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OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION We have 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. Our 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 our 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. The NSP Russia, Central and Eastern Europe segment also includes our wholesale business, in which we sell our products to various locally-managed entities independent of the Company that we have granted distribution rights for the relevant market. 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. We evaluate performance based on contribution margin (loss) by segment before consideration of certain inter-segment transfers and expenses. In the fourth quarter of 2017, we moved the reporting of our wholesale business from the China and New Markets segment to the NSP Russia, Central and Eastern Europe segment. The net sales and contribution margin for the year ended December 31, 2016 were recast to reflect the change. Reportable business segment information for the years ended December 31, 2018, 2017, and 2016 is as follows (dollar amounts in thousands):
Year Ended December 31, |  | 2018 |  | 2017 |  | 2016
Net sales: |  |  |  |  |  |  |  |  |
NSP Americas |  | $ | 156,117 |  |  | $ | 166,017 |  |  | $ | 175,922 |
NSP Russia, Central and Eastern Europe |  | 38,585 |  |  | 32,190 |  |  | 29,998 |
Synergy WorldWide |  | 141,028 |  |  | 123,833 |  |  | 124,793 |
NSP China |  | 29,080 |  |  | 19,989 |  |  | 10,446 |
Total net sales |  | 364,810 |  |  | 342,029 |  |  | 341,159 |
Contribution margin (1): |  |  |  |  |  |  |  |  |
NSP Americas |  | 64,366 |  |  | 69,408 |  |  | 75,005 |
NSP Russia, Central and Eastern Europe |  | 13,042 |  |  | 10,930 |  |  | 10,525 |
Synergy WorldWide |  | 43,118 |  |  | 35,377 |  |  | 38,034 |
NSP China |  | 23,256 |  |  | 15,307 |  |  | 6,748 |
Total contribution margin |  | 143,782 |  |  | 131,022 |  |  | 130,312 |
Selling, general and administrative (2) |  | 138,431 |  |  | 129,635 |  |  | 120,273 |
Operating income |  | 5,351 |  |  | 1,387 |  |  | 10,039 |
Other income (loss), net |  | (2,151 | ) |  | 1,835 |  |  | (773 | )
Income before provision for income taxes |  | $ | 3,200 |  |  | $ | 3,222 |  |  | $ | 9,266 |
___________________________ (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 receipt of our direct selling license and pre-opening sales through Hong Kong, totaled $11.5 million, $7.2 million, and $4.3 million for the years ended December 31, 2018, 2017, and 2016, respectively. These service fees are included in our selling, general and administrative expenses.
Year Ended December 31, |  | 2018 |  | 2017 |  | 2016
Capital expenditures: |  |  |  |  |  |  |  |  |
NSP Americas |  | $ | 3,162 |  |  | $ | 3,965 |  |  | $ | 8,999 |
NSP Russia, Central and Eastern Europe |  | 16 |  |  | 55 |  |  | 131 |
Synergy WorldWide |  | 1,304 |  |  | 763 |  |  | 564 |
NSP China |  | 321 |  |  | 603 |  |  | 430 |
Total capital expenditures |  | $ | 4,803 |  |  | $ | 5,386 |  |  | $ | 10,124 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |
NSP Americas |  | $ | 8,791 |  |  | $ | 7,884 |  |  | $ | 3,997 |
NSP Russia, Central and Eastern Europe |  | 70 |  |  | 60 |  |  | 42 |
Synergy WorldWide |  | 878 |  |  | 621 |  |  | 713 |
NSP China |  | 67 |  |  | 69 |  |  | 56 |
Total depreciation and amortization |  | $ | 9,806 |  |  | $ | 8,634 |  |  | $ | 4,808 |
As of December 31, |  | 2018 |  | 2017
Assets: |  |  |  |  |  |
NSP Americas |  | $ | 115,322 |  |  | $ | 127,246 |
NSP Russia, Central and Eastern Europe |  | 7,664 |  |  | 6,664 |
Synergy WorldWide |  | 49,936 |  |  | 44,047 |
NSP China |  | 20,094 |  |  | 17,238 |
Total assets |  | $ | 193,016 |  |  | $ | 195,195 |
From an individual country perspective, only the United States and South Korea comprise approximately 10 percent or more of consolidated net sales for any of the years ended December 31, 2018, 2017, and 2016 as follows (dollar amounts in thousands):
Year Ended December 31, |  | 2018 |  | 2017 |  | 2016
Net sales: |  |  |  |  |  |  |  |  |
United States |  | $ | 133,677 |  |  | $ | 140,860 |  |  | $ | 148,060 |
South Korea |  | 72,207 |  |  | 52,020 |  |  | 57,637 |
Other |  | 158,926 |  |  | 149,149 |  |  | 135,462 |
Total net sales |  | $ | 364,810 |  |  | $ | 342,029 |  |  | $ | 341,159 |
Revenue generated by each of our product lines is set forth below (dollars in thousands):
Year Ended December 31, |  | 2018 |  | 2017 |  | 2016
NSP Americas: |  |  |  |  |  |  |  |  |
General health |  | $ | 68,134 |  |  | $ | 74,492 |  |  | $ | 78,187 |
Immunity |  | 18,430 |  |  | 20,451 |  |  | 19,185 |
Cardiovascular |  | 11,491 |  |  | 11,454 |  |  | 12,677 |
Digestive |  | 44,370 |  |  | 45,231 |  |  | 47,659 |
Personal care |  | 6,701 |  |  | 7,260 |  |  | 7,537 |
Weight management |  | 6,991 |  |  | 7,129 |  |  | 10,677 |
|  | 156,117 |  |  | 166,017 |  |  | 175,922 |
NSP Russia, Central and Eastern Europe: |  |  |  |  |  |  |  |  |
General health |  | $ | 16,088 |  |  | $ | 14,813 |  |  | $ | 12,907 |
Immunity |  | 4,095 |  |  | 3,530 |  |  | 3,349 |
Cardiovascular |  | 2,841 |  |  | 2,166 |  |  | 2,212 |
Digestive |  | 9,725 |  |  | 8,261 |  |  | 8,009 |
Personal care |  | 4,711 |  |  | 2,330 |  |  | 2,370 |
Weight management |  | 1,125 |  |  | 1,090 |  |  | 1,151 |
|  | 38,585 |  |  | 32,190 |  |  | 29,998 |
Synergy WorldWide: |  |  |  |  |  |  |  |  |
General health |  | $ | 40,953 |  |  | $ | 31,973 |  |  | $ | 35,283 |
Immunity |  | 481 |  |  | 508 |  |  | 620 |
Cardiovascular |  | 59,765 |  |  | 50,702 |  |  | 51,684 |
Digestive |  | 15,950 |  |  | 16,121 |  |  | 12,536 |
Personal care |  | 7,873 |  |  | 8,532 |  |  | 8,981 |
Weight management |  | 16,006 |  |  | 15,997 |  |  | 15,689 |
|  | 141,028 |  |  | 123,833 |  |  | 124,793 |
NSP China: |  |  |  |  |  |  |  |  |
General health |  | $ | 2,720 |  |  | $ | 3,738 |  |  | $ | 1,551 |
Immunity |  | 2,594 |  |  | 468 |  |  | 370 |
Cardiovascular |  | 4,860 |  |  | 3,886 |  |  | 2,617 |
Digestive |  | 10,978 |  |  | 8,361 |  |  | 4,323 |
Personal care |  | 2,981 |  |  | 350 |  |  | 629 |
Weight management |  | 4,947 |  |  | 3,186 |  |  | 956 |
|  | 29,080 |  |  | 19,989 |  |  | 10,446 |
Total net sales |  | $ | 364,810 |  |  | $ | 342,029 |  |  | $ | 341,159 |
From an individual country perspective, only the United States comprise 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):
As of December 31 |  | 2018 |  | 2017
Property, plant and equipment |  |  |  |  |  |
United States |  | $ | 60,606 |  |  | $ | 65,928 |
Other |  | 3,455 |  |  | 3,178 |
Total property, plant and equipment |  | $ | 64,061 |  |  | $ | 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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