XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.23.3

Segment Information | 9 Months Ended
--- | ---
Sep. 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 Europe, Middle East and Africa (“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 September 30, |  |  | Nine Months Ended September 30, |
(U.S. dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Nu Skin |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 91,671 |  |  | $ | 131,591 |  |  | $ | 300,469 |  |  | $ | 379,616 |
Mainland China |  |  | 70,225 |  |  |  | 75,151 |  |  |  | 226,563 |  |  |  | 286,454 |
Southeast Asia/Pacific |  |  | 68,743 |  |  |  | 83,502 |  |  |  | 200,317 |  |  |  | 267,805 |
South Korea |  |  | 63,709 |  |  |  | 67,237 |  |  |  | 187,719 |  |  |  | 208,678 |
Japan |  |  | 53,399 |  |  |  | 53,276 |  |  |  | 156,867 |  |  |  | 171,019 |
Europe & Africa |  |  | 50,048 |  |  |  | 45,099 |  |  |  | 144,460 |  |  |  | 148,938 |
Hong Kong/Taiwan |  |  | 40,724 |  |  |  | 39,587 |  |  |  | 112,380 |  |  |  | 117,408 |
Nu Skin other |  |  | (274 | ) |  |  | 496 |  |  |  | 208 |  |  |  | 2,434 |
Total Nu Skin |  |  | 438,245 |  |  |  | 495,939 |  |  |  | 1,328,983 |  |  |  | 1,582,352 |
Rhyz Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing (1) |  |  | 49,714 |  |  |  | 41,328 |  |  |  | 131,032 |  |  |  | 119,898 |
Rhyz other |  |  | 10,813 |  |  |  | 538 |  |  |  | 20,476 |  |  |  | 1,069 |
Total Rhyz Investments |  |  | 60,527 |  |  |  | 41,866 |  |  |  | 151,508 |  |  |  | 120,967 |
Total |  | $ | 498,772 |  |  | $ | 537,805 |  |  | $ | 1,480,491 |  |  | $ | 1,703,319 |
(1) | The Manufacturing segment had $16.2 million and $17.5 million of intersegment revenue for the three months ended September 30, 2023 and 2022, respectively, and $44.3 million and $48.9 million for the nine months ended September 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 September 30, |  |  | Nine Months Ended September 30, |
(U.S. dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Nu Skin |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 16,627 |  |  | $ | 19,644 |  |  | $ | 61,730 |  |  | $ | 68,324 |
Mainland China |  |  | 15,223 |  |  |  | 12,933 |  |  |  | 48,192 |  |  |  | 54,873 |
Southeast Asia/Pacific |  |  | 13,190 |  |  |  | 18,098 |  |  |  | 37,057 |  |  |  | 61,091 |
South Korea |  |  | 19,433 |  |  |  | 19,671 |  |  |  | 60,399 |  |  |  | 61,497 |
Japan |  |  | 14,617 |  |  |  | 12,295 |  |  |  | 40,033 |  |  |  | 39,382 |
Europe & Africa |  |  | 6,562 |  |  |  | 2,047 |  |  |  | 15,145 |  |  |  | 9,536 |
Hong Kong/Taiwan |  |  | 10,146 |  |  |  | 7,737 |  |  |  | 28,128 |  |  |  | 24,337 |
Nu Skin contribution |  |  | 95,798 |  |  |  | 92,425 |  |  |  | 290,684 |  |  |  | 319,040 |
Rhyz Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing |  |  | 4,838 |  |  |  | 1,755 |  |  |  | 7,683 |  |  |  | 6,235 |
Rhyz other |  |  | (5,966 | ) |  |  | (1,724 | ) |  |  | (11,318 | ) |  |  | (4,069 | )
Rhyz Investments contribution |  |  | (1,128 | ) |  |  | 31 |  |  |  | (3,635 | ) |  |  | 2,166 |
Total segment contribution |  |  | 94,670 |  |  |  | 92,456 |  |  |  | 287,049 |  |  |  | 321,206 |
Corporate and other |  |  | (121,035 | ) |  |  | (112,740 | ) |  |  | (254,844 | ) |  |  | (237,818 | )
Operating income (loss) |  |  | (26,365 | ) |  |  | (20,284 | ) |  |  | 32,205 |  |  |  | 83,388 |
Other expense, net |  |  | (8,086 | ) |  |  | (8,680 | ) |  |  | (14,955 | ) |  |  | (18,773 | )
Income (loss) before provision for income taxes |  | $ | (34,451 | ) |  | $ | (28,964 | ) |  | $ | 17,250 |  |  | $ | 64,615 |
Depreciation and Amortization
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(U.S. dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Nu Skin |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 115 |  |  | $ | 89 |  |  | $ | 307 |  |  | $ | 480 |
Mainland China |  |  | 2,742 |  |  |  | 3,528 |  |  |  | 8,127 |  |  |  | 9,088 |
Southeast Asia/Pacific |  |  | 257 |  |  |  | 382 |  |  |  | 813 |  |  |  | 1,144 |
South Korea |  |  | 310 |  |  |  | 377 |  |  |  | 1,062 |  |  |  | 1,137 |
Japan |  |  | 93 |  |  |  | 148 |  |  |  | 1,241 |  |  |  | 670 |
Europe & Africa |  |  | 271 |  |  |  | 125 |  |  |  | 810 |  |  |  | 599 |
Hong Kong/Taiwan |  |  | 715 |  |  |  | 743 |  |  |  | 1,990 |  |  |  | 2,152 |
Total Nu Skin |  |  | 4,503 |  |  |  | 5,392 |  |  |  | 14,350 |  |  |  | 15,270 |
Rhyz Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing |  |  | 3,297 |  |  |  | 3,161 |  |  |  | 10,050 |  |  |  | 9,773 |
Rhyz other |  |  | 2,048 |  |  |  | 592 |  |  |  | 3,816 |  |  |  | 1,776 |
Total Rhyz Investments |  |  | 5,345 |  |  |  | 3,753 |  |  |  | 13,866 |  |  |  | 11,549 |
Corporate and other |  |  | 8,344 |  |  |  | 9,025 |  |  |  | 24,123 |  |  |  | 27,116 |
Total |  | $ | 18,192 |  |  | $ | 18,170 |  |  | $ | 52,339 |  |  | $ | 53,935 |
Capital Expenditures
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(U.S. dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Nu Skin |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 18 |  |  | $ | 23 |  |  | $ | 209 |  |  | $ | 152 |
Mainland China |  |  | 3,496 |  |  |  | 2,946 |  |  |  | 12,265 |  |  |  | 9,066 |
Southeast Asia/Pacific |  |  | 130 |  |  |  | 19 |  |  |  | 321 |  |  |  | 143 |
South Korea |  |  | 361 |  |  |  | 35 |  |  |  | 522 |  |  |  | 613 |
Japan |  |  | 81 |  |  |  | 16 |  |  |  | 84 |  |  |  | 200 |
Europe & Africa |  |  | 46 |  |  |  | 183 |  |  |  | 322 |  |  |  | 961 |
Hong Kong/Taiwan |  |  | 90 |  |  |  | 587 |  |  |  | 698 |  |  |  | 1,386 |
Total Nu Skin |  |  | 4,222 |  |  |  | 3,809 |  |  |  | 14,421 |  |  |  | 12,521 |
Rhyz Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing |  |  | 2,621 |  |  |  | 1,923 |  |  |  | 8,318 |  |  |  | 4,353 |
Rhyz other |  |  | 20 |  |  |  | — |  |  |  | 20 |  |  |  | — |
Total Rhyz Investments |  |  | 2,641 |  |  |  | 1,923 |  |  |  | 8,338 |  |  |  | 4,353 |
Corporate and other |  |  | 5,043 |  |  |  | 19,723 |  |  |  | 15,346 |  |  |  | 28,400 |
Total |  | $ | 11,906 |  |  | $ | 25,455 |  |  | $ | 38,105 |  |  | $ | 45,274 |

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration