Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
The Company has four business segments. These business segments are components of the Company for which information is available separately and evaluated regularly by the chief executive officer in deciding how to allocate resources and in assessing relative performance. 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 has four business segments that 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 China and New Markets), and one business segment operates under the Synergy® WorldWide brand.

Reportable business segment information is as follows (dollar amounts in thousands):
 
 
Three Months Ended
March 31,
 
2017
 
2016
Net sales:
 

 
 

NSP Americas
$
44,645

 
$
45,183

NSP Russia, Central and Eastern Europe
7,607

 
6,352

Synergy WorldWide
27,313

 
29,848

China and New Markets
3,533

 
1,019

Total net sales
83,098

 
82,402

 
 
 
 
Contribution margin (1):
 

 
 

NSP Americas
19,195

 
18,917

NSP Russia, Central and Eastern Europe
2,509

 
2,181

Synergy WorldWide
8,199

 
8,939

China and New Markets
2,484

 
468

Total contribution margin
32,387

 
30,505

 
 
 
 
Selling, general and administrative (2)
30,336

 
28,385

Operating income
2,051

 
2,120

 
 
 
 
Other income (expense), net
1,275

 
1,559

Income from continuing operations before provision for income taxes
$
3,326

 
$
3,679

_________________________________________

(1) Contribution margin consists of net sales less cost of sales and volume incentives expense.

(2) Service fees in the China and New Markets segment related to pre-opening product sales through Hong Kong totaled $0.9 million and $0 for the three-month periods ended March 31, 2017 and 2016, respectively. These service fees are included in the Company's selling, general and administrative expenses.

From an individual country perspective, only the United States and South Korea comprise 10 percent or more of consolidated net sales for the three-month periods ended March 31, 2017 and 2016, as follows (dollar amounts in thousands):
 
 
Three Months Ended
March 31,
 
2017
 
2016
Net sales:
 

 
 

United States
$
37,735

 
$
38,295

South Korea
11,346

 
13,198

Other
34,017

 
30,909

 
$
83,098

 
$
82,402


 
Revenue generated by each of the Company’s product lines is set forth below (dollar amounts in thousands):
 
 
Three Months Ended
March 31,
 
2017
 
2016
NSP Americas:
 

 
 

General health
$
19,866

 
$
19,617

Immune
5,073

 
5,576

Cardiovascular
3,316

 
3,112

Digestive
12,148

 
13,079

Personal care
1,886

 
930

Weight management
2,356

 
2,869

 
44,645

 
45,183

NSP Russia, Eastern and Central Europe:
 

 
 

General health
$
3,558

 
$
2,723

Immune
763

 
540

Cardiovascular
531

 
477

Digestive
1,877

 
2,121

Personal care
608

 
249

Weight management
270

 
242

 
7,607

 
6,352

Synergy WorldWide:
 

 
 

General health
$
6,687

 
$
8,640

Immune
121

 
209

Cardiovascular
11,103

 
12,693

Digestive
3,465

 
2,487

Personal care
2,067

 
1,939

Weight management
3,870

 
3,880

 
27,313

 
29,848

China and New Markets:
 

 
 

General health
$
880

 
$
471

Immune
146

 
131

Cardiovascular
581

 
73

Digestive
1,642

 
260

Personal care
76

 
22

Weight management
208

 
62

 
3,533

 
1,019

 
$
83,098

 
$
82,402



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,
2017
 
December 31,
2016
Property, plant and equipment:
 

 
 

United States
$
71,787

 
$
70,770

Other
2,946

 
2,502

Total property, plant and equipment
$
74,733

 
$
73,272