Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000896264 | |
Entity Registrant Name | USANA HEALTH SCIENCES INC | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,338,643 | |
Trading Symbol | usna | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 225,041 | $ 214,326 |
Securities held-to-maturity | 26,854 | 63,539 |
Inventories | 86,465 | 81,948 |
Prepaid expenses and other current assets | 31,819 | 32,522 |
Total current assets | 370,179 | 392,335 |
Property and equipment, net | 91,994 | 92,025 |
Goodwill | 17,073 | 16,815 |
Intangible assets, net | 32,227 | 31,811 |
Deferred tax assets | 3,249 | 3,348 |
Other assets | 36,861 | 18,129 |
Total assets | 551,583 | 554,463 |
Current liabilities | ||
Accounts payable | 11,700 | 9,947 |
Other current liabilities | 118,292 | 138,739 |
Total current liabilities | 129,992 | 148,686 |
Deferred tax liabilities | 17,507 | 13,367 |
Other long-term liabilities | 12,867 | 1,264 |
Stockholders' equity | ||
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 23,567 as of December 29, 2018 and 23,335 as of March 30, 2019 | 23 | 24 |
Additional paid-in capital | 69,100 | 72,008 |
Retained earnings | 329,001 | 329,501 |
Accumulated other comprehensive income (loss) | (6,907) | (10,387) |
Total stockholders' equity | 391,217 | 391,146 |
Total liabilities and stockholder's equity | $ 551,583 | $ 554,463 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
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 | 23,335 | 23,567 |
Common stock, shares outstanding | 23,335 | 23,567 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net sales | $ 272,990 | $ 291,998 |
Cost of sales | 45,901 | 49,375 |
Gross profit | 227,089 | 242,623 |
Operating expenses: | ||
Associate incentives | 122,530 | 129,362 |
Selling, general and administrative | 69,555 | 70,132 |
Total operating expenses | 192,085 | 199,494 |
Earnings from operations | 35,004 | 43,129 |
Other income (expense): | ||
Interest income | 1,484 | 840 |
Interest expense | (12) | (10) |
Other, net | (182) | 32 |
Other income (expense), net | 1,290 | 862 |
Earnings before income taxes | 36,294 | 43,991 |
Income taxes | 12,122 | 15,045 |
Net earnings | $ 24,172 | $ 28,946 |
Earnings per common share | ||
Basic | $ 1.03 | $ 1.20 |
Diluted | $ 1.01 | $ 1.19 |
Weighted average common shares outstanding | ||
Basic | 23,484 | 24,074 |
Diluted | 23,927 | 24,273 |
Comprehensive income: | ||
Net earnings | $ 24,172 | $ 28,946 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | 4,774 | 7,814 |
Tax benefit (expense) related to foreign currency translation adjustment | (1,294) | (540) |
Other comprehensive income (loss), net of tax | 3,480 | 7,274 |
Comprehensive income | $ 27,652 | $ 36,220 |
Condensed Consolidated Statem_2
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 | $ 994 | $ 994 | |||
Balance after cumulative effect of accounting change | $ 24 | $ 76,542 | 289,064 | $ (1,426) | 364,204 |
Balance, shares at Dec. 30, 2017 | 24,024 | ||||
Balance, value at Dec. 30, 2017 | $ 24 | 76,542 | 288,070 | (1,426) | 363,210 |
Net earnings | 28,946 | 28,946 | |||
Other comprehensive income (loss), net of tax | 7,274 | 7,274 | |||
Equity-based compensation expense | 3,805 | 3,805 | |||
Common stock repurchased and retired, value | (605) | (2,338) | $ (2,943) | ||
Common stock repurchased and retired, shares | (39) | (39) | |||
Common stock issued under equity award plans, shares | 114 | ||||
Tax withholding for net-share settled equity awards | (308) | $ (308) | |||
Balance, shares at Mar. 31, 2018 | 24,099 | ||||
Balance, value at Mar. 31, 2018 | $ 24 | 79,434 | 315,672 | 5,848 | $ 400,978 |
Balance, shares at Dec. 29, 2018 | 23,567 | 23,567 | |||
Balance, value at Dec. 29, 2018 | $ 24 | 72,008 | 329,501 | (10,387) | $ 391,146 |
Net earnings | 24,172 | 24,172 | |||
Other comprehensive income (loss), net of tax | 3,480 | 3,480 | |||
Equity-based compensation expense | 3,832 | 3,832 | |||
Common stock repurchased and retired, value | $ (1) | (5,327) | (24,672) | $ (30,000) | |
Common stock repurchased and retired, shares | (284) | (284) | |||
Common stock issued under equity award plans, shares | 52 | ||||
Tax withholding for net-share settled equity awards | (1,413) | $ (1,413) | |||
Balance, shares at Mar. 30, 2019 | 23,335 | 23,335 | |||
Balance, value at Mar. 30, 2019 | $ 23 | $ 69,100 | $ 329,001 | $ (6,907) | $ 391,217 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net earnings | $ 24,172 | $ 28,946 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 3,866 | 4,531 |
Right-of-use asset amortization | 2,023 | |
(Gain) loss on sale of property and equipment | 23 | 1,782 |
Equity-based compensation expense | 3,832 | 3,805 |
Deferred income taxes | 3,048 | 3,102 |
Changes in operating assets and liabilities: | ||
Inventories | (3,630) | (4,469) |
Prepaid expenses and other assets | 1,480 | (3,379) |
Accounts payable | 1,750 | 649 |
Other liabilities | (31,043) | (15,449) |
Net cash provided by (used in) operating activities | 5,521 | 19,518 |
Cash flows from investing activities | ||
Receipts on notes receivable | 55 | 301 |
Payments for net investment hedge | (1,660) | |
Maturities of investment securities | 36,685 | |
Proceeds from sale of property and equipment | 6 | 35 |
Purchases of property and equipment | (2,577) | (2,948) |
Net cash provided by (used in) investing activities | 32,509 | (2,612) |
Cash flows from financing activities | ||
Repurchase of common stock | (30,000) | (2,943) |
Borrowings on line of credit | 5,000 | |
Payments on line of credit | (5,000) | |
Payments related to tax withholding for net-share settled equity awards | (1,413) | (308) |
Net cash provided by (used in) financing activities | (31,413) | (3,251) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4,170 | 5,519 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,787 | 19,174 |
Cash, cash equivalents, and restricted cash at beginning of period | 217,234 | 250,535 |
Cash, cash equivalents, and restricted cash at end of period | 228,021 | 269,709 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||
Total cash, cash equivalents, and restricted cash | 217,234 | 250,535 |
Cash paid during the period for: | ||
Interest | 5 | 2 |
Income taxes | 10,163 | 19,495 |
Cash received during the period for: | ||
Income tax refund | 5,095 | 49 |
Non-cash operating activities | ||
Right-of-use assets obtained in exchange for lease obligations | 20,286 | |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | $ 251 | $ 159 |
Organization, Consolidation, An
Organization, Consolidation, And Basis Of Presentation | 3 Months Ended |
Mar. 30, 2019 | |
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/skincare products that are sold internationally through a global network marketing system, which is a form of direct selling. The Condensed Consolidated Financial Statements (the “Financial Statements”) include the accounts and operations of USANA Health Sciences, Inc., a Utah corporation 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, Germany, Spain, Italy, Romania, Belgium, and the Netherlands. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 29, 2018 , derived from audited consolidated financial statements, and the unaudited interim consolidated financial information of the Company have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, 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 the Company’s 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 March 30, 2019 and results of operations for the three months ended March 31, 2018 and March 30, 2019 . The interim 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 December 29, 2018. The results of operations for the three months ended March 30, 2019 , are not necessarily indicative of the results that may be expected for the fiscal year ending December 28, 2019 . Recent Accounting Pronouncements Adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 requires 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. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842)”—Targeted Improvements, which allows an additional transition method to adopt the new lease standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION The Company adopted Topic 842 in the first quarter of 2019, using the transition method per ASU 2018-11. Accordingly, all periods prior to December 30, 2018 were presented in accordance with the previous Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented . As a result of the adoption on December 30, 2018, the Company, recorded operating lease right-of-use ( “ ROU ” ) assets of $19,671 and operating lease liabilities of $20,010 (of which, $7,120 was current and $12,890 was non-current) on the Company ’ s balance sheet for facility and equipment lease agreements. Additionally, the Company has prepaid land use rights related to production facilities in China of $6,853 that were reclassified to ROU assets. The Company utilized the incremental borrowing rate for the remaining lease term and remaining minimum rental payments for the calculation of the lease liability at the adoption date. Consistent with the treatment under Topic 840, the Company has excluded the portion of fixed rental payments attributable to executory costs such as taxes, insurance and maintenance in the determination of the future minimum rental payments for purposes of calculation of the lease liability at the adoption date. The Company does not have significant finance leases. As part of the adoption of Topic 842, the Company made the following practical expedient elections: · The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases · The Company did not elect the hindsight practical expedient, for all leases. · The Company did not elect the land easement practical expedient. The adoption of Topic 842 had a material impact to the Company’s consolidated balance sheets, but did not materially impact the Company’s consolidated statements of comprehensive income. The most significant changes to the consolidated balance sheets relate to the recognition of new ROU assets and lease liabilities for operating leases. The adoption of Topic 842 also had no material impact on operating, investing, or financing cash flows in the consolidated statement of cash flows. However, Topic 842 has affected the Company’s disclosures about noncash activities relating to the initial recognition of ROU assets and lease liabilities. Additionally, the Company’s lease-related disclosures have increased as of and for the period ended March 30, 2019 . See Note B - Operating Leases for additional information regarding the Company’s lease policies under the new standard. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 better aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To satisfy that objective, the amendments expand and refine hedge accounting for both non-financial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted ASU 2017-12 during the quarter ended March 30, 2019 and the adoption of the standard did not have an impact on its consolidated financial statements. NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION Issued accounting pronouncements not yet adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income (“OCI”) for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-13 will have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs of a hosting arrangement that is a service contract will be expensed over the term of the hosting arrangement. For public business entities, the amendments in this ASU are effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period. The amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the adoption date. The Company does not expect the adoption of ASU 2018-15 will have a material impact on its consolidated financial statements. |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 30, 2019 | |
Operating Leases [Abstract] | |
Operating Leases | NOTE B – OPERATING LEASES With the exception of the Company’s headquarters in Salt Lake City, Utah and its facilities in New South Wales, Australia, and in Beijing and Tianjin, China, the Company generally leases its facilities. Each of the facility lease agreements is a non-cancelable operating lease generally structured with renewal options and expire prior to or during 2026 . In connection with the production facilities in Beijing and Tianjin, China, the Company has prepaid land use rights that are considered under the guidance for lease accounting. The Company utilizes equipment under non-cancelable operating leases, expiring through 2022 . At contract inception, the Company determines whether an arrangement is or contains a lease and whether the lease should be classified as an operating or a financing lease. A contract is or contains a lease if the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. Control is determined based on the right to obtain all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. ROU assets for operating leases represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments. NOTE B – OPERATING LEASES – CONTINUED Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Non-lease components are accounted for separately from the fixed lease component for all leases. Most of the Company’s leases do not provide an implicit rate that can readily be determined. Therefore, the applied discount rate is based on the Company’s incremental borrowing rate, which is determined using its credit rating and other information available as of the commencement date and is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The ROU asset is measured at the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expense in the Company’s consolidated statements of comprehensive income. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases is recognized on a straight-line basis over the lease term. The Company monitors for events or changes in circumstances that require a reassessment of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the ROU asset unless doing so would reduce the ROU asset to an amount less than zero, in which case the remaining adjustment would be recorded in the consolidated statements of comprehensive income . The following table summarizes the classification of lease assets and lease liabilities in the Company’s consolidated balance sheet: Leases Classification March 30, 2019 Assets ROU operating lease assets, net Other assets $ 24,746 Total ROU assets $ 24,746 Liabilities Current: Operating lease liabilities Other current liabilities $ 6,764 Non-current: Operating lease liabilities Other long-term liabilities $ 11,805 Total lease liabilities $ 18,569 NOTE B – OPERATING LEASES – CONTINUED The following table presents supplemental lease information: March 30, 2019 Lease cost Operating lease cost $ 2,166 Total lease cost $ 2,166 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,188 ROU assets obtained in exchange for new operating lease liabilities $ 615 Weighted-average remaining lease term—operating leases 4.04 yrs. Weighted-average discount rate—operating leases 3.78% The following table presents the maturity of the Company’s lease liabilities as of March 30, 2019. Year ending Remainder of 2019 $ 5,752 2020 6,065 2021 3,703 2022 1,692 2023 1,584 Thereafter 2,610 $ 21,406 Less: imputed interest $ (2,837) Present value $ 18,569 The future minimum commitments under operating leases at December 29, 2018 having a non-cancelable term in excess of one year as determi ned prior to the adoption of Topic 842 are as follows: Year ending 2019 $ 9,155 2020 6,146 2021 3,825 2022 1,962 2023 1,464 Thereafter 2,514 $ 25,066 |
Fair Value Measures
Fair Value Measures | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Measures [Abstract] | |
Fair Value Measures | NOTE C – 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 December 29, 2018 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 129,449 $ 129,449 $ - $ - Foreign currency contracts included in other current liabilities (309) - (309) - $ 129,140 $ 129,449 $ (309) $ - Fair Value Measurements Using Inputs March 30, 2019 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 141,120 $ 141,120 $ - $ - Net investment hedge included in prepaid expenses and other current assets 674 - 674 - Foreign currency contracts included in prepaid expenses and other current assets 208 - 208 - $ 142,002 $ 141,120 $ 882 $ - 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, property and equipment, and ROU assets 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 December 29, 2018 and March 30, 2019 , there were no non-financial assets measured at fair value on a non-recurring basis. NOTE C – FAIR VALUE MEASURES - CONTINUED The Company ’ s financial instruments include cash equivalents, securities held-to-maturity, 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. S ecurities held-to-maturity consist of corporate bonds . The fair value of corporate bonds are price d using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data , which is considered to be a Level 2 input. The carrying values of these corporate bonds approximate their fair values due to their short-term maturities . |
Investments
Investments | 3 Months Ended |
Mar. 30, 2019 | |
Investments [Abstract] | |
Investments | NOTE D – INVESTMENTS The carrying amount, gross unrealized holding gains, gross unrealized holding losses, and fair value of securities held-to-maturity by major security type and class of security were as follows: As of December 29, 2018 Amortized Cost Unrecognized Holding Gains Unrecognized Holding Losses Estimated Fair Value Corporate bonds $ 57,554 $ 1 $ (46) $ 57,509 Commercial Paper 5,985 - - 5,985 Total HTM Securities $ 63,539 $ 1 $ (46) $ 63,494 As of March 30, 2019 Amortized Cost Unrecognized Holding Gains Unrecognized Holding Losses Estimated Fair Value Corporate bonds $ 26,854 $ 5 $ (3) $ 26,856 Total securities held-to-maturity $ 26,854 $ 5 $ (3) $ 26,856 All held-to-maturity securities as of March 30, 2019 mature within one year. |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2019 | |
Inventories [Abstract] | |
Inventories | NOTE E – INVENTORIES Inventories consist of the following: December 29, March 30, 2018 2019 Raw materials $ 19,502 $ 22,336 Work in progress 14,485 11,755 Finished goods 47,961 52,374 $ 81,948 $ 86,465 |
Revenue And Contract Liabilitie
Revenue And Contract Liabilities | 3 Months Ended |
Mar. 30, 2019 | |
Revenue And Contract Liabilities [Abstract] | |
Revenue And Contract Liabilities | NOTE F – REVENUE AND CONTRACT LIABILITIES Revenue is recognized when, or as, control of a promised product or service transfers to a customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. A majority of the Company ’ s sales are for products sold at a point in time and shipped to customers, for which control is transferred as goods are delivered to the third party carrier for shipment. The Company receives payment, primarily via credit card, for the sale of products at the time customers place orders and payment is required prior to shipment. Contract liabilities, which are recorded within Other current liabilities in the consolidated balance sheets, primarily relate to deferred revenue for product sales for customer payments received in advance of shipment, for outstanding material rights under the initial order program, and for services where control is transferred over time as services are delivered. Disaggregation of revenue by geographical region and major product line is included in Segment Information in Note K. The following table provides information about contract liabilities from contracts with customers, including significant changes in the contract liabilities balances during the period. December 29, March 30, 2018 2019 Contract liabilities at beginning of period $ 14,417 $ 15,055 Increase due to deferral of revenue at period end 15,055 14,191 Decrease due to beginning contract liabilities recognized as revenue (14,417) (14,291) Contract liabilities at end of period $ 15,055 $ 14,955 |
Line Of Credit
Line Of Credit | 3 Months Ended |
Mar. 30, 2019 | |
Line Of Credit [Abstract] | |
Line Of Credit | NOTE G – LINE OF CREDIT T he Company has a $75,000 line of credit with Bank of America (‘Bank”). Interest is computed at the B ank ’ s Prime Rate or a LIBOR plus rate , 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, pursuant to a separate pledge agreement with the Bank. On February 19, 2016, the Company entered into an Amended and Restated Credit Agreement with the Bank, which extends the term of the Credit Agreement to April 27, 2021 and increases the Company ’ s consolidated rolling four-quarter adjusted EBITDA covenant to $100,000 or greater and its ratio of consolidated funded debt to adjusted EBITDA of equal to or less than 2.0 to 1.0 at the end of each quarter. The adjusted EBITDA under the Credit A greement is modified for certain non-cash expenses. A ny existing bank guarantees are considered a reduction of the overall availability of credit and part of the covenant calculation under the Credit Agreement . This resulted in a $6,619 and $6,001 reduction in the available borrowing limit as of December 29, 2018 and March 30, 2019 , respectively, due to existing normal course of business guarantees in certain markets . There was no outstanding debt on this line of credit at December 29, 2018 or at March 30, 2019 . 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 | 3 Months Ended |
Mar. 30, 2019 | |
Contingencies [Abstract] | |
Contingencies | NOTE H – 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 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. On February 7, 2017, the Company disclosed in a Current Report on Form 8-K filed with the SEC that it is conducting a voluntary internal investigation regarding its BabyCare operations in China. In connection with this investigation, the Company expects to continue to incur costs in conducting the on-going review and investigation, in responding to requests for information in connection with any government investigations and in defending any potential civil or governmental proceedings that are instituted against it or any of its current or former officers or directors. The Company has voluntarily contacted the SEC and the United States Department of Justice to advise both agencies that an internal investigation is underway and intends to provide additional information to both agencies as the investigation progresses. Because the internal investigation is ongoing, the Company cannot predict the duration, scope, or result of the investigation. One or more governmental actions could be instituted in respect of the matters that are the subject of the internal investigation, and such actions, if brought, may result in judgments, settlements, fines, penalties, injunctions, cease and desist orders, criminal penalties, or other relief. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 30, 2019 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | NOTE I — DERIVATIVE FINANCIAL INSTRUMENTS The Company ’ s risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with the Company ’ s risk management policies, the Company does not hold or issue derivative instruments for trading or speculative purposes. The Company recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. When the Company becomes a party to a derivative instrument and intends to apply hedge accounting, the Company formally documents the hedge relationship and the risk management objective for undertaking the hedge, the nature of risk being hedged, and the hedged transaction, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. The Company also documents how the hedging instrument ’ s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company periodically uses derivative hedging instruments to hedge its net investment in its non U.S. subsidiaries designed to hedge a portion of the foreign currency exposure that arises on translation of the foreign subsidiaries into U.S. dollars. Initially, the Company records derivative assets on a gross basis in our consolidated balance sheets . Subsequently the fair value of derivatives is measured for each reporting period. The effective portion of gains and losses attributable to these net investment hedges is recorded to foreign currency translation adjustment ( “ FCTA ” ) within accumulated other comprehensive income (loss) ( “ AOCI ” ) to offset the change in the carrying value of the net investment being hedged, and will subsequently be reclassified to net earnings in the period in which the hedged investment is either sold or substantially liquidated. As of December 29, 2018 , there were no derivatives outstanding for which the Company has applied hedge accounting. During the first quarter of 2019, the Company entered into a European option designated as a net investment hedge with a notional value of $110,000 . As of March 30, 2019 , the Company had recorded an unrealized a loss of $986 , which is recorded to FCTA within AOCI. The Company assessed hedge effectiveness under the forward rate method, determining the hedging instrument was highly effective. |
Common Stock And Earnings Per S
Common Stock And Earnings Per Share | 3 Months Ended |
Mar. 30, 2019 | |
Common Stock And Earnings Per Share [Abstract] | |
Common Stock And Earnings Per Share | NOTE J — COMMON STOCK AND EARNINGS PER SHARE Basic earnings per share (“EPS”) 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 EPS 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 EPS 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 EPS and diluted earnings per share for the periods indicated: Quarter Ended March 31, March 30, 2018 2019 Net earnings available to common shareholders $ 28,946 $ 24,172 Weighted average common shares outstanding - basic 24,074 23,484 Dilutive effect of in-the-money equity awards 199 443 Weighted average common shares outstanding - diluted 24,273 23,927 Earnings per common share from net earnings - basic $ 1.20 $ 1.03 Earnings per common share from net earnings - diluted $ 1.19 $ 1.01 Equity awards consisting of stock-settled stock appreciation rights and restricted stock 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 March 31, March 30, 2018 2019 1,802 105 During the quarters ended March 31, 2018 and March 30, 2019 , the Company repurchased and retired 39 shares and 284 shares for $2,943 and $30,000 , respectively, 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. As of March 30, 2019 , the remaining authorized repurchase amount under the stock repurchase plan was $40,216 . There is no expiration date on the remaining approved repurchase amount and no requirement for future share repurchases. On April 30, 2019, the Company’s Board of Directors authorized an increase in the repurchase amount under its share repurchase plan to a total of $150,000 . The authorization includes the $40,216 that was remaining under the prior authorization at March 30, 2019. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | NOTE K – SEGMENT INFORMATION USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care/skincare products that are sold through a global network marketing system of independent distributors (“Associates”). The Company 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, foods, and personal care/skincare products for the periods indicated. Quarter Ended March 31, March 30, 2018 2019 USANA ® Nutritionals 83% 84% USANA Foods 8% 8% Personal care/Skincare Sensé – beautiful science ® 4% 1% Celavive ®(1) 4% 6% (1) The Company launched Celavive ® in every market except China in the first quarter of 2018 and launched in China late in the third quarter of 2018. Selected financial information for the Company is presented for two geographic regions: Asia Pacific (with three sub-regions), and Americas and Europe. Individual markets are categorized into these regions as follows: · Asia Pacific – · Greater China – Hong Kong, Taiwan and China. Our business in China is conducted by BabyCare Holding, Ltd. (“BabyCare”), our wholly-owned subsidiary; · Southeast Asia Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, Thailand, and Indonesia · North Asia – Japan and South Korea; · Americas and Europe – United States, Canada, Mexico, Colombia, the United Kingdom, France , Germany (2) , Spain (2) , Italy (2) , Romania (2) , Belgium, and the Netherlands (2) The Company commenced operations in Germany, Spain, Italy, and Romania near the end of the second quarter of 2018. NOTE K – SEGMENT INFORMATION - CONTINUED Selected Financial Information Financial information by geographic region is presented for the periods indicated below: Quarter Ended March 31, March 30, 2018 2019 Net Sales to External Customers Asia Pacific Greater China $ 157,808 $ 144,153 Southeast Asia Pacific 56,228 54,515 North Asia 18,084 22,228 Asia Pacific Total 232,120 220,896 Americas and Europe 59,878 52,094 Consolidated Total $ 291,998 $ 272,990 The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively: Three Months Ended March 31, March 30, 2018 2019 Net sales: China $ 140,592 $ 127,372 As of December 29, March 30, 2018 2019 Long-lived assets: China $ 89,509 $ 95,386 United States $ 49,195 $ 49,875 |
Organization, Consolidation, _2
Organization, Consolidation, And Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 requires 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. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842)”—Targeted Improvements, which allows an additional transition method to adopt the new lease standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION The Company adopted Topic 842 in the first quarter of 2019, using the transition method per ASU 2018-11. Accordingly, all periods prior to December 30, 2018 were presented in accordance with the previous Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented . As a result of the adoption on December 30, 2018, the Company, recorded operating lease right-of-use ( “ ROU ” ) assets of $19,671 and operating lease liabilities of $20,010 (of which, $7,120 was current and $12,890 was non-current) on the Company ’ s balance sheet for facility and equipment lease agreements. Additionally, the Company has prepaid land use rights related to production facilities in China of $6,853 that were reclassified to ROU assets. The Company utilized the incremental borrowing rate for the remaining lease term and remaining minimum rental payments for the calculation of the lease liability at the adoption date. Consistent with the treatment under Topic 840, the Company has excluded the portion of fixed rental payments attributable to executory costs such as taxes, insurance and maintenance in the determination of the future minimum rental payments for purposes of calculation of the lease liability at the adoption date. The Company does not have significant finance leases. As part of the adoption of Topic 842, the Company made the following practical expedient elections: · The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases · The Company did not elect the hindsight practical expedient, for all leases. · The Company did not elect the land easement practical expedient. The adoption of Topic 842 had a material impact to the Company’s consolidated balance sheets, but did not materially impact the Company’s consolidated statements of comprehensive income. The most significant changes to the consolidated balance sheets relate to the recognition of new ROU assets and lease liabilities for operating leases. The adoption of Topic 842 also had no material impact on operating, investing, or financing cash flows in the consolidated statement of cash flows. However, Topic 842 has affected the Company’s disclosures about noncash activities relating to the initial recognition of ROU assets and lease liabilities. Additionally, the Company’s lease-related disclosures have increased as of and for the period ended March 30, 2019 . See Note B - Operating Leases for additional information regarding the Company’s lease policies under the new standard. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 better aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To satisfy that objective, the amendments expand and refine hedge accounting for both non-financial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted ASU 2017-12 during the quarter ended March 30, 2019 and the adoption of the standard did not have an impact on its consolidated financial statements. NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION Issued accounting pronouncements not yet adopted In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income (“OCI”) for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-13 will have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs of a hosting arrangement that is a service contract will be expensed over the term of the hosting arrangement. For public business entities, the amendments in this ASU are effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted, including adoption in any interim period. The amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the adoption date. The Company does not expect the adoption of ASU 2018-15 will have a material impact on its consolidated financial statements. |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Operating Leases [Abstract] | |
Summary Of Lease Assets And Lease Liabilities In The Balance Sheet | Leases Classification March 30, 2019 Assets ROU operating lease assets, net Other assets $ 24,746 Total ROU assets $ 24,746 Liabilities Current: Operating lease liabilities Other current liabilities $ 6,764 Non-current: Operating lease liabilities Other long-term liabilities $ 11,805 Total lease liabilities $ 18,569 |
Supplemental Lease Information | March 30, 2019 Lease cost Operating lease cost $ 2,166 Total lease cost $ 2,166 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,188 ROU assets obtained in exchange for new operating lease liabilities $ 615 Weighted-average remaining lease term—operating leases 4.04 yrs. Weighted-average discount rate—operating leases 3.78% |
Maturity Analysis For Operating Lease Liabilities | Year ending Remainder of 2019 $ 5,752 2020 6,065 2021 3,703 2022 1,692 2023 1,584 Thereafter 2,610 $ 21,406 Less: imputed interest $ (2,837) Present value $ 18,569 |
Schedule Of Future Commitments Under Operating Leases | Year ending 2019 $ 9,155 2020 6,146 2021 3,825 2022 1,962 2023 1,464 Thereafter 2,514 $ 25,066 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Measures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value | Fair Value Measurements Using Inputs December 29, 2018 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 129,449 $ 129,449 $ - $ - Foreign currency contracts included in other current liabilities (309) - (309) - $ 129,140 $ 129,449 $ (309) $ - Fair Value Measurements Using Inputs March 30, 2019 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 141,120 $ 141,120 $ - $ - Net investment hedge included in prepaid expenses and other current assets 674 - 674 - Foreign currency contracts included in prepaid expenses and other current assets 208 - 208 - $ 142,002 $ 141,120 $ 882 $ - |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Investments [Abstract] | |
Schedule Of Held-To-Maturity Securities | As of December 29, 2018 Amortized Cost Unrecognized Holding Gains Unrecognized Holding Losses Estimated Fair Value Corporate bonds $ 57,554 $ 1 $ (46) $ 57,509 Commercial Paper 5,985 - - 5,985 Total HTM Securities $ 63,539 $ 1 $ (46) $ 63,494 As of March 30, 2019 Amortized Cost Unrecognized Holding Gains Unrecognized Holding Losses Estimated Fair Value Corporate bonds $ 26,854 $ 5 $ (3) $ 26,856 Total securities held-to-maturity $ 26,854 $ 5 $ (3) $ 26,856 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventories [Abstract] | |
Schedule Of Inventories | Inventories consist of the following: December 29, March 30, 2018 2019 Raw materials $ 19,502 $ 22,336 Work in progress 14,485 11,755 Finished goods 47,961 52,374 $ 81,948 $ 86,465 |
Revenue And Contract Liabilit_2
Revenue And Contract Liabilities (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue And Contract Liabilities [Abstract] | |
Schedule Of Contract Liabilities From Contract With Customers | December 29, March 30, 2018 2019 Contract liabilities at beginning of period $ 14,417 $ 15,055 Increase due to deferral of revenue at period end 15,055 14,191 Decrease due to beginning contract liabilities recognized as revenue (14,417) (14,291) Contract liabilities at end of period $ 15,055 $ 14,955 |
Common Stock And Earnings Per_2
Common Stock And Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Common Stock And Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share | Quarter Ended March 31, March 30, 2018 2019 Net earnings available to common shareholders $ 28,946 $ 24,172 Weighted average common shares outstanding - basic 24,074 23,484 Dilutive effect of in-the-money equity awards 199 443 Weighted average common shares outstanding - diluted 24,273 23,927 Earnings per common share from net earnings - basic $ 1.20 $ 1.03 Earnings per common share from net earnings - diluted $ 1.19 $ 1.01 |
Schedule Of Shares Not Included In The Computation Of Diluted EPS | Quarter Ended March 31, March 30, 2018 2019 1,802 105 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Information [Abstract] | |
Schedule Of Revenue Percentage By Product | Quarter Ended March 31, March 30, 2018 2019 USANA ® Nutritionals 83% 84% USANA Foods 8% 8% Personal care/Skincare Sensé – beautiful science ® 4% 1% Celavive ®(1) 4% 6% (1) The Company launched Celavive ® in every market except China in the first quarter of 2018 and launched in China late in the third quarter of 2018. |
Schedule Of Revenues From External Customers By Geographical Areas | Quarter Ended March 31, March 30, 2018 2019 Net Sales to External Customers Asia Pacific Greater China $ 157,808 $ 144,153 Southeast Asia Pacific 56,228 54,515 North Asia 18,084 22,228 Asia Pacific Total 232,120 220,896 Americas and Europe 59,878 52,094 Consolidated Total $ 291,998 $ 272,990 |
Consolidated Net Sales And Long Lived Assets | Three Months Ended March 31, March 30, 2018 2019 Net sales: China $ 140,592 $ 127,372 As of December 29, March 30, 2018 2019 Long-lived assets: China $ 89,509 $ 95,386 United States $ 49,195 $ 49,875 |
Organization, Consolidation, _3
Organization, Consolidation, And Basis Of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($)item | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Geographic regions | item | 2 |
Sub-geographical regions | item | 3 |
Right-of-use assets obtained in exchange for new lease obligations | $ 615 |
Prepaid land use rights related to production facilities | 6,853 |
Operating, right-of-use | 24,746 |
Current operating lease liabilities | 6,764 |
Non-current operating lease liabilities | 11,805 |
Accounting Standards Update 2018-11 [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Right-of-use assets obtained in exchange for new lease obligations | 20,010 |
Operating, right-of-use | 19,671 |
Current operating lease liabilities | 7,120 |
Non-current operating lease liabilities | $ 12,890 |
Operating Leases (Narrative) (D
Operating Leases (Narrative) (Details) | 3 Months Ended |
Mar. 30, 2019 | |
Buildings [Member] | |
Lease expiration date | 2026 |
Equipment [Member] | |
Lease expiration date | 2022 |
Operating Leases (Summary Of Le
Operating Leases (Summary Of Lease Assets And Lease Liabilities In The Balance Sheet) (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Operating Leases [Abstract] | |
ROU operating lease assets, net | $ 24,746 |
Total ROU assets | 24,746 |
Current operating lease liabilities | 6,764 |
Non-current operating lease liabilities | 11,805 |
Total lease liabilities | $ 18,569 |
Operating Leases (Supplemental
Operating Leases (Supplemental Lease Information) (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Operating Leases [Abstract] | |
Operating lease cost | $ 2,166 |
Total lease cost | 2,166 |
Operating cash flows used by operating leases | 2,188 |
ROU assets obtained in exchange for new operating lease obligations | $ 615 |
Weighted average remaining lease term-operating lease | 4 years 15 days |
Weighted average discount rate-operating leases | 3.78% |
Operating Leases (Maturity Anal
Operating Leases (Maturity Analysis For Operating Lease Liabilities) (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Operating Leases [Abstract] | |
Remainder of 2019 | $ 5,752 |
2020 | 6,065 |
2021 | 3,703 |
2022 | 1,692 |
2023 | 1,584 |
Thereafter | 2,610 |
Total | 21,406 |
Less: imputed interest | (2,837) |
Total lease liabilities | $ 18,569 |
Operating Leases (Schedule Of F
Operating Leases (Schedule Of Future Commitments Under Operating Leases) (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Operating Leases [Abstract] | |
2019 | $ 9,155 |
2020 | 6,146 |
2021 | 3,825 |
2022 | 1,962 |
2023 | 1,464 |
Thereafter | 2,514 |
Total | $ 25,066 |
Fair Value Measures (Narrative)
Fair Value Measures (Narrative) (Details) - USD ($) | Mar. 30, 2019 | Dec. 29, 2018 |
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) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net investment hedge included in prepaid expenses and other current assets | $ 674 | |
Foreign currency contracts included in prepaid expenses and other current assets | 208 | |
Foreign currency contracts included in other current liabilities | $ (309) | |
Total financial assets and liabilities | 142,002 | 129,140 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets and liabilities | 141,120 | 129,449 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net investment hedge included in prepaid expenses and other current assets | 674 | |
Foreign currency contracts included in prepaid expenses and other current assets | 208 | |
Foreign currency contracts included in other current liabilities | (309) | |
Total financial assets and liabilities | 882 | (309) |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 141,120 | 129,449 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 141,120 | $ 129,449 |
Investments (Schedule Of Held-T
Investments (Schedule Of Held-To-Maturity Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Dec. 29, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 26,854 | $ 63,539 |
Unrecognized Holding Gains | 5 | 1 |
Unrecognized Holding Losses | (3) | (46) |
Estimated Fair Value | $ 26,856 | 63,494 |
Held-to-maturity securities maturity period | 1 year | |
Corporate Bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 26,854 | 57,554 |
Unrecognized Holding Gains | 5 | 1 |
Unrecognized Holding Losses | (3) | (46) |
Estimated Fair Value | $ 26,856 | 57,509 |
Commercial Paper [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,985 | |
Estimated Fair Value | $ 5,985 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Inventories [Abstract] | ||
Raw materials | $ 22,336 | $ 19,502 |
Work in progress | 11,755 | 14,485 |
Finished goods | 52,374 | 47,961 |
Inventories | $ 86,465 | $ 81,948 |
Revenue And Recognition (Schedu
Revenue And Recognition (Schedule Of Contract Liabilities From Contract With Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 29, 2018 | |
Revenue And Contract Liabilities [Abstract] | ||
Contract liabilities at beginning of period | $ 15,055 | $ 14,417 |
Increase due to deferral of revenue at period end | 14,191 | 15,055 |
Decrease due to beginning contract liabilities recognized as revenue | (14,291) | (14,417) |
Contract liabilities at end of period | $ 14,955 | $ 15,055 |
Line Of Credit (Narrative) (Det
Line Of Credit (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2019 | Dec. 29, 2018 | Feb. 19, 2016 | |
Line of Credit Facility [Line Items] | |||
Credit facility | $ 75,000,000 | ||
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Reduction in available borrowing limit | 6,001,000 | $ 6,619,000 | |
Outstanding debt | $ 0 | $ 0 | |
Maturity date | Apr. 27, 2021 | ||
Amended And Restated Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Adjusted EBITDA covenant | $ 100,000,000 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2019 | Dec. 29, 2018 | |
Derivative Financial Instruments [Abstract] | ||
Derivative outstanding | $ 0 | |
Notional amount | $ 110,000,000 | |
Derivative gain | $ 986,000 |
Common Stock And Earnings Per_3
Common Stock And Earnings Per Share (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 30, 2019 | |
Common Stock And Earnings Per Share [Line Items] | |||
Shares repurchased and retired | 284 | 39 | |
Repurchase of common stock | $ 30,000 | $ 2,943 | |
Remaining approved repurchase amount | $ 40,216 | ||
Subsequent Event [Member] | |||
Common Stock And Earnings Per Share [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 150,000 |
Common Stock And Earnings Per_4
Common Stock And Earnings Per Share (Schedule Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Common Stock And Earnings Per Share [Abstract] | ||
Net earnings available to common shareholders | $ 24,172 | $ 28,946 |
Weighted average common shares outstanding - basic | 23,484 | 24,074 |
Dilutive effect of in-the-money equity awards | 443 | 199 |
Weighted average common shares outstanding - diluted | 23,927 | 24,273 |
Earnings per common share from net earnings - basic | $ 1.03 | $ 1.20 |
Earnings per common share from net earnings - diluted | $ 1.01 | $ 1.19 |
Common Stock And Earnings Per_5
Common Stock And Earnings Per Share (Schedule Of Shares Not Included In The Computation Of Diluted EPS) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Common Stock And Earnings Per Share [Abstract] | ||
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: | 105 | 1,802 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 30, 2019itemsegment | |
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 | |
Mar. 30, 2019 | Mar. 31, 2018 | |
USANA Nutritionals [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of product revenue | 84.00% | 83.00% |
USANA Foods [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of product revenue | 8.00% | 8.00% |
Sense - Beautiful Science [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of product revenue | 1.00% | 4.00% |
Celavive [Member] | ||
Revenue from External Customer [Line Items] | ||
Percentage of product revenue | 6.00% | 4.00% |
Segment Information (Schedule_2
Segment Information (Schedule Of Revenues From External Customers By Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Sales to External Customers | $ 272,990 | $ 291,998 |
Greater China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Sales to External Customers | 144,153 | 157,808 |
Southeast Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Sales to External Customers | 54,515 | 56,228 |
North Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Sales to External Customers | 22,228 | 18,084 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Sales to External Customers | 220,896 | 232,120 |
Americas And Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Sales to External Customers | $ 52,094 | $ 59,878 |
Segment Information (Consolidat
Segment Information (Consolidated Net Sales And Long Lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 272,990 | $ 291,998 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 127,372 | 140,592 |
Long-lived assets | 95,386 | 89,509 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 49,875 | $ 49,195 |
Uncategorized Items - usna-2019
Label | Element | Value |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 330,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 3,182,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 2,980,000 |