - |
Proceeds of investment sales |  |  | 12,638 |  |  |  | 12,638 |  |  |  | - |
Purchases of investments |  |  | (9,556 | ) |  |  | (9,556 | ) |  |  | - |
Net cash used in investing activities |  |  | (27,456 | ) |  |  | (27,456 | ) |  |  | - |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Exercise of employee stock options |  |  | (8,375 | ) |  |  | (8,375 | ) |  |  | - |
Payment of debt |  |  | (5,834 | ) |  |  | (5,834 | ) |  |  | - |
Payment of cash dividends |  |  | (20,141 | ) |  |  | (20,141 | ) |  |  | - |
Income tax benefit of options exercised |  |  | 5,610 |  |  |  | 5,610 |  |  |  | - |
Proceeds from debt |  |  | 20,000 |  |  |  | 20,000 |  |  |  | - |
Repurchases of shares of common stock |  |  | (25,002 | ) |  |  | (25,002 | ) |  |  | - |
Net cash used in financing activities |  |  | (33,742 | ) |  |  | (33,742 | ) |  |  | - |
Effect of exchange rate changes on cash |  |  | (18,775 | ) |  |  | (18,775 | ) |  |  | - |
Net increase/(decrease) in cash and cash equivalents |  |  | (240,573 | ) |  |  | (240,573 | ) |  |  | - |
Cash and cash equivalents, beginning of period |  |  | 525,153 |  |  |  | 525,153 |  |  |  | - |
Cash and cash equivalents, end of period |  | $ | 284,580 |  |  | $ | 284,580 |  |  | $ | - |

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- Definition The entire disclosure for reporting error corrections and restatements. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all error corrections reported in the Company's financial statements for the period. + References No definition available. + Details
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