Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-12421 | |
Entity Registrant Name | NU SKIN ENTERPRISES, INC. | |
Entity Central Index Key | 0001021561 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0565309 | |
Entity Address, Address Line One | 75 West Center Street | |
Entity Address, City or Town | Provo | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84601 | |
City Area Code | 801 | |
Local Phone Number | 345-1000 | |
Title of 12(b) Security | Class A Common Stock, $.001 par value | |
Trading Symbol | NUS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,208,228 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 302,216 | $ 339,593 |
Current investments | 15,313 | 15,221 |
Accounts receivable, net | 52,171 | 41,299 |
Inventories, net | 381,585 | 399,931 |
Prepaid expenses and other | 97,923 | 76,906 |
Total current assets | 849,208 | 872,950 |
Property and equipment, net | 448,822 | 453,674 |
Operating lease right-of-use assets | 132,949 | 120,973 |
Goodwill | 206,432 | 206,432 |
Other intangible assets, net | 74,874 | 76,991 |
Other assets | 179,964 | 175,460 |
Total assets | 1,892,249 | 1,906,480 |
Current liabilities: | ||
Accounts payable | 40,719 | 49,993 |
Accrued expenses | 343,737 | 372,201 |
Current portion of long-term debt | 110,000 | 107,500 |
Total current liabilities | 494,456 | 529,694 |
Operating lease liabilities | 100,844 | 88,759 |
Long-term debt | 258,995 | 268,781 |
Other liabilities | 103,754 | 106,474 |
Total liabilities | 958,049 | 993,708 |
Commitments and contingencies (Notes 5 and 11) | ||
Stockholders' equity: | ||
Class A common stock - 500 million shares authorized, $0.001 par value, 90.6 million shares issued | 91 | 91 |
Additional paid-in capital | 599,258 | 601,703 |
Treasury stock, at cost - 40.4 million and 40.7 million shares | (1,526,778) | (1,526,860) |
Accumulated other comprehensive loss | (69,528) | (73,896) |
Retained earnings | 1,931,157 | 1,911,734 |
Total stockholders' equity | 934,200 | 912,772 |
Total liabilities and stockholders' equity | $ 1,892,249 | $ 1,906,480 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Stockholders' equity: | ||
Common stock, shares authorized (in shares) | 500 | 500 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 90.6 | 90.6 |
Treasury stock (in shares) | 40.4 | 40.7 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Income [Abstract] | ||
Revenue | $ 604,899 | $ 677,026 |
Cost of sales | 161,499 | 170,566 |
Gross profit | 443,400 | 506,460 |
Operating expenses: | ||
Selling expenses | 242,699 | 275,965 |
General and administrative expenses | 148,556 | 167,582 |
Total operating expenses | 391,255 | 443,547 |
Operating income | 52,145 | 62,913 |
Other income (expense), net | (1,453) | 1,582 |
Income before provision for income taxes | 50,692 | 64,495 |
Provision for income taxes | 11,976 | 17,065 |
Net income | $ 38,716 | $ 47,430 |
Net income per share (Note 6): | ||
Basic (in dollars per share) | $ 0.77 | $ 0.94 |
Diluted (in dollars per share) | $ 0.76 | $ 0.91 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 49,991 | 50,706 |
Diluted (in shares) | 51,066 | 52,172 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 38,716 | $ 47,430 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustment, net of taxes of $(7) and $(2) for the three months ended March 31, 2022 and 2021, respectively | (1,960) | (9,919) |
Net unrealized gains/(losses) on foreign currency cash flow hedges, net of taxes of $(1,743) and $(839) for the three months ended March 31, 2022 and 2021, respectively | 6,314 | 3,040 |
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $(4) and $(6) for the three months ended March 31, 2022 and 2021, respectively | 14 | 21 |
Other comprehensive (loss) income, net of tax | 4,368 | (6,858) |
Comprehensive income | $ 43,084 | $ 40,572 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustment, tax | $ (7) | $ (2) |
Net unrealized gains/(losses) on foreign currency cash flow hedges, tax | (1,743) | (839) |
Reclassification adjustment for realized losses/(gains) in current earnings on cash flow hedges, tax | $ (4) | $ (6) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member]Class A [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 91 | $ 579,801 | $ (1,461,593) | $ (64,768) | $ 1,840,740 | $ 894,271 |
Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 0 | 0 | 47,430 | 47,430 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (6,858) | 0 | (6,858) |
Repurchase of Class A common stock (Note 6) | 0 | 0 | (50,406) | 0 | 0 | (50,406) |
Exercise of employee stock options/vesting of stock awards | 0 | (7,400) | 6,923 | 0 | 0 | (477) |
Stock-based compensation | 0 | 6,803 | 0 | 0 | 0 | 6,803 |
Cash dividends | 0 | 0 | 0 | 0 | (19,289) | (19,289) |
Balance at end of period at Mar. 31, 2021 | 91 | 579,204 | (1,505,076) | (71,626) | 1,868,881 | 871,474 |
Balance at beginning of period at Dec. 31, 2021 | 91 | 601,703 | (1,526,860) | (73,896) | 1,911,734 | 912,772 |
Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 0 | 0 | 38,716 | 38,716 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 4,368 | 0 | 4,368 |
Repurchase of Class A common stock (Note 6) | 0 | 0 | (10,006) | 0 | 0 | (10,006) |
Exercise of employee stock options/vesting of stock awards | 0 | (6,572) | 10,088 | 0 | 0 | 3,516 |
Stock-based compensation | 0 | 4,127 | 0 | 0 | 0 | 4,127 |
Cash dividends | 0 | 0 | 0 | 0 | (19,293) | (19,293) |
Balance at end of period at Mar. 31, 2022 | $ 91 | $ 599,258 | $ (1,526,778) | $ (69,528) | $ 1,931,157 | $ 934,200 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity [Roll Forward] | ||
Exercise of employee stock options (in shares) | 0.4 | 0.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 38,716 | $ 47,430 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 17,130 | 18,344 |
Non-cash lease expense | 10,581 | 13,298 |
Stock-based compensation | 4,127 | 6,803 |
Foreign currency losses | 370 | 970 |
Loss on disposal of assets | 517 | 506 |
Deferred taxes | 3,292 | 3,363 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (12,463) | 436 |
Inventories, net | 17,212 | (53,776) |
Prepaid expenses and other | (18,110) | (19,241) |
Other assets | 941 | (2,786) |
Accounts payable | (5,663) | 1,869 |
Accrued expenses | (40,270) | (36,779) |
Other liabilities | (8,839) | 707 |
Net cash provided by/(used in) operating activities | 7,541 | (18,856) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,279) | (19,373) |
Proceeds on investment sales | 4,076 | 7,550 |
Purchases of investments | (3,930) | (6,973) |
Net cash used in investing activities | (10,133) | (18,796) |
Cash flows from financing activities: | ||
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards | 3,516 | (477) |
Payment of cash dividends | (19,293) | (19,289) |
Repurchases of shares of common stock | (10,006) | (50,406) |
Finance lease principal payments | (476) | (483) |
Payments of debt | (7,500) | (17,500) |
Proceeds from debt | 0 | 70,000 |
Net cash used in financing activities | (33,759) | (18,155) |
Effect of exchange rate changes on cash | (1,026) | (7,777) |
Net increase (decrease) in cash and cash equivalents | (37,377) | (63,584) |
Cash and cash equivalents, beginning of period | 339,593 | 402,683 |
Cash and cash equivalents, end of period | $ 302,216 | $ 339,099 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2022 | |
The Company [Abstract] | |
The Company | 1. The Company Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin, being the primary operating unit. Nu Skin develops and distributes premium-quality, innovative beauty and wellness products that are sold worldwide under the Nu Skin, Pharmanex and ageLOC brands and a small number of other products and services. The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China; Americas, which includes Canada, Latin America and the United States; South Korea; Southeast Asia/Pacific, which includes Australia, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam; Europe, Middle East and Africa (“EMEA”), which includes markets in Europe as well as Israel and South Africa; Japan; and Hong Kong/Taiwan, which also includes Macau—and two Rhyz Investments segments—Manufacturing, which includes manufacturing and packaging subsidiaries it has acquired; and Rhyz other, which includes other investments by its Rhyz strategic investment arm (the Company’s subsidiaries operating within each segment are collectively referred to as the “Subsidiaries”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information as of March and for the -month periods ended March and The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. The consolidated balance sheet as of December has been prepared using information from the audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form -K for the year ended December Reclassifications Certain prior period amounts have been reclassified to conform to the current presentation. The Company reclassified of events and other miscellaneous selling costs from the general and administration expenses line to the selling quarter of The Company believes these costs are better reflected in selling expenses. The reclassification had no impact on operating income for the quarter of Accounting Pronouncements In March the FASB issued, ASU - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited time to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. The guidance provides optional expedients and exceptions for applying US GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU - applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December The amendments in ASU - are elective and are effective upon issuance for all entities. The Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. Inventory Inventories consist of the following (U.S. dollars in thousands): March 31, 2022 December 31, 2021 Raw materials $ 163,746 $ 179,891 Finished goods 217,839 220,040 Total Inventory, net $ 381,585 $ 399,931 Revenue Recognition Contract Liabilities – Customer Loyalty Programs Contract liabilities, recorded as deferred revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products. The balance of deferred revenue related to contract liabilities as of March and December was and , respectively. The contract liabilities impact to revenue for the -month periods ended March and was an increase of and a decrease of , respectively. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill | 3. Goodwill The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. The following table presents goodwill allocated to the Company’s reportable segments for the periods ended and December 31, 2021 (U.S. dollars in thousands): March 31, 2022 December 31, 2021 Nu Skin Mainland China $ 32,179 $ 32,179 Americas 9,449 9,449 Southeast Asia/Pacific 18,537 18,537 South Korea 29,261 29,261 Japan 16,019 16,019 EMEA 2,875 2,875 Hong Kong/Taiwan 6,634 6,634 Rhyz Investments Manufacturing 78,875 78,875 Rhyz Other 12,603 12,603 Total $ 206,432 $ 206,432 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt [Abstract] | |
Debt | 4. Debt Credit Agreement On April 18, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $400 million term loan facility and a $350 million revolving credit facility, each with a term of five years. Both facilities bear interest at the LIBOR, plus a margin based on the consolidated leverage ratio. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year after the closing date of the Credit Agreement, with the remainder payable at final maturity. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of March 31, 2022, the Company was in compliance with all covenants under the Credit Agreement. The following table summarizes the Company’s debt facilities as of March 31, 2022 and December 31, 2021: Facility or Arrangement Original Principal Amount Balance as of March 31, 2022 (1)(2) Balance as of December 31, 2021 (1)(2) Interest Rate Repayment Terms Credit Agreement term loan facility $ 400.0 million $ 300.0 million $ 307.5 million Variable 35% of the principal amount is payable Credit Agreement revolving credit facility $ 70.0 million $ 70.0 million Variable Revolving line of credit expires April 18, 2023. (1) As of March 31, 2022 and December 31, 2021, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $40.0 million and $37.5 million, respectively, of the balance of its term loan under the Credit Agreement. (2) The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.0 million and $ million as of and December 31, 2021, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 5. Leases As of . The components of lease expense were as follows (U.S. dollars in thousands): Three Months Ended March 31 2022 2021 Operating lease expense Operating lease cost $ 10,439 $ 12,815 Variable lease cost 1,157 1,368 Short-term lease cost 30 339 Sublease income — (1,984 ) Finance lease expense Amortization of right-of-use assets 556 611 Interest on lease liabilities 66 88 Total lease expense $ 12,248 $ 13,237 Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands): Three March 31 2022 2021 Operating cash outflow from operating leases $ 10,405 $ 14,149 Operating cash outflow from finance leases $ 68 $ 89 Financing cash outflow from finance leases $ 476 $ 483 Right-of-use assets obtained in exchange for operating lease obligations $ 23,730 $ 10,891 Right-of-use assets obtained in exchange for finance lease obligations $ — $ 49 Maturities of lease liabilities were as follows (U.S. dollars in thousands): Year Ending December 31 Operating Leases Finance Leases 2022 $ 28,595 $ 1,578 2023 28,298 2,032 2024 21,657 1,924 2025 15,507 1,361 2026 8,559 260 Thereafter 49,766 — Total 152,382 7,155 Less: Finance charges 19,577 473 Total principal liability $ 132,805 $ 6,682 The Company has additional lease liabilities of $ million which have not yet commenced as of , and as such, have not been recognized on the consolidated balance sheets. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2022 | |
Capital Stock [Abstract] | |
Capital Stock | 6. Capital Stock Net income per share Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented. For the -month periods ended March 31, 2022 and the only dilutive common shares outstanding relate to the Company’s outstanding stock awards and options. For the -month periods ended March 31, 2022 and stock options of and , respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Dividends In February 2022 the Company’s board of directors declared a quarterly cash dividend of per share. This quarterly cash dividend of was paid on March 9, 2022 to stockholders of record on February 28, 2022 In May 2022 the board of directors declared a quarterly cash dividend of per share to be paid on June 8, 2022 to stockholders of record on May 27, 2022 Repurchase of common stock During the -month periods ended March and the Company repurchased 0.2 shares and shares of its Class A common stock under its stock repurchase plans for and , respectively. As of March was available for repurchases under the Company’s stock repurchase plan. |
Fair Value and Equity Investmen
Fair Value and Equity Investments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value and Equity Investments [Abstract] | |
Fair Value and Equity Investments | 7. Fair Value and Equity Investments Fair Value The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximates fair values due to the short-term nature of these instruments. The carrying value of debt approximates fair value due to the variable 30-day interest rate. Fair value estimates are made at a specific point in time, based on relevant market information. The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: ◾ Level 1 – quoted prices in active markets for identical assets or liabilities; ◾ Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and ◾ Level 3 – unobservable inputs based on the Company’s own assumptions. Accounting standards permit companies, at their option, to measure certain financial instruments and other eligible items at fair value. The Company has elected not to apply the fair value option to existing eligible items beyond what is required by US GAAP. The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at March 31, 2022 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 57,647 $ — $ — $ 57,647 Derivative financial instruments asset — 14,664 — 14,664 Life insurance contracts — — 46,450 46,450 Contingent consideration — — (10,226 ) (10,226 ) Total $ 57,647 $ 14,664 $ 36,224 $ 108,535 Fair Value at December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 66,477 $ — $ — $ 66,477 Derivative financial instruments asset — 6,590 — 6,590 Life insurance contracts — — 49,851 49,851 Contingent consideration — — (10,341 ) (10,341 ) Total $ 66,477 $ 6,590 $ 39,510 $ 112,577 The following table provides a summary of changes in fair value of the Company’s Level 3 life insurance contracts (U.S. dollars in thousands): 2022 2021 Beginning balance at January 1 $ 49,851 $ 45,453 Actual return on plan assets (3,401 ) 1,153 Purchase and issuances — 7,016 Sales and settlements — (7,016 ) Transfers into Level 3 — — Ending balance at March 31 $ 46,450 $ 46,606 Life insurance contracts: The following table provides a summary of changes in fair value of the Company’s Level 3 contingent consideration (U.S. dollars in thousands): 2022 2021 Beginning balance at January 1 $ (10,341 ) $ (3,125 ) Additions from acquisitions — — Changes in fair value of contingent consideration 115 (139 ) Ending balance at March 31 $ (10,226 ) $ (3,264 ) Contingent consideration: Equity Investments The Company maintains equity investments in companies which are accounted for under the measurement alternative described in ASC - - - for equity securities that lack readily determinable fair values. The carrying amount of equity securities held by the Company without readily determinable fair values was at each of March and December During the months ended September the Company recognized upward fair value adjustments, based on the valuation of additional equity issued by the investee which was deemed to be an observable transaction of a similar investment under ASC was recorded within Other income (expense), net on the Consolidated Statement of Comprehensive Operations. The upward fair value adjustment represents a nonrecurring fair value measurement based on observable price changes and is classified as a Level fair value measurement. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes Provision for income taxes for the first quarter of 2022 was $12.0 million, compared to $17.1 million for the prior-year period. The effective tax rates for the first quarter 2022 was 23.6% of pre-tax income compared to 26.5% in the prior-year period. The Company accounts for income taxes in accordance with ASC Topic 740 “Income Taxes.” These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company had net deferred tax assets of $22.0 million and $24.1 million as of March 31, 2022 and December 31, 2021, respectively. The Company evaluates its indefinite reinvestment assertions with respect to foreign earnings for each quarter. For all foreign earnings, the Company accrues the applicable foreign income taxes. For the earnings that have been indefinitely reinvested, the Company does not accrue foreign withholding taxes. Undistributed earnings that the Company has indefinitely reinvested, for which no foreign withholding taxes have been provided, aggregate to $60.0 million as of December 31, 2021. If the amount designated as indefinitely reinvested as of December 31, 2021 was repatriated to the United States, the amount of incremental taxes would be approximately $6.0 million. The Company intends to utilize the indefinitely reinvested offshore earnings to fund foreign investments, specifically capital expenditures. The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. In 2009, the Company entered into a voluntary program with the IRS called Compliance Assurance Process (“CAP”). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. As of December 31, 2021, tax years through 2020 have been audited and are effectively closed to further examination. For tax years 2021 and 2022, the Company is in the Bridge phase of the CAP program, pursuant to which the IRS will not accept disclosures, will not conduct reviews and will not provide letters of assurance for the Bridge years. There are limited circumstances that tax years in the Bridge phase will be opened for examination. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2018. In major foreign jurisdictions, the Company is generally no longer subject to income tax examinations for years before 2016. However, statutes of limitations in certain countries may be as long as ten years. The Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable. The Company’s unrecognized tax benefits relate to multiple jurisdictions. Due to potential increases in unrecognized tax benefits from the multiple jurisdictions in which the Company operates, as well as the expiration of various statutes of limitations, it is reasonably possible that the Company’s gross unrecognized tax benefits, net of foreign currency adjustments, may increase in the next 12 months by approximately $1.0 to $2.0 million. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives and Hedging Activities [Abstract] | |
Derivatives and Hedging Activities | 9. Derivatives and Hedging Activities Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $3.2 million will be reclassified as a reduction to interest expense. As of March 31, 2022 and December 31, 2021, the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk with a total notional amount of $200 million. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet: Fair Values of Derivative Instruments Derivatives in Cash flow Hedging Relationships: Balance Sheet Location March 31, 2022 December 31, 2021 Interest Rate Swap - Asset Prepaid expenses and other $ 3,207 $ 557 Interest Rate Swap - Asset Other assets $ 11,457 $ 6,033 Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income. Amount of Gain (Loss) Recognized in OCI on Derivatives Three Months Ended Derivatives in Cash flow March 31, Hedging Relationships: 2022 2021 Interest Rate Swaps $ 8,057 $ 3,879 Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Three Months Ended Derivatives in Cash flow Income Statement March 31, Hedging Relationships: Location 2022 2021 Interest Rate Swaps Other income (expense), net $ (18) $ (27) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information [Abstract] | |
Segment Information | 10. Segment Information The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China, Americas, South Korea, Southeast Asia/Pacific, Japan, EMEA, and Hong Kong/Taiwan—and two Rhyz Investments segments—Manufacturing and Rhyz other. The Nu Skin other category includes miscellaneous corporate revenue and related adjustments. The Rhyz other segment includes other investments by our Rhyz strategic investment arm. These segments reflect the way the chief operating decision maker evaluates the Company’s business performance and allocates resources. Reported revenue includes only the revenue generated by sales to external customers. Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing policies. Segment contribution, which is the Company’s segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company’s executive and administrative offices, information technology, research and development, and marketing and supply chain functions not recorded at the segment level. Prior year segment information has been recast to reflect the move of the Pacific components from the “America/Pacific” operating segment to the “Southeast Asia/Pacific” operating segment to comply with current segment presentation. Prior year segment information has also been recast to reflect the fourth quarter 2021 exit of the Grow Tech segment, which has been recast to Corporate and other expenses.Consolidated financial information is not affected. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on revenue and segment contribution. Each segment records direct expenses related to its employees and its operations. Summarized financial information for the Company’s reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company’s internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. Revenue by Segment Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 124,495 $ 149,593 Americas 123,580 133,761 Southeast Asia/Pacific 90,236 83,289 South Korea 72,133 81,131 Japan 61,791 69,864 EMEA 52,968 76,180 Hong Kong/Taiwan 38,494 36,345 Other 620 878 Total Nu Skin 564,317 631,041 Rhyz Investments Manufacturing (1) 40,341 45,985 Rhyz other 241 — Total Rhyz Investments 40,582 45,985 Total $ 604,899 $ 677,026 (1) The Manufacturing segment had $ million and $ million of . Segment Contribution Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 28,995 $ 39,439 Americas 25,123 28,745 Southeast Asia/Pacific 23,406 19,648 South Korea 22,743 26,525 Japan 15,313 17,981 EMEA 3,836 8,896 Hong Kong/Taiwan 8,690 7,348 Nu Skin contribution 128,106 148,582 Rhyz Investments Manufacturing 3,292 5,826 Rhyz other (1,046 ) — Total 2,246 5,826 Total segment contribution 130,352 154,408 Corporate and other (78,207 ) (91,495 ) Operating income 52,145 62,913 Other income (expense) (1,453 ) 1,582 Income before provision for income taxes $ 50,692 $ 64,495 Depreciation and Amortization Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 2,884 $ 3,339 Americas 199 231 Southeast Asia/Pacific 381 354 South Korea 388 990 Japan 277 253 EMEA 230 286 Hong Kong/Taiwan 691 885 Total Nu Skin 5,050 6,338 Rhyz Investments Manufacturing 3,330 2,688 Rhyz other 592 — Total Rhyz Investments 3,922 2,688 Corporate and other 8,158 9,318 Total $ 17,130 $ 18,344 Capital Expenditures Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 4,068 $ 8,517 Americas 42 112 Southeast Asia/Pacific 68 565 South Korea 362 490 Japan — 91 EMEA 393 172 Hong Kong/Taiwan 263 — Total Nu Skin 5,196 9,947 Rhyz Investments Manufacturing 1,208 3,338 Rhyz other — — Total Rhyz Investments 1,208 3,338 Corporate and other 3,875 6,088 Total $ 10,279 $ 19,373 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company is subject to government regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and the Company’s direct selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company’s sales force is not in compliance with existing statutes, laws, rules or regulations could have a material adverse effect on the Company’s operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. No assurance can be given that the Company’s compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company and its Subsidiaries are defendants in litigation, investigations and other proceedings involving various matters. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. The Company believes it has appropriately provided for income taxes for all years. Several factors drive the calculation of its tax reserves. Some of these factors include: (i) the expiration of various statutes of limitations; (ii) changes in tax law and regulations; (iii) issuance of tax rulings; and (iv) settlements with tax authorities. Changes in any of these factors may result in adjustments to the Company’s reserves, which would impact its reported financial results. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Acquisitions [Abstract] | |
Acquisitions | 12. Acquisitions In April 2021, the Company acquired 100% ownership in MyFavoriteThings, Inc. (“Mavely”), making Mavely a wholly owned subsidiary of the Company. The acquisition enables the Company to continue to expand its digital tools. The purchase price for Mavely was $16.8 million, net of cash acquired of $0.4 million and $0.9 million to be paid within six months, all payable in cash. In addition, there is potential for an incremental $24.0 million in contingent consideration, which becomes payable if certain revenue and profitability targets are reached in 2021, 2022 and 2023. The fair value of the contingent consideration recorded on the acquisition date was $8.7 million. The Company allocated the gross purchase price of $29.4 million to the assets acquired and liabilities assumed at estimated fair values. The estimated fair value of assets acquired included $16.4 million of intangible assets, $0.4 million of cash, $0.1 million of accounts receivable, and also resulted in a deferred tax liability of $3.5 million. The excess purchase price over the aggregate fair value of assets acquired less liabilities assumed of $12.6 million was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies. None of the goodwill is expected to be deductible for income tax purposes. The intangible assets acquired were comprised of $2.0 million for customer relationships, $11.3 million for technology, $2.8 million for trademarks and $0.3 million for other intangibles. The intangibles were assigned useful lives of 8 years for the technology and tradename, approximately 4 years for the customer relationships and 3 years for the other intangibles. All the goodwill was assigned to our Rhyz other segment. The allocation of the fair value of assets acquired and liabilities assumed for the acquisition was finalized during the three months ended September 30, 2021. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring [Abstract] | |
Restructuring | 13. Restructuring In the fourth quarter 2021, the Company determined to exit the Grow Tech segment, to better align its resources on key strategic initiatives to achieve the future growth objectives and priorities of the core Nu Skin business. The Grow Tech segment was pursuing the commercialization of controlled-environment agriculture for use in the agriculture feed industry. This segment has been operating as part of the Company’s Rhyz strategic investment arm. As a result of the restructuring program, the Company recorded a non-cash charge of $38.5 million in 2021, including $9.2 million for impairment of goodwill, $9.0 million for impairment of intangibles, $13.7 million of fixed asset impairments and $6.6 million for inventory write-off, and $20.0 million of cash charges, including $6.5 million for employee severance and $13.5 million for other related cash charges with our restructuring. As of December 31, 2021, the $20.0 million liability related to the cash charges was recorded within Accrued expenses. During the first quarter of 2022, the Company made cash payments of $11.6 million, leaving an ending restructuring accrual of $8.3 million as of March 31, 2022. The Company expects to pay out the remaining liability in the first half of 2022. The restructuring charges were recorded in the previous Grow Tech segment, which in the current year has been recast to Corporate and Other. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) |
Consolidation | The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current presentation. The Company reclassified of events and other miscellaneous selling costs from the general and administration expenses line to the selling quarter of The Company believes these costs are better reflected in selling expenses. The reclassification had no impact on operating income for the quarter of |
Accounting Pronouncements | Accounting Pronouncements In March the FASB issued, ASU - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited time to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. The guidance provides optional expedients and exceptions for applying US GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU - applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December The amendments in ASU - are elective and are effective upon issuance for all entities. The Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Inventory | Inventory Inventories consist of the following (U.S. dollars in thousands): March 31, 2022 December 31, 2021 Raw materials $ 163,746 $ 179,891 Finished goods 217,839 220,040 Total Inventory, net $ 381,585 $ 399,931 |
Revenue Recognition | Revenue Recognition Contract Liabilities – Customer Loyalty Programs Contract liabilities, recorded as deferred revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products. The balance of deferred revenue related to contract liabilities as of March and December was and , respectively. The contract liabilities impact to revenue for the -month periods ended March and was an increase of and a decrease of , respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Inventories | Inventories consist of the following (U.S. dollars in thousands): March 31, 2022 December 31, 2021 Raw materials $ 163,746 $ 179,891 Finished goods 217,839 220,040 Total Inventory, net $ 381,585 $ 399,931 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill | The following table presents goodwill allocated to the Company’s reportable segments for the periods ended and December 31, 2021 (U.S. dollars in thousands): March 31, 2022 December 31, 2021 Nu Skin Mainland China $ 32,179 $ 32,179 Americas 9,449 9,449 Southeast Asia/Pacific 18,537 18,537 South Korea 29,261 29,261 Japan 16,019 16,019 EMEA 2,875 2,875 Hong Kong/Taiwan 6,634 6,634 Rhyz Investments Manufacturing 78,875 78,875 Rhyz Other 12,603 12,603 Total $ 206,432 $ 206,432 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt [Abstract] | |
Debt Facilities | The following table summarizes the Company’s debt facilities as of March 31, 2022 and December 31, 2021: Facility or Arrangement Original Principal Amount Balance as of March 31, 2022 (1)(2) Balance as of December 31, 2021 (1)(2) Interest Rate Repayment Terms Credit Agreement term loan facility $ 400.0 million $ 300.0 million $ 307.5 million Variable 35% of the principal amount is payable Credit Agreement revolving credit facility $ 70.0 million $ 70.0 million Variable Revolving line of credit expires April 18, 2023. (1) As of March 31, 2022 and December 31, 2021, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $40.0 million and $37.5 million, respectively, of the balance of its term loan under the Credit Agreement. (2) The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.0 million and $ million as of and December 31, 2021, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (U.S. dollars in thousands): Three Months Ended March 31 2022 2021 Operating lease expense Operating lease cost $ 10,439 $ 12,815 Variable lease cost 1,157 1,368 Short-term lease cost 30 339 Sublease income — (1,984 ) Finance lease expense Amortization of right-of-use assets 556 611 Interest on lease liabilities 66 88 Total lease expense $ 12,248 $ 13,237 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands): Three March 31 2022 2021 Operating cash outflow from operating leases $ 10,405 $ 14,149 Operating cash outflow from finance leases $ 68 $ 89 Financing cash outflow from finance leases $ 476 $ 483 Right-of-use assets obtained in exchange for operating lease obligations $ 23,730 $ 10,891 Right-of-use assets obtained in exchange for finance lease obligations $ — $ 49 |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows (U.S. dollars in thousands): Year Ending December 31 Operating Leases Finance Leases 2022 $ 28,595 $ 1,578 2023 28,298 2,032 2024 21,657 1,924 2025 15,507 1,361 2026 8,559 260 Thereafter 49,766 — Total 152,382 7,155 Less: Finance charges 19,577 473 Total principal liability $ 132,805 $ 6,682 |
Fair Value and Equity Investm_2
Fair Value and Equity Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value and Equity Investments [Abstract] | |
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at March 31, 2022 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 57,647 $ — $ — $ 57,647 Derivative financial instruments asset — 14,664 — 14,664 Life insurance contracts — — 46,450 46,450 Contingent consideration — — (10,226 ) (10,226 ) Total $ 57,647 $ 14,664 $ 36,224 $ 108,535 Fair Value at December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 66,477 $ — $ — $ 66,477 Derivative financial instruments asset — 6,590 — 6,590 Life insurance contracts — — 49,851 49,851 Contingent consideration — — (10,341 ) (10,341 ) Total $ 66,477 $ 6,590 $ 39,510 $ 112,577 |
Changes in Fair Value of Level 3 Life Insurance Contracts | The following table provides a summary of changes in fair value of the Company’s Level 3 life insurance contracts (U.S. dollars in thousands): 2022 2021 Beginning balance at January 1 $ 49,851 $ 45,453 Actual return on plan assets (3,401 ) 1,153 Purchase and issuances — 7,016 Sales and settlements — (7,016 ) Transfers into Level 3 — — Ending balance at March 31 $ 46,450 $ 46,606 |
Changes in Fair Value of Level 3 Contingent Consideration | The following table provides a summary of changes in fair value of the Company’s Level 3 contingent consideration (U.S. dollars in thousands): 2022 2021 Beginning balance at January 1 $ (10,341 ) $ (3,125 ) Additions from acquisitions — — Changes in fair value of contingent consideration 115 (139 ) Ending balance at March 31 $ (10,226 ) $ (3,264 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives and Hedging Activities [Abstract] | |
Fair Values of Derivative Instruments on the Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet: Fair Values of Derivative Instruments Derivatives in Cash flow Hedging Relationships: Balance Sheet Location March 31, 2022 December 31, 2021 Interest Rate Swap - Asset Prepaid expenses and other $ 3,207 $ 557 Interest Rate Swap - Asset Other assets $ 11,457 $ 6,033 |
Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income | The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income. Amount of Gain (Loss) Recognized in OCI on Derivatives Three Months Ended Derivatives in Cash flow March 31, Hedging Relationships: 2022 2021 Interest Rate Swaps $ 8,057 $ 3,879 Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Three Months Ended Derivatives in Cash flow Income Statement March 31, Hedging Relationships: Location 2022 2021 Interest Rate Swaps Other income (expense), net $ (18) $ (27) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information [Abstract] | |
Revenue by Segment | Revenue by Segment Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 124,495 $ 149,593 Americas 123,580 133,761 Southeast Asia/Pacific 90,236 83,289 South Korea 72,133 81,131 Japan 61,791 69,864 EMEA 52,968 76,180 Hong Kong/Taiwan 38,494 36,345 Other 620 878 Total Nu Skin 564,317 631,041 Rhyz Investments Manufacturing (1) 40,341 45,985 Rhyz other 241 — Total Rhyz Investments 40,582 45,985 Total $ 604,899 $ 677,026 (1) The Manufacturing segment had $ million and $ million of . |
Segment Contribution | Segment Contribution Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 28,995 $ 39,439 Americas 25,123 28,745 Southeast Asia/Pacific 23,406 19,648 South Korea 22,743 26,525 Japan 15,313 17,981 EMEA 3,836 8,896 Hong Kong/Taiwan 8,690 7,348 Nu Skin contribution 128,106 148,582 Rhyz Investments Manufacturing 3,292 5,826 Rhyz other (1,046 ) — Total 2,246 5,826 Total segment contribution 130,352 154,408 Corporate and other (78,207 ) (91,495 ) Operating income 52,145 62,913 Other income (expense) (1,453 ) 1,582 Income before provision for income taxes $ 50,692 $ 64,495 |
Depreciation and Amortization and Capital Expenditures | Depreciation and Amortization Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 2,884 $ 3,339 Americas 199 231 Southeast Asia/Pacific 381 354 South Korea 388 990 Japan 277 253 EMEA 230 286 Hong Kong/Taiwan 691 885 Total Nu Skin 5,050 6,338 Rhyz Investments Manufacturing 3,330 2,688 Rhyz other 592 — Total Rhyz Investments 3,922 2,688 Corporate and other 8,158 9,318 Total $ 17,130 $ 18,344 Capital Expenditures Three Months Ended March 31, (U.S. dollars in thousands) 2022 2021 Nu Skin Mainland China $ 4,068 $ 8,517 Americas 42 112 Southeast Asia/Pacific 68 565 South Korea 362 490 Japan — 91 EMEA 393 172 Hong Kong/Taiwan 263 — Total Nu Skin 5,196 9,947 Rhyz Investments Manufacturing 1,208 3,338 Rhyz other — — Total Rhyz Investments 1,208 3,338 Corporate and other 3,875 6,088 Total $ 10,279 $ 19,373 |
The Company (Details)
The Company (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
The Company [Abstract] | |
Number of reportable segments | 9 |
Number of geographic segments | 7 |
Number of Rhyz Investments segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Reclassifications (Details) - Reclassification Adjustment [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
General and Administration Expenses [Member] | |
Reclassifications [Abstract] | |
Events and other miscellaneous selling costs | $ (2.2) |
Selling Expenses [Member] | |
Reclassifications [Abstract] | |
Events and other miscellaneous selling costs | $ 2.2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||
Raw materials | $ 163,746 | $ 179,891 |
Finished goods | 217,839 | 220,040 |
Total Inventory, net | $ 381,585 | $ 399,931 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Contract Liabilities - Customer Loyalty Programs [Abstract] | |||
Contract liabilities for customer loyalty programs | $ 20.8 | $ 22 | |
Contract liabilities impact to revenue | $ 1.2 | $ (1.6) |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill [Abstract] | ||
Goodwill | $ 206,432 | $ 206,432 |
Mainland China [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 32,179 | 32,179 |
Americas [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 9,449 | 9,449 |
Southeast Asia/Pacific [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 18,537 | 18,537 |
South Korea [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 29,261 | 29,261 |
Japan [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 16,019 | 16,019 |
EMEA [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 2,875 | 2,875 |
Hong Kong/Taiwan [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 6,634 | 6,634 |
Manufacturing [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 78,875 | 78,875 |
Rhyz Other [Member] | ||
Goodwill [Abstract] | ||
Goodwill | $ 12,603 | $ 12,603 |
Debt, Credit Agreement (Details
Debt, Credit Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Apr. 18, 2018 | |
Credit Agreement [Member] | Maximum [Member] | ||
Debt [Abstract] | ||
Consolidated leverage ratio | 2.25 | |
Credit Agreement [Member] | Minimum [Member] | ||
Debt [Abstract] | ||
Consolidated interest coverage ratio | 3 | |
Term Loan Facility [Member] | ||
Debt [Abstract] | ||
Original principal amount | $ 400 | $ 400 |
Term of loan | 5 years | |
Term Loan Facility [Member] | First Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5.00% | |
Term Loan Facility [Member] | Second Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5.00% | |
Term Loan Facility [Member] | Third Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 7.50% | |
Term Loan Facility [Member] | Fourth Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 7.50% | |
Term Loan Facility [Member] | Fifth Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 10.00% | |
Revolving Credit Facility [Member] | ||
Debt [Abstract] | ||
Borrowing capacity | $ 350 | |
Term of loan | 5 years |
Debt, Debt Facilities (Details)
Debt, Debt Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Apr. 18, 2018 | ||
Debt [Abstract] | ||||
Term of variable rate | 30 days | |||
Current portion of long-term debt | $ 110,000 | $ 107,500 | ||
Credit Agreement [Member] | ||||
Debt [Abstract] | ||||
Unamortized debt issuance costs | 1,000 | 1,200 | ||
Credit Agreement Term Loan Facility [Member] | ||||
Debt [Abstract] | ||||
Original principal amount | 400,000 | $ 400,000 | ||
Balance | [1],[2] | $ 300,000 | 307,500 | |
Interest rate | Variable 30 day: 2.21% | |||
Interest rate | 2.21% | |||
Term of variable rate | 30 days | |||
Repayment terms | 35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term. | |||
Percentage of principal payable in installments | 35.00% | |||
Term of loan | 5 years | |||
Current portion of long-term debt | $ 40,000 | 37,500 | ||
Credit Agreement Revolving Credit Facility [Member] | ||||
Debt [Abstract] | ||||
Balance | [1],[2] | $ 70,000 | $ 70,000 | |
Interest rate | Variable 30 day: 2.15% | |||
Interest rate | 2.15% | |||
Term of variable rate | 30 days | |||
Repayment terms | Revolving line of credit expires April 18, 2023. | |||
Term of loan | 5 years | |||
[1] | As of March 31, 2022 and December 31, 2021, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $40.0 million and $37.5 million, respectively, of the balance of its term loan under the Credit Agreement. | |||
[2] | The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.0 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Weighted average remaining lease term for operating leases | 8 years | |
Weighted average remaining lease term for finance leases | 3 years 6 months | |
Weighted average discount rate for operating leases | 3.70% | |
Weighted average discount rate for finance leases | 3.80% | |
Operating Lease Expense [Abstract] | ||
Operating lease cost | $ 10,439 | $ 12,815 |
Variable lease cost | 1,157 | 1,368 |
Short-term lease cost | 30 | 339 |
Sublease income | 0 | (1,984) |
Finance Lease Expense [Abstract] | ||
Amortization of right-of-use assets | 556 | 611 |
Interest on lease liabilities | 66 | 88 |
Total lease expense | 12,248 | 13,237 |
Supplemental Cash Flow Information Related to Leases [Abstract] | ||
Operating cash outflow from operating leases | 10,405 | 14,149 |
Operating cash outflow from finance leases | 68 | 89 |
Financing cash outflow from finance leases | 476 | 483 |
Right-of-use assets obtained in exchange for operating lease obligations | 23,730 | 10,891 |
Right-of-use assets obtained in exchange for finance lease obligations | 0 | $ 49 |
Maturities of Operating Lease Liabilities [Abstract] | ||
2022 | 28,595 | |
2023 | 28,298 | |
2024 | 21,657 | |
2025 | 15,507 | |
2026 | 8,559 | |
Thereafter | 49,766 | |
Total | 152,382 | |
Less: Finance charges | 19,577 | |
Total principal liability | 132,805 | |
Maturities of Financing Lease Liabilities [Abstract] | ||
2022 | 1,578 | |
2023 | 2,032 | |
2024 | 1,924 | |
2025 | 1,361 | |
2026 | 260 | |
Thereafter | 0 | |
Total | 7,155 | |
Less: Finance charges | 473 | |
Total principal liability | 6,682 | |
Additional lease liabilities not yet commenced | $ 100 |
Capital Stock, Net Income per S
Capital Stock, Net Income per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Options [Member] | ||
Net Income per Share [Abstract] | ||
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares) | 0.1 | 0.1 |
Capital Stock, Dividends (Detai
Capital Stock, Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | May 04, 2022 | Mar. 09, 2022 | Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Dividends per Share [Abstract] | |||||
Payment of cash dividends | $ 19,293 | $ 19,289 | |||
Dividend Declared 2022-Q1 [Member] | |||||
Dividends per Share [Abstract] | |||||
Dividend payable, date declared | 2022-02 | ||||
Dividend payable per share (in dollars per share) | $ 0.385 | ||||
Payment of cash dividends | $ 19,300 | ||||
Dividend payable, date paid | Mar. 9, 2022 | ||||
Dividend payable, date of record | Feb. 28, 2022 | ||||
Dividend Declared 2022-Q2 [Member] | Subsequent Event [Member] | |||||
Dividends per Share [Abstract] | |||||
Dividend payable, date declared | 2022-05 | ||||
Dividend payable per share (in dollars per share) | $ 0.385 | ||||
Dividend payable, date paid | Jun. 8, 2022 | ||||
Dividend payable, date of record | May 27, 2022 |
Capital Stock, Repurchase of Co
Capital Stock, Repurchase of Common Stock (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Repurchases of Common Stock [Abstract] | ||
Class A common stock repurchased | $ 10,006 | $ 50,406 |
Amount available for repurchases | $ 235,400 | |
Treasury Stock [Member] | ||
Repurchases of Common Stock [Abstract] | ||
Class A common stock repurchased (in shares) | 0.2 | 1 |
Class A common stock repurchased | $ 10,006 | $ 50,406 |
Fair Value and Equity Investm_3
Fair Value and Equity Investments, Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value and Equity Investments [Abstract] | |||
Term of variable rate | 30 days | ||
Contingent Consideration [Member] | |||
Changes in Fair Value of Level 3 Contingent Consideration [Roll Forward] | |||
Beginning balance | $ (10,341) | $ (3,125) | |
Additions from acquisitions | 0 | 0 | |
Changes in fair value of contingent consideration | 115 | (139) | |
Ending balance | (10,226) | (3,264) | |
Fair Value on a Recurring Basis [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 57,647 | $ 66,477 | |
Derivative financial instruments asset | 14,664 | 6,590 | |
Life insurance contracts | 46,450 | 49,851 | |
Contingent consideration | (10,226) | (10,341) | |
Financial assets (liabilities) | 108,535 | 112,577 | |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 57,647 | 66,477 | |
Derivative financial instruments asset | 0 | 0 | |
Life insurance contracts | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Financial assets (liabilities) | 57,647 | 66,477 | |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 0 | 0 | |
Derivative financial instruments asset | 14,664 | 6,590 | |
Life insurance contracts | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Financial assets (liabilities) | 14,664 | 6,590 | |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 0 | 0 | |
Derivative financial instruments asset | 0 | 0 | |
Life insurance contracts | 46,450 | 49,851 | |
Contingent consideration | (10,226) | (10,341) | |
Financial assets (liabilities) | 36,224 | $ 39,510 | |
Life Insurance Contracts [Member] | |||
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward] | |||
Beginning balance | 49,851 | 45,453 | |
Actual return on plan assets | (3,401) | 1,153 | |
Purchase and issuances | 0 | 7,016 | |
Sales and settlements | 0 | (7,016) | |
Transfers into Level 3 | 0 | 0 | |
Ending balance | $ 46,450 | $ 46,606 |
Fair Value and Equity Investm_4
Fair Value and Equity Investments, Equity Investments (Details) - Equity Securities [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Carrying amount of equity securities without readily determinable fair values | $ 28.1 | $ 28.1 | |
Other Income (Expense), Net [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Upward fair value adjustments on equity securities | $ 18.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Taxes [Abstract] | |||
Provision for income taxes | $ 11,976 | $ 17,065 | |
Effective tax rate | 23.60% | 26.50% | |
Net deferred tax assets | $ 22,000 | $ 24,100 | |
Undistributed earnings of non-U.S. subsidiaries | 60,000 | ||
Incremental taxes if undistributed earnings on non-U.S. subsidiaries were repatriated | $ 6,000 | ||
Minimum [Member] | |||
Income Taxes [Abstract] | |||
Increase in unrecognized tax benefits within the next 12 months that is reasonably possible | $ 1,000 | ||
Maximum [Member] | |||
Income Taxes [Abstract] | |||
Statute of limitations related to income tax examinations | 10 years | ||
Income Taxes [Abstract] | |||
Increase in unrecognized tax benefits within the next 12 months that is reasonably possible | $ 2,000 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities, Fair Value of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)Derivatives | Dec. 31, 2021USD ($)Derivatives | |
Derivatives and Hedging Activities [Abstract] | ||
Loss to be reclassified to interest expense during next twelve months | $ (3,200) | |
Number of outstanding derivatives held | Derivatives | 4 | 4 |
Notional amount | $ 200,000 | $ 200,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Fair value, asset | 3,207 | 557 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Fair value, asset | $ 11,457 | $ 6,033 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities, Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - Interest Rate Swaps [Member] - Designated as Hedging Instrument [Member] - Cash Flow Hedges [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income (Expense), Net [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Gain (loss) reclassified from accumulated other comprehensive loss into income | $ (18) | $ (27) |
Other Comprehensive Income [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Gain (loss) recognized in OCI | $ 8,057 | $ 3,879 |
Segment Information, Revenue by
Segment Information, Revenue by Segment (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)Segment | Mar. 31, 2021USD ($) | ||
Segment Information [Abstract] | |||
Number of reportable segments | Segment | 9 | ||
Number of geographic segments | Segment | 7 | ||
Number of Rhyz Investments segments | Segment | 2 | ||
Revenue by Segment [Abstract] | |||
Revenue | $ 604,899 | $ 677,026 | |
Other [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 620 | 878 | |
Operating Segment [Member] | Nu Skin [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 564,317 | 631,041 | |
Operating Segment [Member] | Mainland China [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 124,495 | 149,593 | |
Operating Segment [Member] | Americas [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 123,580 | 133,761 | |
Operating Segment [Member] | Southeast Asia/Pacific [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 90,236 | 83,289 | |
Operating Segment [Member] | South Korea [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 72,133 | 81,131 | |
Operating Segment [Member] | Japan [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 61,791 | 69,864 | |
Operating Segment [Member] | EMEA [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 52,968 | 76,180 | |
Operating Segment [Member] | Hong Kong/Taiwan [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 38,494 | 36,345 | |
Operating Segment [Member] | Rhyz Investments [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 40,582 | 45,985 | |
Operating Segment [Member] | Manufacturing [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | [1] | 40,341 | 45,985 |
Operating Segment [Member] | Rhyz Other [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 241 | 0 | |
Intersegment [Member] | Manufacturing [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | $ 14,600 | $ 17,400 | |
[1] | The Rhyz Investments Manufacturing segment had $14.6 million and $17.4 million of intersegment revenue for the three-month period ended March 31, 2022 and 2021, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above. |
Segment Information, Segment Co
Segment Information, Segment Contribution (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Contribution [Abstract] | ||
Operating income | $ 52,145 | $ 62,913 |
Other income (expense) | (1,453) | 1,582 |
Income before provision for income taxes | 50,692 | 64,495 |
Operating Segment [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 130,352 | 154,408 |
Operating Segment [Member] | Nu Skin [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 128,106 | 148,582 |
Operating Segment [Member] | Mainland China [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 28,995 | 39,439 |
Operating Segment [Member] | Americas [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 25,123 | 28,745 |
Operating Segment [Member] | Southeast Asia/Pacific [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 23,406 | 19,648 |
Operating Segment [Member] | South Korea [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 22,743 | 26,525 |
Operating Segment [Member] | Japan [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 15,313 | 17,981 |
Operating Segment [Member] | EMEA [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 3,836 | 8,896 |
Operating Segment [Member] | Hong Kong/Taiwan [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 8,690 | 7,348 |
Operating Segment [Member] | Rhyz Investments [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 2,246 | 5,826 |
Operating Segment [Member] | Manufacturing [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 3,292 | 5,826 |
Operating Segment [Member] | Rhyz Other [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | (1,046) | 0 |
Corporate and Other [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | $ (78,207) | $ (91,495) |
Segment Information, Depreciati
Segment Information, Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | $ 17,130 | $ 18,344 |
Capital expenditures | 10,279 | 19,373 |
Operating Segments [Member] | Nu Skin [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 5,050 | 6,338 |
Capital expenditures | 5,196 | 9,947 |
Operating Segments [Member] | Mainland China [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 2,884 | 3,339 |
Capital expenditures | 4,068 | 8,517 |
Operating Segments [Member] | Americas [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 199 | 231 |
Capital expenditures | 42 | 112 |
Operating Segments [Member] | Southeast Asia/Pacific [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 381 | 354 |
Capital expenditures | 68 | 565 |
Operating Segments [Member] | South Korea [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 388 | 990 |
Capital expenditures | 362 | 490 |
Operating Segments [Member] | Japan [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 277 | 253 |
Capital expenditures | 0 | 91 |
Operating Segments [Member] | EMEA [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 230 | 286 |
Capital expenditures | 393 | 172 |
Operating Segments [Member] | Hong Kong/Taiwan [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 691 | 885 |
Capital expenditures | 263 | 0 |
Operating Segments [Member] | Rhyz Investments [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 3,922 | 2,688 |
Capital expenditures | 1,208 | 3,338 |
Operating Segments [Member] | Manufacturing [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 3,330 | 2,688 |
Capital expenditures | 1,208 | 3,338 |
Operating Segments [Member] | Rhyz Other [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 592 | 0 |
Capital expenditures | 0 | 0 |
Corporate and Other [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 8,158 | 9,318 |
Capital expenditures | $ 3,875 | $ 6,088 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value of Assets Acquired [Abstract] | |||
Goodwill | $ 206,432 | $ 206,432 | |
Mavely [Member] | |||
Acquisitions [Abstract] | |||
Percentage interest acquired | 100.00% | ||
Purchase price, net of cash acquired | $ 16,800 | ||
Cash acquired | 400 | ||
Accrued liability | 900 | ||
Incremental contingent consideration | 24,000 | ||
Contingent consideration | 8,700 | ||
Gross purchase price | 29,400 | ||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 16,400 | ||
Cash | 400 | ||
Accounts receivable | 100 | ||
Deferred tax liability | 3,500 | ||
Goodwill | 12,600 | ||
Mavely [Member] | Customer Relationships [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 2,000 | ||
Useful life | 4 years | ||
Mavely [Member] | Technology [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 11,300 | ||
Useful life | 8 years | ||
Mavely [Member] | Trademarks [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 2,800 | ||
Mavely [Member] | Tradenames [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Useful life | 8 years | ||
Mavely [Member] | Other Intangibles [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | $ 300 | ||
Useful life | 3 years |
Restructuring (Details)
Restructuring (Details) - Grow Tech [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Restructuring [Abstract] | ||
Non-cash impairment charges | $ 38.5 | |
Impairment of goodwill | 9.2 | |
Impairment of intangible assets | 9 | |
Impairment of fixed assets | 13.7 | |
Inventory write-off | 6.6 | |
Cash charges associated with restructuring | 20 | |
Employee severance | 6.5 | |
Other related restructuring charges | 13.5 | |
Cash payments | $ 11.6 | |
Ending restructuring accrual | $ 8.3 | |
Accrued Expenses [Member] | ||
Restructuring [Abstract] | ||
Liability related to cash charges | $ 20 |