OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| Segment Reporting [Abstract] |
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| Schedule of reportable business segment information |
Reportable business segment information for the years ended December 31, 2018, 2017, and 2016 is as follows (dollar amounts in thousands):
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Year Ended December 31, |
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2018 |
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2017 |
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2016 |
Net sales: |
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NSP Americas |
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$ |
156,117 |
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$ |
166,017 |
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$ |
175,922 |
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NSP Russia, Central and Eastern Europe |
|
38,585 |
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|
32,190 |
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|
29,998 |
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Synergy WorldWide |
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141,028 |
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|
123,833 |
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|
124,793 |
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NSP China |
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29,080 |
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|
19,989 |
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|
10,446 |
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Total net sales |
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364,810 |
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|
342,029 |
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|
341,159 |
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Contribution margin (1): |
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NSP Americas |
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64,366 |
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69,408 |
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75,005 |
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NSP Russia, Central and Eastern Europe |
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13,042 |
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10,930 |
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|
10,525 |
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Synergy WorldWide |
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43,118 |
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35,377 |
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38,034 |
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NSP China |
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23,256 |
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15,307 |
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6,748 |
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Total contribution margin |
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143,782 |
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131,022 |
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130,312 |
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Selling, general and administrative (2) |
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138,431 |
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129,635 |
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120,273 |
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Operating income |
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5,351 |
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1,387 |
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|
10,039 |
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Other income (loss), net |
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(2,151 |
) |
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1,835 |
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(773 |
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Income before provision for income taxes |
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$ |
3,200 |
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$ |
3,222 |
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$ |
9,266 |
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___________________________
(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 $4.3 million for the years ended December 31, 2018, 2017, and 2016, respectively. These service fees are included in our selling, general and administrative expenses.
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Year Ended December 31, |
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2018 |
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2017 |
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2016 |
Capital expenditures: |
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NSP Americas |
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$ |
3,162 |
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$ |
3,965 |
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$ |
8,999 |
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NSP Russia, Central and Eastern Europe |
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16 |
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55 |
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|
131 |
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Synergy WorldWide |
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1,304 |
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|
763 |
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|
564 |
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NSP China |
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321 |
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603 |
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430 |
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Total capital expenditures |
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$ |
4,803 |
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$ |
5,386 |
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$ |
10,124 |
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Depreciation and amortization: |
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NSP Americas |
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$ |
8,791 |
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$ |
7,884 |
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$ |
3,997 |
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NSP Russia, Central and Eastern Europe |
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70 |
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60 |
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42 |
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Synergy WorldWide |
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878 |
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621 |
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|
713 |
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NSP China |
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67 |
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|
69 |
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56 |
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Total depreciation and amortization |
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$ |
9,806 |
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$ |
8,634 |
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$ |
4,808 |
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As of December 31, |
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2018 |
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2017 |
Assets: |
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NSP Americas |
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$ |
115,322 |
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$ |
127,246 |
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NSP Russia, Central and Eastern Europe |
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7,664 |
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6,664 |
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Synergy WorldWide |
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49,936 |
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44,047 |
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NSP China |
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20,094 |
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17,238 |
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Total assets |
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$ |
193,016 |
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$ |
195,195 |
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| Schedule of consolidated net sales revenue by geographical locations |
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):
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Year Ended December 31, |
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2018 |
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2017 |
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2016 |
Net sales: |
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United States |
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$ |
133,677 |
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$ |
140,860 |
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$ |
148,060 |
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South Korea |
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72,207 |
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52,020 |
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57,637 |
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Other |
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158,926 |
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149,149 |
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|
135,462 |
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Total net sales |
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$ |
364,810 |
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$ |
342,029 |
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$ |
341,159 |
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| Schedule of revenue generated by each of the Company's product lines |
Revenue generated by each of our product lines is set forth below (dollars in thousands):
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Year Ended December 31, |
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2018 |
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2017 |
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2016 |
NSP Americas: |
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General health |
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$ |
68,134 |
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$ |
74,492 |
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$ |
78,187 |
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Immunity |
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18,430 |
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20,451 |
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19,185 |
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Cardiovascular |
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11,491 |
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11,454 |
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12,677 |
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Digestive |
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44,370 |
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45,231 |
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47,659 |
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Personal care |
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6,701 |
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7,260 |
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7,537 |
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Weight management |
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6,991 |
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7,129 |
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10,677 |
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156,117 |
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166,017 |
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175,922 |
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NSP Russia, Central and Eastern Europe: |
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General health |
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$ |
16,088 |
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$ |
14,813 |
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$ |
12,907 |
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Immunity |
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4,095 |
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3,530 |
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3,349 |
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Cardiovascular |
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2,841 |
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2,166 |
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2,212 |
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Digestive |
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9,725 |
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8,261 |
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8,009 |
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Personal care |
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4,711 |
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2,330 |
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2,370 |
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Weight management |
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1,125 |
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1,090 |
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1,151 |
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38,585 |
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32,190 |
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29,998 |
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Synergy WorldWide: |
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General health |
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$ |
40,953 |
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$ |
31,973 |
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$ |
35,283 |
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Immunity |
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481 |
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508 |
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620 |
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Cardiovascular |
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59,765 |
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50,702 |
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51,684 |
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Digestive |
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15,950 |
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16,121 |
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12,536 |
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Personal care |
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7,873 |
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8,532 |
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8,981 |
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Weight management |
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16,006 |
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15,997 |
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15,689 |
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141,028 |
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123,833 |
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124,793 |
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NSP China: |
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General health |
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$ |
2,720 |
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$ |
3,738 |
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$ |
1,551 |
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Immunity |
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2,594 |
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468 |
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370 |
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Cardiovascular |
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4,860 |
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3,886 |
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2,617 |
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Digestive |
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10,978 |
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8,361 |
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4,323 |
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Personal care |
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2,981 |
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350 |
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629 |
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Weight management |
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4,947 |
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3,186 |
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|
956 |
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29,080 |
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19,989 |
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10,446 |
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Total net sales |
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$ |
364,810 |
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$ |
342,029 |
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$ |
341,159 |
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| Schedule of consolidated property, plant and equipment by geographical locations |
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):
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As of December 31 |
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2018 |
|
2017 |
Property, plant and equipment |
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United States |
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$ |
60,606 |
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$ |
65,928 |
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Other |
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3,455 |
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3,178 |
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Total property, plant and equipment |
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$ |
64,061 |
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$ |
69,106 |
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