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(9) Segment Information
The Company has three 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 two reportable business segments that operate under the Natures Sunshine Products brand and are divided based on their geographic operations in the United States and in countries outside the United States. The Companys third reportable business segment operates under the Synergy Worldwide brand, which offers products with formulations that are sufficiently different from those of Natures Sunshine Products and has marketing and Distributor compensation plans that are sufficiently different from those of Natures Sunshine Products to warrant accounting for these operations as a separate business segment. 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 operating income (loss) by segment before consideration of certain inter-segment transfers and expenses.
Reportable business segment information is as follows:
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|
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2011
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2010
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2011
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2010
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Net sales revenue:
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|
|
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|
|
|
|
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Natures Sunshine Products:
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|
|
|
|
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United States
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$
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35,897
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$
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36,219
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$
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71,542
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$
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72,881
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|
|
International
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33,055
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34,318
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69,602
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70,498
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|
|
|
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68,952
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|
70,537
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|
141,144
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143,379
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Synergy Worldwide
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22,859
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16,606
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43,511
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30,554
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Total net sales revenue
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91,811
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|
87,143
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|
184,655
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|
173,933
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|
|
|
|
|
|
|
|
|
|
|
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Operating expenses:
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Natures Sunshine Products:
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|
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United States
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32,194
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34,020
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64,081
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70,222
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International
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31,208
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33,266
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65,701
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68,621
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|
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63,402
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|
67,286
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129,782
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138,843
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Synergy Worldwide
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20,357
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|
16,584
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39,200
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|
31,247
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Total operating expenses
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83,759
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|
83,870
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|
168,982
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|
170,090
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|
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Operating income (loss):
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Natures Sunshine Products:
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United States
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3,703
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2,199
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7,461
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|
2,659
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International
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1,847
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1,052
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3,901
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1,877
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5,550
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3,251
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11,362
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4,536
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Synergy Worldwide
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2,502
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22
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4,311
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(693
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)
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Total operating income (loss)
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8,052
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3,273
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15,673
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3,843
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Other income (expense), net
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(420
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)
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(902
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)
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(155
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)
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1,999
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Income before provision for income taxes
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$
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7,632
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$
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2,371
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$
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15,518
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$
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5,842
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The Company moved its Dominican Republic market from the NSP United States segment to the NSP International segment during the quarter ended March 31, 2011, and has made conforming changes to the results presented above for the prior year periods. The net sales revenue and operating loss of this market for the three months ended June 30, 2010 were $1,247 and ($148), respectively. The net sales revenue and operating loss of this market for the six months ended June 30, 2010 were $2, 415 and ($237), respectively.
From an individual country perspective, only the United States comprises approximately 10 percent or more of consolidated net sales revenue for either of the three and six-month periods ended June 30, 2011 and 2010 as follows:
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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|
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2011
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2010
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2011
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2010
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Net sales revenue:
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United States
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$
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41,196
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$
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40,092
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$
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81,983
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$
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79,323
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Other
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50,615
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47,051
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102,672
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94,610
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$
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91,811
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$
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87,143
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$
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184,655
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$
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173,933
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Net sales revenue by product group has not been reported as management has determined that it is impracticable to accumulate such information.
From an individual country perspective, only the United States and Venezuela comprise 10 percent or more of consolidated property, plant and equipment as follows:
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June 30,
2011
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December 31,
2010
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Property, plant and equipment:
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|
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United States
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$
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19,283
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$
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20,350
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Venezuela
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4,146
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4,353
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Other
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2,643
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2,688
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Total property, plant and equipment
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$
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26,072
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$
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27,391
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