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Restructuring | 9 Months Ended
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Sep. 30, 2024
Restructuring [Abstract] |
Restructuring |
13. | Restructuring
In the third quarter of 2022, the Company adopted a strategic plan (“2022 Plan”) to focus resources on the Company’s strategic priorities and optimize future growth and profitability. The global program includes workforce reductions and footprint optimization. The Company incurred total charges under the program of approximately $53.3 million, with $40.8 million in cash charges of severance and lease termination cost and approximately $12.5 million of non-cash charges of impairment of fixed assets, acceleration of depreciation and impairment of other intangibles related to the footprint optimization. During 2022, the Company incurred charges to be settled in cash of $20.1 million in severance charges, $7.4 million in lease termination cost, and $5.2 million in other associated cost, and non-cash charges of $8.2 million in fixed asset impairments, $0.9 million in accelerated depreciation and $1.7 million in impairment of other intangibles. During 2022, the Company made cash payments of $21.0 million related to this global program, leaving an ending restructuring accrual of $11.7 million. During the first quarter and full year of 2023, the Company incurred charges to be settled in cash of $4.0 million in severance charges, $1.9 million in lease termination cost, and $2.2 million in other associated cost, and non-cash charges of $1.7 million in accelerated depreciation. In 2023, the Company made cash payments of $19.8 million, leaving no restructuring accrual related to this plan as of December 31, 2023. Restructuring expense by segment - 2022 Plan
(U.S. dollars in thousands) |  | Three Months Ended March 31, 2023 |  |  | Year Ended December 31, 2022 |  |  | Total |
Nu Skin |  |  |  |  |  |  |  |  |
Americas |  | $ | 918 |  |  | $ | 1,687 |  |  | $ | 2,605 |
Southeast Asia/Pacific |  |  | 131 |  |  |  | 1,809 |  |  |  | 1,940 |
Mainland China |  |  | 1,352 |  |  |  | 13,181 |  |  |  | 14,533 |
Japan |  |  | 1,515 |  |  |  | 699 |  |  |  | 2,214 |
South Korea |  |  | 422 |  |  |  | 1,533 |  |  |  | 1,955 |
Europe & Africa |  |  | (113 | ) |  |  | 2,143 |  |  |  | 2,030 |
Hong Kong/Taiwan |  |  | (201 | ) |  |  | 2,464 |  |  |  | 2,263 |
Total Nu Skin |  |  | 4,024 |  |  |  | 23,516 |  |  |  | 27,540 |
Rhyz Investments |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing |  |  | 13 |  |  |  | 401 |  |  |  | 414 |
Rhyz other |  |  | — |  |  |  | — |  |  |  | — |
Total Rhyz Investments |  |  | 13 |  |  |  | 401 |  |  |  | 414 |
Corporate and other |  |  | 5,750 |  |  |  | 19,577 |  |  |  | 25,327 |
Total |  | $ | 9,787 |  |  | $ | 43,494 |  |  | $ | 53,281 |
In the fourth quarter of 2023, the Company adopted another strategic plan (“2023 Plan”) to focus resources on the Company’s global priorities and optimize future growth and profitability. The global program includes workforce reductions. The Company estimates total charges under the program will approximate $30–35 million in cash charges of severance, approximately $2.2 million in other cash charges and approximately $8.2 million in non-cash charges, including approximately $6.4 million in fixed asset impairments. The Company expects to substantially complete the program during the second half of 2024. During the fourth quarter of 2023, the Company incurred charges to be settled in cash of $10.0 million in severance charges. During the fourth quarter of 2023, the Company made cash payments of $0.3 million, leaving an ending restructuring accrual of $9.7 million. During the first quarter of 2024, the Company incurred charges to be settled in cash of $4.1 million in severance charges and $2.0 million in other associated cost, and non-cash charges of $1.0 million in write-down of assets. During the first quarter of 2024, the Company made cash payments of $7.0 million, leaving an ending restructuring accrual of $8.8 million. During the second quarter of 2024, the Company incurred charges to be settled in cash of $1.0 million in severance charges and $0.1 million in other cash charges. In the second quarter of 2024, the Company incurred non-cash charges of $7.2 million, consisting of $6.4 million in fixed asset impairments and $0.8 million in other asset write-downs. During the second quarter of 2024, the Company made cash payments of $2.8 million, leaving an ending restructuring accrual of $7.1 million. During the third quarter of 2024, the Company incurred no additional charges and made cash payments of $3.9 leaving an ending restructuring accrual of $3.2 million. Restructuring expense by segment – 2023 Plan
|  | Three Months Ended |  |  |  |
(U.S. dollars in thousands) |  | June 30, 2024 |  |  | March 31, 2024 |  |  | December 31, 2023 |  |  | Total |
Nu Skin |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 267 |  |  | $ | 3,145 |  |  | $ | 598 |  |  | $ | 4,010 |
Southeast Asia/Pacific |  |  | 190 |  |  |  | 307 |  |  |  | 862 |  |  |  | 1,359 |
Mainland China |  |  | (162 | ) |  |  | 1,017 |  |  |  | 2,910 |  |  |  | 3,765 |
Japan |  |  | — |  |  |  | 24 |  |  |  | — |  |  |  | 24 |
South Korea |  |  | (134 | ) |  |  | 134 |  |  |  | — |  |  |  | — |
Europe & Africa |  |  | 414 |  |  |  | 677 |  |  |  | 554 |  |  |  | 1,645 |
Hong Kong/Taiwan |  |  | (147 | ) |  |  | 357 |  |  |  | 432 |  |  |  | 642 |
Total Nu Skin |  |  | 428 |  |  |  | 5,661 |  |  |  | 5,356 |  |  |  | 11,445 |
Rhyz Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufacturing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Rhyz other |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | 40 |
Total Rhyz Investments |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | 40 |
Corporate and other |  |  | 7,896 |  |  |  | 1,473 |  |  |  | 4,647 |  |  |  | 14,016 |
Total |  | $ | 8,364 |  |  | $ | 7,134 |  |  | $ | 10,003 |  |  | $ | 25,501 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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