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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2017
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
6. SEGMENT INFORMATION

As a result of the Company's management changes in the first quarter of 2017, the Company concluded that the Chief Operating Decision Maker, as defined in ASC 280 is now comprised of the CEO, President and CFO. This change required the Company to reevaluate its determination of operating segments. The Company's operating segments are based on geographic regions that generate revenue and hold its long-lived assets. The Company sells and distributes its products through a global network of customers and sales leaders in approximately 50 markets. The Company has divided these markets into seven operating segments, which are the Company's reportable segments: Mainland China, Hong Kong/Taiwan, South Korea, Japan, South Asia/Pacific, Americas and EMEA. The seven reportable segments generate revenue from the sale of personal care products and nutritional supplements under the Nu Skin and Pharmanex brands, have similar business characteristics and align with how the CODM function began assessing performance and allocating resources in the first quarter of 2017.

Profitability by segment as reported under US GAAP is driven primarily by the Company's international taxation policies. Segment contribution, which is the Company's segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company's executive and administrative offices, information technology, research and development, marketing and supply chain functions not recorded at the segment level.
 
The accounting policies of the segments are the same as those described in Note 1 – The Company. The Company evaluates the performance of its segments based on revenue and segment contribution. Each segment records direct expenses related to its employees and its operations.

Summarized financial information for the Company's reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company's internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.

Revenue by Segment
 
  
Three Months Ended
March 31,
 
(U.S. dollars in thousands)
 
2017
  
2016
 
       
Mainland China
 
$
150,004
  
$
118,655
 
South Korea
  
82,471
   
86,118
 
South Asia/Pacific
  
69,798
   
63,578
 
Americas
  
65,658
   
65,748
 
Japan
  
61,156
   
65,091
 
Hong Kong/Taiwan
  
35,948
   
40,056
 
EMEA
  
34,064
   
32,585
 
     Total 
 
$
499,099
  
$
471,831
 

Segment Contribution
 
  
Three Months Ended
March 31,
 
(U.S. dollars in thousands)
 
2017
  
2016
 
       
Mainland China
 
$
35,427
  
$
18,301
 
South Korea
  
24,512
   
24,057
 
South Asia/Pacific
  
13,980
   
12,453
 
Americas
  
10,096
   
10,472
 
Japan
  
12,426
   
12,047
 
Hong Kong/Taiwan
  
5,083
   
8,358
 
EMEA
  
1,791
   
347
 
Total segment contribution
  
103,315
   
86,035
 
Corporate and other
  
(57,053
)
  
(77,886
)
Operating income
  
46,262
   
8,149
 
Other income (expense)
  
(4,567
)
  
(2,863
)
Income before provision for income taxes
 
$
41,695
  
$
5,286
 
 
Depreciation and Amortization
 
  
Three Months Ended
March 31,
 
(U.S. dollars in thousands)
 
2017
  
2016
 
       
Mainland China
 
$
3,971
  
$
4,027
 
South Korea
  
1,632
   
1,641
 
South Asia/Pacific
  
563
   
563
 
Americas
  
530
   
659
 
Japan
  
880
   
893
 
Hong Kong/Taiwan
  
302
   
564
 
EMEA
  
272
   
304
 
Corporate and other
  
9,475
   
8,294
 
      Total 
 
$
17,625
  
$
16,945
 

Capital Expenditures
 
  
Three Months Ended
March 31,
 
(U.S. dollars in thousands)
 
2017
  
2016
 
       
Mainland China
 
$
903
  
$
4,900
 
South Korea
  
448
   
270
 
South Asia/Pacific
  
183
   
277
 
Americas
  
251
   
278
 
Japan
  
76
   
739
 
Hong Kong/Taiwan
  
606
   
228
 
EMEA
  
193
   
465
 
Corporate and other
  
13,268
   
3,785
 
      Total 
 
$
15,928
  
$
10,942
 

Revenue by Major Market

A major market is defined as one with total revenue greater than 10% of consolidated total revenue.  As shown in the revenue by segment table above, the Company identified three major markets: Mainland China, South Korea and Japan. There are approximately 50 other markets, each of which individually is less than 10%. No single customer accounted for 10% or more of net sales for the periods presented.  Sales are recorded in the jurisdiction in which the transactions occurred.

Revenue by Product Line
 
  
Three Months Ended
March 31,
 
(U.S. dollars in thousands)
 
2017
  
2016
 
       
Nu Skin
 
$
301,873
  
$
289,989
 
Pharmanex
  
196,103
   
180,714
 
Other
  
1,123
   
1,128
 
      Total
 
$
499,099
  
$
471,831
 
 
Long-Lived Assets by Major Market

A major market is defined as a market with long-lived assets greater than 10% of consolidated long-lived assets and also includes the Company's country of domicile (the U.S.). Long-lived assets in Mainland China consist primarily of property, plant and equipment related to manufacturing, distribution facilities and the Mainland China headquarters. Long-lived assets in the U.S. consist primarily of property, plant and equipment, including the Company's corporate offices and distribution facilities. Long-lived assets by major markets are set forth below:

 
(U.S. dollars in thousands)
 
March 31,
2017
  
December 31,
2016
 
       
United States
 
$
289,228
  
$
283,868
 
Mainland China
  
95,458
   
97,867
 
South Korea
  
44,280
   
41,545
 
Japan
  
11,250
   
11,517
 
All others
  
10,391
   
9,935
 
      Total
 
$
450,607
  
$
444,732