<SEC-DOCUMENT>0001104659-18-070105.txt : 20190129
<SEC-HEADER>0001104659-18-070105.hdr.sgml : 20190129
<ACCEPTANCE-DATETIME>20181127161828
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ACCESSION NUMBER:		0001104659-18-070105
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20181127

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			USANA HEALTH SCIENCES INC
		CENTRAL INDEX KEY:			0000896264
		STANDARD INDUSTRIAL CLASSIFICATION:	MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833]
		IRS NUMBER:				870500306
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		3838 WEST PARKWAY BLVD.
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84120-6336
		BUSINESS PHONE:		8019547100

	MAIL ADDRESS:	
		STREET 1:		3838 WEST PARKWAY BLVD.
		STREET 2:		3838 WEST PARKWAY BLVD.
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84120-6336

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USANA INC
		DATE OF NAME CHANGE:	19930125
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<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VIA EDGAR</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;27, 2018</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ms.&nbsp;Keira Nakada</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Staff Accountant<br> Securities and Exchange Commission<br> 100 F Street, N.E.<br> Washington, D.C. 20549</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>USANA Health Sciences,&nbsp;Inc.</p>
<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;10-K for the Fiscal Year Ended December&nbsp;30, 2017</font></p>
<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed February&nbsp;28, 2018</font></p>
<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;10-Q for the Quarterly Period Ended June&nbsp;30, 2018</font></p>
<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed August&nbsp;8, 2018</font></p>
<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File No.&nbsp;001-35024</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Ms.&nbsp;Nakada:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On behalf of USANA Health Sciences,&nbsp;Inc. (the &#147;Company&#148; or &#147;USANA&#148;),&nbsp;I am writing to respond to a follow up question related to our response filed on November&nbsp;2, 2018, to your letter dated October&nbsp;22, 2018, which set forth a comment of the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;) with respect to the Company&#146;s Form&nbsp;10-K for the fiscal year ended December&nbsp;30, 2017 (the &#147;2017 Form&nbsp;10-K&#148;) and Form&nbsp;10-Q for the fiscal quarter ended June&nbsp;30, 2018 (the &#147;Second Quarter 2018 Form&nbsp;10-Q&#148;).&#160; For your convenience, the full text of the Staff&#146;s follow up question is set forth below in bold type, and the Company&#146;s response directly follows the applicable text in regular type.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 22.5pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">You state in your response to our prior comment 2 that a customer has legal title upon shipment of the product while disclosing on page&nbsp;F-12 of Form&nbsp;10-K for the year ended December&nbsp;30, 2017 that the &#147;title&#148; and the risk of ownership passes to the customer when the product is delivered.&#160; Please reconcile this discrepancy for us.</font></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">USANA&#146;s Response:</font></i></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company acknowledges the Staff&#146;s comment.&#160; We do not believe there is a discrepancy between our initial response to comment 2 and the disclosure on page&nbsp;F-12 of Form&nbsp;10-K for the year ended December&nbsp;30, 2017.&#160; For your reference, the full text of the related disclosure on page&nbsp;F-12 of Form&nbsp;10-K for the year ended December&nbsp;30, 2017 is provided in the following:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Sales and related fees such as shipping and handling, net of applicable sales discounts, are recorded as revenue when the product is delivered and when title and the risk of ownership passes to the customer.</font></i></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This policy disclosure for revenue recognition in the Company&#146;s 2017 10-K is aligned with the guidance under ASC 605 and SAB Topic 13, in which one of the requirements for revenue</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">recognition is that delivery has occurred.&#160; SAB Topic 13 states that &#147;delivery generally is not considered to have occurred unless the customer has taken title and assumed the risks and rewards of ownership.&#148;&#160; The disclosure included above was not intended to state that title transfers upon physical delivery of the product, but rather that delivery, as defined in SAB Topic 13, has occurred when both title and risks and rewards of ownership have transferred.&#160; As noted in our initial response to comment 2, the transfer of legal title takes place upon shipment due to the contractual &#147;FOB shipping point&#148; terms with customers, which has not changed with the adoption of ASC 606.&#160; However, under ASC 605, delivery was not determined to have occurred upon title transfer due to the Company&#146;s practice of replacing lost or damaged goods in transit.&#160; Because of this practice, the risks and rewards of ownership were deemed not to have transferred to the customer at the point of shipment, which was an overriding factor for determining when delivery had occurred and timing of revenue recognition.&#160; Therefore, the Company&#146;s disclosure indicates that delivery has occurred when both title and risk of ownership passes to the customer.&#160; While both are necessary for revenue recognition, they are distinct criteria and evaluated separately in terms of timing and the related impact on revenue recognition.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe that the foregoing response addresses the Staff&#146;s comment and question. Please advise us at your earliest convenience if you have any questions or require additional information.&#160; Please direct any questions to the undersigned at (801) 954-7903. Thank you in advance for your cooperation in connection with this matter.</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Regards,</font></p>    </td>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/   G. Douglas Hekking</font></p>    </td>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">G.   Douglas Hekking</font></p>    </td>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief   Financial Officer</font></p>    </td>
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