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Segment Information | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company has four business segments. These business segments are components of the Company for which separate information is available and evaluated regularly by the chief executive officer in deciding how to allocate resources and in assessing relative performance. The Company’s four business segments are divided based on the different characteristics of their distributor and customer bases, distributor compensation plans and product formulations, as well as the internal organization of its officers and their responsibilities and business operations. Three business segments operate under the Nature’s Sunshine Products brand (NSP Americas; NSP Russia, Central and Eastern Europe; and NSP China), and one business segment operates under the Synergy® WorldWide brand. Net sales 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 2017, 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 China segment to the NSP Russia, Central and Eastern Europe segment. The net sales and contribution margin for the three and nine months ended September 30, 2017 were recast to reflect that change. Reportable business segment information is as follows (dollar amounts in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Net sales: |  |  |  |  |  |  |  |  |  |  |
NSP Americas | $ | 38,512 |  |  | $ | 41,301 |  |  | $ | 118,769 |  |  | $ | 125,367 |
NSP Russia, Central and Eastern Europe | 8,841 |  |  | 7,681 |  |  | 27,799 |  |  | 23,286 |
Synergy WorldWide | 34,497 |  |  | 34,470 |  |  | 103,034 |  |  | 92,146 |
NSP China | 6,978 |  |  | 5,849 |  |  | 17,834 |  |  | 12,944 |
Total net sales | 88,828 |  |  | 89,301 |  |  | 267,436 |  |  | 253,743 |
Contribution margin (1): |  |  |  |  |  |  |  |  |  |  |
NSP Americas | 17,006 |  |  | 17,764 |  |  | 49,530 |  |  | 53,454 |
NSP Russia, Central and Eastern Europe | 3,098 |  |  | 2,592 |  |  | 9,437 |  |  | 6,173 |
Synergy WorldWide | 9,652 |  |  | 10,160 |  |  | 30,915 |  |  | 27,769 |
NSP China | 5,400 |  |  | 4,564 |  |  | 14,037 |  |  | 11,930 |
Total contribution margin | 35,156 |  |  | 35,080 |  |  | 103,919 |  |  | 99,326 |
Selling, general and administrative expenses (2) | 31,643 |  |  | 32,926 |  |  | 97,339 |  |  | 95,098 |
Operating income | 3,513 |  |  | 2,154 |  |  | 6,580 |  |  | 4,228 |
Other income (loss), net | (353 | ) |  | 193 |  |  | (1,420 | ) |  | 1,909 |
Income before provision for income taxes | $ | 3,160 |  |  | $ | 2,347 |  |  | $ | 5,160 |  |  | $ | 6,137 |
_________________________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. (2) Service fees in the NSP China segment related to sales in China, occurring after the Company’s receipt of its direct selling license and pre-opening product sales through Hong Kong, totaled $2.7 million and $6.7 million for the three and nine-month periods ended September 30, 2018, respectively, compared to $2.1 million and $4.7 million for the three and nine-month periods ended September 30, 2017. These service fees are included in the Company’s selling, general and administrative expenses. From an individual country perspective, the United States and South Korea comprise 10 percent or more of consolidated net sales for the three and nine-month periods ended September 30, 2018 and 2017, as follows (dollar amounts in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Net sales: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 33,182 |  |  | $ | 35,124 |  |  | $ | 101,322 |  |  | $ | 106,664 |
South Korea | 18,271 |  |  | 14,371 |  |  | 52,463 |  |  | 38,203 |
Other | 37,375 |  |  | 39,806 |  |  | 113,651 |  |  | 108,876 |
| $ | 88,828 |  |  | $ | 89,301 |  |  | $ | 267,436 |  |  | $ | 253,743 |
Net sales generated by each of the Company’s product lines is set forth below (dollar amounts in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
NSP Americas: |  |  |  |  |  |  |  |  |  |  |
General health | $ | 16,706 |  |  | $ | 18,211 |  |  | $ | 51,506 |  |  | $ | 56,258 |
Immune | 4,304 |  |  | 4,938 |  |  | 13,693 |  |  | 13,180 |
Cardiovascular | 3,000 |  |  | 3,434 |  |  | 8,974 |  |  | 9,570 |
Digestive | 11,013 |  |  | 11,084 |  |  | 33,967 |  |  | 34,892 |
Personal care | 1,735 |  |  | 2,114 |  |  | 5,070 |  |  | 5,487 |
Weight management | 1,754 |  |  | 1,520 |  |  | 5,559 |  |  | 5,980 |
| 38,512 |  |  | 41,301 |  |  | 118,769 |  |  | 125,367 |
NSP Russia, Eastern and Central Europe: |  |  |  |  |  |  |  |  |  |  |
General health | $ | 3,632 |  |  | $ | 3,449 |  |  | $ | 11,883 |  |  | $ | 10,594 |
Immune | 886 |  |  | 861 |  |  | 2,808 |  |  | 2,397 |
Cardiovascular | 681 |  |  | 592 |  |  | 2,048 |  |  | 1,699 |
Digestive | 2,196 |  |  | 2,110 |  |  | 7,137 |  |  | 6,348 |
Personal care | 1,222 |  |  | 472 |  |  | 3,084 |  |  | 1,556 |
Weight management | 224 |  |  | 197 |  |  | 839 |  |  | 692 |
| 8,841 |  |  | 7,681 |  |  | 27,799 |  |  | 23,286 |
Synergy WorldWide: |  |  |  |  |  |  |  |  |  |  |
General health | $ | 10,544 |  |  | $ | 9,268 |  |  | $ | 29,747 |  |  | $ | 23,579 |
Immune | 57 |  |  | 119 |  |  | 346 |  |  | 357 |
Cardiovascular | 14,798 |  |  | 14,369 |  |  | 43,511 |  |  | 38,075 |
Digestive | 3,803 |  |  | 4,428 |  |  | 11,665 |  |  | 12,047 |
Personal care | 1,520 |  |  | 1,891 |  |  | 5,968 |  |  | 5,884 |
Weight management | 3,775 |  |  | 4,395 |  |  | 11,797 |  |  | 12,204 |
| 34,497 |  |  | 34,470 |  |  | 103,034 |  |  | 92,146 |
NSP China: |  |  |  |  |  |  |  |  |  |  |
General health | $ | 627 |  |  | $ | 1,151 |  |  | $ | 1,764 |  |  | $ | 2,470 |
Immune | 156 |  |  | 179 |  |  | 312 |  |  | 310 |
Cardiovascular | 850 |  |  | 911 |  |  | 3,259 |  |  | 2,368 |
Digestive | 3,032 |  |  | 2,433 |  |  | 8,357 |  |  | 5,557 |
Personal care | 1,128 |  |  | 115 |  |  | 2,388 |  |  | 184 |
Weight management | 1,185 |  |  | 1,060 |  |  | 1,754 |  |  | 2,055 |
| 6,978 |  |  | 5,849 |  |  | 17,834 |  |  | 12,944 |
| $ | 88,828 |  |  | $ | 89,301 |  |  | $ | 267,436 |  |  | $ | 253,743 |
From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):
| September 30, 2018 |  | December 31, 2017
Property, plant and equipment: |  |  |  |  |
United States | $ | 62,504 |  |  | $ | 65,928 |
Other | 3,027 |  |  | 3,178 |
Total property, plant and equipment | $ | 65,531 |  |  | $ | 69,106 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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