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Restructuring and Severance Charges | 12 Months Ended
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Dec. 31, 2024
Restructuring and Severance Charges [Abstract] |
Restructuring and Severance Charges |
20. | Restructuring and Severance Charges
In 2021, the Company determined to exit the Grow Tech segment to better align its resources on key strategic initiatives to achieve the future growth objectives and priorities of the core Nu Skin business. The Grow Tech segment was pursuing the commercialization of controlled-environment agriculture for use in the agriculture feed industry. This segment operated as part of the Company’s Rhyz strategic investment arm. As a result of the restructuring program, the Company recorded a non-cash charge of $38.5 million in 2021, including $9.2 million for impairment of goodwill, $9.0 million for impairment of intangibles, $13.7 million of fixed asset impairments and $6.6 million for inventory write-off, and $20.0 million of cash charges, including $6.5 million for employee severance and $13.5 million for other related cash charges with our restructuring. The restructuring charges were recorded in the Grow Tech segment. As of December 31, 2021, the $20.0 million liability related to cash charges was recorded within Accrued expenses. During 2022, the Company incurred $5.0 million in incremental cash charges associated with the exit activities and legal settlements. During 2022, the Company made cash payments of $20.0 million, leaving a restructuring accrual of $5.0 million as of December 31, 2022. The Company paid this amount during 2023, leaving no restructuring accrual related to our exit of the Grow Tech segment as of December 31, 2023. 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 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
|  | Year Ended December 31, |
(U.S. dollars in thousands) |  | 2023 |  |  | 2022 |
Nu Skin |  |  |  |  |  |
Americas |  | $ | 918 |  |  | $ | 1,687 |
Southeast Asia/Pacific |  |  | 131 |  |  |  | 1,809 |
Mainland China |  |  | 1,352 |  |  |  | 13,181 |
Japan |  |  | 1,515 |  |  |  | 699 |
Europe & Africa |  |  | (113) |  |  |  | 2,143 |
South Korea |  |  | 422 |  |  |  | 1,533 |
Hong Kong/Taiwan |  |  | (201) |  |  |  | 2,464 |
Total Nu Skin |  |  | 4,024 |  |  |  | 23,516 |
Rhyz Investments |  |  |  |  |  |  |  |
Manufacturing |  |  | 13 |  |  |  | 401 |
Rhyz Other |  |  | — |  |  |  | — |
Total Rhyz Investments |  |  | 13 |  |  |  | 401 |
Corporate and other |  |  | 5,750 |  |  |  | 19,577 |
Total |  | $ | 9,787 |  |  | $ | 43,494 |
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 and fixed asset impairments associated with our consolidation of technology assets. Total charges under the program included approximately $27.9 million in cash charges of severance, approximately $1.0 million in other cash charges and approximately $38.8 million in non-cash charges, including approximately $36.6 million in fixed asset impairments. The Company has incurred all expected charges under the 2023 plan, and anticipates making the remaining payments in the first half of 2025. 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 2024, the Company incurred charges to be settled in cash of $17.9 million in severance charges and $1.0 million of other associated cost, and non-cash charges of $36.6 million of fixed asset impairments and $2.2 million of other non-cash charges. During 2024, the Company made cash payments of $22.4 million, leaving an ending restructuring accrual of $6.2 million. Restructuring expense by segment – 2023 Plan
(U.S. dollars in thousands) |  | Year Ended December 31, |
2024 |  |  | 2023
Nu Skin |  |  |  |  |  |
Americas |  | $ | 3,571 |  |  | $ | 598 |
Southeast Asia/Pacific |  |  | 2,086 |  |  |  | 862 |
Mainland China |  |  | 4,304 |  |  |  | 2,910 |
Japan |  |  | 25 |  |  |  | — |
Europe & Africa |  |  | 2,243 |  |  |  | 554 |
South Korea |  |  | 1,646 |  |  |  | — |
Hong Kong/Taiwan |  |  | 504 |  |  |  | 432 |
Total Nu Skin |  |  | 14,379 |  |  |  | 5,356 |
Rhyz Investments |  |  |  |  |  |  |  |
Manufacturing |  |  | — |  |  |  | — |
Rhyz Other |  |  | 1,080 |  |  |  | — |
Total Rhyz Investments |  |  | 1,080 |  |  |  | — |
Corporate and other |  |  | 42,256 |  |  |  | 4,647 |
Total |  | $ | 57,715 |  |  | $ | 10,003 |

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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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