XML 61 R46.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Taxes [Abstract] |
Consolidated Income Before Provision for Income Taxes | Consolidated income before provision for income taxes consists of the following for the years ended December 31, 2013, 2014 and 2015 (U.S. dollars in thousands):
|  | 2013 |  |  | 2014 |  |  | 2015 |
U.S. |  | $ | 307,994 |  |  | $ | 184,476 |  |  | $ | 134,473 |
Foreign |  |  | 248,946 |  |  |  | 114,031 |  |  |  | 77,486 |
Total |  | $ | 556,940 |  |  | $ | 298,507 |  |  | $ | 211,959 |
Provisions for Current and Deferred Taxes | NU SKIN ENTERPRISES, INC. Notes to Consolidated Financial Statements The provision for current and deferred taxes for the years ended December 31, 2013, 2014 and 2015 consists of the following (U.S. dollars in thousands):
|  | 2013 |  |  | 2014 |  |  | 2015 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 81,871 |  |  | $ | 37,402 |  |  | $ | 6,328 |
State |  |  | 361 |  |  |  | 2,095 |  |  |  | 1,483 |
Foreign |  |  | 148,310 |  |  |  | 48,904 |  |  |  | 50,403 |
|  |  | 230,542 |  |  |  | 88,401 |  |  |  | 58,214 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,831 | ) |  |  | (380 | ) |  |  | 16,556 |
State |  |  | 551 |  |  |  | 444 |  |  |  | (674 | )
Foreign |  |  | (36,210 | ) |  |  | 20,866 |  |  |  | 4,817 |
|  |  | (38,490 | ) |  |  | 20,930 |  |  |  | 20,699 |
Provision for income taxes |  | $ | 192,052 |  |  | $ | 109,331 |  |  | $ | 78,913 |
Principal Components of Deferred Taxes |
|  | Year Ended December 31, |
|  | 2014 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |
Inventory differences |  | $ | 12,362 |  |  | $ | 5,222 |
Foreign tax credit and other foreign benefits |  |  | 116,603 |  |  |  | 86,729 |
Stock-based compensation |  |  | 17,211 |  |  |  | 13,842 |
Accrued expenses not deductible until paid |  |  | 48,189 |  |  |  | 46,597 |
Foreign currency exchange |  |  | 10,774 |  |  |  | 8,976 |
Net operating losses |  |  | 17,530 |  |  |  | 10,994 |
Capitalized research and development |  |  | 3,362 |  |  |  | 1,632 |
Exchange gains and losses |  |  | 41,542 |  |  |  | 55,643 |
Other |  |  | 841 |  |  |  | 964 |
Gross deferred tax assets |  |  | 268,414 |  |  |  | 230,599 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangibles step-up |  |  | 15,106 |  |  |  | 13,607 |
Overhead allocation to inventory |  | 10,781 |  |  |  | 5,101 |
Amortization of intangibles |  |  | 18,374 |  |  |  | 18,733 |
Foreign outside basis in controlled foreign corporation |  |  | 100,016 |  |  |  | 84,434 |
Other |  |  | 48,187 |  |  |  | 35,257 |
Gross deferred tax liabilities |  |  | 192,464 |  |  |  | 157,132 |
Valuation allowance |  |  | (35,999 | ) |  |  | (49,271 | )
Deferred taxes, net |  | $ | 39,951 |  |  | $ | 24,196 |
Deferred Tax Asset Valuation Adjustments | NU SKIN ENTERPRISES, INC. Notes to Consolidated Financial Statements The deferred tax asset valuation adjustments for the years ended December 31, 2013, 2014 and 2015 are as follows (U.S. dollars in thousands):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2014 |  |  | 2015 |
Balance at the beginning of period |  | $ | 10,522 |  |  | $ | 10,803 |  |  | $ | 35,999 |
Additions charged to cost and expenses |  |  | 278 |  |  |  | 28,687 |  |  |  | 12,948 |
Decreases |  |  | (165 | )(1) |  |  | (3,546 | )(1) |  |  | (2,943 | )(1)
Adjustments |  |  | 168 | (2) |  |  | 55 | (2) |  |  | 3,267 | (2)
Balance at the end of the period |  | $ | 10,803 |  |  | $ | 35,999 | (3) |  | $ | 49,271 | (3)
| (1) | Decreases in valuation allowance due to lapse in statute of limitation of the net operating losses carryforward which had no impact to the income statement.
| (2) | Represents the net currency effects of translating valuation allowances at current rates of exchange.
| (3) | The increase was due primarily to the deferred tax assets created by the unrealized loss in Venezuela for which the Company set up a full valuation allowance.
The components of deferred taxes, net on a jurisdiction basis are as follows (U.S. dollars in thousands):
Components of Deferred Taxes, Net |
|  | Year Ended December 31, |
|  | 2014 |  |  | 2015 |
Net current deferred tax assets |  | $ | 40,840 |  |  | $ | ─ |
Net noncurrent deferred tax assets |  |  | 15,128 |  |  |  | 40,373 |
Total net deferred tax assets |  |  | 55,968 |  |  |  | 40,373 |
Net current deferred tax liabilities |  | ─ |  |  | ─ |
Net noncurrent deferred tax liabilities |  |  | 16,017 |  |  |  | 16,177 |
Total net deferred tax liabilities |  |  | 16,017 |  |  |  | 16,177 |
Deferred taxes, net |  | $ | 39,951 |  |  | $ | 24,196 |
Reconciliation of Actual to Statutory U.S. Federal Tax Rate | The actual tax rate for the years ended December 31, 2013, 2014 and 2015 compared to the statutory U.S. Federal tax rate is as follows:
|  | Year Ended December 31, |
|  | 2013 |  |  | 2014 |  |  | 2015 |
Income taxes at statutory rate |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
Foreign tax rate differential |  |  | (0.76 | ) |  | ─ |  |  |  | .92 |
Non-deductible expenses |  |  | 0.12 |  |  |  | 0.12 |  |  |  | 0.09 |
Controlled foreign corporation losses |  | ─ |  |  |  | 1.48 |  |  |  | 1.09 |
Other |  |  | 0.12 |  |  |  | 0.03 |  |  |  | 0.13 |
|  |  | 34.48 | % |  |  | 36.63 | % |  |  | 37.23 | %

X
- Definition Tabular disclosure of of the change in the deferred tax asset valuation allowance. + References No definition available. + Details
Name: | nus_DeferredTaxAssetValuationAdjustmentsTableTextBlock
Namespace Prefix: | nus_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the current and noncurrent components of net deferred tax assets or liabilities recognized in an entity's statement of financial position. + References No definition available. + Details
Name: | nus_ScheduleOfComponentsOfDeferredTaxesNetTableTextBlock
Namespace Prefix: | nus_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration