Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
The Company has four business segments. These business segments are components of the Company for which separate information is available and evaluated regularly by the chief executive officer in deciding how to allocate resources and in assessing relative performance.
 
The Company's four business segments are divided based on the different characteristics of their distributor and customer bases, distributor compensation plans and product formulations, as well as the internal organization of its officers and their responsibilities and business operations. Three business segments operate under the Nature’s Sunshine Products brand (NSP Americas; NSP Russia, Central and Eastern Europe; and China and New Markets), and one business segment operates under the Synergy® WorldWide brand.

Reportable business segment information is as follows (dollar amounts in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
Net sales:
 

 
 

 
 

 
 

NSP Americas
$
39,421

 
$
44,725

 
$
84,066

 
$
89,908

NSP Russia, Central and Eastern Europe
6,662

 
6,269

 
14,269

 
12,621

Synergy WorldWide
30,363

 
33,013

 
57,676

 
62,861

China and New Markets
4,898

 
5,359

 
8,431

 
6,378

Total net sales
81,344

 
89,366

 
164,442

 
171,768

 
 
 
 
 
 
 
 
Contribution margin (1):
 

 
 

 
 

 
 

NSP Americas
16,495

 
19,103

 
35,690

 
38,020

NSP Russia, Central and Eastern Europe
2,246

 
2,065

 
4,755

 
4,246

Synergy WorldWide
9,410

 
10,245

 
17,609

 
19,184

China and New Markets
3,708

 
4,084

 
6,192

 
4,552

Total contribution margin
31,859

 
35,497

 
64,246

 
66,002

 
 
 
 
 
 
 
 
Selling, general and administrative expenses (2)
31,836

 
31,249

 
62,172

 
59,634

Operating income
23

 
4,248

 
2,074

 
6,368

 
 
 
 
 
 
 
 
Other income (expense), net
441

 
(622
)
 
1,716

 
937

Income from continuing operations before provision for income taxes
$
464

 
$
3,626

 
$
3,790

 
$
7,305

_________________________________________

(1)   Contribution margin consists of net sales less cost of sales and volume incentives expense.

(2)  Service fees in the China and New Markets segment related to sales in China, occurring after the Company's receipt of its direct selling license, and pre-opening product sales through Hong Kong totaled $1.7 million and $2.6 million for the three and six-month periods ended June 30, 2017, respectively, compared to $2.0 million for the three and six-month periods ended June 30, 2016. These service fees are included in the Company's selling, general and administrative expenses.

From an individual country perspective, only the United States and South Korea comprise 10 percent or more of consolidated net sales for the three and six-month periods ended June 30, 2017 and 2016, as follows (dollar amounts in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
Net sales:
 

 
 

 
 

 
 

United States
$
33,805

 
$
37,598

 
$
71,540

 
$
75,893

South Korea
12,486

 
15,473

 
23,832

 
28,671

Other
35,053

 
36,295

 
69,070

 
67,204

 
$
81,344

 
$
89,366

 
$
164,442

 
$
171,768



Net Sales generated by each of the Company’s product lines is set forth below (dollar amounts in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
NSP Americas:
 

 
 

 
 

 
 

General health
$
18,181

 
$
20,234

 
$
38,047

 
$
39,851

Immune
3,169

 
3,738

 
8,242

 
9,314

Cardiovascular
2,820

 
3,418

 
6,136

 
6,530

Digestive
11,660

 
11,845

 
23,808

 
24,924

Personal care
1,487

 
2,853

 
3,373

 
3,783

Weight management
2,104

 
2,637

 
4,460

 
5,506

 
39,421

 
44,725

 
84,066

 
89,908

NSP Russia, Eastern and Central Europe:
 

 
 

 
 

 
 

General health
$
2,941

 
$
2,501

 
$
6,499

 
$
5,224

Immune
638

 
857

 
1,401

 
1,397

Cardiovascular
480

 
493

 
1,011

 
970

Digestive
2,030

 
1,407

 
3,907

 
3,528

Personal care
424

 
853

 
1,032

 
1,102

Weight management
149

 
158

 
419

 
400

 
6,662

 
6,269

 
14,269

 
12,621

Synergy WorldWide:
 

 
 

 
 

 
 

General health
$
7,624

 
$
9,694

 
$
14,311

 
$
18,334

Immune
117

 
41

 
238

 
250

Cardiovascular
12,603

 
13,505

 
23,706

 
26,198

Digestive
4,154

 
3,442

 
7,619

 
5,929

Personal care
1,926

 
1,948

 
3,993

 
3,887

Weight management
3,939

 
4,383

 
7,809

 
8,263

 
30,363

 
33,013

 
57,676

 
62,861

China and New Markets:
 

 
 

 
 

 
 

General health
$
1,085

 
$
1,537

 
$
1,965

 
$
2,008

Immune
120

 
216

 
266

 
347

Cardiovascular
972

 
1,450

 
1,553

 
1,523

Digestive
1,813

 
1,262

 
3,455

 
1,522

Personal care
45

 
439

 
121

 
461

Weight management
863

 
455

 
1,071

 
517

 
4,898

 
5,359

 
8,431

 
6,378

 
$
81,344

 
$
89,366

 
$
164,442

 
$
171,768



From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):
 
 
June 30,
2017
 
December 31,
2016
Property, plant and equipment:
 

 
 

United States
$
69,876

 
$
70,770

Other
2,786

 
2,502

Total property, plant and equipment
$
72,662

 
$
73,272