Annual report [Section 13 and 15(d), not S-K Item 405]

BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION

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BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION
 
We have four reportable business segments (Asia, Europe, North America and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide brands and sell similar products grouped into six principal categories: general health, immune, cardiovascular, digestive, personal care and weight management. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities, independent of the Company, that we have granted distribution rights for the relevant market.

The Company's chief operating decision maker ("CODM") is our president and chief executive officer. The CODM assesses the performance of each segment using operating income. The CODM reviews the performance of each segment using monthly internal reports which provide variance analysis of actual results by segment compared to budget, forecast and prior year. The CODM uses this information when making decisions about the allocation of operating resources to each segment. The CODM does not evaluate reportable segments using asset or liability information.
Reportable business segment information for the years ended December 31, 2024 and 2023 is as follows (dollar amounts in thousands):
2024 Asia Europe North America Latin America and Other Total
Net sales $ 207,794  $ 84,837  $ 138,849  $ 22,884  $ 454,364 
Cost of sales 48,557  27,836  45,364  7,918 
Volume incentives 69,685  33,758  29,773  7,374 
Selling, general and administrative (1) 55,443  18,577  32,793  6,299 
Segment operating income $ 34,109  $ 4,666  $ 30,919  $ 1,293  $ 70,987 
Unallocated corporate selling, general and administrative expense (50,892)
Operating income 20,095 
Interest and other income, net 177 
Interest expense (146)
Foreign exchange losses, net (1,700)
Income from operations before provision for income taxes $ 18,426 

2023 Asia Europe North America Latin America and Other Total
Net sales $ 201,251  $ 81,101  $ 139,804  $ 23,164  $ 445,320 
Cost of sales 45,373  25,397  45,347  8,076 
Volume incentives 65,143  33,486  29,392  7,299 
Selling, general and administrative (1) 60,185  18,434  30,655  6,288 
Segment operating income $ 30,550  $ 3,784  $ 34,410  $ 1,501  $ 70,245 
Unallocated corporate selling, general and administrative expense (51,496)
Operating income 18,749 
Interest and other income, net 552 
Interest expense (69)
Foreign exchange gains, net 970 
Income from operations before provision for income taxes $ 20,202 
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(1) Service fees in China totaled $14.5 million and $16.6 million for the years ended December 31, 2024 and 2023, respectively. These service fees are included in our selling, general and administrative expenses for our Asia segment.

The table below reflects sales based upon the sales location where they occurred. From an individual country/region perspective, only the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the years ended December 31, 2024 and 2023 as follows (dollar amounts in thousands):
Year Ended December 31, 2024 2023
Net sales:    
United States $ 127,924  $ 129,305 
Taiwan 70,579  61,691 
South Korea 51,362  49,845 
Other 204,499  204,479 
Total net sales $ 454,364  $ 445,320 
Net sales generated by each product line for the years ended December 31, 2024 and 2023 are as follows (dollar amounts in thousands):
2024 Asia Europe North America Latin America and Other Total
General health $ 81,313 $ 36,631 $ 59,520 $ 6,418 $ 183,882
Immunity 12,052 8,454 15,802 2,416 38,724
Cardiovascular 56,266 9,265 14,443 1,726 81,700
Digestive 38,958 22,748 39,325 10,713 111,744
Personal care 5,032 5,397 6,241 1,133 17,803
Weight management 14,173 2,342 3,518 478 20,511
Total net sales by segment $ 207,794 $ 84,837 $ 138,849 $ 22,884 $ 454,364

2023 Asia Europe North America Latin America and Other Total
General health $ 69,037  $ 34,709  $ 63,742  $ 6,286  $ 173,774 
Immunity 5,420 8,222 16,124 2,703 32,469
Cardiovascular 57,771 9,143 14,959 1,718 83,591
Digestive 36,434 22,111 34,628 10,693 103,866
Personal care 5,586 4,977 6,476 1,262 18,301
Weight management 27,003 1,939 3,875 502 33,319
Total net sales by segment $ 201,251  $ 81,101  $ 139,804  $ 23,164  $ 445,320 

Year Ended December 31, 2024 2023
Depreciation and amortization:    
Asia $ 1,876  $ 1,812 
Europe 93  54 
North America 12,204  9,890 
Latin America and Other 46  60 
Total depreciation and amortization $ 14,219  $ 11,816 

From an individual country perspective, only the United States has material balances of consolidated property, plant and equipment as follows (dollar amounts in thousands):
As of December 31  2024 2023
Property, plant and equipment, net    
United States $ 34,786  $ 41,239 
Other 4,799  3,761 
Total property, plant and equipment $ 39,585  $ 45,000