Annual report pursuant to Section 13 and 15(d)

OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION

v3.22.4
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION
 
We have four 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. 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.

Reportable business segment information for the years ended December 31, 2022 and 2021 is as follows (dollar amounts in thousands):
Year Ended December 31, 2022 2021
Net sales:    
Asia $ 186,292  $ 176,860 
Europe 78,991  91,539 
North America 133,214  149,746 
Latin America and Other 23,413  25,939 
Total net sales 421,910  444,084 
Contribution margin (1):    
Asia 85,876  89,939 
Europe 25,911  30,959 
North America 47,615  56,922 
Latin America and Other 9,981  10,953 
Total contribution margin 169,383  188,773 
Selling, general and administrative (2) 153,125  154,103 
Operating income 16,258  34,670 
Other loss, net (1,043) (2,848)
Income before provision for income taxes $ 15,215  $ 31,822 
___________________________
(1) Contribution margin consists of net sales less cost of sales and volume incentives expense.

(2) Service fees in China totaled $14.9 million and $18.7 million for the years ended December 31, 2022 and 2021, respectively. These service fees are included in our selling, general and administrative expenses.

Year Ended December 31, 2022 2021
Capital expenditures:    
Asia $ 1,830  $ 1,081 
Europe 57  142 
North America 5,573  5,371 
Latin America and Other 168  72 
Total capital expenditures $ 7,628  $ 6,666 
Depreciation and amortization:    
Asia $ 1,856  $ 1,825 
Europe 123  64 
North America 8,863  9,206 
Latin America and Other 183  67 
Total depreciation and amortization $ 11,025  $ 11,162 
As of December 31, 2022 2021
Assets:    
Asia $ 95,362  $ 104,659 
Europe 15,773  15,486 
North America 112,319  131,207 
Latin America and Other 6,324  7,522 
Total assets $ 229,778  $ 258,874 
 
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, 2022 and 2021 as follows (dollar amounts in thousands):
Year Ended December 31, 2022 2021
Net sales:    
United States $ 122,863  $ 138,174 
South Korea 54,935  61,107 
Taiwan 48,474  23,198 
Other 195,638  221,605 
Total net sales $ 421,910  $ 444,084 
Revenue generated by each of our product lines is set forth below (dollars in thousands):
Year Ended December 31, 2022 2021
Asia:    
General health $ 53,603  $ 50,044 
Immunity 3,283  1,599 
Cardiovascular 55,312  48,019 
Digestive 37,457  36,069 
Personal care 9,205  17,765 
Weight management 27,432  23,364 
  186,292  176,860 
Europe:    
General health $ 34,438  $ 40,045 
Immunity 8,489  8,957 
Cardiovascular 9,380  11,787 
Digestive 20,024  23,142 
Personal care 4,854  5,149 
Weight management 1,806  2,459 
  78,991  91,539 
North America:    
General health $ 64,488  $ 65,379 
Immunity 14,966  19,563 
Cardiovascular 14,383  16,219 
Digestive 28,490  37,130 
Personal care 6,212  7,579 
Weight management 4,675  3,876 
  133,214  149,746 
Latin America and Other:    
General health $ 6,728  $ 7,532 
Immunity 2,901  2,667 
Cardiovascular 1,662  2,001 
Digestive 10,040  10,291 
Personal care 1,399  2,573 
Weight management 683  875 
  23,413  25,939 
Total net sales $ 421,910  $ 444,084 
 
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):
As of December 31  2022 2021
Property, plant and equipment, net    
United States $ 42,389  $ 46,595 
Other 3,773  4,262 
Total property, plant and equipment $ 46,162  $ 50,857