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Segment Information | 9 Months Ended
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Sep. 30, 2013
Segment Information |
Segment Information | (8) Segment Information The Company has three business segments. These business segments are components of the Company for which separate information is available that is evaluated regularly by the chief executive officer in deciding how to allocate resources and in assessing relative performance. The Company has two business segments that operate under the Nature’s Sunshine Products brand and are divided based on the characteristics of their Distributor base, similarities in compensation plans, as well as the internal organization of NSP’s officers and their responsibilities (NSP Americas, Asia Pacific and Europe; and NSP Russia, Central and Eastern Europe). The Company’s third business segment operates under the Synergy WorldWide brand, which distributes its products through different marketing and Distributor compensation plans and products with formulations that are sufficiently different from those of NSP Americas, Asia Pacific and Europe; and NSP Russia, Central and Eastern Europe to warrant accounting for these operations as a separate business segment. Net sales revenues for each segment have been reduced by intercompany sales as they are not included in the measure of segment profit or loss reviewed by the chief executive officer. The Company evaluates performance based on contribution margin by segment before consideration of certain inter-segment transfers and expenses. During 2012, the Company engaged in a reorganization process in which the business segments, the roles of upper management responsible for operating the business segments, and the information provided to the chief executive officer were reevaluated. As a result of the reorganization process, the two historical NSP segments (NSP United States and NSP International), which were separated based on their geographical operations, were divided into two new segments (NSP Americas, Asia Pacific and Europe; and NSP Russia, Central and Eastern Europe) based on the nature of their business activities, and the information presented to the chief executive officer. NSP Americas, Asia Pacific and Europe distributes products through a mixture of retailing, practitioners and direct selling while NSP Russia, Central and Eastern Europe is more oriented to a network marketing approach. The new NSP segments conform to a revised internal management structure, and report their operating results separately to the chief executive officer. There was no change to the Synergy WorldWide segment. The presentation of the comparative information has been revised to conform to the new presentation. Reportable business segment information is as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2013 |  | 2012 |  | 2013 |  | 2012 |
Net sales revenue: |  |  |  |  |  |  |  |  |
NSP Americas, Asia Pacific and Europe |  | $ | 50,560 |  | $ | 51,783 |  | $ | 157,113 |  | $ | 159,254 |
NSP Russia, Central and Eastern Europe |  | 14,577 |  | 13,187 |  | 45,695 |  | 41,986 |
Synergy WorldWide |  | 27,321 |  | 26,262 |  | 79,804 |  | 75,851 |
Total net sales revenue |  | 92,458 |  | 91,232 |  | 282,612 |  | 277,091 |
Contribution margin (1): |  |  |  |  |  |  |  |  |
NSP Americas, Asia Pacific and Europe |  | 19,973 |  | 20,513 |  | 64,234 |  | 63,708 |
NSP Russia, Central and Eastern Europe |  | 5,409 |  | 5,043 |  | 16,915 |  | 16,069 |
Synergy WorldWide |  | 9,501 |  | 9,377 |  | 27,313 |  | 27,555 |
Total contribution margin |  | 34,883 |  | 34,933 |  | 108,462 |  | 107,332 |
Selling, general and administrative |  | 28,170 |  | 26,228 |  | 86,996 |  | 79,142 |
Total operating income |  | 6,713 |  | 8,705 |  | 21,466 |  | 28,190 |
Other income (expense), net |  | (269 | ) | (214 | ) | 1,543 |  | (159 | )
Income before provision for income taxes |  | $ | 6,444 |  | $ | 8,491 |  | $ | 23,009 |  | $ | 28,031 |
(1) Contribution margin consists of net sales revenue less cost of sales and volume incentives expense. From an individual country perspective, only the United States comprises 10 percent or more of consolidated net sales revenue for the three and nine month periods ended September 30, 2013 and 2012 as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2013 |  | 2012 |  | 2013 |  | 2012 |
Net sales revenue: |  |  |  |  |  |  |  |  |
United States |  | $ | 37,209 |  | $ | 38,243 |  | $ | 116,552 |  | $ | 118,390 |
Other |  | 55,249 |  | 52,989 |  | 166,060 |  | 158,701 |
|  | $ | 92,458 |  | $ | 91,232 |  | $ | 282,612 |  | $ | 277,091 |
Revenue generated by each of the Company’s product lines is set forth below:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2013 |  | 2012 |  | 2013 |  | 2012 |
NSP Americas, Asia Pacific and Europe: |  |  |  |  |  |  |  |  |
Herbal products |  | $ | 29,372 |  | $ | 28,888 |  | $ | 90,757 |  | $ | 89,809 |
Vitamin, mineral and other nutritional supplements |  | 19,102 |  | 20,379 |  | 59,672 |  | 61,566 |
Personal care products |  | 1,179 |  | 1,560 |  | 3,786 |  | 4,861 |
Other products |  | 907 |  | 956 |  | 2,898 |  | 3,018 |
|  | 50,560 |  | 51,783 |  | 157,113 |  | 159,254 |
NSP Russia, Central and Eastern Europe: |  |  |  |  |  |  |  |  |
Herbal products |  | $ | 6,656 |  | $ | 5,834 |  | $ | 20,692 |  | $ | 18,389 |
Vitamin, mineral and other nutritional supplements |  | 6,854 |  | 5,954 |  | 21,337 |  | 18,686 |
Personal care products |  | 1,016 |  | 1,354 |  | 3,511 |  | 4,775 |
Other products |  | 51 |  | 45 |  | 155 |  | 136 |
|  | 14,577 |  | 13,187 |  | 45,695 |  | 41,986 |
Synergy WorldWide: |  |  |  |  |  |  |  |  |
Herbal products |  | $ | 9,520 |  | $ | 10,005 |  | $ | 31,608 |  | $ | 29,982 |
Vitamin, mineral and other nutritional supplements |  | 15,967 |  | 14,510 |  | 42,725 |  | 40,575 |
Personal care products |  | 1,471 |  | 1,394 |  | 4,405 |  | 4,020 |
Other products |  | 363 |  | 353 |  | 1,066 |  | 1,274 |
|  | 27,321 |  | 26,262 |  | 79,804 |  | 75,851 |
|  | $ | 92,458 |  | $ | 91,232 |  | $ | 282,612 |  | $ | 277,091 |
From an individual country perspective, only the United States and Venezuela comprise 10 percent or more of consolidated property, plant and equipment as follows:
|  | September 30, 2013 |  | December 31, 2012 |
Property, plant and equipment: |  |  |  |  |
United States |  | $ | 23,001 |  | $ | 20,923 |
Venezuela |  | 3,297 |  | 3,535 |
Other |  | 3,049 |  | 3,492 |
Total property, plant and equipment |  | $ | 29,347 |  | $ | 27,950 |

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- 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/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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