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Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Information [Abstract]  
Segment Information
10.
Segment Information

The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Americas, Mainland China, Southeast Asia/Pacific, South Korea, Japan, Europe & Africa, and Hong Kong/Taiwan—and two Rhyz Investments segments—Manufacturing and Rhyz other. The Nu Skin other category includes miscellaneous corporate revenue and related adjustments. The Rhyz other segment includes other investments by our Rhyz strategic investment arm. 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.

In the first quarter of 2023, the Company adjusted how it allocates certain corporate overhead costs to the segments. The prior-year segment information has been recast to comply with current presentation. Consolidated financial information is not affected.

Effective June 2023, the Company closed its Israel market, as a result the EMEA segment has been renamed Europe & Africa.

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)
  2023     2022     2023     2022  
Nu Skin
                        
Americas
   $ 107,641     $ 124,445     $ 208,798     $ 248,025  
Mainland China
     88,362       86,808       156,338       211,303  
Southeast Asia/Pacific
    
63,764
      
94,067
      
131,574
      
184,303
  
       South Korea     53,686       69,308       124,010       141,441  
Japan
     50,862       55,952       103,468       117,743  
Europe & Africa
    46,968       50,871       94,412       103,839  
       Hong Kong/Taiwan     37,108       39,327       71,656       77,821  
       Nu Skin other     597     1,318
       482
       1,938
  
Total Nu Skin
    448,988       522,096       890,738       1,086,413  
Rhyz Investments
                               
       Manufacturing (1)     45,551       38,229       81,318       78,570  
       Rhyz other     5,718
       290
       9,663
       531
  
Total Rhyz Investments
    51,269       38,519       90,981       79,101  
Total
  
$
500,257
    
$
560,615
    
$
981,719
    
$
1,165,514
  

(1)
The Manufacturing segment had $16.3 million and $16.7 million of intersegment revenue for the three months ended June 30, 2023 and 2022, respectively, and $28.1 million and $31.3 million for the six months ended June 30, 2023 and 2022, 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)
  
2023
    
2022
    
2023
    
2022
  
Nu Skin
                        
Americas
   $ 28,853     $ 26,729     $ 45,103     $ 48,680  
Mainland China
    
19,357
      
12,945
      
32,969
      
41,940
  
Southeast Asia/Pacific
     11,396       21,997       23,867       42,993  
South Korea
     17,391       19,828       40,966       41,826  
Japan
    
12,508
      
12,667
      
25,416
      
27,087
  
Europe & Africa
     4,945       4,867       8,583       7,489  
Hong Kong/Taiwan
    
10,148
      
8,514
      
17,982
      
16,600
  
Nu Skin contribution
    
104,598
      
107,547
      
194,886
      
226,615
  
Rhyz Investments
                                
Manufacturing
    
4,218
      
1,188
      
2,845
      
4,480
  
Rhyz other
    
(3,392
)
    
(1,299
)
    
(5,352
)
    
(2,345
)
Rhyz Investments contribution
    
826
      
(111
)
    
(2,507
)
    
2,135
  
Total segment contribution
    
105,424
      
107,436
      
192,379
      
228,750
  
Corporate and other
    
(62,918
)
    
(55,909
)
    
(133,809
)
    
(125,078
)
Operating income
    
42,506
      
51,527
      
58,570
      
103,672
  
Other expense, net
    
(5,393
)
    
(8,640
)
    
(6,869
)
    
(10,093
)
Income before provision for income taxes
  
$
37,113
    
$
42,887
    
$
51,701
    
$
93,579
  

Depreciation and Amortization

 
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2023
    
2022
    
2023
    
2022
  
Nu Skin
                        
Americas
   $ 126     $ 192     $ 192     $ 391  
Mainland China
     2,610       2,676       5,385       5,560  
Southeast Asia/Pacific
    
276
      
381
      
556
      
762
  
South Korea
    
299
      
372
      
752
      
760
  
Japan
     94       245       1,148       522  
Europe & Africa
    
257
      
244
       539      
474
  
Hong Kong/Taiwan
    
822
      
718
      
1,275
      
1,409
  
Total Nu Skin
    
4,484
      
4,828
      
9,847
      
9,878
  
Rhyz Investments
                                
Manufacturing
    
3,329
      
3,282
      
6,753
      
6,612
  
Rhyz other
    
1,176
      
592
      
1,768
      
1,184
  
Total Rhyz Investments
    
4,505
      
3,874
      
8,521
      
7,796
  
Corporate and other
    
8,175
      
9,932
      
15,779
      
18,090
  
Total
  
$
17,164
    
$
18,634
    
$
34,147
    
$
35,764
  

Capital Expenditures

 
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2023
    
2022
    
2023
    
2022
  
Nu Skin
                        
Americas
   $ 91     $ 87     $ 191     $ 129  
Mainland China
     4,734       2,052       8,769       6,120  
Southeast Asia/Pacific
    
127
      
56
      
191
      
124
  
South Korea
    
7
      
216
       161       578  
Japan
    
(2
)
    
184
      
3
      
184
  
Europe & Africa
     157       385       276       778  
Hong Kong/Taiwan
    
348
      
536
      
608
      
799
  
Total Nu Skin
    
5,462
      
3,516
      
10,199
      
8,712
  
Rhyz Investments
                                
Manufacturing
    
4,216
      
1,222
      
5,697
      
2,430
  
Rhyz other
    
—
      
—
      
—
      
—
  
Total Rhyz Investments
    
4,216
      
1,222
      
5,697
      
2,430
  
Corporate and other
    
5,034
      
4,801
      
10,303
      
8,676
  
Total
  
$
14,712
    
$
9,539
    
$
26,199
    
$
19,818