Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.4.0.3
Segment Information
 3 Months Ended
Mar. 31, 2016
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 that is 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 bases, selling and 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 China and New Markets). The Company’s China and New Markets segment anticipates 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 through e-commerce channels.  The time to market will be dependent upon regulatory processes including product registration and permit approvals. The China and New Markets segment also includes the Company’s wholesale 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 detailed below. The fourth business segment operates under the Synergy® WorldWide brand.

Reportable business segment information is as follows (dollar amounts in thousands):
 
 
Three Months Ended
March 31,
 
2016
 
2015
Net sales revenue:
 

 
 

NSP Americas
$
45,183

 
$
46,510

NSP Russia, Central and Eastern Europe
6,352

 
7,443

Synergy WorldWide
29,848

 
28,768

China and New Markets
1,019

 
1,157

Total net sales revenue
82,402

 
83,878

 
 
 
 
Contribution margin (1):
 

 
 

NSP Americas
18,917

 
19,520

NSP Russia, Central and Eastern Europe
2,181

 
2,596

Synergy WorldWide
8,939

 
9,048

China and New Markets
468

 
496

Total contribution margin
30,505

 
31,660

 
 
 
 
Selling, general and administrative
28,385

 
26,330

Operating income
2,120

 
5,330

 
 
 
 
Other income (expense), net
1,559

 
(318
)
Income from continuing operations before provision for income taxes
$
3,679

 
$
5,012

_________________________________________

(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-month periods ended March 31, 2016 and 2015, as follows (dollar amounts in thousands):
 
 
Three Months Ended
March 31,
 
2016
 
2015
Net sales revenue:
 

 
 

United States
$
38,295

 
$
38,522

South Korea
13,198

 
12,080

Other
30,909

 
33,276

 
$
82,402

 
$
83,878


 
Revenue generated by each of the Company’s product lines is set forth below (dollar amounts in thousands):
 
 
Three Months Ended
March 31,
 
2016
 
2015
NSP Americas:
 

 
 

General health
$
19,617

 
$
20,032

Immune
5,576

 
6,217

Cardiovascular
3,112

 
3,101

Digestive
13,079

 
13,365

Personal care
930

 
970

Weight management
2,869

 
2,825

 
45,183

 
46,510

NSP Russia, Eastern and Central Europe:
 

 
 

General health
$
2,723

 
$
2,879

Immune
540

 
913

Cardiovascular
477

 
453

Digestive
2,121

 
1,970

Personal care
249

 
882

Weight management
242

 
346

 
6,352

 
7,443

Synergy WorldWide:
 

 
 

General health
$
8,640

 
$
7,702

Immune
209

 
193

Cardiovascular
12,693

 
12,655

Digestive
2,487

 
2,294

Personal care
1,939

 
1,830

Weight management
3,880

 
4,094

 
29,848

 
28,768

China and New Markets:
 

 
 

General health
$
471

 
$
531

Immune
131

 
158

Cardiovascular
73

 
81

Digestive
260

 
290

Personal care
22

 
27

Weight management
62

 
70

 
1,019

 
1,157

 
$
82,402

 
$
83,878



Beginning in 2016, for the Synergy WorldWide segment, the Company changed its allocation of products sold within promotional product kits from the category associated with the predominant product, to each individual product being included in its respective category. Prior periods have been reclassified to conform to the current period’s presentation.

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):
 
 
March 31,
2016
 
December 31,
2015
Property, plant and equipment:
 

 
 

United States
$
66,949

 
$
66,044

Other
2,425

 
2,684

Total property, plant and equipment
$
69,374

 
$
68,728