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Segment Information | 9 Months Ended
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Sep. 30, 2015
Segment Information |
Segment Information | (10)Segment Information The Company has four 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 three 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; NSP Russia, Central and Eastern Europe; and NSP China and New Markets). The Company’s fourth business segment operates under the Synergy® WorldWide brand, which distributes its products through different selling and Distributor compensation plans and has products with formulations that are sufficiently different from those of NSP Americas; NSP Russia, Central and Eastern Europe; and NSP China and New Markets to warrant accounting for these operations as a separate business segment. The Company’s China and New Markets segment is deploying a multi-channel go-to-market strategy that offers select Nature’s Sunshine branded products through a direct selling model across China as well as e-commerce. The time to market will be dependent upon regulatory processes including product registration and permit approvals. Due to a change in the Chinese regulatory environment, the Company has indefinitely deferred its entry into the retail channel. The China and New Markets segment also includes the Company’s wholesale sales business, in which the Company sells its products to various locally managed entities independent of the Company that have distribution rights for the relevant market. All of the net sales revenue to date in the China and New Markets segment is through the Company’s wholesale business to foreign markets outside of China set forth above that were previously part of NSP Americas. 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 (loss) by segment before consideration of certain inter-segment transfers and expenses. In the fourth quarter of 2014, the Company created the China and New Markets segment. The Company moved the reporting of its wholesale business, in which the Company sells its products to a locally managed entity independent of the Company that has distribution rights for the market, from the NSP Americas segment to the China and New Markets segment during the year ended December 31, 2014, as well as the results of its NSP Peru and United Kingdom markets, which were converted to wholesale markets during the prior year. Reportable business segment information is as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2015 |  | 2014 |  | 2015 |  | 2014 |
Net sales revenue: |  |  |  |  |  |  |  |  |
NSP Americas |  | $ | 44,483 |  | $ | 45,774 |  | $ | 136,043 |  | $ | 138,447 |
NSP Russia, Central and Eastern Europe |  | 6,321 |  | 11,753 |  | 20,579 |  | 39,628 |
Synergy WorldWide |  | 27,797 |  | 34,732 |  | 85,045 |  | 97,262 |
China and New Markets |  | 985 |  | 1,147 |  | 3,044 |  | 4,367 |
Total net sales revenue |  | 79,586 |  | 93,406 |  | 244,711 |  | 279,704 |
Contribution margin (1): |  |  |  |  |  |  |  |  |
NSP Americas |  | 18,685 |  | 18,968 |  | 57,232 |  | 56,819 |
NSP Russia, Central and Eastern Europe |  | 2,287 |  | 4,186 |  | 7,197 |  | 14,145 |
Synergy WorldWide |  | 8,809 |  | 12,010 |  | 26,677 |  | 34,495 |
China and New Markets |  | 472 |  | 582 |  | 1,383 |  | 2,048 |
Total contribution margin |  | 30,253 |  | 35,746 |  | 92,489 |  | 107,507 |
Selling, general and administrative |  | 27,115 |  | 30,200 |  | 80,837 |  | 89,293 |
Total operating income |  | 3,138 |  | 5,546 |  | 11,652 |  | 18,214 |
Other income (expense), net |  | (247 | ) | (42 | ) | (567 | ) | (383 | )
Income before provision for income taxes |  | $ | 2,891 |  | $ | 5,504 |  | $ | 11,085 |  | $ | 17,831 |
| (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 and South Korea comprise 10 percent or more of consolidated net sales revenue for the three and nine-month periods ended September 30, 2015 and 2014, as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2015 |  | 2014 |  | 2015 |  | 2014 |
Net sales revenue: |  |  |  |  |  |  |  |  |
United States |  | $ | 36,603 |  | $ | 36,209 |  | $ | 112,179 |  | $ | 112,507 |
South Korea |  | 12,191 |  | 16,252 |  | 36,341 |  | 42,959 |
Other |  | 30,792 |  | 40,945 |  | 96,191 |  | 124,238 |
|  | $ | 79,586 |  | $ | 93,406 |  | $ | 244,711 |  | $ | 279,704 |
Revenue generated by each of the Company’s product lines is set forth below:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2015 |  | 2014 |  | 2015 |  | 2014 |
NSP Americas: |  |  |  |  |  |  |  |  |
General health |  | $ | 20,119 |  | $ | 19,704 |  | $ | 59,607 |  | $ | 59,522 |
Immune |  | 5,095 |  | 5,721 |  | 16,350 |  | 16,763 |
Cardiovascular |  | 3,026 |  | 3,204 |  | 9,670 |  | 9,773 |
Digestive |  | 12,521 |  | 13,489 |  | 39,149 |  | 40,859 |
Personal care |  | 952 |  | 994 |  | 2,792 |  | 3,050 |
Weight management |  | 2,770 |  | 2,662 |  | 8,475 |  | 8,480 |
|  | 44,483 |  | 45,774 |  | 136,043 |  | 138,447 |
NSP Russia, Central and Eastern Europe: |  |  |  |  |  |  |  |  |
General health |  | $ | 2,532 |  | $ | 4,507 |  | $ | 8,210 |  | $ | 14,883 |
Immune |  | 770 |  | 1,492 |  | 2,446 |  | 4,960 |
Cardiovascular |  | 391 |  | 730 |  | 1,290 |  | 2,457 |
Digestive |  | 1,829 |  | 3,093 |  | 5,651 |  | 10,491 |
Personal care |  | 563 |  | 1,410 |  | 2,072 |  | 4,746 |
Weight management |  | 236 |  | 521 |  | 910 |  | 2,091 |
|  | 6,321 |  | 11,753 |  | 20,579 |  | 39,628 |
Synergy WorldWide: |  |  |  |  |  |  |  |  |
General health |  | $ | 11,381 |  | $ | 12,367 |  | $ | 32,317 |  | $ | 34,809 |
Immune |  | 157 |  | 243 |  | 641 |  | 710 |
Cardiovascular |  | 8,221 |  | 11,500 |  | 25,821 |  | 33,596 |
Digestive |  | 4,016 |  | 6,069 |  | 12,938 |  | 16,039 |
Personal care |  | 1,343 |  | 1,981 |  | 4,403 |  | 5,451 |
Weight management |  | 2,679 |  | 2,572 |  | 8,925 |  | 6,657 |
|  | 27,797 |  | 34,732 |  | 85,045 |  | 97,262 |
China and New Markets |  |  |  |  |  |  |  |  |
General health |  | $ | 471 |  | $ | 497 |  | $ | 1,428 |  | $ | 1,849 |
Immune |  | 123 |  | 145 |  | 384 |  | 583 |
Cardiovascular |  | 70 |  | 65 |  | 224 |  | 256 |
Digestive |  | 240 |  | 356 |  | 755 |  | 1,257 |
Personal care |  | 24 |  | 20 |  | 70 |  | 74 |
Weight management |  | 57 |  | 64 |  | 183 |  | 348 |
|  | 985 |  | 1,147 |  | 3,044 |  | 4,367 |
|  | $ | 79,586 |  | $ | 93,406 |  | $ | 244,711 |  | $ | 279,704 |
From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows:
|  | September 30, 2015 |  | December 31, 2014 |
Property, plant and equipment: |  |  |  |  |
United States |  | $ | 62,390 |  | $ | 48,013 |
Other |  | 2,693 |  | 3,330 |
Total property, plant and equipment |  | $ | 65,083 |  | $ | 51,343 |

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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 Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 2: 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 3: 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 4: 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 Reference 5: 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 6: 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 7: 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 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 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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