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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Information [Abstract]  
Segment Information
9.
Segment Information

The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China, Americas/Pacific, South Korea, Southeast Asia, Japan, EMEA, and Hong Kong/Taiwan—and its Manufacturing and Grow Tech segments. The Other category includes miscellaneous corporate revenue and related adjustments. These segments reflect the way the chief operating decision maker evaluates the Company’s business performance and allocates resources.  Reported revenue includes only the revenue generated by sales to external customers.

Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing 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, and 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 2 – Summary of Significant Accounting Policies. 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
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2020
    
2019
    
2020
    
2019
  
Nu Skin
                        
Mainland China
  
$
146,332
    
$
185,333
    
$
284,028
    
$
393,821
  
Americas/Pacific
    
127,919
      
92,841
      
202,492
      
179,297
  
South Korea
    
76,915
      
84,732
      
152,634
      
168,585
  
Southeast Asia
    
66,829
      
75,395
      
136,415
      
147,890
  
Japan
    
68,291
      
65,251
      
129,591
      
127,360
  
EMEA
    
50,776
      
43,400
      
86,179
      
85,218
  
Hong Kong/Taiwan
    
37,161
      
43,712
      
72,988
      
84,270
  
Other
    
(85
)
    
1,249
      
688
      
(177
)
Total Nu Skin
    
574,138
      
591,913
      
1,065,015
      
1,186,264
  
Manufacturing (1)
    
37,918
      
31,557
      
65,065
      
60,829
  
Grow Tech
    
310
      
30
      
314
      
30
  
Total
  
$
612,366
    
$
623,500
    
$
1,130,394
    
$
1,247,123
  

(1)
The Manufacturing segment had $6.9 million and $6.5 million of intersegment revenue for the three months ended June 30, 2020 and 2019, respectively, and $13.3 million and $12.4 million, for the six months ended June 30, 2020 and 2019, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above.

Segment Contribution

  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2020
    
2019
    
2020
    
2019
  
Nu Skin
                        
Mainland China
  
$
43,668
    
$
51,087
    
$
81,055
    
$
110,254
  
Americas/Pacific
    
24,343
      
16,420
      
34,928
      
28,439
  
South Korea
    
24,090
      
25,979
      
48,189
      
51,647
  
Southeast Asia
    
16,977
      
20,840
      
33,695
      
38,832
  
Japan
    
16,455
      
15,823
      
31,047
      
29,929
  
EMEA
    
3,342
      
3,234
      
3,973
      
4,585
  
Hong Kong/Taiwan
    
6,839
      
9,217
      
13,777
      
16,691
  
Nu Skin contribution
    
135,714
      
142,600
      
246,664
      
280,377
  
Manufacturing
    
5,402
      
3,375
      
8,251
      
7,021
  
Grow Tech
    
(5,487
)
    
(4,582
)
    
(12,337
)
    
(8,211
)
Total segment contribution
    
135,629
      
141,393
      
242,578
      
279,187
  
Corporate and other
    
(77,555
)
    
(67,191
)
    
(147,939
)
    
(136,332
)
Operating income
    
58,074
      
74,202
      
94,639
      
142,855
  
Other income (expense)
    
1,581
      
(3,326
)
    
(4,593
)
    
(6,174
)
Income before provision for income taxes
  
$
59,655
    
$
70,876
    
$
90,046
    
$
136,681
  

Depreciation and Amortization

  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2020
    
2019
    
2020
    
2019
  
Nu Skin
                        
Mainland China
  
$
2,558
    
$
2,909
    
$
4,982
    
$
6,025
  
Americas/Pacific
    
253
      
206
      
498
      
420
  
South Korea
    
918
      
1,358
      
1,975
      
2,882
  
Southeast Asia
    
444
      
462
      
931
      
939
  
Japan
    
834
      
957
      
1,306
      
2,005
  
EMEA
    
242
      
272
      
500
      
712
  
Hong Kong/Taiwan
    
618
      
537
      
1,257
      
1,053
  
Total Nu Skin
    
5,867
      
6,701
      
11,449
      
14,036
  
Manufacturing
    
2,062
      
1,631
      
3,877
      
3,205
  
Grow Tech
    
1,248
      
945
      
2,473
      
1,820
  
Corporate and other
    
9,087
      
9,775
      
19,560
      
19,598
  
Total
  
$
18,264
    
$
19,052
    
$
37,359
    
$
38,659
  

Capital Expenditures

  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2020
    
2019
    
2020
    
2019
  
Nu Skin
                        
Mainland China
  
$
716
    
$
1,033
    
$
3,577
    
$
2,714
  
Americas/Pacific
    
72
      
473
      
766
      
747
  
South Korea
    
195
      
30
      
364
      
79
  
Southeast Asia
    
6
      
225
      
639
      
319
  
Japan
    
1,491
      
946
      
1,648
      
1,118
  
EMEA
    
633
      
42
      
660
      
76
  
Hong Kong/Taiwan
    
12
      
1,091
      
16
      
1,554
  
Total Nu Skin
    
3,125
      
3,840
      
7,670
      
6,607
  
Manufacturing
    
603
      
1,579
      
11,108
      
3,181
  
Grow Tech
    
239
      
2,066
      
417
      
5,051
  
Corporate and other
    
5,338
      
7,964
      
9,497
      
14,375
  
Total
  
$
9,305
    
$
15,449
    
$
28,692
    
$
29,214