| Segment Information |
(8)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 business segments that operate under the Nature’s Sunshine Products brand and are divided based on the characteristics of their Distributor base, similarities in compensation plans, as well as the internal organization of NSP’s officers and their responsibilities (NSP Americas, Asia Pacific and Europe and NSP Russia, Central and Eastern Europe). The Company’s third business segment operates under the Synergy WorldWide brand, which distributes its products through different selling and Distributor compensation plans and has products with formulations that are sufficiently different from those of the NSP Americas, Asia Pacific and Europe and NSP Russia, Central and Eastern Europe 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 contribution margin (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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2014
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2013
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2014
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2013
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Net sales revenue:
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NSP Americas, Asia Pacific and Europe
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$
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48,391
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$
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50,560
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$
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148,064
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$
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157,113
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NSP Russia, Central and Eastern Europe
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11,753
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14,577
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39,628
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45,695
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Synergy WorldWide
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34,732
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27,321
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97,262
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79,804
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Total net sales revenue
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94,876
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92,458
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284,954
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282,612
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Contribution margin (1):
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NSP Americas, Asia Pacific and Europe
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19,908
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19,973
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60,554
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64,234
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NSP Russia, Central and Eastern Europe
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4,186
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5,409
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14,145
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16,915
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Synergy WorldWide
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12,010
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9,501
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34,454
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27,313
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Total contribution margin
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36,104
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34,883
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109,153
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108,462
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Selling, general and administrative
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33,476
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28,170
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93,539
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86,996
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Total operating income
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2,628
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6,713
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15,614
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21,466
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Other income (loss), net
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(1,279
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)
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(269
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)
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(2,772
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)
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1,543
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Income before provision for income taxes
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$
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1,349
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$
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6,444
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$
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12,842
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$
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23,009
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(1)
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Contribution margin consists of net sales revenue less cost of sales and volume incentives expense.
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From an individual country perspective, only the United States and South Korea comprise 10 percent or more of consolidated net sales revenue for the three and nine-month periods ended September 30, 2014 and 2013, as follows:
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2014
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2013
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2014
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2013
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Net sales revenue:
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United States (NSP and Synergy)
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$
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36,960
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$
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37,209
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$
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112,507
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$
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116,552
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South Korea (Synergy)
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16,252
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9,465
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42,959
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23,080
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Other
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41,664
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45,784
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129,488
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142,980
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$
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94,876
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$
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92,458
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$
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284,954
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$
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282,612
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Revenue generated by each of the Company’s product lines is set forth below:
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2014
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2013
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2014
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2013
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NSP Americas, Asia Pacific and Europe:
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General health
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$
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21,133
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$
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22,048
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$
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64,535
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$
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66,832
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Immune
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5,907
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5,511
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17,877
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18,431
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Cardiovascular
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3,270
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3,482
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10,033
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10,729
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Digestive
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14,143
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14,699
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43,210
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45,717
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Personal care
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1,014
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1,275
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3,124
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4,137
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Weight management
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2,924
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3,545
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9,285
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11,267
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48,391
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50,560
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148,064
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157,113
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NSP Russia, Central and Eastern Europe:
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General health
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$
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4,507
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$
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5,344
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$
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14,883
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$
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16,603
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Immune
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1,492
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1,801
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4,960
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5,636
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Cardiovascular
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730
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|
966
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2,457
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3,206
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Digestive
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3,093
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3,625
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10,491
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11,691
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Personal care
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1,410
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2,282
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4,746
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6,395
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Weight management
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521
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559
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2,091
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2,164
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11,753
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14,577
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39,628
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45,695
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Synergy WorldWide:
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General health
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$
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12,367
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$
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9,438
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$
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34,809
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$
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27,214
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Immune
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243
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|
415
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|
710
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1,223
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Cardiovascular
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11,500
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9,925
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33,596
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30,594
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Digestive
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6,069
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4,001
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16,039
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12,823
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Personal care
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1,981
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2,022
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5,451
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5,295
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Weight management
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2,572
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1,520
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6,657
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2,655
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34,732
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27,321
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97,262
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79,804
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$
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94,876
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$
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92,458
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$
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284,954
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$
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282,612
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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,
2014
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|
December 31,
2013
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Property, plant and equipment:
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United States
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$
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42,176
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$
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25,713
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Venezuela
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—
|
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3,207
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Other
|
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3,197
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3,102
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Total property, plant and equipment
|
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$
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45,373
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$
|
32,022
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Due to the continual currency devaluation of the Venezuelan bolivar (50.0 bolivars to to the U.S. dollar), as of September 30, 2014, the Company incurred a $2,947 impairment charge to write down the value of its fixed assets in Venezuela to $0.
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