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(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 their geographic operations in the United States (NSP United States) and in countries outside the United States (NSP International). The Company’s third business segment operates under the Synergy WorldWide brand, which distributes its products through different marketing and distributor compensation plans and products with 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 and operating income (loss) 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.
Reportable business segment information is as follows:
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Net sales revenue:
|
|
|
|
|
|
|
|
|
|
|
Nature’s Sunshine Products:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
33,695
|
|
$
|
33,519
|
|
$
|
104,053
|
|
$
|
105,061
|
|
|
International
|
|
31,275
|
|
33,059
|
|
97,187
|
|
102,661
|
|
|
|
|
64,970
|
|
66,578
|
|
201,240
|
|
207,722
|
|
|
Synergy WorldWide
|
|
26,262
|
|
24,524
|
|
75,851
|
|
68,035
|
|
|
Total net sales revenue
|
|
91,232
|
|
91,102
|
|
277,091
|
|
275,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Nature’s Sunshine Products:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
31,001
|
|
31,176
|
|
94,230
|
|
95,257
|
|
|
International
|
|
27,826
|
|
43,151
|
|
85,860
|
|
108,852
|
|
|
|
|
58,827
|
|
74,327
|
|
180,090
|
|
204,109
|
|
|
Synergy WorldWide
|
|
23,700
|
|
21,880
|
|
68,811
|
|
61,080
|
|
|
Total operating expenses
|
|
82,527
|
|
96,207
|
|
248,901
|
|
265,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
Nature’s Sunshine Products:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
2,694
|
|
2,343
|
|
9,823
|
|
9,804
|
|
|
International
|
|
3,449
|
|
(10,092
|
)
|
11,327
|
|
(6,191
|
)
|
|
|
|
6,143
|
|
(7,749
|
)
|
21,150
|
|
3,613
|
|
|
Synergy WorldWide
|
|
2,562
|
|
2,644
|
|
7,040
|
|
6,955
|
|
|
Total operating income (loss)
|
|
8,705
|
|
(5,105
|
)
|
28,190
|
|
10,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
(214
|
)
|
1,204
|
|
(159
|
)
|
1,049
|
|
|
Income (loss) before provision for income taxes
|
|
$
|
8,491
|
|
$
|
(3,901
|
)
|
$
|
28,031
|
|
$
|
11,617
|
|
NSP International’s 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 Company’s arbitration settlement with NutriPlus LLC (described further in Note 1, Basis of Presentation).
From an individual country perspective, only the United States comprises 10 percent or more of consolidated net sales revenue for the three and nine-month periods ended September 30, 2012 and 2011 as follows:
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|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Net sales revenue:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
38,243
|
|
$
|
38,885
|
|
$
|
118,390
|
|
$
|
120,868
|
|
|
Other
|
|
52,989
|
|
52,217
|
|
158,701
|
|
154,889
|
|
|
|
|
$
|
91,232
|
|
$
|
91,102
|
|
$
|
277,091
|
|
$
|
275,757
|
|
Revenue generated by each of the Company’s product lines is set forth below:
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
NSP United States:
|
|
|
|
|
|
|
|
|
|
|
Herbal products
|
|
$
|
17,809
|
|
$
|
17,441
|
|
$
|
56,010
|
|
$
|
55,344
|
|
|
Vitamin, mineral and other nutritional supplements
|
|
14,296
|
|
14,280
|
|
43,061
|
|
43,204
|
|
|
Personal care products
|
|
970
|
|
1,011
|
|
2,976
|
|
3,328
|
|
|
Other products
|
|
620
|
|
787
|
|
2,006
|
|
3,185
|
|
|
|
|
33,695
|
|
33,519
|
|
104,053
|
|
105,061
|
|
|
NSP International:
|
|
|
|
|
|
|
|
|
|
|
Herbal products
|
|
$
|
16,913
|
|
$
|
18,502
|
|
$
|
52,188
|
|
$
|
56,244
|
|
|
Vitamin, mineral and other nutritional supplements
|
|
12,037
|
|
12,053
|
|
37,191
|
|
37,631
|
|
|
Personal care products
|
|
1,944
|
|
2,128
|
|
6,660
|
|
7,473
|
|
|
Other products
|
|
381
|
|
376
|
|
1,148
|
|
1,313
|
|
|
|
|
31,275
|
|
33,059
|
|
97,187
|
|
102,661
|
|
|
Synergy WorldWide:
|
|
|
|
|
|
|
|
|
|
|
Herbal products
|
|
$
|
10,005
|
|
$
|
9,797
|
|
$
|
29,982
|
|
$
|
27,428
|
|
|
Vitamin, mineral and other nutritional supplements
|
|
14,510
|
|
12,699
|
|
40,575
|
|
34,668
|
|
|
Personal care products
|
|
1,394
|
|
1,378
|
|
4,020
|
|
4,230
|
|
|
Other products
|
|
353
|
|
650
|
|
1,274
|
|
1,709
|
|
|
|
|
26,262
|
|
24,524
|
|
75,851
|
|
68,035
|
|
|
|
|
$
|
91,232
|
|
$
|
91,102
|
|
$
|
277,091
|
|
$
|
275,757
|
|
From an individual country perspective, only the United States and Venezuela comprise 10 percent or more of consolidated property, plant and equipment as follows:
|
|
|
September 30,
2012
|
|
December 31,
2011
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
United States
|
|
$
|
20,951
|
|
$
|
18,119
|
|
|
Venezuela
|
|
3,636
|
|
3,939
|
|
|
Other
|
|
3,388
|
|
3,079
|
|
|
Total property, plant and equipment
|
|
$
|
27,975
|
|
$
|
25,137
|
|
|