Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 01, 2016 | Nov. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 1, 2016 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 896,264 | |
Entity Registrant Name | USANA HEALTH SCIENCES INC | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,193,500 | |
Trading Symbol | usna |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Current assets | ||
Cash and cash equivalents | $ 134,543 | $ 143,210 |
Inventories | 74,146 | 66,119 |
Prepaid expenses and other current assets | 39,423 | 34,935 |
Total current assets | 248,112 | 244,264 |
Property and equipment, net | 103,916 | 87,982 |
Goodwill | 17,138 | 17,432 |
Intangible assets, net | 36,130 | 38,269 |
Deferred tax assets | 15,404 | 9,844 |
Other assets | 22,908 | 25,446 |
Total assets | 443,608 | 423,237 |
Current liabilities | ||
Accounts payable | 10,586 | 10,043 |
Line of credit - short term | 1,200 | |
Other current liabilities | 116,648 | 121,369 |
Total current liabilities | 128,434 | 131,412 |
Deferred tax liabilities | 5,971 | 9,822 |
Other long-term liabilities | 1,494 | 1,151 |
Stockholders' equity | ||
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 12,488 as of January 2, 2016 and 12,176 as of October 1, 2016 | 12 | 13 |
Additional paid-in capital | 68,938 | 69,740 |
Retained earnings | 243,523 | 214,875 |
Accumulated other comprehensive income (loss) | (4,764) | (3,776) |
Total stockholders' equity | 307,709 | 280,852 |
Total liabilities and stockholder's equity | $ 443,608 | $ 423,237 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 12,176 | 12,488 |
Common stock, shares outstanding | 12,176 | 12,488 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net sales | $ 254,219 | $ 233,292 | $ 753,182 | $ 685,914 |
Cost of sales | 44,979 | 41,048 | 133,869 | 119,501 |
Gross profit | 209,240 | 192,244 | 619,313 | 566,413 |
Operating expenses: | ||||
Associate incentives | 112,816 | 101,521 | 335,541 | 304,751 |
Selling, general and administrative | 60,591 | 52,757 | 176,986 | 155,137 |
Total operating expenses | 173,407 | 154,278 | 512,527 | 459,888 |
Earnings from operations | 35,833 | 37,966 | 106,786 | 106,525 |
Other income (expense): | ||||
Interest income | 338 | 367 | 1,099 | 753 |
Interest expense | (46) | (4) | (424) | (11) |
Other, net | (24) | 78 | (684) | (219) |
Other income (expense), net | 268 | 441 | (9) | 523 |
Earnings before income taxes | 36,101 | 38,407 | 106,777 | 107,048 |
Income taxes | 6,003 | 12,798 | 28,618 | 36,343 |
Net earnings | $ 30,098 | $ 25,609 | $ 78,159 | $ 70,705 |
Earnings per common share | ||||
Basic | $ 2.49 | $ 1.99 | $ 6.48 | $ 5.55 |
Diluted | $ 2.40 | $ 1.92 | $ 6.24 | $ 5.35 |
Weighted average common shares outstanding | ||||
Basic | 12,089 | 12,852 | 12,056 | 12,747 |
Diluted | 12,525 | 13,317 | 12,525 | 13,209 |
Comprehensive income: | ||||
Net earnings | $ 30,098 | $ 25,609 | $ 78,159 | $ 70,705 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (341) | (4,990) | (2,643) | (6,374) |
Tax benefit (expense) related to foreign currency translation adjustment | (515) | 1,831 | 1,655 | 2,355 |
Other comprehensive income (loss), net of tax | (856) | (3,159) | (988) | (4,019) |
Comprehensive income | $ 29,242 | $ 22,450 | $ 77,171 | $ 66,686 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Cummulative-effect of accounting change | Scenario, Adjustment [Member] | $ 934 | $ (601) | $ 333 | ||
Balance, shares (Scenario, Previously Reported [Member]) at Jan. 02, 2016 | 12,488 | ||||
Balance, shares (Scenario, Adjustment [Member]) at Jan. 02, 2016 | 12,488 | ||||
Balance, shares at Jan. 02, 2016 | 12,488 | ||||
Balance, value (Scenario, Previously Reported [Member]) at Jan. 02, 2016 | $ 13 | 69,740 | 214,875 | $ (3,776) | $ 280,852 |
Balance, value (Scenario, Adjustment [Member]) at Jan. 02, 2016 | $ 13 | 70,674 | 214,274 | (3,776) | 281,185 |
Balance, value at Jan. 02, 2016 | 280,852 | ||||
Net earnings | 78,159 | 78,159 | |||
Other comprehensive income (loss), net of tax | (988) | (988) | |||
Equity-based compensation expense | 13,963 | $ 13,963 | |||
Common stock repurchased and retired, shares | (553) | (553) | |||
Common stock repurchased and retired, value | $ (1) | (15,699) | (48,910) | $ (64,610) | |
Common stock issued under equity award plans, shares | 241 | ||||
Balance, shares at Oct. 01, 2016 | 12,176 | 12,176 | |||
Balance, value at Oct. 01, 2016 | $ 12 | $ 68,938 | $ 243,523 | $ (4,764) | $ 307,709 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Cash flows from operating activities | ||
Net earnings | $ 78,159 | $ 70,705 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 9,930 | 7,284 |
(Gain) loss on sale of property and equipment | 55 | 1 |
Equity-based compensation expense | 13,963 | 6,952 |
Excess tax benefits from equity-based payment arrangements | (9,739) | |
Deferred income taxes | (2,249) | (1,993) |
Changes in operating assets and liabilities: | ||
Inventories | (7,922) | (18,432) |
Prepaid expenses and other assets | (12,179) | (565) |
Income tax payable related to tax benefit from equity award activity | 9,587 | |
Accounts payable | 597 | 1,868 |
Other liabilities | 1,386 | 8,849 |
Net cash provided by (used in) operating activities | 81,740 | 74,517 |
Cash flows from investing activities | ||
Additions to notes receivable | (4) | (1,579) |
Receipts on notes receivable | 605 | |
Proceeds from sale of property and equipment | 3 | 182 |
Purchases of property and equipment | (26,047) | (16,468) |
Net cash provided by (used in) investing activities | (25,443) | (17,865) |
Cash flows from financing activities | ||
Excess tax benefits from equity-based payment arrangements | 9,739 | |
Repurchase of common stock | (64,610) | |
Borrowings on line of credit | 73,700 | |
Payments on line of credit | (72,500) | |
Deferred debt issuance costs | (250) | |
Net cash provided by (used in) financing activities | (63,660) | 9,739 |
Effect of exchange rate changes on cash and cash equivalents | (1,304) | (3,322) |
Net increase (decrease) in cash and cash equivalents | (8,667) | 63,069 |
Cash and cash equivalents, beginning of period | 143,210 | 111,126 |
Cash and cash equivalents, end of period | 134,543 | 174,195 |
Cash paid during the period for: | ||
Interest | 317 | 11 |
Income taxes | 41,114 | 18,918 |
Non-cash investing activities: | ||
Credits on notes receivable | 1,142 | 466 |
Accrued purchases of property and equipment | $ 1,763 | $ 1,906 |
Organization, Consolidation, An
Organization, Consolidation, And Basis Of Presentation | 9 Months Ended |
Oct. 01, 2016 | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | |
Organization, Consolidation, And Basis Of Presentation | NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION USANA Health Sciences, Inc. develops and manufactures high-quality nutritional and personal care products that are sold internationally through a global network marketing system, which is a form of direct selling. The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the “Company” or “USANA”) in two geographic regions: Asia Pacific, and Americas and Europe. Asia Pacific is further divided into three sub-regions: Greater China, Southeast Asia Pacific, and North Asia. Greater China includes Hong Kong, Taiwan and China; Southeast Asia Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, Thailand, and Indonesia; North Asia includes Japan, and South Korea. Americas and Europe includes the United States, Canada, Mexico, Colombia, the United Kingdom, France, Belgium, and the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of January 2, 2016 , derived from audited consolidated financial statements, and the unaudited interim consolidated financial information of the Company have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission. Certain information and footnote disclosures that are normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, the accompanying interim condensed consolidated financial information contains all adjustments, consisting only of normal recurring adjustments that are necessary to state fairly the Company’s financial position as of October 1, 2016 and results of operations for the quarters and nine months ended October 3, 2015 and October 1, 2016 . The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto that are included in the Company ’ s Annual Report on Form 10-K for the year ended January 2, 2016 . The results of operations for the nine months ended October 1, 2016 , may not be indicative of the results that may be expected for the fiscal year 201 6 ending December 31, 2016 . On October 25, 2016, the Company declared a two -for-one stock split of its common stock that will be distributed in the form of a stock dividend on November 22, 2016 to shareholders of record as of November 14, 2016. This stock dividend will double the number of shares outstanding but will not affect the number of authorized shares of the Company or the par value of the common stock. All existing stock option agreements provide that the number of shares of common stock and the respective exercise price covered by each outstanding option agreement be proportionately adjusted for a stock split or similar event. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ( “ FASB ” ) issued an Accounting Standard Update ( “ ASU ” ) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606). ” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB announced a decision to defer the effective date of this ASU. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements. NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION - CONTINUED In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842). ” ASU 2016-02 is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Additionally, the ASU will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The update requires lessees to apply a modified retrospective approach for recognition and disclosure, beginning with the earliest period presented. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 was issued as part of the FASB’s simplification initiative aimed at reducing costs and complexity while maintaining or improving the usefulness of financial information. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, statutory tax withholding requirements, and classification in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period, and the entity must adopt all of the amendments in the same period. The Company elected to early adopt ASU 2016 -09 during the quarter ended April 2, 2016. The impact of the early adoption of this standard increased net earnings by approximately $6,491 and $7,316 for the quarter and nine months ended October 1, 2016, respectively. Diluted earnings per share, benefited the quarter and nine months ended October 1, 2016, by $0.50 and $0.52 , respectively. |
Fair Value Measures
Fair Value Measures | 9 Months Ended |
Oct. 01, 2016 | |
Fair Value Measures [Abstract] | |
Fair Value Measures | NOTE B – FAIR VALUE MEASURES The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: · Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. · Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. · Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date. As of the dates indicated , the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown: Fair Value Measurements Using Inputs January 2, 2016 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 14,460 $ 14,460 $ - $ - Foreign currency contracts included in prepaid expenses and other current assets 33 - 33 - $ 14,493 $ 14,460 $ 33 $ - Fair Value Measurements Using Inputs October 1, 2016 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 44,541 $ 44,541 $ - $ - Foreign currency contracts included in prepaid expenses and other current assets 179 - 179 - $ 44,720 $ 44,541 $ 179 $ - There were no transfers of financial assets or liabilities between levels of the fair value hierarchy for the periods indicated. The majority of the Company's non-financial assets, which include goodwill, intangible assets, and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill and indefinite-lived intangibles) such that a non-financial asset is required to be evaluated for impairment, an impairment charge is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At January 2, 2016 and October 1, 2016 , there were no non-financial assets measured at fair value on a non-recurring basis. T he Company's financial instruments include cash equivalents , accounts receivable, restricted cash, notes receivable , and accounts payable . The recorded values of cash equivalents , accounts receivable, restricted cash, and accounts payable approximate their fair values, based on their short-term nature. The carrying value of the notes receivable approximate fair value because the variable interest rates in the notes reflect current market rates. |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2016 | |
Inventories [Abstract] | |
Inventories | NOTE C – INVENTORIES Inventories consist of the following: January 2, October 1, 2016 2016 Raw materials $ 22,529 $ 27,388 Work in progress 8,701 9,482 Finished goods 34,889 37,276 $ 66,119 $ 74,146 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 01, 2016 | |
Intangible Assets [Abstract] | |
Intangible Assets | NOTE D — INTANGIBLE ASSETS The Company performed its annual goodwill impairment test during the third quarter of 201 6 . The Company performed a qualitative assessment of each reporting unit and determined that it was not more-likely-than-not that the fair value of each reporting unit was less than its carrying amount. As a result, the two-step goodwill impairment test was not required and no impairments of goodwill were recognized. The Company performed its annual indefinite-lived intangible asset impairment test during the third quarter of 201 6 . The Company performed a qualitative assessment of the indefinite-lived intangible asset and determined that is was not more-likely-than-not that the fair value of the indefinite-lived intangible asset was less than the carrying amount. As a result, the quantitative impairment test was not required and no impairment was recognized. |
Other Assets
Other Assets | 9 Months Ended |
Oct. 01, 2016 | |
Other Assets [Abstract] | |
Other Assets | NOTE E – OTHER ASSETS Other assets consist s primarily of a secured loan to a third-party supplier of the Company ’ s nutrition bars and land use rights related to a production facility under development in China. The Company has extended non-revolving credit to its supplier of nutrition bars to allow them to acquire equipment that is necessary to manufacture the USANA nutrition bars. This relationship provides improved supply chain stability for USANA and creates a mutually beneficial relationship between the parties. Notes receivable are valued at their unpaid principal balance plus any accrued but unpaid interest, which approximates fair value. Interest accrues at an annual interest rate of LIBOR plus 400 basis points. The note has a maturity date of February 1, 2024 and will be repaid by a combination of cash payments and credits for the manufacture of USANA’s nutrition bars. There is no prepayment penalty. Notes receivable from this supplier as of January 2, 2016 , and October 1, 2016 were $8,339 and $7,099 , respectively. Th is third-party supplier is considered to be a variable interest entity; however, the Company is not the primary beneficiary due to the inability to direct the activities that most significantly affect the third-party supplier's economic performance. Additionally, t he Company does not absorb a majority of the third-party supplier's expected losses or returns. Consequentially, the financial information of the third-party supplier is not consolidated. The maximum exposure to loss as a result of the Company's involvement with the third-party supplier is limited to the carrying value of the note receivable due from the third-party supplier. The Company is building a state-of-the-art manufacturing and production facility in China, which is expected to become fully operational by the end of 2016 . As part of this project, land use rights totaling $7,053 , and $6,865 a s of January 2, 2016 and October 1, 2016 , respectively, have been purchased and are being amortized over 50 year s. |
Line Of Credit
Line Of Credit | 9 Months Ended |
Oct. 01, 2016 | |
Line Of Credit [Abstract] | |
Line Of Credit | NOTE F – LINE OF CREDIT On February 19, 2016, the Company entered into an Amended and Restated Credit Agreement (“Credit Agreement”), with Bank of America, which extends the term of the Credit Agreement to April 27, 2021. The Credit Agreement also increases the amount t he Company may borrow under the credit facility from $75,000 to up to $125,000 , through October 31, 2016. On November 1, 2016, the amount the Company may borrow will revert to $75,000 for the remainder of the agreement. The only other modification to the Credit Agreement was an increase to the Company’s consolidated rolling four-quarter adjusted EBITDA covenant from $60,000 to equal to or greater than $100,000 . Interest is computed based on the bank's Prime Rate or LIBOR, adjusted by features specified in the Credit Agreement. The collateral for this line of credit is the pledge of the capital stock of certain subsidiaries of the Company, set forth in a separate pledge agreement with the bank. Part of the credit agreement is that any existing bank guarantees are considered a reduction of the overall availability of credit and part of the covenant calculation. This resulted in a $4,153 , and $5,078 reduction in the available borrowing limit as of January 2, 2016 and October 1, 2016 , respectively, due to existing normal course of business guarantees in certain markets. A t October 1, 2016 there was an outstanding balance of $1,200 . The Company will be required to pay any balance on this line of credit in full at the time of maturity in April 2021 unless the line of credit is replaced or terms are renegotiated. |
Contingencies
Contingencies | 9 Months Ended |
Oct. 01, 2016 | |
Contingencies [Abstract] | |
Contingencies | NOTE G – CONTINGENCIES The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. The Company records a liability when a particular contingency is probable and estimable. The Company has not accrued for any contingency at October 1, 2016 as the Company does not consider any contingency to be probable nor estimable. The Company faces contingencies that are reasonably possible to occur; however, they cannot currently be estimated. While complete assurance cannot be given to the outcome of these proceedings, management does not currently believe that any of these matters, individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. In August 2014, a purported shareholder derivative lawsuit was filed in the Third Judicial District Court of Salt Lake County, State of Utah (James Robert Rawcliffe v. Robert Anciaux, et al.,) against certain of the Company’s directors and officers. The derivative complaint, which also names USANA as a nominal defendant but is asserted on USANA's behalf, contains claims of breach of fiduciary duty, waste of corporate assets and unjust enrichment against the defendant directors and officers in connection with certain equity awards granted by the Compensation Committee of the Company's Board of Directors in February 2014. In October 2014, the Company filed a motion to dismiss the complaint and, in March 2015, the court granted that motion and dismissed the complaint without prejudice. In May 2015, the plaintiffs filed an appeal with the Utah Supreme Court. The Supreme Court remanded the Company's case to the Utah Court of Appeals . The plaintiff and the Company have each filed their appellate brief with the court and oral arguments have been scheduled to take place in January 2017. The Company believes that the claims in the complaint are without merit and will continue to vigorously defend this suit. The Company continues to believe, based on information currently available, that the final outcome of this suit will not have a material adverse effect on the Company’s business, results of operations or consolidated financial position. |
Common Stock And Earnings Per S
Common Stock And Earnings Per Share | 9 Months Ended |
Oct. 01, 2016 | |
Common Stock And Earnings Per Share [Abstract] | |
Common Stock And Earnings Per Share | NOTE H — COMMON STOCK AND EARNINGS PER SHARE Basic earnings per share are based on the weighted-average number of shares outstanding for each period. Shares that have been repurchased and retired during the periods specified below have been included in the calculation of the number of weighted-average shares that are outstanding for the calculation of basic earnings per share based on the time they were outstanding in any period. Diluted earnings per common share are based on shares that are outstanding (computed under basic EPS) and on potentially dilutive shares. Shares that are included in the diluted earnings per share calculations under the treasury stock method include equity awards that are in-the-money but have not yet been exercised. The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the periods indicated: Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 Net earnings available to common shareholders $ 25,609 $ 30,098 $ 70,705 $ 78,159 Weighted average common shares outstanding - basic 12,852 12,089 12,747 12,056 Dilutive effect of in-the-money equity awards 465 436 462 469 Weighted average common shares outstanding - diluted 13,317 12,525 13,209 12,525 Earnings per common share from net earnings - basic $ 1.99 $ 2.49 $ 5.55 $ 6.48 Earnings per common share from net earnings - diluted $ 1.92 $ 2.40 $ 5.35 $ 6.24 Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that their effect would be anti-dilutive: Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 361 1,154 196 1,118 During the nine months ended October 1, 2016 , the Company repurchased and retired 553 shares, for $64,610 , under the Company’s share repurchase plan. The excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings on a pro-rata basis. The purchase of shares under this plan reduces the number of shares outstanding in the above calculations. A s of October 1, 2016 , the remaining approved repurchase amount under the stock repurchase plan was $35,390 . There currently is no expiration date on the remaining approved repurchase amount and no requirement for future share repurchases. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 01, 2016 | |
Segment Information [Abstract] | |
Segment Information | NOTE I – SEGMENT INFORMATION USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care products that are sold through a global network marketing system of independent distributors (“Associates”). As such, management aggregates its operating segments into one reportable segment as management believes that the Company’s segments exhibit similar long-term financial performance and have similar economic characteristics. Performance for a region or market is evaluated based on sales. No single Associate accounted for 10% or more of net sales for the periods presented. The table below summarizes the approximate percentage of total product revenue that has been contributed by the Company’s nutritional and personal care products for the periods indicated. Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 USANA ® Nutritionals 80% 85% 81% 83% USANA Foods 12% 8% 12% 10% Sensé – beautiful science ® 7% 6% 6% 6% Selected financial information for the Company is presented for two geographic regions: Asia Pacific, with three sub-regions under Asia Pacific, and Americas and Europe. Individual markets are categorized into these regions as follows: · Asia Pacific – · Greater China – Hong Kong, Taiwan and China (1) · Southeast Asia Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, Thailand, and Indonesia (2) · North Asia – Japan and South Korea · Americas and Europe – United States, Canada, Mexico, Colombia, the United Kingdom, France , Belgium, and the Netherlands. (1) The Company ’ s business in China is that of BabyCare, its wholly-owned subsidiary. (2) The Company commenced operations in Indonesia in the fourth quarter of 2015. NOTE I – SEGMENT INFORMATION - CONTINUED Selected Financial Information Financial information by geographic region is presented for the periods indicated below: Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 Net Sales to External Customers Asia Pacific Greater China $ 112,323 $ 124,470 $ 325,942 $ 373,308 Southeast Asia Pacific 45,936 54,351 137,308 154,335 North Asia 9,920 11,555 29,495 33,376 Asia Pacific Total 168,179 190,376 492,745 561,019 Americas and Europe 65,113 63,843 193,169 192,163 Consolidated Total $ 233,292 $ 254,219 $ 685,914 $ 753,182 The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively: Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 Net sales: China $ 95,147 $ 108,355 $ 273,433 $ 324,689 United States $ 37,325 $ 34,352 $ 107,112 $ 101,245 As of January 2, October 1, 2016 2016 Long-lived Assets: China $ 92,835 $ 95,455 United States $ 57,797 $ 64,415 |
Organization, Consolidation, 16
Organization, Consolidation, And Basis Of Presentation (Policy) | 9 Months Ended |
Oct. 01, 2016 | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ( “ FASB ” ) issued an Accounting Standard Update ( “ ASU ” ) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606). ” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB announced a decision to defer the effective date of this ASU. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements. NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION - CONTINUED In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842). ” ASU 2016-02 is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Additionally, the ASU will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The update requires lessees to apply a modified retrospective approach for recognition and disclosure, beginning with the earliest period presented. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 was issued as part of the FASB’s simplification initiative aimed at reducing costs and complexity while maintaining or improving the usefulness of financial information. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, statutory tax withholding requirements, and classification in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period, and the entity must adopt all of the amendments in the same period. The Company elected to early adopt ASU 2016 -09 during the quarter ended April 2, 2016. The impact of the early adoption of this standard increased net earnings by approximately $6,491 and $7,316 for the quarter and nine months ended October 1, 2016, respectively. Diluted earnings per share, benefited the quarter and nine months ended October 1, 2016, by $0.50 and $0.52 , respectively. |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Fair Value Measures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value | Fair Value Measurements Using Inputs January 2, 2016 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 14,460 $ 14,460 $ - $ - Foreign currency contracts included in prepaid expenses and other current assets 33 - 33 - $ 14,493 $ 14,460 $ 33 $ - Fair Value Measurements Using Inputs October 1, 2016 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 44,541 $ 44,541 $ - $ - Foreign currency contracts included in prepaid expenses and other current assets 179 - 179 - $ 44,720 $ 44,541 $ 179 $ - |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Inventories [Abstract] | |
Schedule Of Inventories | Inventories consist of the following: January 2, October 1, 2016 2016 Raw materials $ 22,529 $ 27,388 Work in progress 8,701 9,482 Finished goods 34,889 37,276 $ 66,119 $ 74,146 |
Common Stock And Earnings Per19
Common Stock And Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Common Stock And Earnings Per Share [Abstract] | |
Schedule Of Common Stock And Earnings Per Share | Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 Net earnings available to common shareholders $ 25,609 $ 30,098 $ 70,705 $ 78,159 Weighted average common shares outstanding - basic 12,852 12,089 12,747 12,056 Dilutive effect of in-the-money equity awards 465 436 462 469 Weighted average common shares outstanding - diluted 13,317 12,525 13,209 12,525 Earnings per common share from net earnings - basic $ 1.99 $ 2.49 $ 5.55 $ 6.48 Earnings per common share from net earnings - diluted $ 1.92 $ 2.40 $ 5.35 $ 6.24 Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that their effect would be anti-dilutive: Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 361 1,154 196 1,118 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Segment Information [Abstract] | |
Schedule Of Revenue Percentage By Product | Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 USANA ® Nutritionals 80% 85% 81% 83% USANA Foods 12% 8% 12% 10% Sensé – beautiful science ® 7% 6% 6% 6% |
Schedule Of Revenues From External Customers By Geographical Areas | Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 Net Sales to External Customers Asia Pacific Greater China $ 112,323 $ 124,470 $ 325,942 $ 373,308 Southeast Asia Pacific 45,936 54,351 137,308 154,335 North Asia 9,920 11,555 29,495 33,376 Asia Pacific Total 168,179 190,376 492,745 561,019 Americas and Europe 65,113 63,843 193,169 192,163 Consolidated Total $ 233,292 $ 254,219 $ 685,914 $ 753,182 |
Consolidated Net Sales And Long Lived Assets | Quarter Ended Nine Months Ended October 3, October 1, October 3, October 1, 2015 2016 2015 2016 Net sales: China $ 95,147 $ 108,355 $ 273,433 $ 324,689 United States $ 37,325 $ 34,352 $ 107,112 $ 101,245 As of January 2, October 1, 2016 2016 Long-lived Assets: China $ 92,835 $ 95,455 United States $ 57,797 $ 64,415 |
Organization, Consolidation, 21
Organization, Consolidation, And Basis Of Presentation (Details) $ / shares in Units, $ in Thousands | Oct. 25, 2016 | Oct. 01, 2016USD ($)$ / shares | Oct. 01, 2016USD ($)item$ / shares |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Geographic regions | 2 | ||
Sub-geographical regions | 3 | ||
Accounting Standards Update 2015-16 [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Increased net earnings | $ | $ 6,491 | $ 7,316 | |
Increased dilutive share count | $ / shares | $ 0.50 | $ 0.52 | |
Subsequent Event [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Stock split ratio | 2 |
Fair Value Measures (Narrative)
Fair Value Measures (Narrative) (Details) - USD ($) | Oct. 01, 2016 | Jan. 02, 2016 |
Fair Value Measures [Abstract] | ||
Transfers of financial assets or liabilities | $ 0 | $ 0 |
Non-financial assets | $ 0 | $ 0 |
Fair Value Measures (Schedule O
Fair Value Measures (Schedule Of Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds included in cash equivalents | $ 44,541 | $ 14,460 |
Foreign currency contracts included in prepaid expenses and other current assets | 179 | 33 |
Total financial assets and liabilities | 44,720 | 14,493 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds included in cash equivalents | 44,541 | 14,460 |
Total financial assets and liabilities | 44,541 | 14,460 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts included in prepaid expenses and other current assets | 179 | 33 |
Total financial assets and liabilities | $ 179 | $ 33 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Inventories [Abstract] | ||
Raw materials | $ 27,388 | $ 22,529 |
Work in progress | 9,482 | 8,701 |
Finished goods | 37,276 | 34,889 |
Inventories | $ 74,146 | $ 66,119 |
Intangible Assets (Details)
Intangible Assets (Details) | 9 Months Ended |
Oct. 01, 2016USD ($) | |
Intangible Assets [Abstract] | |
Goodwill impairment | $ 0 |
Impairment of indefinite-lived intangible assets | $ 0 |
Other Assets (Details)
Other Assets (Details) - Non-revolving Credit Facility [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 01, 2016 | Jan. 02, 2016 | |
Other Assets [Line Items] | ||
Receivable | $ 7,099 | $ 8,339 |
Land-use rights | $ 6,865 | $ 7,053 |
Amortization period | 50 years | |
Maturity date | Feb. 1, 2024 | |
LIBOR [Member] | ||
Other Assets [Line Items] | ||
Variable rate | 4.00% |
Line Of Credit (Details)
Line Of Credit (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Oct. 01, 2016 | Jan. 02, 2016 | Nov. 01, 2016 | Feb. 19, 2016 | Feb. 18, 2016 | |
Line of Credit Facility [Line Items] | |||||
Adjusted EBITDA covenant | $ 60,000 | ||||
Line of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility | $ 75,000 | ||||
Reduction in available borrowing limit | $ 5,078 | $ 4,153 | |||
Outstanding debt | $ 1,200 | ||||
Maturity date | Apr. 1, 2021 | ||||
Amended And Restated Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility | $ 125,000 | ||||
Adjusted EBITDA covenant | $ 100,000 | ||||
Amended And Restated Credit Agreement [Member] | Scenario, Forecast [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility | $ 75,000 |
Common Stock And Earnings Per28
Common Stock And Earnings Per Share (Narrative) (Details) shares in Thousands, $ in Thousands | 9 Months Ended |
Oct. 01, 2016USD ($)shares | |
Common Stock And Earnings Per Share [Abstract] | |
Shares repurchased and retired | shares | 553 |
Value of shares repurchased and retired | $ 64,610 |
Remaining approved repurchase amount | $ 35,390 |
Common Stock And Earnings Per29
Common Stock And Earnings Per Share (Schedule Of Common Stock And Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Common Stock And Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders | $ 30,098 | $ 25,609 | $ 78,159 | $ 70,705 |
Weighted average common shares outstanding - basic | 12,089 | 12,852 | 12,056 | 12,747 |
Dilutive effect of in-the-money equity awards | 436 | 465 | 469 | 462 |
Weighted average common shares outstanding - diluted | 12,525 | 13,317 | 12,525 | 13,209 |
Earnings per common share from net earnings - basic | $ 2.49 | $ 1.99 | $ 6.48 | $ 5.55 |
Earnings per common share from net earnings - diluted | $ 2.40 | $ 1.92 | $ 6.24 | $ 5.35 |
Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that their effect would be anti-dilutive: | 1,154 | 361 | 1,118 | 196 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Oct. 01, 2016itemsegment | |
Segment Information [Abstract] | |
Number of reportable segments | segment | 1 |
Percentage of revenue from major customers, maximum | 10.00% |
Geographic regions | 2 |
Sub-geographical regions | 3 |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue Percentage By Product) (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
USANA Nutritionals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of product revenue | 85.00% | 80.00% | 83.00% | 81.00% |
USANA Foods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of product revenue | 8.00% | 12.00% | 10.00% | 12.00% |
Sense - Beautiful Science [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of product revenue | 6.00% | 7.00% | 6.00% | 6.00% |
Segment Information (Schedule32
Segment Information (Schedule Of Revenues From External Customers By Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | $ 254,219 | $ 233,292 | $ 753,182 | $ 685,914 |
Greater China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 124,470 | 112,323 | 373,308 | 325,942 |
Southeast Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 54,351 | 45,936 | 154,335 | 137,308 |
North Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 11,555 | 9,920 | 33,376 | 29,495 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 190,376 | 168,179 | 561,019 | 492,745 |
Americas And Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | $ 63,843 | $ 65,113 | $ 192,163 | $ 193,169 |
Segment Information (Consolidat
Segment Information (Consolidated Net Sales And Long Lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 254,219 | $ 233,292 | $ 753,182 | $ 685,914 | |
China [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | 108,355 | 95,147 | 324,689 | 273,433 | |
Long-lived Assets | 95,455 | 95,455 | $ 92,835 | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | 34,352 | $ 37,325 | 101,245 | $ 107,112 | |
Long-lived Assets | $ 64,415 | $ 64,415 | $ 57,797 |