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Goodwill | 3 Months Ended
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Mar. 31, 2023
Goodwill [Abstract] |
Goodwill |
3. | Goodwill
The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. The Company completed the annual goodwill and indefinite-lived intangible asset impairment testing as of October 1, 2022, and concluded that the fair value of the reporting units were determined to be in excess of its carrying amounts and no goodwill impairment charge was required. As of the October 1, 2022 testing date, the fair value of the Manufacturing reporting unit was estimated to be approximately 8% in excess of its carrying amount, and therefore the reporting unit is considered to be at risk of future impairment. The Manufacturing reporting unit's fair value remains sensitive to significant unfavorable changes in revenue, gross margin and discount rates that could negatively impact future analyses. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the goodwill impairment tests will prove to be an accurate prediction of the future. Although the Manufacturing reporting unit showed strong revenue growth in fiscal year 2020 and 2021, the fair value of the reporting unit in 2022 was negatively impacted by an increase in the discount rate due to the current interest rate environment, and lower near-term revenue projections. Current projections used for the Manufacturing reporting unit reflect revenue growth attributable to the continued expansion of capacity, continued intercompany sales to Nu Skin, and the recent acquisition of new customers. While historical performance and current expectations have resulted in fair values of the Manufacturing reporting unit in excess of carrying values, if the assumptions are not realized an impairment charge may be recorded in the future. The following table presents goodwill allocated to the Company’s reportable segments for the periods ended March 31, 2023 and December 31, 2022 (U.S. dollars in thousands):
|  | March 31, 2023 |  |  | December 31, 2022 |
Nu Skin |  |  |  |  |  |
Americas |  | $ | 9,449 |  |  | $ | 9,449 |
South Korea |  |  | 29,261 |  |  |  | 29,261 |
Mainland China |  |  | 32,179 |  |  |  | 32,179 |
Southeast Asia/Pacific |  |  | 18,537 |  |  |  | 18,537 |
Japan |  |  | 16,019 |  |  |  | 16,019 |
EMEA |  |  | 2,875 |  |  |  | 2,875 |
Hong Kong/Taiwan |  |  | 6,634 |  |  |  | 6,634 |
Rhyz Investments |  |  |  |  |  |  |  |
Manufacturing |  |  | 78,875 |  |  |  | 78,875 |
Rhyz Other |  |  | 12,603 |  |  |  | 12,603 |
Total |  | $ | 206,432 |  |  | $ | 206,432 |

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- Definition The entire disclosure for goodwill. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2144439 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 55 -Paragraph 24 -URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267 + Details
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