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(10) 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 (NSP United States) and in countries outside the United States (NSP International). The Companys third reportable business segment operates under the Synergy Worldwide brand, which offers marketing plans, Distributor compensation plans and product formulations that are sufficiently different from those of NSP United States and NSP International 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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Three Months Ended
September 30,
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Nine Months Ended
September 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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33,519
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$
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34,521
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$
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105,061
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$
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107,402
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International
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33,059
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33,316
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102,661
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103,814
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66,578
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67,837
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207,722
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211,216
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Synergy Worldwide
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24,524
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18,259
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68,035
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48,813
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Total net sales revenue
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91,102
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|
86,096
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275,757
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260,029
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Operating expenses:
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Natures Sunshine Products:
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United States
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31,176
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32,128
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95,257
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102,350
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International
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43,151
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32,658
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108,852
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101,279
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74,327
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64,786
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204,109
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203,629
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Synergy Worldwide
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21,880
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17,434
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61,080
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48,681
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Total operating expenses
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96,207
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82,220
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265,189
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252,310
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Operating income (loss):
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Natures Sunshine Products:
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United States
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2,343
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2,393
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9,804
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5,052
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International
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(10,092
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)
|
658
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(6,191
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)
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2,535
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(7,749
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)
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3,051
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3,613
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7,587
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Synergy Worldwide
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2,644
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825
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6,955
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132
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Total operating income (loss)
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(5,105
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)
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3,876
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10,568
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7,719
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Other income, net
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1,204
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375
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1,049
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2,374
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Income (loss) before provision for income taxes
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$
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(3,901
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)
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$
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4,251
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$
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11,617
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$
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10,093
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NSP Internationals operating loss of $10,092 and $6,191 for the three and nine months ended September 30, 2011, includes $14,750 of contract termination costs related to the Companys arbitration settlement with NutriPlus LLC (described further in Note 12, Commitments and Contingencies).
The Company moved the reporting of its Dominican Republic market from NSP United States to NSP International 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 September 30, 2010 were $690 and ($121), respectively. The net sales revenue and operating loss of this market for the nine months ended September 30, 2010 were $3,105 and ($358), respectively.
From an individual country perspective, only the United States comprises 10 percent or more of consolidated net sales revenue for either of the three and nine-month periods ended September 30, 2011 and 2010 as follows:
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2011
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2010
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2011
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2010
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Net sales revenue:
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United States
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$
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38,885
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$
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38,674
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$
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120,868
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$
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117,997
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Other
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52,217
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47,422
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154,889
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142,032
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$
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91,102
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$
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86,096
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$
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275,757
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$
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260,029
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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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September 30,
2011
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December 31,
2010
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Property, plant and equipment:
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United States
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$
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18,815
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$
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20,350
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Venezuela
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4,042
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4,353
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Other
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2,351
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2,688
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Total property, plant and equipment
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$
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25,208
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$
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27,391
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