XML 49 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
ADJUSTMENT TO INVENTORY
9 Months Ended
Sep. 30, 2015
ADJUSTMENT TO INVENTORY [Abstract]  
ADJUSTMENT TO INVENTORY
14.      ADJUSTMENTS TO INVENTORY

During the second quarter of 2014, the Company made a determination to adjust its inventory carrying value.  Heightened media and regulatory scrutiny in Mainland China in the first part of 2014, and the voluntary actions the Company took in response to such scrutiny, had a negative impact on the size of the Company's limited-time offer in June 2014, which significantly reduced its expectations for plans to sell our ageLOC TR90 weight management and body shaping system in a limited-time offer later in 2014 or the beginning of 2015.  This resulted in a $50.0 million write-down of estimated surplus inventory primarily in Mainland China.

During the third quarter of 2015, the Company made a determination to further adjust its inventory carrying value.  A sequential decrease in revenue for the third quarter of 2015, together with a decision not to continue discounted product promotions in the Greater China region to focus Sales Leaders on the launch of our ageLOC Me personalized skin care system, reduced the Company's expectations for future product sales, resulting in estimated surplus inventory.  This resulted in a $37.9 million write-down of the Company's inventory balance in Greater China.

Total adjustments to the Company's inventory carrying value as of September 30, 2015 and December 31, 2014 were $65.0 million and $56.0 million, respectively.