Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'NU SKIN ENTERPRISES INC | ' | ' |
Entity Central Index Key | '0001021561 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $3.50 |
Entity Common Stock, Shares Outstanding | ' | 58,800,356 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $525,153 | $320,025 |
Current investments | 21,974 | 13,378 |
Accounts receivable | 68,652 | 36,850 |
Inventories, net | 339,669 | 135,874 |
Prepaid expenses and other | 162,886 | 82,476 |
Total Current Assets | 1,118,334 | 588,603 |
Property and equipment, net | 396,042 | 229,787 |
Goodwill | 112,446 | 112,446 |
Other intangible assets, net | 83,168 | 92,518 |
Other assets | 111,072 | 101,453 |
Total assets | 1,821,062 | 1,124,807 |
Current liabilities | ' | ' |
Accounts payable | 82,684 | 47,882 |
Accrued expenses | 626,284 | 233,202 |
Current portion of long-term debt | 67,824 | 39,019 |
Total Current Liabilities | 776,792 | 320,103 |
Long-term debt | 113,852 | 154,963 |
Other liabilities | 71,799 | 59,129 |
Total liabilities | 962,443 | 534,195 |
Commitments and contingencies (Notes 10 and 20) | ' | ' |
Stockholders' equity | ' | ' |
Class A common stock - 500 million shares authorized, $.001 par value, 90.6 million shares issued | 91 | 91 |
Additional paid-in capital | 397,383 | 317,293 |
Treasury stock, at cost - 28.3 and 31.8 million shares | -826,904 | -714,853 |
Accumulated other comprehensive loss | -46,228 | -51,822 |
Retained earnings | 1,334,277 | 1,039,903 |
Total stockholders' equity | 858,619 | 590,612 |
Total liabilities and stockholders' equity | $1,821,062 | $1,124,807 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Stockholders' equity: | ' | ' |
Common stock - authorized (in shares) | 500 | 500 |
Common stock - par value (in dollars per share) | $0.00 | $0.00 |
Common stock - issued (in shares) | 90.6 | 90.6 |
Treasury stock, at cost (in shares) | 31.6 | 32.2 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Income [Abstract] | ' | ' | ' |
Revenue | $3,176,718 | $2,132,257 | $1,719,588 |
Cost of sales | 505,806 | 353,152 | 322,624 |
Gross profit | 2,670,912 | 1,779,105 | 1,396,964 |
Operating expenses: | ' | ' | ' |
Selling expenses | 1,476,772 | 932,812 | 727,045 |
General and administrative expenses | 640,028 | 505,449 | 436,177 |
Total operating expenses | 2,116,800 | 1,438,261 | 1,163,222 |
Operating income | 554,112 | 340,844 | 233,742 |
Other income (expense), net (Note 23) | 2,828 | 4,398 | -6,973 |
Income before provision for income taxes | 556,940 | 345,242 | 226,769 |
Provision for income taxes | 192,052 | 123,597 | 73,439 |
Net income | $364,888 | $221,645 | $153,330 |
Net income per share: | ' | ' | ' |
Basic (in dollars per share) | $6.23 | $3.66 | $2.47 |
Diluted (in dollars per share) | $5.94 | $3.52 | $2.38 |
Weighted-average common shares outstanding (000s): | ' | ' | ' |
Basic (in shares) | 58,606 | 60,600 | 62,066 |
Diluted (in shares) | 61,448 | 63,025 | 64,546 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $364,888 | $221,645 | $153,330 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Foreign currency translation adjustment | 6,251 | 7,843 | -2,985 |
Net unrealized gains/(losses) on foreign currency cash flow hedges | 2,650 | 3,299 | -1,954 |
Less: Reclassification adjustment for realized losses (gains) in current earnings | -3,307 | -399 | 913 |
Total | 5,594 | 10,743 | -4,026 |
Comprehensive Income | $370,482 | $232,388 | $149,304 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholder's Equity and Comprehensive Income (USD $) | Common Class A [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
In Thousands, unless otherwise specified | ||||||
Balance at beginning of period at Dec. 31, 2010 | $91 | $256,505 | ($476,748) | ($58,539) | $749,940 | $471,249 |
Stockholders' equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 0 | 153,330 | 153,330 |
Other comprehensive income, net of tax | 0 | 0 | 0 | -4,026 | 0 | -4,026 |
Repurchase of Class A common stock (Note 11) | 0 | 0 | -67,149 | 0 | 0 | -67,149 |
Exercise of employee stock options | 0 | 7,978 | 21,735 | 0 | 0 | 29,713 |
Excess tax benefit from equity awards | 0 | 12,657 | 0 | 0 | 0 | 12,657 |
Stock-based compensation | 0 | 15,100 | 0 | 0 | 0 | 15,100 |
Cash dividends | 0 | 0 | 0 | 0 | -36,638 | -36,638 |
Balance at end of period at Dec. 31, 2011 | 91 | 292,240 | -522,162 | -62,565 | 866,632 | 574,236 |
Stockholders' equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 0 | 221,645 | 221,645 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 10,743 | 0 | 10,743 |
Repurchase of Class A common stock (Note 11) | 0 | 0 | -201,471 | 0 | 0 | -201,471 |
Exercise of employee stock options | 0 | -4,214 | 8,780 | 0 | 0 | 4,566 |
Excess tax benefit from equity awards | 0 | 7,909 | 0 | 0 | 0 | 7,909 |
Stock-based compensation | 0 | 21,358 | 0 | 0 | 0 | 21,358 |
Cash dividends | 0 | 0 | 0 | 0 | -48,374 | -48,374 |
Balance at end of period at Dec. 31, 2012 | 91 | 317,293 | -714,853 | -51,822 | 1,039,903 | 590,612 |
Stockholders' equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 0 | 364,888 | 364,888 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 5,594 | 0 | 5,594 |
Repurchase of Class A common stock (Note 11) | 0 | 0 | -140,865 | 0 | 0 | -140,865 |
Exercise of employee stock options | 0 | 5,556 | 28,814 | 0 | 0 | 34,370 |
Excess tax benefit from equity awards | 0 | 41,914 | 0 | 0 | 0 | 41,914 |
Stock-based compensation | 0 | 32,620 | 0 | 0 | 0 | 32,620 |
Cash dividends | 0 | 0 | 0 | 0 | -70,514 | -70,514 |
Balance at end of period at Dec. 31, 2013 | $91 | $397,383 | ($826,904) | ($46,228) | $1,334,277 | $858,619 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholder's Equity (Parenthetical) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stockholders' equity [Roll Forward] | ' | ' | ' |
Employee stock options (in shares) | 2.2 | 0.8 | 2.1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $364,888 | $221,645 | $153,330 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 34,923 | 33,412 | 32,850 |
Japan customs expense | 0 | 0 | 32,754 |
Foreign currency (gains)/losses | -1,077 | -3,874 | 4,162 |
Stock-based compensation | 32,620 | 21,358 | 15,450 |
Deferred taxes | -41,748 | 4,692 | 108 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -34,304 | -7,884 | -5,890 |
Inventories, net | -207,436 | -22,605 | 2,415 |
Prepaid expenses and other | -23,317 | -2,358 | -4,690 |
Other assets | -22,619 | -11,579 | -16,809 |
Accounts payable | 32,643 | 15,831 | 6,077 |
Accrued expenses | 389,093 | 62,056 | 1,624 |
Other liabilities | 6,510 | 282 | 2,934 |
Net cash provided by operating activities | 530,176 | 310,976 | 224,315 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -185,103 | -96,645 | -41,809 |
Proceeds on investment sales | 13,075 | 20,086 | 6,634 |
Purchases of investments | -21,671 | -15,737 | -24,361 |
Acquisitions (Note 24)) | 0 | -12,562 | -11,663 |
Net cash used in investing activities | -193,699 | -104,858 | -71,199 |
Cash flows from financing activities: | ' | ' | ' |
Payment of cash dividends | -70,514 | -48,374 | -36,638 |
Repurchase of shares of common stock | -140,865 | -201,471 | -67,149 |
Exercise of distributor and employee stock options | 34,370 | 4,565 | 29,713 |
Income tax benefit of options exercised | 45,187 | 7,750 | 12,059 |
Payments on long-term debt | -37,903 | -28,279 | -28,001 |
Related party payment | 0 | 0 | -16,995 |
Proceeds from long-term debt | 49,000 | 101,922 | 0 |
Net cash used in financing activities | -120,725 | -163,887 | -107,011 |
Effect of exchange rate changes on cash | -10,624 | 4,820 | -3,468 |
Net increase in cash and cash equivalents | 205,128 | 47,051 | 42,637 |
Cash and cash equivalents, beginning of period | 320,025 | 272,974 | 230,337 |
Cash and cash equivalents, end of period | $525,153 | $320,025 | $272,974 |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2013 | |
The Company [Abstract] | ' |
The Company | ' |
Nu Skin Enterprises, Inc. (the "Company") is a leading, global direct selling company that develops and distributes premium-quality, innovative personal care products and nutritional supplements that are sold worldwide under the Nu Skin and Pharmanex brands and a small number of other products and services. Over the last five years, the Company has introduced new Pharmanex nutritional supplements and Nu Skin personal care products under its ageLOC anti-aging brand. The Company reports revenue from five geographic regions: Greater China, which consists of Mainland China, Hong Kong, Macau and Taiwan; North Asia, which consists of Japan and South Korea; South Asia/Pacific, which consists of Australia, Brunei, French Polynesia, Indonesia, Malaysia, New Caledonia, New Zealand, the Philippines, Singapore, Thailand and Vietnam; Americas, which consists of the United States, Canada and Latin America; and EMEA, which consists of several markets in Europe as well as Israel, Russia and South Africa (the Company's subsidiaries operating in these countries are collectively referred to as the "Subsidiaries"). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||
Consolidation | |||||||||||||
The consolidated financial statements include the accounts of the Company and the Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. | |||||||||||||
Use of estimates | |||||||||||||
The preparation of these financial statements, in conformity with accounting principles generally accepted in the United States of America, required management to make estimates and assumptions that affected the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates. | |||||||||||||
Revisions | |||||||||||||
Certain amounts applicable to the prior periods have been revised to correct certain classification errors in prior years. Specifically, the presentation of the Company's consolidated balance sheets for the year ended December 31, 2012, was revised to decrease short-term deferred tax assets by $10.8 million, long-term deferred tax assets by $17.3 million and long-term deferred tax liabilities by $28.1 million. The revision had no effect on the results of operations (net or comprehensive income), financial condition (stockholders' equity), or cash flows in any period presented or in any previously issued financial statements. | |||||||||||||
Additionally, the presentation of the Company's consolidated statements of income for the years ended December 31, 2011 and 2012, was revised to reduce selling expense and revenue by $24.4 million and $37.4 million related to an error in the classification of selling rebates. The revision had no effect on the operating income, net income or comprehensive income, the consolidated balance sheet or cash flows in any period presented or in any previously issued financial statements. | |||||||||||||
These revisions were not considered to be material, individually or in the aggregate, to the previously issued financial statements. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Cash and cash equivalents | |||||||||||||
Cash equivalents are short-term, highly liquid instruments with original maturities of 90 days or less. | |||||||||||||
Inventories | |||||||||||||
Inventories consist primarily of merchandise purchased for resale and are stated at the lower of cost or market, using the first-in, first-out method. The Company had adjustments to its inventory carry value totaling $5.5 million and $5.9 million as of December 31, 2012 and 2013, respectively. | |||||||||||||
Inventories consist of the following (U.S. dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Raw materials | $ | 32,332 | $ | 117,982 | |||||||||
Finished goods | 103,542 | 221,687 | |||||||||||
$ | 135,874 | $ | 339,669 | ||||||||||
Property and equipment | |||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives: | |||||||||||||
Buildings | 39 years | ||||||||||||
Furniture and fixtures | 5 - 7 years | ||||||||||||
Computers and equipment | 3 - 5 years | ||||||||||||
Leasehold improvements | Shorter of estimated useful life or lease term | ||||||||||||
Scanners | 3 years | ||||||||||||
Vehicles | 3 - 5 years | ||||||||||||
Expenditures for maintenance and repairs are charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of income. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. | |||||||||||||
Goodwill and other intangible assets | |||||||||||||
Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized, but are assessed for impairment annually. In addition, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Guidance under Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other, requires an entity to test goodwill for impairment on at least an annual basis. Beginning in 2011, the Company had the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If under the quantitative assessment the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, must be measured. The Company used the quantitative assessment for all periods presented. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives using the straight-line method and reviewed for impairment whenever events or circumstances warrant such a review. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
No impairment charges were recorded for goodwill or intangibles during the periods presented. | |||||||||||||
Revenue recognition | |||||||||||||
Revenue is recognized when products are shipped, which is when title and risk of loss pass to the purchaser of the products. A reserve for product returns is accrued based on historical experience totaling $6.2 million and $11.0 million as of December 31, 2012 and 2013, respectively. During the years ended December 31, 2011, 2012 and 2013, the Company recorded sales returns of $56.5 million, $56.1 million and $79.4 million, respectively. The Company generally requires cash or credit card payment at the point of sale. Accounts receivable generally represents amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that no allowance for doubtful accounts is necessary. Amounts received prior to shipment of products and title passage to the purchaser of the products are recorded as deferred revenue. The Company's sales compensation plans generally do not provide rebates or selling discounts for purchasing its products and services. The Company classifies selling discounts and rebates, if any, as a reduction of revenue at the time the sale is recorded. | |||||||||||||
Through the Company's product subscription and loyalty programs, which can vary from market to market, participants who commit to purchases on a monthly basis receive a discount from suggested retail or wholesale prices, as applicable. The Company applies this discount at the time of each purchase and not through a larger discount on the initial purchase. Participants may cancel their commitment at any time, however some markets charge a one-time early cancellation fee. All purchases under these programs are subject to the Company's standard product payment and return policies. In accordance with ASC 605-50, the Company classifies selling discounts and rebates, as a reduction of revenue at the time the sale is recorded. | |||||||||||||
Advertising expenses | |||||||||||||
Advertising costs are expensed as incurred. Advertising expense incurred for the years ended December 31, 2011, 2012 and 2013 totaled approximately $2.3 million, $5.1 million and $11.3 million, respectively. | |||||||||||||
Selling expenses | |||||||||||||
Selling expenses are the Company's most significant expense and are classified as operating expenses. Selling expenses include distributor commissions as well as wages, benefits, bonuses and other labor and unemployment expenses the Company pays to its sales force in Mainland China. In each of the Company's markets, except Mainland China, sales leaders can earn "multi-level" compensation under the Company's global sales compensation plan, including commissions for product sales to their consumer groups as well as the product sales made through the sales network they have developed and trained. The Company does not pay commissions on sales materials, which are sold to its sales force at or near cost. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Outside of Mainland China, the Company's distributors may make profits by purchasing the products from the Company at a discount and selling them to consumers with a mark-up. The Company does not account for nor pay additional commissions on these mark-ups received by distributors. In many markets, the Company also allows individuals who are not members of its sales force, referred to as "preferred customers," to buy products directly from the Company at a discount. The Company pays commissions on preferred customer purchases to the referring member of its sales force. | |||||||||||||
Research and development | |||||||||||||
Research and development costs are included in general and administrative expenses in the accompanying consolidated statements of income and are expensed as incurred and totaled $13.6 million, $14.9 million and $18.0 million in 2011, 2012 and 2013, respectively. | |||||||||||||
Deferred tax assets and liabilities | |||||||||||||
The Company accounts for income taxes in accordance with the Income Taxes Topic of the Financial Accounting Standards Codification. These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise's activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. In 2013, the Company entered into a closing agreement with the United States Internal Revenue Service (the "IRS") for all adjustments for the 2009 and 2010 tax years. As a result of entering into the closing agreement, the Company is no longer subject to tax examinations from the IRS for all years for which tax returns have been filed except for 2011. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2008. In 2009, the Company entered into a voluntary program with the IRS called Compliance Assurance Process ("CAP"). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company has elected to participate in the CAP program for 2014 and may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. In major foreign jurisdictions, the Company is no longer subject to income tax examinations for years before 2007. Along with the IRS examination of 2011, the Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits included in other liabilities is as follows (U.S. dollars in thousands): | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Gross balance at January 1 | $ | 14,821 | $ | 7,387 | $ | 9,045 | |||||||
Decreases related to prior year tax positions | (7,138 | ) | - | - | |||||||||
Increases related to current year tax positions | 1,415 | 2,430 | 1,188 | ||||||||||
Settlements | (499 | ) | - | (1,671 | ) | ||||||||
Decreases due to lapse of statutes of limitations | (1,255 | ) | (854 | ) | (1,086 | ) | |||||||
Currency adjustments | 43 | 82 | 8 | ||||||||||
Gross balance at December 31 | $ | 7,387 | $ | 9,045 | $ | 7,484 | |||||||
At December 31, 2013, the Company had $7.5 million in unrecognized tax benefits of which $2.1 million, if recognized, would affect the effective tax rate. In comparison, at December 31, 2012, the Company had $9.0 million in unrecognized tax benefits of which $3.8 million, if recognized, would affect the effective tax rate. The Company's unrecognized tax benefits relate to multiple foreign and domestic jurisdictions. Due to potential increases in unrecognized tax benefits from the multiple jurisdictions in which the Company operates, as well as the expiration of various statutes of limitation, it is reasonably possible that the Company's gross unrecognized tax benefits, net of foreign currency adjustments, may decrease within the next 12 months by a range of approximately $2 to $3 million. | |||||||||||||
During each of the years ended December 31, 2011, 2012 and 2013, the Company recognized approximately ($0.8) million, $0.3 million and ($0.1) million, respectively in interest and penalties expenses/(benefits). The Company had approximately $0.8 million, $1.1 million and $0.9 million of accrued interest and penalties related to uncertain tax positions at December 31, 2011, 2012 and 2013, respectively. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | |||||||||||||
Net income per share | |||||||||||||
Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented (Note 10). | |||||||||||||
Foreign currency translation | |||||||||||||
A significant portion of the Company's business operations occur outside of the United States. The local currency of each of the Company's Subsidiaries is considered its functional currency, except for NSEAP in Singapore where the U.S. dollar is used. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders' equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders' equity in the consolidated balance sheets and transaction gains and losses are included in other income and expense in the consolidated financial statements. Net of tax the accumulated other comprehensive income related to the foreign currency translation adjustments are $61.5 million, $54.7 million and $47.6 million at December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Classification of Venezuela as a Highly Inflationary Economy and Devaluation of Its Currency | |||||||||||||
Since January 1, 2010, Venezuela has been designated as a highly inflationary economy. Highly inflationary accounting requires all gains and losses resulting from the re-measurement of its financial statements to be determined using official rates. | |||||||||||||
Currency exchange restrictions enacted by the government of Venezuela require approval from the government's currency control agency organization in order for the Company's subsidiary in Venezuela to obtain U.S. dollars at the official exchange rate to pay for imported products or to repatriate dividends back to the Company. The government of Venezuela enacted additional currency exchange restrictions, which effectively replaced the market rate with the System for Foreign Currency Denominated Securities ("SITME"), which is administered by the Venezuela Central Bank. Under SITME, entities domiciled in Venezuela can obtain U.S. dollar denominated securities in limited quantities each month through banking institutions approved by the government. | |||||||||||||
As of December 31, 2013, the Company had approximately $34.0 million of cash in Venezuela, which is subject to the currency exchange restrictions by the government of Venezuela.At this time, the Company is not able to reasonably estimate the future state of exchange controls in Venezuela and its availability of U.S. dollars at the official exchange rate or at the SITME rate. On February 12, 2013, the Venezuelan government announced the devaluation of the bolivar official rate to 6.3. | |||||||||||||
During 2011, 2012 and 2013, the Company's Venezuelan subsidiary's net sales revenue represented approximately 0.3%, 0.7% and 1.1% of consolidated net sales revenue, respectively. The Company's Venezuelan subsidiary held total assets of $15.6 million and $38.8 million (which includes intercompany receivables denominated in U.S. dollars of $15.6 million and $37.9 million) at December 31, 2012 and 2013, respectively. | |||||||||||||
Fair value of financial instruments | |||||||||||||
The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair values due to the short-term nature of these instruments. The Company's current investments as of December 31, 2013 include certificates of deposits and pre-refunded municipal bonds that are classified by management as held-to-maturity as the Company had the positive intent and ability to hold to maturity. The carrying value of these current investments approximate fair values due to the short-term nature of these instruments. As of December 31, 2012 and 2013, the long-term debt fair value is $199.5 million and $188.3 million, respectively. The estimated fair value of the Company's debt is based on interest rates available for debt with similar terms and remaining maturities. The Company has classified these instruments as Level 2 in the fair value hierarchy. Fair value estimates are made at a specific point in time, based on relevant market information. | |||||||||||||
The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
▪ Level 1 – quoted prices in active markets for identical assets or liabilities; | |||||||||||||
▪ Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; | |||||||||||||
▪ Level 3 – unobservable inputs based on the Company's own assumptions. | |||||||||||||
Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. | |||||||||||||
Stock-based compensation | |||||||||||||
All share-based payments, including grants of stock options and restricted stock units, are required to be recognized in our financial statements based upon their respective grant date fair values. The Black-Scholes option pricing model is used to estimate the fair value of stock options. The determination of the fair value of stock options is affected by our stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. We use historical volatility as the expected volatility assumption required in the Black-Scholes model. The expected life of the stock options is based on historical data trended into the future. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our stock options. The fair value of our restricted stock units is based on the closing market price of our stock on the date of grant less our expected dividend yield. We recognize stock-based compensation net of any estimated forfeitures over the requisite service period of the award. | |||||||||||||
The total compensation expense related to equity compensation plans was approximately $15.5 million, $21.4 million and $32.6 million for the years ended December 31, 2011, 2012 and 2013. For the years ended December 31, 2011, 2012 and 2013, all stock-based compensation expense was recorded within general and administrative expenses. | |||||||||||||
Reporting comprehensive income | |||||||||||||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and it includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. | |||||||||||||
Accounting for derivative instruments and hedging activities | |||||||||||||
The Company recognizes all derivatives as either assets or liabilities, with the instruments measured at fair value. | |||||||||||||
The Company manages foreign exchange risk in certain jurisdictions through the use of foreign currency debt. Portions of the Company's Japanese yen borrowings have been designated, and are effective, as economic hedges of the net investment in its foreign operations. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on these debt instruments are included in foreign currency translation adjustment within other comprehensive income. Included in the cumulative translation adjustment are $0.9 million of pretax net losses, $7.3 million of pretax net gains and $10.5 million of pretax net losses for the years ended December 31, 2011, 2012 and 2013, respectively from Japanese yen borrowings. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Additionally, the Company's Subsidiaries enter into significant transactions with each other and third parties that may not be denominated in the respective Subsidiaries' functional currencies. The Company regularly monitors its foreign currency risks and seeks to reduce its exposure to fluctuations in foreign exchange rates using foreign currency exchange contracts and through certain intercompany loans of foreign currency. | |||||||||||||
Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting treatment. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations currently. In the event that an anticipated transaction is no longer likely to occur, the Company recognizes the change in fair value of the derivative in its results of operations currently. | |||||||||||||
Changes in the fair value of derivatives are recorded in current earnings or accumulated other comprehensive loss, depending on the intended use of the derivative and its resulting designation. The gains and losses in accumulated other comprehensive loss stemming from these derivatives will be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. The fair value of the receivable and payable amounts related to these unrealized gains and losses is classified as other current assets and liabilities. The Company does not use such derivative financial instruments for trading or speculative purposes. Gains and losses on certain intercompany loans of foreign currency are recorded as other income and expense in the consolidated statements of income. | |||||||||||||
Recent accounting pronouncements | |||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This pronouncement was issued to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (i.e. inventory) instead of directly to income or expense in the same reporting period. This pronouncement is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force). This ASU addresses when unrecognized tax benefits should be presented as reductions to deferred tax assets for net operating loss carryforwards in the financial statements. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Company did not early adopt and does not anticipate the adoption of ASU 2013-11 to have a material impact to the consolidated financial position, results of operations or cash flows. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Prepaid_Expenses_and_Other
Prepaid Expenses and Other | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepaid Expenses and Other [Abstract] | ' | ||||||||
Prepaid Expenses and Other | ' | ||||||||
3. Prepaid Expenses and Other | |||||||||
Prepaid expenses and other consist of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Deferred tax assets | $ | 25,420 | $ | 75,979 | |||||
Intercompany deferred charges | 4,255 | 12,585 | |||||||
Prepaid income taxes | 14,752 | - | |||||||
Prepaid inventory | 6,586 | 41,350 | |||||||
Prepaid rent and insurance | 4,428 | 6,576 | |||||||
Prepaid other taxes and duties | 3,851 | 5,745 | |||||||
Forward contracts | 2,968 | 1,939 | |||||||
Deposits | 6,584 | 7,459 | |||||||
Other | 13,632 | 11,253 | |||||||
$ | 82,476 | $ | 162,886 | ||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
4. Property and Equipment | |||||||||
Property and equipment are comprised of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Land | $ | 30,411 | $ | 34,442 | |||||
Buildings | 38,723 | 156,734 | |||||||
Construction in progress | 85,584 | 78,556 | |||||||
Furniture and fixtures | 49,062 | 56,160 | |||||||
Computers and equipment | 99,804 | 115,551 | |||||||
Leasehold improvements | 49,027 | 87,635 | |||||||
Scanners | 17,290 | 18,408 | |||||||
Vehicles | 2,229 | 2,226 | |||||||
372,130 | 549,712 | ||||||||
Less: accumulated depreciation | (142,343 | ) | (153,670 | ) | |||||
$ | 229,787 | $ | 396,042 | ||||||
Depreciation of property and equipment totaled $25.7 million, $25.5 million and $27.1 million for the years ended December 31, 2011, 2012 and 2013. | |||||||||
TABLE OF CONTENTS | |||||||||
NU SKIN ENTERPRISES, INC. | |||||||||
Notes to Consolidated Financial Statements | |||||||||
5. Goodwill and Other Intangible Assets |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ' | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||
Goodwill and other intangible assets consist of the following (U.S. dollars in thousands): | ||||||||||||||||||
Carrying Amount at | ||||||||||||||||||
December 31, | ||||||||||||||||||
Goodwill and indefinite life intangible assets: | 2012 | 2013 | ||||||||||||||||
Goodwill | $ | 112,446 | $ | 112,446 | ||||||||||||||
Trademarks and trade names | 24,599 | 24,599 | ||||||||||||||||
$ | 137,045 | $ | 137,045 | |||||||||||||||
31-Dec-12 | 31-Dec-13 | |||||||||||||||||
Finite life intangible assets: | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Weighted-average Amortization Period | |||||||||||||
Scanner technology | $ | 46,482 | $ | 24,490 | $ | 46,482 | $ | 27,533 | 18 years | |||||||||
Developed technology | 22,500 | 15,085 | 22,500 | 15,909 | 20 years | |||||||||||||
Distributor network | 11,598 | 9,591 | 11,598 | 10,093 | 15 years | |||||||||||||
Trademarks | 13,784 | 10,925 | 14,086 | 11,660 | 15 years | |||||||||||||
Other | 55,416 | 21,770 | 53,540 | 24,442 | 8 years | |||||||||||||
$ | 149,780 | $ | 81,861 | $ | 148,206 | $ | 89,637 | 15 years | ||||||||||
Amortization of finite-life intangible assets totaled $7.1 million, $7.9 million and $7.8 million for the years ended December 31, 2011, 2012 and 2013, respectively. Annual estimated amortization expense is expected to approximate $7.0 million for each of the five succeeding fiscal years. | ||||||||||||||||||
All of the Company's goodwill is based in the U.S. Goodwill and indefinite life intangible assets are not amortized, rather they are subject to annual impairment tests. Annual impairment tests were completed resulting in no impairment charges for any of the periods shown. Finite life intangibles are amortized over their useful lives unless circumstances occur that cause the Company to revise such lives or review such assets for impairment. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
6. Other Assets | |||||||||
Other assets consist of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Deferred taxes | $ | 9,002 | $ | 5,174 | |||||
Deposits for noncancelable operating leases | 15,189 | 24,406 | |||||||
Deposit for customs assessment (Note 19) | 46,653 | 40,181 | |||||||
Cash surrender value for life insurance policies | 18,605 | 23,172 | |||||||
Other | 12,004 | 18,139 | |||||||
$ | 101,453 | $ | 111,072 | ||||||
TABLE OF CONTENTS | |||||||||
NU SKIN ENTERPRISES, INC. | |||||||||
Notes to Consolidated Financial Statements | |||||||||
7. Accrued Expenses |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued sales force commissions and other payments | $ | 110,950 | $ | 330,870 | |||||
Other taxes payable | 23,558 | 109,829 | |||||||
Accrued payroll and payroll taxes | 21,381 | 38,243 | |||||||
Accrued payable to vendors | 6,717 | 42,447 | |||||||
Deferred revenue | 4,608 | 13,596 | |||||||
Other accrued employee expenses | 30,285 | 30,452 | |||||||
Other | 35,703 | 60,847 | |||||||
$ | 233,202 | $ | 626,284 | ||||||
8. Long-Term Debt |
Long_Term_Debt
Long Term Debt | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Long Term Debt [Abstract] | ' | |||||||||||||
Long Term Debt | ' | |||||||||||||
The Company currently has debt pursuant to various credit facilities and other borrowings. The Company's book value for both the individual and consolidated debt included in the table below approximates fair value. The estimated fair value of the Company's debt is based on interest rates available for debt with similar terms and remaining maturities. The Company has classified these instruments as Level 2 in the fair value hierarchy. The following tables summarize the Company's long-term debt arrangements as of December 31, 2013: | ||||||||||||||
Facility | Original | Balance as of | Balance as of | Interest | Repayment terms | |||||||||
or Arrangement(1) | Principal Amount | 31-Dec-12 | December 31, 2013(1) | Rate | ||||||||||
Multi-currency uncommitted | ||||||||||||||
shelf facility: | ||||||||||||||
U.S. dollar denominated: | $40.0 million | $22.9 million | $17.1 million | 6.20% | Notes due July 2016 with annual principal payments that began in July 2010. | |||||||||
$20.0 million | $14.3 million | $11.4 million | 6.20% | Notes due January 2017 with annual principal payments that began in January 2011. | ||||||||||
Japanese yen denominated: | 3.1 billion yen | 0.9 billion yen ($10.2 million as of December 31, 2012) | 0.4 billion yen ($4.1 million as of December 31, 2013) | 1.70% | Notes due April 2014 with annual principal payments that began in April 2008. | |||||||||
2.3 billion yen | 1.6 billion yen ($18.7 million as of December 31, 2012) | 1.3 billion yen ($12.3 million as of December 31, 2013) | 2.60% | Notes due September 2017 with annual principal payments that began in September 2011. | ||||||||||
2.2 billion yen | 1.6 billion yen ($17.9 million as of December 31, 2012) | 1.2 billion yen ($11.8 million as of December 31, 2013) | 3.30% | Notes due January 2017 with annual principal payments that began in January 2011. | ||||||||||
8.0 billion yen | 8.0 billion yen ($92.0 million as of December 31, 2012) | 8.0 billion yen ($75.8 million as of December 31, 2013) | 1.70% | Notes due May 2022 with annual principal payments that begin in May 2016. | ||||||||||
Committed loan: | ||||||||||||||
U.S. dollar denominated: | $30.0 million | $18.0 million | $0 | N/A | N/A | |||||||||
Revolving credit facilities | ||||||||||||||
2010 | $35.0 million | N/A | $35.0 million | Variable 30 day: | Revolving line of credit | |||||||||
0.67% | ||||||||||||||
2013(2) | $14.0 million | N/A | $14.0 million | Variable 30 day: | Revolving line of credit | |||||||||
0.59% | ||||||||||||||
-1 | The current portion of the Company's long-term debt (i.e. becoming due in the next 12 months) includes $10.2 million of the balance of its Japanese yen-denominated debt under the multi-currency uncommitted shelf facility, $8.6 million of the balance on its U.S. dollar denominated debt under the multi-currency uncommitted shelf facility and $49.0 million of the Company's revolving loans. | |||||||||||||
-2 | On September 5, 2013, the Company entered into a loan agreement with Bank of America, N.A. for a 364 day revolving line of credit with a commitment amount of $50.0 million. The interest rate is equal to 1 month LIBOR plus 42.5 basis points. | |||||||||||||
TABLE OF CONTENTS | ||||||||||||||
NU SKIN ENTERPRISES, INC. | ||||||||||||||
Notes to Consolidated Financial Statements | ||||||||||||||
Interest expense relating to debt totaled $4.8 million, $5.2 million and $3.0 million for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||||||||
The notes and shelf facility contain other terms and conditions and affirmative and negative financial covenants customary for credit facilities of this type, including a requirement to maintain a minimum cash balance of $65.0 million. As of December 31, 2013, the Company is in compliance with all financial covenants. | ||||||||||||||
Maturities of all long-term debt at December 31, 2013, based on the year-end exchange rate, are as follows (U.S. dollars in thousands): | ||||||||||||||
Year Ending December 31, | ||||||||||||||
2014 | $ | 67,824 | ||||||||||||
2015 | 14,592 | |||||||||||||
2016 | 25,419 | |||||||||||||
2017 | 19,705 | |||||||||||||
2018 | 10,827 | |||||||||||||
Thereafter | 43,309 | |||||||||||||
Total | $ | 181,676 | ||||||||||||
TABLE OF CONTENTS | ||||||||||||||
NU SKIN ENTERPRISES, INC. | ||||||||||||||
Notes to Consolidated Financial Statements | ||||||||||||||
9. Lease Obligations |
Lease_Obligations
Lease Obligations | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Lease Obligation [Abstract] | ' | ||||
Lease Obligation | ' | ||||
The Company leases office space and computer hardware under noncancelable long-term operating leases. Most leases include renewal options of at least three years. | |||||
Minimum future operating lease obligations at December 31, 2013 are as follows (U.S. dollars in thousands): | |||||
Year Ending December 31, | |||||
2014 | $ | 31,992 | |||
2015 | 28,183 | ||||
2016 | 21,157 | ||||
2017 | 15,303 | ||||
2018 | 12,878 | ||||
Thereafter | 1,440 | ||||
Total | $ | 110,953 | |||
Rental expense for operating leases totaled $25.8 million, $27.7 million and $34.6 million for the years ended December 31, 2011, 2012 and 2013, respectively. |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Capital Stock [Abstract] | ' | ||||||||||||
Capital Stock | ' | ||||||||||||
10. Capital Stock | |||||||||||||
The Company's authorized capital stock consists of 25 million shares of preferred stock, par value $.001 per share, 500 million shares of Class A common stock, par value $.001 per share, and 100 million shares of Class B common stock, par value $.001 per share. The shares of Class A common stock and Class B common stock are identical in all respects, except for voting rights and certain conversion rights and transfer restrictions, as follows: (1) each share of Class A common stock entitles the holder to one vote on matters submitted to a vote of the Company's stockholders and each share of Class B common stock entitles the holder to ten votes on each such matter; (2) stock dividends of Class A common stock may be paid only to holders of Class A common stock and stock dividends of Class B common stock may be paid only to holders of Class B common stock; (3) if a holder of Class B common stock transfers such shares to a person other than a permitted transferee, as defined in the Company's Certificate of Incorporation, such shares will be converted automatically into shares of Class A common stock; and (4) Class A common stock has no conversion rights; however, each share of Class B common stock is convertible into one share of Class A common stock, in whole or in part, at any time at the option of the holder. All outstanding Class B shares have been converted to Class A shares. As of December 31, 2012 and 2013, there were no preferred or Class B common shares outstanding. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Weighted-average common shares outstanding | |||||||||||||
The following is a reconciliation of the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Basic weighted-average common shares outstanding | 62,066 | 60,600 | 58,606 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock awards and options | 2,480 | 2,425 | 2,842 | ||||||||||
Diluted weighted-average common shares outstanding | 64,546 | 63,025 | 61,448 | ||||||||||
For the years ended December 31, 2011, 2012 and 2013, other stock options totaling none, 0.1 million and 1.2 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. | |||||||||||||
Repurchases of common stock | |||||||||||||
The board of directors has approved a stock repurchase program authorizing the Company to repurchase the Company's outstanding shares of Class A common stock on the open market or in private transactions. The repurchases are used primarily to offset dilution from the Company's equity incentive plans and for strategic initiatives. During the years ended December 31, 2011, 2012 and 2013, the Company repurchased approximately 1.9 million, 4.6 million and 1.7 million shares of Class A common stock for an aggregate price of approximately $67.1 million, $201.5 million and $140.9 million, respectively. In May 2012 and July 2013, the Company's board of directors authorized an increase of $250.0 million and $400.0 million, respectively, in the amount available under the Company's ongoing stock repurchase program. At December 31, 2013, $394.5 million was available for repurchases under the stock repurchase program. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock Based Compensation [Abstract] | ' | ||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||
11. Stock–Based Compensation | |||||||||||||||||
At December 31, 2013, the Company had the following stock-based employee compensation plans: | |||||||||||||||||
Equity Incentive Plans | |||||||||||||||||
In April 2010, the Company's Board of Directors approved the Nu Skin Enterprises, Inc. 2010 Omnibus Incentive Plan (the "2010 Omnibus Incentive Plan"). This plan was approved by the Company's stockholders at the Company's 2010 Annual Meeting of Stockholders held in May of 2010. The 2010 Omnibus Incentive Plan provides for granting of a variety of equity based awards including stock options, stock appreciation rights, restricted stock, restricted stock units, other share based awards, performance cash, performance shares and performance units to executives, other employees, independent consultants and directors of the Company and its subsidiaries. Options granted under the 2010 Omnibus Incentive Plan are generally non-qualified stock options, but the 2010 Omnibus Incentive Plan permits some stock options granted to qualify as "incentive stock options" under the U.S. Internal Revenue Code. The exercise price of a stock option generally is equal to the fair market value of the Company's common stock on the stock option grant date. The contractual term of a stock option granted under the 2010 Omnibus Incentive Plan is seven years. Currently, all shares issued upon the exercise of stock options are from the Company's treasury shares. Subject to certain adjustments, 7.0 million shares were authorized for issuance under the 2010 Omnibus Incentive Plan. On June 3, 2013, the Company's stockholders approved an Amended and Restated 2010 Omnibus Incentive Plan, which among other things increased the number of shares available for awards by 3.2 million shares. | |||||||||||||||||
TABLE OF CONTENTS | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
In November 2010, the compensation committee of the board of directors approved the grant of performance stock options to certain key employees under the 2010 Omnibus Incentive Plan. Vesting for the options is performance based, with the options vesting in three installments if the Company's earnings per share equal or exceed the three established performance levels, measured in terms of diluted earnings per share. One third of the options will vest upon earnings per share meeting or exceeding the first performance level, one third of the options will vest upon earnings per share meeting or exceeding the second performance level and one third of the options will vest upon earnings per share meeting or exceeding the third performance level. During the second quarter of 2012, first quarter of 2013 and third quarter of 2013 the first, second and third performance levels were fully achieved. | |||||||||||||||||
In July 2013, the compensation committee of the board of directors approved the grant of performance stock options to certain key employees under the Amended and Restated 2010 Omnibus Incentive Plan. Vesting for the options is performance based, with the options vesting in four installments if the Company's earnings per share equal or exceed the four established performance levels, measured in terms of diluted earnings per share. One fourth of the options will vest upon earnings per share meeting or exceeding the first performance level, one fourth of the options will vest upon earnings per share meeting or exceeding the second performance level, one fourth of the options will vest upon earnings per share meeting or exceeding the third performance level and one fourth of the options will vest upon earnings per share meeting or exceeding the fourth performance level. The unvested options will terminate upon the Company's failure to meet certain performance thresholds for each of years 2013 through 2019. In addition, all unvested options will terminate on March 30, 2020. The Company records an expense each period for the estimated amount of expense associated with the Company's projected achievement of the performance based targets. | |||||||||||||||||
The Company has also issued other performance based awards to a limited number of participants that similarly vest, or become eligible for vesting, upon achievement of various performance targets. | |||||||||||||||||
The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
Stock Options: | 2011 | 2012 | 2013 | ||||||||||||||
Weighted average grant date fair value of grants | $ | 9.98 | $ | 13.31 | $ | 22.1 | |||||||||||
Risk-free interest rate(1) | 1.8 | % | 0.8 | % | 1.4 | % | |||||||||||
Dividend yield(2) | 2.6 | % | 2.7 | % | 3.1 | % | |||||||||||
Expected volatility(3) | 38.4 | % | 46.8 | % | 41.7 | % | |||||||||||
Expected life in months(4) | 63 months | 58 months | 62 months | ||||||||||||||
-1 | The risk-free interest rate is based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant. | ||||||||||||||||
-2 | The dividend yield is based on the average of historical stock prices and actual dividends paid. | ||||||||||||||||
-3 | Expected volatility is based on the historical volatility of the Company's stock price, over a period similar to the expected life of the option. | ||||||||||||||||
-4 | The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years. | ||||||||||||||||
TABLE OF CONTENTS | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
Options under the plans as of December 31, 2013 and changes during the year ended December 31, 2013 were as follows: | |||||||||||||||||
Shares | Weighted-average Exercise Price | Weighted- average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||
Options activity – service based | |||||||||||||||||
Outstanding at December 31, 2012 | 3,235.20 | $ | 18.55 | ||||||||||||||
Granted | 172.5 | 94.53 | |||||||||||||||
Exercised | (1,244.0 | ) | 16.16 | ||||||||||||||
Forfeited/cancelled/expired | (3.9 | ) | 13.45 | ||||||||||||||
Outstanding at December 31, 2013 | 2,159.80 | 26.01 | 2.82 | $ | 242,347 | ||||||||||||
Exercisable at December 31, 2013 | 1,763.00 | 17.55 | 2.17 | 212,740 | |||||||||||||
Options activity – performance based | |||||||||||||||||
Outstanding at December 31, 2012 | 2,727.00 | $ | 28.06 | ||||||||||||||
Granted | 2,605.50 | 77.51 | |||||||||||||||
Exercised | (794.4 | ) | 25.1 | ||||||||||||||
Forfeited/cancelled/expired | (55.0 | ) | 33.89 | ||||||||||||||
Outstanding at December 31, 2013 | 4,483.10 | 57.25 | 5.26 | $ | 362,975 | ||||||||||||
Exercisable at December 31, 2013 | 1,826.70 | 28.72 | 3.47 | 200,034 | |||||||||||||
Options activity – all options | |||||||||||||||||
Outstanding at December 31, 2012 | 5,962.20 | $ | 22.9 | ||||||||||||||
Granted | 2,778.00 | 78.57 | |||||||||||||||
Exercised | (2,038.4 | ) | 19.65 | ||||||||||||||
Forfeited/cancelled/expired | (58.9 | ) | 32.54 | ||||||||||||||
Outstanding at December 31, 2013 | 6,642.90 | 47.1 | 4.47 | $ | 605,322 | ||||||||||||
Exercisable at December 31, 2013 | 3,589.70 | 23.23 | 2.83 | 412,774 | |||||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company's closing stock price on the last trading day of the respective years and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2013. This amount varies based on the fair market value of the Company's stock. The total fair value of options vested and expensed was $13.2 million, net of tax, for the year ended December 31, 2013. | |||||||||||||||||
TABLE OF CONTENTS | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
Cash proceeds, tax benefits, and intrinsic value related to total stock options exercised during 2011, 2012 and 2013, were as follows (in millions): | |||||||||||||||||
December 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Cash proceeds from stock options exercised | $ | 29.7 | $ | 8 | $ | 37.9 | |||||||||||
Tax benefit realized for stock options exercised | 17.4 | 6.3 | 41.9 | ||||||||||||||
Intrinsic value of stock options exercised | 61.6 | 10.6 | 241.7 | ||||||||||||||
Nonvested restricted stock awards as of December 31, 2013 and changes during the year ended December 31, 2013 were as follows: | |||||||||||||||||
Number of Shares | Weighted-average Grant | ||||||||||||||||
(in thousands) | Date Fair Value | ||||||||||||||||
Nonvested at December 31, 2012 | 729 | $ | 39.68 | ||||||||||||||
Granted | 315.8 | 41.59 | |||||||||||||||
Vested | (305.4 | ) | 34.88 | ||||||||||||||
Forfeited | (9.8 | ) | 42.1 | ||||||||||||||
Nonvested at December 31, 2013 | 729.6 | 42.48 | |||||||||||||||
As of December 31, 2013, there was $16.4 million of unrecognized stock-based compensation expense related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 2.2 years. As of December 31, 2013, there was $58.4 million of unrecognized stock-based compensation expense related to nonvested stock option awards. That cost is expected to be recognized over a weighted-average period of 4.0 years. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
12. Fair Value | |||||||||||||||||
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. | |||||||||||||||||
The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and December 31, 2013 (U.S. dollars in thousands): | |||||||||||||||||
Fair Value at December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial assets (liabilities): | |||||||||||||||||
Cash equivalents and current investments | $ | 76,006 | $ | - | $ | - | $ | 76,006 | |||||||||
Forward contracts | - | 2,969 | - | 2,969 | |||||||||||||
Insurance company contracts | - | - | 18,605 | 18,605 | |||||||||||||
Total | $ | 76,006 | $ | 2,969 | $ | 18,605 | $ | 97,580 | |||||||||
TABLE OF CONTENTS | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
Fair Value at December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial assets (liabilities): | |||||||||||||||||
Cash equivalents and current investments | $ | 61,136 | $ | - | $ | - | $ | 61,136 | |||||||||
Forward contracts | - | 1,939 | - | 1,939 | |||||||||||||
Insurance company contracts | - | - | 23,172 | 23,172 | |||||||||||||
Total | $ | 61,136 | $ | 1,939 | $ | 23,172 | $ | 86,247 | |||||||||
The following methods and assumptions were used to determine the fair value of each class of assets and liabilities recorded at fair value in the consolidated balance sheets: | |||||||||||||||||
Cash equivalents and current investments: Cash equivalents and current investments primarily consist of highly rated money market funds with maturities of three months or less, and are purchased daily at par value with specified yield rates. Due to the high ratings and short-term nature of the funds, the Company considers all cash equivalents and current investments as Level 1.Current investments include $22.0 million that is restricted for the Company's voluntary participation in a consumer protection cooperative in South Korea. | |||||||||||||||||
Forward contracts: To hedge foreign currency risks, the Company uses foreign currency exchange forward contracts, where possible and practical. These forward contracts are valued using standard valuation formulas with assumptions about foreign currency exchange rates derived from existing exchange rates. | |||||||||||||||||
Insurance Company Contracts: ASC 820 preserves practicability exceptions to fair value measurements provided by other applicable GAAP. The guidance in ASC 715-30-35-60 allows a reporting entity, as a practical expedient, to use cash surrender value or conversion value as an expedient for fair value when it is present. Accordingly, the Company determines the fair value of its insurance company contracts as the cash-surrender value of life insurance policies held in its Rabbi Trust as disclosed in Note 15 "Executive Deferred Compensation Plan". | |||||||||||||||||
The following table provides a summary of changes in fair value of the Company's Level 3 marketable securities (U.S. dollars in thousands): | |||||||||||||||||
Insurance Company Contracts | 2012 | 2013 | |||||||||||||||
Beginning balance at January 1 | $ | 14,925 | $ | $18,605 | |||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | 1,560 | 2,568 | |||||||||||||||
Purchases and issuances | 2,970 | 3,408 | |||||||||||||||
Sales and settlements | (850 | ) | (1,409 | ) | |||||||||||||
Transfers into Level 3 | - | - | |||||||||||||||
Ending balance at December 31 | $ | 18,605 | $ | 23,172 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
13. Income Taxes | |||||||||||||
Consolidated income before provision for income taxes consists of the following for the years ended December 31, 2011, 2012 and 2013 (U.S. dollars in thousands): | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
U.S. | $ | 142,929 | $ | 259,309 | $ | 307,994 | |||||||
Foreign | 83,840 | 85,933 | 248,946 | ||||||||||
Total | $ | 226,769 | $ | 345,242 | $ | 556,940 | |||||||
The provision for current and deferred taxes for the years ended December 31, 2011, 2012 and 2013 consists of the following (U.S. dollars in thousands): | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current | |||||||||||||
Federal | $ | 14,723 | $ | 70,727 | $ | 84,394 | |||||||
State | 2,245 | 2,425 | 361 | ||||||||||
Foreign | 56,973 | 45,851 | 148,310 | ||||||||||
73,941 | 119,003 | 233,065 | |||||||||||
Deferred | |||||||||||||
Federal | 17,756 | 12,918 | (5,354 | ) | |||||||||
State | 582 | 656 | 551 | ||||||||||
Foreign | (18,840 | ) | (8,980 | ) | (36,210 | ) | |||||||
(502 | ) | 4,594 | (41,013 | ) | |||||||||
Provision for income taxes | $ | 73,439 | $ | 123,597 | $ | 192,052 | |||||||
The Company's foreign taxes paid are high relative to foreign operating income and the Company's U.S. taxes paid are low relative to U.S. operating income due largely to the flow of funds among the Company's Subsidiaries around the world. As payments for services, management fees, license arrangements and royalties are made from the Company's foreign affiliates to its U.S. corporate headquarters, these payments often incur withholding and other forms of tax that are generally creditable for U.S. tax purposes. Therefore, these payments lead to increased foreign effective tax rates and lower U.S. effective tax rates. Variations occur in the Company's foreign and U.S. effective tax rates from year to year depending on several factors. These factors include the impact of global transfer prices, the timing and level of remittances from foreign affiliates, profits and losses in various markets, the valuation of deferred tax assets or liabilities, or changes in tax laws, regulations, accounting principles, or interpretations thereof. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
The principal components of deferred taxes are as follows (U.S. dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventory differences | $ | 3,490 | $ | 2,927 | |||||||||
Foreign tax credit and other foreign benefits | 42,128 | 120,534 | |||||||||||
Stock-based compensation | 13,772 | 18,132 | |||||||||||
Accrued expenses not deductible until paid | 45,003 | 88,465 | |||||||||||
Foreign currency exchange | 10,947 | 13,734 | |||||||||||
Net operating losses | 10,561 | 10,808 | |||||||||||
Capitalized research and development | 10,535 | 6,202 | |||||||||||
Other | 648 | 739 | |||||||||||
Gross deferred tax assets | 137,084 | 261,541 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Exchange gains and losses | 7,504 | 9,924 | |||||||||||
Intangibles step-up | 18,379 | 16,375 | |||||||||||
Amortization of intangibles | 15,840 | 17,360 | |||||||||||
Foreign outside basis in controlled foreign corporation | 32,592 | 76,470 | |||||||||||
Other | 20,867 | 63,409 | |||||||||||
Gross deferred tax liabilities | 95,182 | 183,538 | |||||||||||
Valuation allowance | (10,522 | ) | (10,803 | ) | |||||||||
Deferred taxes, net | $ | 31,380 | $ | 67,200 | |||||||||
At December 31, 2013, the Company had foreign operating loss carryforwards of approximately $49.4 million for tax purposes, which will be available to offset future taxable income. If not used, $12.6 million of carryforwards will expire between 2014 and 2023, while $36.8 million do not expire. A valuation allowance has been placed on foreign operating loss carryforwards of approximately $41.6 million. | |||||||||||||
The valuation allowance primarily represents amounts for foreign operating loss carryforwards for which it is more likely than not some portion or all of the deferred tax asset will not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary difference, projected future taxable income, tax planning strategies and recent financial operations. When the Company determines that there is sufficient taxable income to utilize the net operating losses, the valuation will be released which would reduce the provision for income taxes. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
The components of deferred taxes, net on a jurisdiction basis are as follows (U.S. dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Net current deferred tax assets | $ | 25,420 | $ | 75,979 | |||||||||
Net noncurrent deferred tax assets | 9,002 | 5,174 | |||||||||||
Total net deferred tax assets | 34,422 | 81,153 | |||||||||||
Net current deferred tax liabilities | 2 | 1 | |||||||||||
Net noncurrent deferred tax liabilities | 3,040 | 13,952 | |||||||||||
Total net deferred tax liabilities | 3,042 | 13,953 | |||||||||||
Deferred taxes, net | $ | 31,380 | $ | 67,200 | |||||||||
The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in proposed assessments that may result in additional tax liabilities. | |||||||||||||
The actual tax rate for the years ended December 31, 2011, 2012 and 2013 compared to the statutory U.S. Federal tax rate is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Income taxes at statutory rate | 35.00% | 35.00% | 35.00% | ||||||||||
Indefinitely invested earnings of non-U.S. subsidiaries | – | – | -0.76 | ||||||||||
Non-deductible expenses | 0.16 | 0.12 | 0.12 | ||||||||||
Extraterritorial income tax credit | -3.39 | – | – | ||||||||||
Other | 0.62 | 0.68 | 0.12 | ||||||||||
32.39% | 35.80% | 34.48% | |||||||||||
The lower effective tax rate in 2013 compared to 2012 was primarily attributable to indefinitely invested earnings of non-U.S. Subsidiaries. | |||||||||||||
The cumulative amount of undistributed earnings of the Company's non-U.S. Subsidiaries held for indefinite reinvestment is approximately $50.0 million at December 31, 2013. In the event that all non-U.S. undistributed earnings were remitted to the United States, the amount of incremental taxes would be approximately $5.5 million. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan [Abstract] | ' |
Employee Benefit Plan | ' |
14. Employee Benefit Plan | |
The Company has a 401(k) defined contribution plan which permits participating employees to defer up to a maximum of 100% of their compensation, subject to limitations established by the Internal Revenue Service. Employees age 18 and older are eligible to contribute to the plan starting the first day of employment. After completing at least one day of service, employees are eligible to receive matching contributions from the Company. In 2011, 2012, and 2013 the Company matched employees' base pay up to 4% each year. The Company's matching contributions cliff vest after two years of service. The Company recorded compensation expense of $2.3 million, $2.4 million and $2.7 million for the years ended December 31, 2011, 2012 and 2013, respectively, related to its contributions to the plan. The Company may make an additional discretionary contributions to the plan of up to 10% of employees' base pay. The Company's discretionary contributions vest 20% per year for an employee's first five years of service. For the years ended December 31, 2011 (the first year of this "retire ready" contribution) and 2012, the Company made additional discretionary contributions of approximately $2.1 million and $3.5 million. For the year ended December 31, 2013, the Company plans to make an additional discretionary contribution of approximately $6.1 million. | |
TABLE OF CONTENTS | |
NU SKIN ENTERPRISES, INC. | |
Notes to Consolidated Financial Statements | |
The Company has a defined benefit pension plan for its employees in Japan. All employees of Nu Skin Japan, after certain years of service, are entitled to pension plan benefits when they terminate employment with Nu Skin Japan. The accrued pension liability was $8.4 million, $7.6 million and $6.2 million as of December 31, 2011, 2012 and 2013, respectively. Although Nu Skin Japan has not specifically funded this obligation, as it is not required to do so, Nu Skin Japan believes it maintains adequate cash balances for this defined benefit pension plan. The Company recorded pension expense of $0.9 million, $1.1 million and $0.8 million for the years ended December 31, 2011, 2012 and 2013, respectively. |
Executive_Deferred_Compensatio
Executive Deferred Compensation Plan | 12 Months Ended |
Dec. 31, 2013 | |
Executive Deferred Compensation Plan [Abstract] | ' |
Executive Deferred Compensation Plan | ' |
15. Executive Deferred Compensation Plan | |
The Company has an executive deferred compensation plan for select management personnel. Under this plan, the Company may make a contribution of up to 10% of a participant's salary. In addition, each participant has the option to defer a portion of their compensation up to a maximum of 80% of their base salary and 100% of their bonuses. Participant contributions are immediately vested. Company contributions vest 50% after ten years of service and 5% each year of service thereafter. In addition, any unvested company contributions will fully vest on the earlier of: (a) the participant attaining 60 years of age; and (b) death or disability. | |
The Company recorded compensation expense of $1.7 million, $1.2 million and $3.1 million for the years ended December 31, 2011, 2012 and 2013, respectively, related to its contributions to the plan. The total long-term deferred compensation liability under the deferred compensation plan was $22.1 million and $28.5 million for the years ended December 31, 2012 and 2013, respectively, related to its contributions to the plan and is included in other long-term liabilities. | |
All benefits under the deferred compensation plan are unsecured obligations of the Company. The Company has contributed assets to a "rabbi trust" for the payment of benefits under the deferred compensation plan. As the assets of the trust are available to satisfy the claims of general creditors if the Company becomes insolvent, the amounts held in the trust are accounted for as an investment on the Company's consolidated balance sheet of $18.6 million and $23.2 million for the years ended December 31, 2012 and 2013, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Financial Instruments [Abstract] | ' |
Derivative Financial Instruments | ' |
16. Derivative Financial Instruments | |
The Company held mark-to-market forward contracts designated as foreign currency cash flow hedges with notional amounts totaling 2.5 billion Japanese yen and 12 million euros ($23.7 million and $16.5 million, respectively) as of December 31, 2013 and 1.9 billion Japanese yen ($21.9 million) and no euros as of December 31, 2012 to hedge forecasted foreign-currency-denominated intercompany transactions. | |
The contracts held at December 31, 2013 have maturities through December 2014, and accordingly, all unrealized gains and losses on foreign currency cash flow hedges included in accumulated other comprehensive loss will be recognized in current earnings over the next 12 months. The pre-tax net losses/gains on foreign currency cash flow hedges reclassified from accumulated other comprehensive income to revenue were $1.4 million of pre-tax net losses, $0.5 million of pre-tax net gains, and $5.1 million of pre-tax net gains for the years ended December 31, 2011, 2012 and 2013, respectively. The corresponding tax effects of these transactions were recorded in provision for income tax expense. As of December 31, 2012 and 2013, there were $1.9 million and $1.3 million of unrealized gains included in accumulated other comprehensive income related to foreign currency cash flow hedges. The remaining $53.7 million and $47.5 million as of December 31, 2012 and 2013, respectively, in accumulated other comprehensive income are related to cumulative translation adjustments. | |
TABLE OF CONTENTS | |
NU SKIN ENTERPRISES, INC. | |
Notes to Consolidated Financial Statements | |
17. Supplemental Cash Flow Information |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Supplemental Cash Flow Information | ' |
Cash paid for interest totaled $5.2 million, $5.1 million and $4.8 million for the years ended December 31, 2011, 2012 and 2013, respectively. Cash paid for income taxes totaled $75.6 million, $95.2 million and $130.1 million for the years ended December 31, 2011, 2012 and 2013, respectively. There was a non-cash item for the year ended December 31, 2012 of $7.0 million in deferred tax liabilities and intangibles in conjunction with the NOX Technologies, Inc. acquisition. For the years ended December 31, 2012 and 2013, there were non-cash additions of fixed assets of $5.5 million and $9.2 million, respectively, associated with the construction of the Company's worldwide headquarters. | |
18. Segment Information |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
The Company operates in a single operating segment by selling products through a global network of independent distributors that operates in a seamless manner from market to market, except for its operations in Mainland China. In Mainland China, the Company utilizes sales employees and contractual sales promoters, who sell products in similar fashion to our sales employees, but act as independent agents, to sell products through its retail stores and through its website, and independent direct sellers who can sell away from the Company's stores where the Company has obtained a direct sales license. Selling expenses are the Company's largest expense comprised of the commissions paid to its worldwide independent distributors as well as remuneration to its sales force in Mainland China. The Company manages its business primarily by managing its sales force. The Company does not use profitability reports on a regional or divisional basis for making business decisions. However, the Company does report revenue in five geographic regions: Greater China, North Asia, South Asia/Pacific, Americas and EMEA. | |||||||||||||
Revenue generated in each of these regions is set forth below (U.S. dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
Revenue: | 2011 | 2012 | 2013 | ||||||||||
Greater China | $ | 333,569 | $ | 550,690 | $ | 1,363,182 | |||||||
North Asia | 741,857 | 785,302 | 869,400 | ||||||||||
South Asia/Pacific | 235,000 | 328,597 | 378,988 | ||||||||||
Americas | 248,180 | 285,283 | 370,087 | ||||||||||
EMEA | 160,982 | 182,385 | 195,061 | ||||||||||
Total | $ | 1,719,588 | $ | 2,132,257 | $ | 3,176,718 | |||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Revenue generated by each of the Company's product lines is set forth below (U.S. dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
Revenue: | 2011 | 2012 | 2013 | ||||||||||
Nu Skin | $ | 950,639 | $ | 1,158,213 | $ | 1,641,618 | |||||||
Pharmanex | 759,280 | 966,572 | 1,529,211 | ||||||||||
Other | 9,669 | 7,472 | 5,889 | ||||||||||
Total | $ | 1,719,588 | $ | 2,132,257 | $ | 3,176,718 | |||||||
Additional information as to the Company's operations in the most significant geographical areas is set forth below (U.S. dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
Revenue: | 2011 | 2012 | 2013 | ||||||||||
Mainland China | $ | 148,388 | $ | 256,833 | $ | 1,005,395 | |||||||
South Korea | 276,923 | 296,000 | 466,820 | ||||||||||
Japan | 464,934 | 489,302 | 402,580 | ||||||||||
United States | 208,246 | 227,872 | 268,232 | ||||||||||
Taiwan | 107,716 | 134,592 | 199,161 | ||||||||||
Hong Kong | 77,465 | 159,265 | 158,626 | ||||||||||
Malaysia | 65,411 | 65,998 | 128,656 | ||||||||||
December 31, | |||||||||||||
Long-lived assets: | 2012 | 2013 | |||||||||||
Mainland China | $ | 30,199 | $ | 82,726 | |||||||||
South Korea | 14,030 | 14,345 | |||||||||||
Japan | 8,441 | 9,970 | |||||||||||
United States | 163,137 | 273,388 | |||||||||||
Taiwan | 1,945 | 1,928 | |||||||||||
Hong Kong | 559 | 2,497 | |||||||||||
Malaysia | - | 1,463 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
19. Commitments and Contingencies | |
The Company is subject to governmental regulations pertaining to product formulation, labeling and packaging, product claims and advertising and to the Company's direct selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company's sales force is not in compliance with existing statutes, laws, rules or regulations could potentially have a material adverse effect on the Company's operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. Although management believes that the Company is in compliance in all material respects with the statutes, laws, rules and regulations of every jurisdiction in which it operates, no assurance can be given that the Company's compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on the Company's financial position or results of operations or cash flows. The Company and its Subsidiaries are defendants in litigation and proceedings involving various matters. Except as noted below, in the opinion of the Company's management, based upon advice of its counsel handling such litigation and proceedings, adverse outcomes, if any, will not likely result in a material effect on the Company's consolidated financial condition, results of operations or cash flows. | |
TABLE OF CONTENTS | |
NU SKIN ENTERPRISES, INC. | |
Notes to Consolidated Financial Statements | |
The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. The Company believes it has appropriately provided for income taxes for all years. Several factors drive the calculation of its tax reserves. Some of these factors include: (i) the expiration of various statutes of limitations; (ii) changes in tax law and regulations; (iii) issuance of tax rulings; and (iv) settlements with tax authorities. Changes in any of these factors may result in adjustments to the Company's reserves, which would impact its reported financial results. | |
The Company is currently involved in a dispute related to customs assessments on several of the Company's products made by Yokohama Customs for the period of October 2006 through September 2009 in connection with post-importation audits, as well as the disputed portion of the Company's import duties from October 2009 to the present, which the Company has or will hold in bond or pay under protest. Additional assessments related to any prior period are barred by applicable statutes of limitations. The aggregate amount of these assessments and disputed duties was approximately 4.2 billion Japanese yen as of December 31, 2013 (approximately $40.2 million), net of any recovery of consumption taxes. The issue in this case is whether a United States entity utilizing a commissionaire agent in Japan to import its products can use the manufacturer's invoice or must use another valuation method, and, if an alternative method must be used, what the allowable deductions would be in determining the proper valuation. Following the Company's review of the assessments and after consulting with the Company's legal and customs advisors, the Company believes that the additional assessments are improper and are not supported by applicable customs laws. The Company filed letters of protest with the applicable Customs authorities, which were rejected. The Company then appealed the matter to the Ministry of Finance in Japan. In the second quarter of 2011, the Ministry of Finance in Japan denied the Company's administrative appeal. The Company disagrees with the Ministry of Finance's administrative decision. The Company is now pursuing the matter in Tokyo District Court, which the Company believes will provide a more independent determination of the matter. In addition, the Company is currently being required to post a bond or make a deposit to secure any additional duties that may be due and payable on these current imports. Because the Company believes that the assessment of higher duties by the customs authorities is an improper application of the regulations, the Company is currently expensing the portion of the duties the Company believes is supported under applicable customs law, and recording the additional deposit or payment as a receivable within long-term assets on its consolidated financial statements. If the Company is unsuccessful in recovering the amounts assessed and paid, the Company will record a non-cash expense for the full amount of the disputed assessments. The Company anticipates that additional disputed duties will be limited going forward as the Company has entered into an arrangement to purchase a majority of the affected products in Japan from a Japanese company that purchases and imports the products from the manufacturers. | |
Following a number of negative media stories published in January 2014 by the People's Daily in Mainland China, the Company received inquiries from various government regulators in Mainland China asking the Company to respond to a number of allegations relating to its business practices, products and business model. In response to this media and regulatory scrutiny the Company has voluntarily taken a number of actions in Mainland China, including temporarily suspending its business promotional meetings, temporarily suspending acceptance of applications for any new sales representatives, and extending its product refund and return policies. The adverse publicity and suspension of business promotional meetings and acceptance of applications has had a significant negative impact on the number of Sales Leaders and Actives, and the Company's revenue in the short term will be negatively impacted by these voluntary actions. Any inability to resume normal business operations in the near term could have a more significant impact on our business. The Company's Audit Committee also commenced an internal review of its business practices in Mainland China, which is ongoing. Based upon the results of the internal review to date, the Company currently plans to focus its attention during the next several months on training the Company's sales force and reinforcing or enhancing our existing sales and other policies in Mainland China. It is currently unclear what impact the adverse publicity and the Company's voluntary actions will have on its business in this market in the longer term or whether these voluntary actions will be effective in addressing concerns of regulators in Mainland China. Regardless, it is likely that the Company will be fined and could potentially face some other form of sanctions from these regulators. These other sanctions could include a formal suspension of the Company's ability to recruit new sales people and direct sellers, a temporary suspension of the Company's ability to sell products in various markets or, in the most extreme cases, loss of existing licenses to operate in various jurisdictions in Mainland China. While any of these actions or outcomes could materially harm the Company's business and financial condition, the Company has not accrued for any related costs as of December 31, 2013. | |
TABLE OF CONTENTS | |
NU SKIN ENTERPRISES, INC. | |
Notes to Consolidated Financial Statements | |
In addition, the Company is currently being sued in several purported class action lawsuits and a derivative claim relating to this recent negative media and regulatory scrutiny and the associated decline in the Company's stock price. These lawsuits, or others filed alleging similar facts, could result in monetary or other penalties that may affect the Company's operating results and financial condition. | |
20. Dividends per Share |
Dividends_Per_Share
Dividends Per Share | 12 Months Ended |
Dec. 31, 2013 | |
Dividends per Share [Abstract] | ' |
Dividends per Share | ' |
Quarterly cash dividends for the years ended December 31, 2012 and 2013 totaled $48.4 million and $70.5 million or $0.20 per share in all quarters of 2012 and $0.30 for all quarters of 2013. The board of directors has declared a quarterly cash dividend of $0.345 per share for all classes of common stock to be paid on March 26, 2014 to stockholders of record on March 14, 2014. |
Quarterly_Results
Quarterly Results | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Results [Abstract] | ' | ||||||||||||||||||||||||||||||||
Quarterly Results | ' | ||||||||||||||||||||||||||||||||
21. Quarterly Results | |||||||||||||||||||||||||||||||||
The following table sets forth selected unaudited quarterly data for the periods shown as revised (U.S. dollars in millions, except per share amounts): | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
Revenue | $ | 456.2 | $ | 577.2 | $ | 519.7 | $ | 579.2 | $ | 541.3 | $ | 671.3 | $ | 908.3 | $ | 1,055.80 | |||||||||||||||||
Gross profit | 380.4 | 481.6 | 433 | 484.1 | 451.3 | 560 | 768.5 | 891.1 | |||||||||||||||||||||||||
Operating income | 71.6 | 97.9 | 82.4 | 88.9 | 82.6 | 114.6 | 168.3 | 188.6 | |||||||||||||||||||||||||
Net income | 47.8 | 60.4 | 54.2 | 59.2 | 54.3 | 74.4 | 110.9 | 125.3 | |||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||
Basic | 0.77 | 0.98 | 0.9 | 1.01 | 0.93 | 1.27 | 1.89 | 2.13 | |||||||||||||||||||||||||
Diluted | 0.74 | 0.94 | 0.87 | 0.97 | 0.9 | 1.22 | 1.8 | 2.02 |
Other_income_expense_net
Other income (expense), net | 12 Months Ended |
Dec. 31, 2013 | |
Other income (expense), net [Abstract] | ' |
Other income (expense), net | ' |
TABLE OF CONTENTS | |
NU SKIN ENTERPRISES, INC. | |
Notes to Consolidated Financial Statements | |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2013 | |
Acquisitions [Abstract] | ' |
Acquisition of LifeGen | ' |
22. Other income (expense), net | |
Other income (expense), net was $7.0 million of expense in 2011, $4.4 million of income in 2012 and $2.8 million of income in 2013. The Company recorded foreign currency transaction losses with respect to its intercompany receivables and payables with certain of its international affiliates, including markets that are newly opened or have remained in a loss position since inception. Generally, foreign currency transaction losses with these affiliates would be offset by gains related to the foreign currency transactions of the Company's yen-based bank debt. Other income (expense), net also includes approximately $4.8 million, $5.2 million and $3.0 million in interest expense during 2011, 2012 and 2013, respectively. The Company cannot estimate the degree to which its operations will be impacted in the future, but it remains subject to these currency risks. However, the majority of these transaction losses are non-cash, non-operating losses. | |
23. Acquisitions | |
In the fourth quarter of 2012, a subsidiary of the Company acquired NOX Technologies, Inc. ("NOX"), a biotechnology and biodiagnostic company based in Malvern, Pennsylvania, for approximately $12.6 million in cash. The NOX acquisition included patents and previously licensed technology utilized in connection with the Company's research efforts and incorporated into some of the Company's products. As the acquisition was deemed to be an asset acquisition, the Company has allocated the purchase price to the patents and will amortize the patents over their remaining lives, which were approximately 8 years. | |
In the fourth quarter of 2011, a subsidiary of the Company acquired substantially all of the assets of LifeGen Technologies, LLC ("LifeGen"), a genomics company based in Madison, Wisconsin for approximately $11.7 million in cash. The LifeGen acquisition included LifeGen's proprietary tissue bank and gene expression database, patents and other intellectual property related to anti-aging gene research. The Company has allocated the purchase price primarily to the patents and will amortize the patents over their remaining lives, which were approximately 17 years. | |
TABLE OF CONTENTS | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Consolidation | ' | ||||||||||||
Consolidation | |||||||||||||
The consolidated financial statements include the accounts of the Company and the Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. | |||||||||||||
Use of estimates | ' | ||||||||||||
Use of estimates | |||||||||||||
The preparation of these financial statements, in conformity with accounting principles generally accepted in the United States of America, required management to make estimates and assumptions that affected the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates. | |||||||||||||
Revisions [Policy Text Block] | ' | ||||||||||||
Revisions | |||||||||||||
Certain amounts applicable to the prior periods have been revised to correct certain classification errors in prior years. Specifically, the presentation of the Company's consolidated balance sheets for the year ended December 31, 2012, was revised to decrease short-term deferred tax assets by $10.8 million, long-term deferred tax assets by $17.3 million and long-term deferred tax liabilities by $28.1 million. The revision had no effect on the results of operations (net or comprehensive income), financial condition (stockholders' equity), or cash flows in any period presented or in any previously issued financial statements. | |||||||||||||
Additionally, the presentation of the Company's consolidated statements of income for the years ended December 31, 2011 and 2012, was revised to reduce selling expense and revenue by $24.4 million and $37.4 million related to an error in the classification of selling rebates. The revision had no effect on the operating income, net income or comprehensive income, the consolidated balance sheet or cash flows in any period presented or in any previously issued financial statements. | |||||||||||||
These revisions were not considered to be material, individually or in the aggregate, to the previously issued financial statements. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
Cash and cash equivalents | ' | ||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Cash and cash equivalents | |||||||||||||
Cash equivalents are short-term, highly liquid instruments with original maturities of 90 days or less. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories consist primarily of merchandise purchased for resale and are stated at the lower of cost or market, using the first-in, first-out method. The Company had adjustments to its inventory carry value totaling $5.5 million and $5.9 million as of December 31, 2012 and 2013, respectively. | |||||||||||||
Inventories consist of the following (U.S. dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Raw materials | $ | 32,332 | $ | 117,982 | |||||||||
Finished goods | 103,542 | 221,687 | |||||||||||
$ | 135,874 | $ | 339,669 | ||||||||||
Property and equipment | |||||||||||||
Property and equipment | ' | ||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives: | |||||||||||||
Buildings | 39 years | ||||||||||||
Furniture and fixtures | 5 - 7 years | ||||||||||||
Computers and equipment | 3 - 5 years | ||||||||||||
Leasehold improvements | Shorter of estimated useful life or lease term | ||||||||||||
Scanners | 3 years | ||||||||||||
Vehicles | 3 - 5 years | ||||||||||||
Expenditures for maintenance and repairs are charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of income. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. | |||||||||||||
Goodwill and other intangible assets | ' | ||||||||||||
Goodwill and other intangible assets | |||||||||||||
Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized, but are assessed for impairment annually. In addition, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Guidance under Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other, requires an entity to test goodwill for impairment on at least an annual basis. Beginning in 2011, the Company had the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If under the quantitative assessment the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, must be measured. The Company used the quantitative assessment for all periods presented. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives using the straight-line method and reviewed for impairment whenever events or circumstances warrant such a review. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
No impairment charges were recorded for goodwill or intangibles during the periods presented. | |||||||||||||
Revenue recognition | |||||||||||||
Revenue recognition | ' | ||||||||||||
Revenue is recognized when products are shipped, which is when title and risk of loss pass to the purchaser of the products. A reserve for product returns is accrued based on historical experience totaling $6.2 million and $11.0 million as of December 31, 2012 and 2013, respectively. During the years ended December 31, 2011, 2012 and 2013, the Company recorded sales returns of $56.5 million, $56.1 million and $79.4 million, respectively. The Company generally requires cash or credit card payment at the point of sale. Accounts receivable generally represents amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that no allowance for doubtful accounts is necessary. Amounts received prior to shipment of products and title passage to the purchaser of the products are recorded as deferred revenue. The Company's sales compensation plans generally do not provide rebates or selling discounts for purchasing its products and services. The Company classifies selling discounts and rebates, if any, as a reduction of revenue at the time the sale is recorded. | |||||||||||||
Through the Company's product subscription and loyalty programs, which can vary from market to market, participants who commit to purchases on a monthly basis receive a discount from suggested retail or wholesale prices, as applicable. The Company applies this discount at the time of each purchase and not through a larger discount on the initial purchase. Participants may cancel their commitment at any time, however some markets charge a one-time early cancellation fee. All purchases under these programs are subject to the Company's standard product payment and return policies. In accordance with ASC 605-50, the Company classifies selling discounts and rebates, as a reduction of revenue at the time the sale is recorded. | |||||||||||||
Advertising expenses | |||||||||||||
Advertising expenses | ' | ||||||||||||
Advertising costs are expensed as incurred. Advertising expense incurred for the years ended December 31, 2011, 2012 and 2013 totaled approximately $2.3 million, $5.1 million and $11.3 million, respectively. | |||||||||||||
Selling expenses | ' | ||||||||||||
Selling expenses | |||||||||||||
Selling expenses are the Company's most significant expense and are classified as operating expenses. Selling expenses include distributor commissions as well as wages, benefits, bonuses and other labor and unemployment expenses the Company pays to its sales force in Mainland China. In each of the Company's markets, except Mainland China, sales leaders can earn "multi-level" compensation under the Company's global sales compensation plan, including commissions for product sales to their consumer groups as well as the product sales made through the sales network they have developed and trained. The Company does not pay commissions on sales materials, which are sold to its sales force at or near cost. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Outside of Mainland China, the Company's distributors may make profits by purchasing the products from the Company at a discount and selling them to consumers with a mark-up. The Company does not account for nor pay additional commissions on these mark-ups received by distributors. In many markets, the Company also allows individuals who are not members of its sales force, referred to as "preferred customers," to buy products directly from the Company at a discount. The Company pays commissions on preferred customer purchases to the referring member of its sales force. | |||||||||||||
Research and development | ' | ||||||||||||
Research and development | |||||||||||||
Research and development costs are included in general and administrative expenses in the accompanying consolidated statements of income and are expensed as incurred and totaled $13.6 million, $14.9 million and $18.0 million in 2011, 2012 and 2013, respectively. | |||||||||||||
Deferred tax assets and liabilities | ' | ||||||||||||
Deferred tax assets and liabilities | |||||||||||||
The Company accounts for income taxes in accordance with the Income Taxes Topic of the Financial Accounting Standards Codification. These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise's activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. | |||||||||||||
Uncertain Tax Positions | ' | ||||||||||||
Uncertain Tax Positions | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. In 2013, the Company entered into a closing agreement with the United States Internal Revenue Service (the "IRS") for all adjustments for the 2009 and 2010 tax years. As a result of entering into the closing agreement, the Company is no longer subject to tax examinations from the IRS for all years for which tax returns have been filed except for 2011. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2008. In 2009, the Company entered into a voluntary program with the IRS called Compliance Assurance Process ("CAP"). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company has elected to participate in the CAP program for 2014 and may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. In major foreign jurisdictions, the Company is no longer subject to income tax examinations for years before 2007. Along with the IRS examination of 2011, the Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits included in other liabilities is as follows (U.S. dollars in thousands): | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Gross balance at January 1 | $ | 14,821 | $ | 7,387 | $ | 9,045 | |||||||
Decreases related to prior year tax positions | (7,138 | ) | - | - | |||||||||
Increases related to current year tax positions | 1,415 | 2,430 | 1,188 | ||||||||||
Settlements | (499 | ) | - | (1,671 | ) | ||||||||
Decreases due to lapse of statutes of limitations | (1,255 | ) | (854 | ) | (1,086 | ) | |||||||
Currency adjustments | 43 | 82 | 8 | ||||||||||
Gross balance at December 31 | $ | 7,387 | $ | 9,045 | $ | 7,484 | |||||||
At December 31, 2013, the Company had $7.5 million in unrecognized tax benefits of which $2.1 million, if recognized, would affect the effective tax rate. In comparison, at December 31, 2012, the Company had $9.0 million in unrecognized tax benefits of which $3.8 million, if recognized, would affect the effective tax rate. The Company's unrecognized tax benefits relate to multiple foreign and domestic jurisdictions. Due to potential increases in unrecognized tax benefits from the multiple jurisdictions in which the Company operates, as well as the expiration of various statutes of limitation, it is reasonably possible that the Company's gross unrecognized tax benefits, net of foreign currency adjustments, may decrease within the next 12 months by a range of approximately $2 to $3 million. | |||||||||||||
During each of the years ended December 31, 2011, 2012 and 2013, the Company recognized approximately ($0.8) million, $0.3 million and ($0.1) million, respectively in interest and penalties expenses/(benefits). The Company had approximately $0.8 million, $1.1 million and $0.9 million of accrued interest and penalties related to uncertain tax positions at December 31, 2011, 2012 and 2013, respectively. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | |||||||||||||
Net income per share | ' | ||||||||||||
Net income per share | |||||||||||||
Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented (Note 10). | |||||||||||||
Foreign currency translation | ' | ||||||||||||
Foreign currency translation | |||||||||||||
A significant portion of the Company's business operations occur outside of the United States. The local currency of each of the Company's Subsidiaries is considered its functional currency, except for NSEAP in Singapore where the U.S. dollar is used. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders' equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders' equity in the consolidated balance sheets and transaction gains and losses are included in other income and expense in the consolidated financial statements. Net of tax the accumulated other comprehensive income related to the foreign currency translation adjustments are $61.5 million, $54.7 million and $47.6 million at December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Classification of Venezuela as a Highly Inflationary Economy and Devaluation of It's currency [Text Block] | ' | ||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Classification of Venezuela as a Highly Inflationary Economy and Devaluation of Its Currency | |||||||||||||
Since January 1, 2010, Venezuela has been designated as a highly inflationary economy. Highly inflationary accounting requires all gains and losses resulting from the re-measurement of its financial statements to be determined using official rates. | |||||||||||||
Currency exchange restrictions enacted by the government of Venezuela require approval from the government's currency control agency organization in order for the Company's subsidiary in Venezuela to obtain U.S. dollars at the official exchange rate to pay for imported products or to repatriate dividends back to the Company. The government of Venezuela enacted additional currency exchange restrictions, which effectively replaced the market rate with the System for Foreign Currency Denominated Securities ("SITME"), which is administered by the Venezuela Central Bank. Under SITME, entities domiciled in Venezuela can obtain U.S. dollar denominated securities in limited quantities each month through banking institutions approved by the government. | |||||||||||||
As of December 31, 2013, the Company had approximately $34.0 million of cash in Venezuela, which is subject to the currency exchange restrictions by the government of Venezuela.At this time, the Company is not able to reasonably estimate the future state of exchange controls in Venezuela and its availability of U.S. dollars at the official exchange rate or at the SITME rate. On February 12, 2013, the Venezuelan government announced the devaluation of the bolivar official rate to 6.3. | |||||||||||||
During 2011, 2012 and 2013, the Company's Venezuelan subsidiary's net sales revenue represented approximately 0.3%, 0.7% and 1.1% of consolidated net sales revenue, respectively. The Company's Venezuelan subsidiary held total assets of $15.6 million and $38.8 million (which includes intercompany receivables denominated in U.S. dollars of $15.6 million and $37.9 million) at December 31, 2012 and 2013, respectively. | |||||||||||||
Fair value of financial instruments | ' | ||||||||||||
Fair value of financial instruments | |||||||||||||
The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair values due to the short-term nature of these instruments. The Company's current investments as of December 31, 2013 include certificates of deposits and pre-refunded municipal bonds that are classified by management as held-to-maturity as the Company had the positive intent and ability to hold to maturity. The carrying value of these current investments approximate fair values due to the short-term nature of these instruments. As of December 31, 2012 and 2013, the long-term debt fair value is $199.5 million and $188.3 million, respectively. The estimated fair value of the Company's debt is based on interest rates available for debt with similar terms and remaining maturities. The Company has classified these instruments as Level 2 in the fair value hierarchy. Fair value estimates are made at a specific point in time, based on relevant market information. | |||||||||||||
The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
▪ Level 1 – quoted prices in active markets for identical assets or liabilities; | |||||||||||||
▪ Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; | |||||||||||||
▪ Level 3 – unobservable inputs based on the Company's own assumptions. | |||||||||||||
Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. | |||||||||||||
Stock-based compensation | ' | ||||||||||||
Stock-based compensation | |||||||||||||
All share-based payments, including grants of stock options and restricted stock units, are required to be recognized in our financial statements based upon their respective grant date fair values. The Black-Scholes option pricing model is used to estimate the fair value of stock options. The determination of the fair value of stock options is affected by our stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. We use historical volatility as the expected volatility assumption required in the Black-Scholes model. The expected life of the stock options is based on historical data trended into the future. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our stock options. The fair value of our restricted stock units is based on the closing market price of our stock on the date of grant less our expected dividend yield. We recognize stock-based compensation net of any estimated forfeitures over the requisite service period of the award. | |||||||||||||
The total compensation expense related to equity compensation plans was approximately $15.5 million, $21.4 million and $32.6 million for the years ended December 31, 2011, 2012 and 2013. For the years ended December 31, 2011, 2012 and 2013, all stock-based compensation expense was recorded within general and administrative expenses. | |||||||||||||
Reporting comprehensive income | ' | ||||||||||||
Reporting comprehensive income | |||||||||||||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and it includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. | |||||||||||||
Accounting for derivative instruments and hedging activities | ' | ||||||||||||
Accounting for derivative instruments and hedging activities | |||||||||||||
The Company recognizes all derivatives as either assets or liabilities, with the instruments measured at fair value. | |||||||||||||
The Company manages foreign exchange risk in certain jurisdictions through the use of foreign currency debt. Portions of the Company's Japanese yen borrowings have been designated, and are effective, as economic hedges of the net investment in its foreign operations. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on these debt instruments are included in foreign currency translation adjustment within other comprehensive income. Included in the cumulative translation adjustment are $0.9 million of pretax net losses, $7.3 million of pretax net gains and $10.5 million of pretax net losses for the years ended December 31, 2011, 2012 and 2013, respectively from Japanese yen borrowings. | |||||||||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Additionally, the Company's Subsidiaries enter into significant transactions with each other and third parties that may not be denominated in the respective Subsidiaries' functional currencies. The Company regularly monitors its foreign currency risks and seeks to reduce its exposure to fluctuations in foreign exchange rates using foreign currency exchange contracts and through certain intercompany loans of foreign currency. | |||||||||||||
Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting treatment. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations currently. In the event that an anticipated transaction is no longer likely to occur, the Company recognizes the change in fair value of the derivative in its results of operations currently. | |||||||||||||
Changes in the fair value of derivatives are recorded in current earnings or accumulated other comprehensive loss, depending on the intended use of the derivative and its resulting designation. The gains and losses in accumulated other comprehensive loss stemming from these derivatives will be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. The fair value of the receivable and payable amounts related to these unrealized gains and losses is classified as other current assets and liabilities. The Company does not use such derivative financial instruments for trading or speculative purposes. Gains and losses on certain intercompany loans of foreign currency are recorded as other income and expense in the consolidated statements of income. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Components of inventories | ' | ||||||||||||
Inventories consist of the following (U.S. dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Raw materials | $ | 32,332 | $ | 117,982 | |||||||||
Finished goods | 103,542 | 221,687 | |||||||||||
$ | 135,874 | $ | 339,669 | ||||||||||
Property and equipment | |||||||||||||
Schedule of property and equipment estimated useful lives | ' | ||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives: | |||||||||||||
Buildings | 39 years | ||||||||||||
Furniture and fixtures | 5 - 7 years | ||||||||||||
Computers and equipment | 3 - 5 years | ||||||||||||
Leasehold improvements | Shorter of estimated useful life or lease term | ||||||||||||
Scanners | 3 years | ||||||||||||
Vehicles | 3 - 5 years | ||||||||||||
Reconciliation of unrecognized tax benefits | ' | ||||||||||||
2011 | 2012 | 2013 | |||||||||||
Gross balance at January 1 | $ | 14,821 | $ | 7,387 | $ | 9,045 | |||||||
Decreases related to prior year tax positions | (7,138 | ) | - | - | |||||||||
Increases related to current year tax positions | 1,415 | 2,430 | 1,188 | ||||||||||
Settlements | (499 | ) | - | (1,671 | ) | ||||||||
Decreases due to lapse of statutes of limitations | (1,255 | ) | (854 | ) | (1,086 | ) | |||||||
Currency adjustments | 43 | 82 | 8 | ||||||||||
Gross balance at December 31 | $ | 7,387 | $ | 9,045 | $ | 7,484 |
Prepaid_Expenses_and_Other_Tab
Prepaid Expenses and Other (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepaid Expenses and Other [Abstract] | ' | ||||||||
Prepaid expenses and other | ' | ||||||||
Prepaid expenses and other consist of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Deferred tax assets | $ | 25,420 | $ | 75,979 | |||||
Intercompany deferred charges | 4,255 | 12,585 | |||||||
Prepaid income taxes | 14,752 | - | |||||||
Prepaid inventory | 6,586 | 41,350 | |||||||
Prepaid rent and insurance | 4,428 | 6,576 | |||||||
Prepaid other taxes and duties | 3,851 | 5,745 | |||||||
Forward contracts | 2,968 | 1,939 | |||||||
Deposits | 6,584 | 7,459 | |||||||
Other | 13,632 | 11,253 | |||||||
$ | 82,476 | $ | 162,886 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Components of Property and Equipment | ' | ||||||||
Property and equipment are comprised of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Land | $ | 30,411 | $ | 34,442 | |||||
Buildings | 38,723 | 156,734 | |||||||
Construction in progress | 85,584 | 78,556 | |||||||
Furniture and fixtures | 49,062 | 56,160 | |||||||
Computers and equipment | 99,804 | 115,551 | |||||||
Leasehold improvements | 49,027 | 87,635 | |||||||
Scanners | 17,290 | 18,408 | |||||||
Vehicles | 2,229 | 2,226 | |||||||
372,130 | 549,712 | ||||||||
Less: accumulated depreciation | (142,343 | ) | (153,670 | ) | |||||
$ | 229,787 | $ | 396,042 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ' | |||||||||||||||||
Schedule of Intangible Assets and Goodwill | ' | |||||||||||||||||
Goodwill and other intangible assets consist of the following (U.S. dollars in thousands): | ||||||||||||||||||
Carrying Amount at | ||||||||||||||||||
December 31, | ||||||||||||||||||
Goodwill and indefinite life intangible assets: | 2012 | 2013 | ||||||||||||||||
Goodwill | $ | 112,446 | $ | 112,446 | ||||||||||||||
Trademarks and trade names | 24,599 | 24,599 | ||||||||||||||||
$ | 137,045 | $ | 137,045 | |||||||||||||||
Schedule of Finite Life Intangible Assets | ' | |||||||||||||||||
31-Dec-12 | 31-Dec-13 | |||||||||||||||||
Finite life intangible assets: | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Weighted-average Amortization Period | |||||||||||||
Scanner technology | $ | 46,482 | $ | 24,490 | $ | 46,482 | $ | 27,533 | 18 years | |||||||||
Developed technology | 22,500 | 15,085 | 22,500 | 15,909 | 20 years | |||||||||||||
Distributor network | 11,598 | 9,591 | 11,598 | 10,093 | 15 years | |||||||||||||
Trademarks | 13,784 | 10,925 | 14,086 | 11,660 | 15 years | |||||||||||||
Other | 55,416 | 21,770 | 53,540 | 24,442 | 8 years | |||||||||||||
$ | 149,780 | $ | 81,861 | $ | 148,206 | $ | 89,637 | 15 years |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Components of Other Assets | ' | ||||||||
Other assets consist of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Deferred taxes | $ | 9,002 | $ | 5,174 | |||||
Deposits for noncancelable operating leases | 15,189 | 24,406 | |||||||
Deposit for customs assessment (Note 19) | 46,653 | 40,181 | |||||||
Cash surrender value for life insurance policies | 18,605 | 23,172 | |||||||
Other | 12,004 | 18,139 | |||||||
$ | 101,453 | $ | 111,072 | ||||||
TABLE OF CONTENTS | |||||||||
NU SKIN ENTERPRISES, INC. | |||||||||
Notes to Consolidated Financial Statements | |||||||||
7. Accrued Expenses |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Expenses [Abstract] | ' | ||||||||
Components of Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following (U.S. dollars in thousands): | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued sales force commissions and other payments | $ | 110,950 | $ | 330,870 | |||||
Other taxes payable | 23,558 | 109,829 | |||||||
Accrued payroll and payroll taxes | 21,381 | 38,243 | |||||||
Accrued payable to vendors | 6,717 | 42,447 | |||||||
Deferred revenue | 4,608 | 13,596 | |||||||
Other accrued employee expenses | 30,285 | 30,452 | |||||||
Other | 35,703 | 60,847 | |||||||
$ | 233,202 | $ | 626,284 | ||||||
8. Long-Term Debt |
Long_Term_Debt_Tables
Long Term Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Long Term Debt [Abstract] | ' | |||||||||||||
Summary of Long-Term Debt Arrangements | ' | |||||||||||||
The Company currently has debt pursuant to various credit facilities and other borrowings. The Company's book value for both the individual and consolidated debt included in the table below approximates fair value. The estimated fair value of the Company's debt is based on interest rates available for debt with similar terms and remaining maturities. The Company has classified these instruments as Level 2 in the fair value hierarchy. The following tables summarize the Company's long-term debt arrangements as of December 31, 2013: | ||||||||||||||
Facility | Original | Balance as of | Balance as of | Interest | Repayment terms | |||||||||
or Arrangement(1) | Principal Amount | 31-Dec-12 | December 31, 2013(1) | Rate | ||||||||||
Multi-currency uncommitted | ||||||||||||||
shelf facility: | ||||||||||||||
U.S. dollar denominated: | $40.0 million | $22.9 million | $17.1 million | 6.20% | Notes due July 2016 with annual principal payments that began in July 2010. | |||||||||
$20.0 million | $14.3 million | $11.4 million | 6.20% | Notes due January 2017 with annual principal payments that began in January 2011. | ||||||||||
Japanese yen denominated: | 3.1 billion yen | 0.9 billion yen ($10.2 million as of December 31, 2012) | 0.4 billion yen ($4.1 million as of December 31, 2013) | 1.70% | Notes due April 2014 with annual principal payments that began in April 2008. | |||||||||
2.3 billion yen | 1.6 billion yen ($18.7 million as of December 31, 2012) | 1.3 billion yen ($12.3 million as of December 31, 2013) | 2.60% | Notes due September 2017 with annual principal payments that began in September 2011. | ||||||||||
2.2 billion yen | 1.6 billion yen ($17.9 million as of December 31, 2012) | 1.2 billion yen ($11.8 million as of December 31, 2013) | 3.30% | Notes due January 2017 with annual principal payments that began in January 2011. | ||||||||||
8.0 billion yen | 8.0 billion yen ($92.0 million as of December 31, 2012) | 8.0 billion yen ($75.8 million as of December 31, 2013) | 1.70% | Notes due May 2022 with annual principal payments that begin in May 2016. | ||||||||||
Committed loan: | ||||||||||||||
U.S. dollar denominated: | $30.0 million | $18.0 million | $0 | N/A | N/A | |||||||||
Revolving credit facilities | ||||||||||||||
2010 | $35.0 million | N/A | $35.0 million | Variable 30 day: | Revolving line of credit | |||||||||
0.67% | ||||||||||||||
2013(2) | $14.0 million | N/A | $14.0 million | Variable 30 day: | Revolving line of credit | |||||||||
0.59% | ||||||||||||||
-1 | The current portion of the Company's long-term debt (i.e. becoming due in the next 12 months) includes $10.2 million of the balance of its Japanese yen-denominated debt under the multi-currency uncommitted shelf facility, $8.6 million of the balance on its U.S. dollar denominated debt under the multi-currency uncommitted shelf facility and $49.0 million of the Company's revolving loans. | |||||||||||||
-2 | On September 5, 2013, the Company entered into a loan agreement with Bank of America, N.A. for a 364 day revolving line of credit with a commitment amount of $50.0 million. The interest rate is equal to 1 month LIBOR plus 42.5 basis points. | |||||||||||||
Maturities of Long-term Debt | ' | |||||||||||||
Maturities of all long-term debt at December 31, 2013, based on the year-end exchange rate, are as follows (U.S. dollars in thousands): | ||||||||||||||
Year Ending December 31, | ||||||||||||||
2014 | $ | 67,824 | ||||||||||||
2015 | 14,592 | |||||||||||||
2016 | 25,419 | |||||||||||||
2017 | 19,705 | |||||||||||||
2018 | 10,827 | |||||||||||||
Thereafter | 43,309 | |||||||||||||
Total | $ | 181,676 | ||||||||||||
TABLE OF CONTENTS | ||||||||||||||
NU SKIN ENTERPRISES, INC. | ||||||||||||||
Notes to Consolidated Financial Statements | ||||||||||||||
9. Lease Obligations |
Lease_Obligations_Tables
Lease Obligations (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Lease Obligation [Abstract] | ' | ||||
Minimum future lease obligations | ' | ||||
Minimum future operating lease obligations at December 31, 2013 are as follows (U.S. dollars in thousands): | |||||
Year Ending December 31, | |||||
2014 | $ | 31,992 | |||
2015 | 28,183 | ||||
2016 | 21,157 | ||||
2017 | 15,303 | ||||
2018 | 12,878 | ||||
Thereafter | 1,440 | ||||
Total | $ | 110,953 |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Capital Stock [Abstract] | ' | ||||||||||||
Weighted average common shares outstanding for computing EPS | ' | ||||||||||||
The following is a reconciliation of the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Basic weighted-average common shares outstanding | 62,066 | 60,600 | 58,606 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock awards and options | 2,480 | 2,425 | 2,842 | ||||||||||
Diluted weighted-average common shares outstanding | 64,546 | 63,025 | 61,448 | ||||||||||
For the years ended December 31, 2011, 2012 and 2013, other stock options totaling none, 0.1 million and 1.2 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock Based Compensation [Abstract] | ' | ||||||||||||||||
Schedule of option-pricing model assumptions and weighted-average fair values | ' | ||||||||||||||||
The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
Stock Options: | 2011 | 2012 | 2013 | ||||||||||||||
Weighted average grant date fair value of grants | $ | 9.98 | $ | 13.31 | $ | 22.1 | |||||||||||
Risk-free interest rate(1) | 1.8 | % | 0.8 | % | 1.4 | % | |||||||||||
Dividend yield(2) | 2.6 | % | 2.7 | % | 3.1 | % | |||||||||||
Expected volatility(3) | 38.4 | % | 46.8 | % | 41.7 | % | |||||||||||
Expected life in months(4) | 63 months | 58 months | 62 months | ||||||||||||||
-1 | The risk-free interest rate is based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant. | ||||||||||||||||
-2 | The dividend yield is based on the average of historical stock prices and actual dividends paid. | ||||||||||||||||
-3 | Expected volatility is based on the historical volatility of the Company's stock price, over a period similar to the expected life of the option. | ||||||||||||||||
-4 | The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years. | ||||||||||||||||
TABLE OF CONTENTS | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
Schedule of option activity | ' | ||||||||||||||||
Options under the plans as of December 31, 2013 and changes during the year ended December 31, 2013 were as follows: | |||||||||||||||||
Shares | Weighted-average Exercise Price | Weighted- average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||||||
Options activity – service based | |||||||||||||||||
Outstanding at December 31, 2012 | 3,235.20 | $ | 18.55 | ||||||||||||||
Granted | 172.5 | 94.53 | |||||||||||||||
Exercised | (1,244.0 | ) | 16.16 | ||||||||||||||
Forfeited/cancelled/expired | (3.9 | ) | 13.45 | ||||||||||||||
Outstanding at December 31, 2013 | 2,159.80 | 26.01 | 2.82 | $ | 242,347 | ||||||||||||
Exercisable at December 31, 2013 | 1,763.00 | 17.55 | 2.17 | 212,740 | |||||||||||||
Options activity – performance based | |||||||||||||||||
Outstanding at December 31, 2012 | 2,727.00 | $ | 28.06 | ||||||||||||||
Granted | 2,605.50 | 77.51 | |||||||||||||||
Exercised | (794.4 | ) | 25.1 | ||||||||||||||
Forfeited/cancelled/expired | (55.0 | ) | 33.89 | ||||||||||||||
Outstanding at December 31, 2013 | 4,483.10 | 57.25 | 5.26 | $ | 362,975 | ||||||||||||
Exercisable at December 31, 2013 | 1,826.70 | 28.72 | 3.47 | 200,034 | |||||||||||||
Options activity – all options | |||||||||||||||||
Outstanding at December 31, 2012 | 5,962.20 | $ | 22.9 | ||||||||||||||
Granted | 2,778.00 | 78.57 | |||||||||||||||
Exercised | (2,038.4 | ) | 19.65 | ||||||||||||||
Forfeited/cancelled/expired | (58.9 | ) | 32.54 | ||||||||||||||
Outstanding at December 31, 2013 | 6,642.90 | 47.1 | 4.47 | $ | 605,322 | ||||||||||||
Exercisable at December 31, 2013 | 3,589.70 | 23.23 | 2.83 | 412,774 | |||||||||||||
Schedule of cash proceeds, tax benefits, and intrinsic value related to total stock options exercised | ' | ||||||||||||||||
Cash proceeds, tax benefits, and intrinsic value related to total stock options exercised during 2011, 2012 and 2013, were as follows (in millions): | |||||||||||||||||
December 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Cash proceeds from stock options exercised | $ | 29.7 | $ | 8 | $ | 37.9 | |||||||||||
Tax benefit realized for stock options exercised | 17.4 | 6.3 | 41.9 | ||||||||||||||
Intrinsic value of stock options exercised | 61.6 | 10.6 | 241.7 | ||||||||||||||
Schedule of non-vested restricted stock awards and changes | ' | ||||||||||||||||
Nonvested restricted stock awards as of December 31, 2013 and changes during the year ended December 31, 2013 were as follows: | |||||||||||||||||
Number of Shares | Weighted-average Grant | ||||||||||||||||
(in thousands) | Date Fair Value | ||||||||||||||||
Nonvested at December 31, 2012 | 729 | $ | 39.68 | ||||||||||||||
Granted | 315.8 | 41.59 | |||||||||||||||
Vested | (305.4 | ) | 34.88 | ||||||||||||||
Forfeited | (9.8 | ) | 42.1 | ||||||||||||||
Nonvested at December 31, 2013 | 729.6 | 42.48 |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and December 31, 2013 (U.S. dollars in thousands): | |||||||||||||||||
Fair Value at December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial assets (liabilities): | |||||||||||||||||
Cash equivalents and current investments | $ | 76,006 | $ | - | $ | - | $ | 76,006 | |||||||||
Forward contracts | - | 2,969 | - | 2,969 | |||||||||||||
Insurance company contracts | - | - | 18,605 | 18,605 | |||||||||||||
Total | $ | 76,006 | $ | 2,969 | $ | 18,605 | $ | 97,580 | |||||||||
TABLE OF CONTENTS | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
Fair Value at December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial assets (liabilities): | |||||||||||||||||
Cash equivalents and current investments | $ | 61,136 | $ | - | $ | - | $ | 61,136 | |||||||||
Forward contracts | - | 1,939 | - | 1,939 | |||||||||||||
Insurance company contracts | - | - | 23,172 | 23,172 | |||||||||||||
Total | $ | 61,136 | $ | 1,939 | $ | 23,172 | $ | 86,247 | |||||||||
Summary of changes in Fair value of marketable securities | ' | ||||||||||||||||
The following table provides a summary of changes in fair value of the Company's Level 3 marketable securities (U.S. dollars in thousands): | |||||||||||||||||
Insurance Company Contracts | 2012 | 2013 | |||||||||||||||
Beginning balance at January 1 | $ | 14,925 | $ | $18,605 | |||||||||||||
Actual return on plan assets: | |||||||||||||||||
Relating to assets still held at the reporting date | 1,560 | 2,568 | |||||||||||||||
Purchases and issuances | 2,970 | 3,408 | |||||||||||||||
Sales and settlements | (850 | ) | (1,409 | ) | |||||||||||||
Transfers into Level 3 | - | - | |||||||||||||||
Ending balance at December 31 | $ | 18,605 | $ | 23,172 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Consolidated income before provision for income taxes | ' | ||||||||||||
Consolidated income before provision for income taxes consists of the following for the years ended December 31, 2011, 2012 and 2013 (U.S. dollars in thousands): | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
U.S. | $ | 142,929 | $ | 259,309 | $ | 307,994 | |||||||
Foreign | 83,840 | 85,933 | 248,946 | ||||||||||
Total | $ | 226,769 | $ | 345,242 | $ | 556,940 | |||||||
Provisions for current and deferred taxes | ' | ||||||||||||
The provision for current and deferred taxes for the years ended December 31, 2011, 2012 and 2013 consists of the following (U.S. dollars in thousands): | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current | |||||||||||||
Federal | $ | 14,723 | $ | 70,727 | $ | 84,394 | |||||||
State | 2,245 | 2,425 | 361 | ||||||||||
Foreign | 56,973 | 45,851 | 148,310 | ||||||||||
73,941 | 119,003 | 233,065 | |||||||||||
Deferred | |||||||||||||
Federal | 17,756 | 12,918 | (5,354 | ) | |||||||||
State | 582 | 656 | 551 | ||||||||||
Foreign | (18,840 | ) | (8,980 | ) | (36,210 | ) | |||||||
(502 | ) | 4,594 | (41,013 | ) | |||||||||
Provision for income taxes | $ | 73,439 | $ | 123,597 | $ | 192,052 | |||||||
Principal components of deferred taxes | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventory differences | $ | 3,490 | $ | 2,927 | |||||||||
Foreign tax credit and other foreign benefits | 42,128 | 120,534 | |||||||||||
Stock-based compensation | 13,772 | 18,132 | |||||||||||
Accrued expenses not deductible until paid | 45,003 | 88,465 | |||||||||||
Foreign currency exchange | 10,947 | 13,734 | |||||||||||
Net operating losses | 10,561 | 10,808 | |||||||||||
Capitalized research and development | 10,535 | 6,202 | |||||||||||
Other | 648 | 739 | |||||||||||
Gross deferred tax assets | 137,084 | 261,541 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Exchange gains and losses | 7,504 | 9,924 | |||||||||||
Intangibles step-up | 18,379 | 16,375 | |||||||||||
Amortization of intangibles | 15,840 | 17,360 | |||||||||||
Foreign outside basis in controlled foreign corporation | 32,592 | 76,470 | |||||||||||
Other | 20,867 | 63,409 | |||||||||||
Gross deferred tax liabilities | 95,182 | 183,538 | |||||||||||
Valuation allowance | (10,522 | ) | (10,803 | ) | |||||||||
Deferred taxes, net | $ | 31,380 | $ | 67,200 | |||||||||
Components of deferred taxes, net on a jurisdiction basis | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Net current deferred tax assets | $ | 25,420 | $ | 75,979 | |||||||||
Net noncurrent deferred tax assets | 9,002 | 5,174 | |||||||||||
Total net deferred tax assets | 34,422 | 81,153 | |||||||||||
Net current deferred tax liabilities | 2 | 1 | |||||||||||
Net noncurrent deferred tax liabilities | 3,040 | 13,952 | |||||||||||
Total net deferred tax liabilities | 3,042 | 13,953 | |||||||||||
Deferred taxes, net | $ | 31,380 | $ | 67,200 | |||||||||
Actual tax rate compared to statutory U.S federal tax rate | ' | ||||||||||||
The actual tax rate for the years ended December 31, 2011, 2012 and 2013 compared to the statutory U.S. Federal tax rate is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Income taxes at statutory rate | 35.00% | 35.00% | 35.00% | ||||||||||
Indefinitely invested earnings of non-U.S. subsidiaries | – | – | -0.76 | ||||||||||
Non-deductible expenses | 0.16 | 0.12 | 0.12 | ||||||||||
Extraterritorial income tax credit | -3.39 | – | – | ||||||||||
Other | 0.62 | 0.68 | 0.12 | ||||||||||
32.39% | 35.80% | 34.48% | |||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Revenue generated by region | ' | ||||||||||||
Revenue generated in each of these regions is set forth below (U.S. dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
Revenue: | 2011 | 2012 | 2013 | ||||||||||
Greater China | $ | 333,569 | $ | 550,690 | $ | 1,363,182 | |||||||
North Asia | 741,857 | 785,302 | 869,400 | ||||||||||
South Asia/Pacific | 235,000 | 328,597 | 378,988 | ||||||||||
Americas | 248,180 | 285,283 | 370,087 | ||||||||||
EMEA | 160,982 | 182,385 | 195,061 | ||||||||||
Total | $ | 1,719,588 | $ | 2,132,257 | $ | 3,176,718 | |||||||
TABLE OF CONTENTS | |||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||
Revenue generated by each of the Company's product lines is set forth below (U.S. dollars in thousands): | |||||||||||||
Revenue generated by each of the major product lines | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
Revenue: | 2011 | 2012 | 2013 | ||||||||||
Nu Skin | $ | 950,639 | $ | 1,158,213 | $ | 1,641,618 | |||||||
Pharmanex | 759,280 | 966,572 | 1,529,211 | ||||||||||
Other | 9,669 | 7,472 | 5,889 | ||||||||||
Total | $ | 1,719,588 | $ | 2,132,257 | $ | 3,176,718 | |||||||
Additional information as to the Company's operations in the most significant geographical areas is set forth below (U.S. dollars in thousands): | |||||||||||||
Revenue and long-lived assets by geographic region | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
Revenue: | 2011 | 2012 | 2013 | ||||||||||
Mainland China | $ | 148,388 | $ | 256,833 | $ | 1,005,395 | |||||||
South Korea | 276,923 | 296,000 | 466,820 | ||||||||||
Japan | 464,934 | 489,302 | 402,580 | ||||||||||
United States | 208,246 | 227,872 | 268,232 | ||||||||||
Taiwan | 107,716 | 134,592 | 199,161 | ||||||||||
Hong Kong | 77,465 | 159,265 | 158,626 | ||||||||||
Malaysia | 65,411 | 65,998 | 128,656 | ||||||||||
December 31, | |||||||||||||
Long-lived assets: | 2012 | 2013 | |||||||||||
Mainland China | $ | 30,199 | $ | 82,726 | |||||||||
South Korea | 14,030 | 14,345 | |||||||||||
Japan | 8,441 | 9,970 | |||||||||||
United States | 163,137 | 273,388 | |||||||||||
Taiwan | 1,945 | 1,928 | |||||||||||
Hong Kong | 559 | 2,497 | |||||||||||
Malaysia | - | 1,463 |
Quarterly_Results_Tables
Quarterly Results (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Results [Abstract] | ' | ||||||||||||||||||||||||||||||||
Quarterly data | ' | ||||||||||||||||||||||||||||||||
The following table sets forth selected unaudited quarterly data for the periods shown as revised (U.S. dollars in millions, except per share amounts): | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
Revenue | $ | 456.2 | $ | 577.2 | $ | 519.7 | $ | 579.2 | $ | 541.3 | $ | 671.3 | $ | 908.3 | $ | 1,055.80 | |||||||||||||||||
Gross profit | 380.4 | 481.6 | 433 | 484.1 | 451.3 | 560 | 768.5 | 891.1 | |||||||||||||||||||||||||
Operating income | 71.6 | 97.9 | 82.4 | 88.9 | 82.6 | 114.6 | 168.3 | 188.6 | |||||||||||||||||||||||||
Net income | 47.8 | 60.4 | 54.2 | 59.2 | 54.3 | 74.4 | 110.9 | 125.3 | |||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||||||
Basic | 0.77 | 0.98 | 0.9 | 1.01 | 0.93 | 1.27 | 1.89 | 2.13 | |||||||||||||||||||||||||
Diluted | 0.74 | 0.94 | 0.87 | 0.97 | 0.9 | 1.22 | 1.8 | 2.02 |
THE_COMPANY_Details
THE COMPANY (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Region | |
The Company [Abstract] | ' |
Number of geographic regions | 5 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revisions [Abstract] | ' | ' | ' |
Deferred Tax Assets, Current, Increase (Decrease) in Prior Period Balance Adjustment | ' | $10,800,000 | ' |
Deferred Tax Assets, Noncurrent, Increase (Decrease) in Prior Period Balance Adjustment | ' | 17,300,000 | ' |
Deferred Tax Liabilities, Noncurrent, Increase (Decrease) in Prior Period Balance Adjustment | ' | 28,100,000 | ' |
Selling Expense, Increase (Decrease) in Prior Period Balance Adjustment | ' | ' | 24,400,000 |
Revenues, Increase (Decrease) in Prior Period Balance Adjustment | ' | 37,400,000 | ' |
Inventories [Abstract] | ' | ' | ' |
Reserves for obsolete inventory | 5,900,000 | 5,500,000 | ' |
Raw materials | 117,982,000 | 32,332,000 | ' |
Finished goods | 221,687,000 | 103,542,000 | ' |
Inventories | 339,669,000 | 135,874,000 | ' |
Revenue recognition [Abstract] | ' | ' | ' |
Accrued reserve for product returns | 11,000,000 | 6,200,000 | ' |
Sales returns | 79,400,000 | 56,100,000 | 56,500,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax [Abstract] | ' | ' | ' |
Foreign currency translation adjustment, net of tax | 47,600,000 | 54,700,000 | 61,500,000 |
Segment Reporting [Line Items] | ' | ' | ' |
Total Assets | 1,821,062,000 | 1,124,807,000 | ' |
Intercompany Receivables | 68,652,000 | 36,850,000 | ' |
Fair value of financial instruments [Abstract] | ' | ' | ' |
Long-term debt, fair value | 188,300,000 | 199,500,000 | ' |
Advertising expense [Abstract] | ' | ' | ' |
Advertising expense incurred | 11,300,000 | 5,100,000 | 2,300,000 |
Research and development [Abstract] | ' | ' | ' |
Research and development expense | 18,000,000 | 14,900,000 | 13,600,000 |
Deferred tax assets and liabilities [Abstract] | ' | ' | ' |
Net deferred tax assets | 67,200,000 | 31,380,000 | ' |
Reconciliation of Unrecognized Tax Benefits [Abstract] | ' | ' | ' |
Gross Balance, Beginning | 9,045,000 | 7,387,000 | 14,821,000 |
Decreases related to prior year tax positions | 0 | 0 | -7,138,000 |
Increases related to current year tax positions | 1,188,000 | 2,430,000 | 1,415,000 |
Settlements | -1,671,000 | 0 | -499,000 |
Decreases due to lapse of statutes of limitations | -1,086,000 | -854,000 | -1,255,000 |
Currency adjustments | 8,000 | 82,000 | 43,000 |
Gross Balance, Ending | 7,484,000 | 9,045,000 | 7,387,000 |
Unrecognized tax benefits that would impact effective tax rate | 2,100,000 | 3,800,000 | ' |
Estimate of change in gross unrecognized tax benefits, net of foreign adjustments, minimum | 2,000,000 | ' | ' |
Estimate of change in gross unrecognized tax benefits, net of foreign currency adjustments, maximum | 3,000,000 | ' | ' |
Interest and penalties expenses/(benefits) | -100,000 | 300,000 | -800,000 |
Accrued interest and penalties related to uncertain tax positions | 900,000 | 1,100,000 | 800,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Cumulative translation adjustment related to foreign currency adjustment | 47,500,000 | 53,700,000 | ' |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | -10,500,000 | 7,300,000 | -900,000 |
General and Administrative Expense [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense related to equity compensation plans | 32,600,000 | 21,400,000 | 15,500,000 |
VENEZUELA | ' | ' | ' |
Segment Reporting [Line Items] | ' | ' | ' |
Net sales revenue as percentage of consolidated net sales revenue (in hundredths) | 11.00% | 7.00% | 3.00% |
Total Assets | 38,800,000 | 15,600,000 | ' |
Intercompany Receivables | $37,900,000 | $15,600,000 | ' |
Building [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '39 years | ' | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '5 years | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '7 years | ' | ' |
Computer Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '3 years | ' | ' |
Computer Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '5 years | ' | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Estimated useful life description | 'Shorter of estimated useful life or lease term | ' | ' |
Scanners [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '3 years | ' | ' |
Vehicles [Member] | Minimum [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '3 years | ' | ' |
Vehicles [Member] | Maximum [Member] | ' | ' | ' |
Property and equipment [Abstract] | ' | ' | ' |
Useful life | '5 years | ' | ' |
Prepaid_Expenses_and_Other_Det
Prepaid Expenses and Other (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other [Abstract] | ' | ' |
Deferred tax assets | $75,979 | $25,420 |
Intercompany deferred charges | 12,585 | 4,255 |
Prepaid income taxes | 0 | 14,752 |
Prepaid inventory | 41,350 | 6,586 |
Prepaid rent and insurance | 6,576 | 4,428 |
Prepaid other taxes and duties | 5,745 | 3,851 |
Forward contracts | 1,939 | 2,968 |
Deposits | 7,459 | 6,584 |
Other | 11,253 | 13,632 |
Total | $162,886 | $82,476 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $549,712,000 | $372,130,000 | ' |
Less: accumulated depreciation | -153,670,000 | -142,343,000 | ' |
Property and equipment, net | 396,042,000 | 229,787,000 | ' |
Depreciation expense | 27,100,000 | 25,500,000 | 25,700,000 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 34,442,000 | 30,411,000 | ' |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 156,734,000 | 38,723,000 | ' |
Construction in Progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 78,556,000 | 85,584,000 | ' |
Furniture and Fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 56,160,000 | 49,062,000 | ' |
Computers and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 115,551,000 | 99,804,000 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 87,635,000 | 49,027,000 | ' |
Vehicles [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 2,226,000 | 2,229,000 | ' |
Scanners [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $18,408,000 | $17,290,000 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill and indefinite life intangible assets: | ' | ' | ' |
Goodwill | $112,446,000 | $112,446,000 | ' |
Trademarks and trade names | 24,599,000 | 24,599,000 | ' |
Total goodwill and trademarks and trade names | 137,045,000 | 137,045,000 | ' |
Finite life intangible assets [Abstract] | ' | ' | ' |
Gross carrying amount | 148,206,000 | 149,780,000 | ' |
Accumulated amortization | 89,637,000 | 81,861,000 | ' |
Weighted average | '15 years | ' | ' |
Amortization expense | 7,800,000 | 7,900,000 | 7,100,000 |
Annual estimated amortization expense [Abstract] | ' | ' | ' |
2013 | 7,000,000 | ' | ' |
2014 | 7,000,000 | ' | ' |
2015 | 7,000,000 | ' | ' |
2016 | 7,000,000 | ' | ' |
2017 | 7,000,000 | ' | ' |
Scanner technology [Member] | ' | ' | ' |
Finite life intangible assets [Abstract] | ' | ' | ' |
Gross carrying amount | 46,482,000 | 46,482,000 | ' |
Accumulated amortization | 27,533,000 | 24,490,000 | ' |
Weighted average | '18 years | ' | ' |
Developed technology [Member] | ' | ' | ' |
Finite life intangible assets [Abstract] | ' | ' | ' |
Gross carrying amount | 22,500,000 | 22,500,000 | ' |
Accumulated amortization | 15,909,000 | 15,085,000 | ' |
Weighted average | '20 years | ' | ' |
Distribution network [Member] | ' | ' | ' |
Finite life intangible assets [Abstract] | ' | ' | ' |
Gross carrying amount | 11,598,000 | 11,598,000 | ' |
Accumulated amortization | 10,093,000 | 9,591,000 | ' |
Weighted average | '15 years | ' | ' |
Trademarks [Member] | ' | ' | ' |
Finite life intangible assets [Abstract] | ' | ' | ' |
Gross carrying amount | 14,086,000 | 13,784,000 | ' |
Accumulated amortization | 11,660,000 | 10,925,000 | ' |
Weighted average | '15 years | ' | ' |
Other finite life intangible assets [Member] | ' | ' | ' |
Finite life intangible assets [Abstract] | ' | ' | ' |
Gross carrying amount | 53,540,000 | 55,416,000 | ' |
Accumulated amortization | $24,442,000 | $21,770,000 | ' |
Weighted average | '8 years | ' | ' |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of other assets [Abstract] | ' | ' |
Deferred taxes | $5,174 | $9,002 |
Deposits for noncancelable operating leases | 24,406 | 15,189 |
Deposit for customs assessment (Note 20) | 40,181 | 46,653 |
Cash surrender value for life insurance policies | 23,172 | 18,605 |
Other | 18,139 | 12,004 |
Total other assets | $111,072 | $101,453 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Expenses [Abstract] | ' | ' |
Accrued commissions and other payments to distributors | $330,870 | $110,950 |
Other taxes payable | 109,829 | 23,558 |
Accrued payroll and payroll taxes | 38,243 | 21,381 |
Accrued payable to vendors | 42,447 | 6,717 |
Deferred revenue | 13,596 | 4,608 |
Other accrued employee expenses | 30,452 | 30,285 |
Other | 60,847 | 35,703 |
Total accrued expenses | $626,284 | $233,202 |
Long_Term_Debt_Details
Long Term Debt (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | ||||||||||||
USD ($) | USD ($) | USD ($) | 2003 multi-currency uncommitted shelf facility, U.S. dollar denominated 1 [Member] | 2003 multi-currency uncommitted shelf facility, U.S. dollar denominated 1 [Member] | 2003 multi-currency uncommitted shelf facility, U.S. dollar denominated 2 [Member] | 2003 multi-currency uncommitted shelf facility, U.S. dollar denominated 2 [Member] | 2003 multi-currency uncommitted shelf facility, total U.S. dollar-denominated debt [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 1 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 1 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 1 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 1 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 2 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 2 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 2 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 2 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 3 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 3 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 3 [Member] | 2003 multi-currency uncommitted shelf facility, Japanese yen denominated 3 [Member] | 2003 multi-currency uncommitted shelf facility, total Japanese yen-denominated debt [Member] | Revcolving Credit Facility Member [Member] | 2010 committed loan, U.S. dollar denominated [Member] | 2010 committed loan, U.S. dollar denominated [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 3 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 3 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 3 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 3 [Member] | ||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Original principal amount - facilities | $14,000,000 | ' | ' | $40,000,000 | [1] | ' | $20,000,000 | ' | ' | ' | ¥ 3,100,000,000 | ' | ' | ' | ¥ 2,300,000,000 | ' | ' | ' | ¥ 2,200,000,000 | ' | ' | ' | $35,000,000 | $30,000,000 | ' | ' | ¥ 8,000,000,000 | [2] | ' | ' | |||||||||
Balance - facilities | 14,000,000 | ' | ' | 17,100,000 | [3] | 22,900,000 | 11,400,000 | [3] | 14,300,000 | ' | 4,100,000 | [3] | 400,000,000 | [3] | 10,200,000 | 900,000,000 | 12,300,000 | [3] | 1,300,000,000 | [3] | 18,700,000 | 1,600,000,000 | 11,800,000 | [3] | 1,200,000,000 | [3] | 17,900,000 | 1,600,000,000 | ' | 35,000,000 | 0 | [3] | 18,000,000 | 75,800,000 | [3] | 8,000,000,000 | [3] | 92,000,000 | 8,000,000,000 |
Interest rate - facilities (in hundredths) | ' | ' | ' | 6.20% | ' | 6.20% | ' | ' | 1.70% | 1.70% | ' | ' | 2.60% | 2.60% | ' | ' | 3.30% | 3.30% | ' | ' | ' | ' | ' | ' | 1.70% | 1.70% | ' | ' | |||||||||||
Repayment terms | 'Revolving line of credit | ' | ' | 'Notes due July 2016 with annual principal payments that began in July 2010. | ' | 'Notes due January 2017 with annual principal payments that began in January 2011. | ' | ' | 'Notes due April 2014 with annual principal payments that began in April 2008. | 'Notes due April 2014 with annual principal payments that began in April 2008. | ' | ' | 'Notes due September 2017 with annual principal payments that began in September 2011. | 'Notes due September 2017 with annual principal payments that began in September 2011. | ' | ' | 'Notes due January 2017 with annual principal payments that began in January 2011. | 'Notes due January 2017 with annual principal payments that began in January 2011. | ' | ' | ' | 'Revolving line of credit | 'N/A | ' | 'Notes due May 2022 with annual principal payments that begin in May 2016. | 'Notes due May 2022 with annual principal payments that begin in May 2016. | ' | ' | |||||||||||
Interest rate description - other borrowings | 'variable 30 day: 0.5933 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'variable 30 day: 0.670% | ' | ' | ' | ' | ' | ' | |||||||||||
Interest rate - other borrowings (in hundredths) | 59.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' | ' | ' | |||||||||||
Amortization per month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Current portion of long-term debt | 67,824,000 | 39,019,000 | ' | ' | ' | ' | ' | 8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,200,000 | ' | 49,000,000 | ' | ' | ' | ' | ' | |||||||||||
Interest expense | 3,000,000 | 5,200,000 | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Minimum cash compensating balance per loan covenant | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Committed amount | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Maturities of Long-term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
2013 | 67,824,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
2014 | 14,592,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
2015 | 25,419,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
2016 | 19,705,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
2017 | 10,827,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Thereafter | 43,309,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Total | $181,676,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
[1] | On May 25, 2012, the Company (a) entered into an amendment and restatement of its multi-currency uncommitted shelf facility to extend the termination date to May 25, 2015 and provide for the issuance of up to $150 million in additional senior promissory notes; (b) entered into an amendment and restatement of the Companybs revolving credit facility to extend the termination date to May 9, 2014; and (c) terminated pledges and guarantees of its subsidiaries as security for the multi-currency uncommitted shelf facility, committed loan and revolving credit facility. The committed loan continues to be secured by deeds of trust with respect to the Companybs corporate headquarters and distribution center in Provo, Utah. | ||||||||||||||||||||||||||||||||||||||
[2] | On May 31, 2012, the Company issued a series of yen denominated senior promissory notes under the multi-currency uncommitted shelf facility with an aggregate principal amount of 8.0 billion yen. | ||||||||||||||||||||||||||||||||||||||
[3] | The current portion of the Companybs long-term debt (i.e. becoming due in the next 12 months) includes $12.4 million of the balance of its Japanese yen-denominated debt under the multi-currency uncommitted shelf facility, $8.6 million of the balance on its U.S. dollar denominated debt under the multi-currency uncommitted shelf facility and $18.0 million of the Companybs committed loan. |
Lease_Obligations_Details
Lease Obligations (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Minimum future operating lease obligations [Abstract] | ' | ' | ' |
2013 | $31,992,000 | ' | ' |
2014 | 28,183,000 | ' | ' |
2015 | 21,157,000 | ' | ' |
2016 | 15,303,000 | ' | ' |
2017 | 12,878,000 | ' | ' |
Thereafter | 1,440,000 | ' | ' |
Total | 110,953,000 | ' | ' |
Typical term of lease renewal options | '3 years | ' | ' |
Rental expense for operating leases | $34,600,000 | $27,700,000 | $25,800,000 |
Capital_Stock_Details
Capital Stock (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ' |
Weighted average share outstanding [Abstract] | ' | ' | ' |
Basic weighted-average common shares outstanding (in shares) | 58,606,000 | 60,600,000 | 62,066,000 |
Effect of dilutive securities: Stock awards and options (in shares) | 2,842,000 | 2,425,000 | 2,480,000 |
Diluted weighted-average common shares outstanding (in shares) | 61,448,000 | 63,025,000 | 64,546,000 |
Securities excluded from the calculation of diluted earnings per share | 1,200,000 | 100,000 | 0 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Class A common stock repurchased (in shares) | 1,700,000 | 4,600,000 | 1,900,000 |
Aggregate price of repurchased stock | $140.90 | $201.50 | $67.10 |
Increment authorized by the Company's board of directors under the stock repurchase program | 400 | 250 | ' |
Amount available for repurchases | $394.50 | ' | ' |
Preferred Stock [Member] | ' | ' | ' |
Preferred stock, authorized (in shares) | 25,000,000 | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | ' | ' |
Shares outstanding (in shares) | 0 | ' | ' |
Common Class A [Member] | ' | ' | ' |
Common stock, authorized (in shares) | 500,000,000 | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' | ' |
Number of votes class is entitled to | 1 | ' | ' |
Number of shares of class A common stock issued after conversion of Class B common stock | ' | 1 | ' |
Common Class B [Member] | ' | ' | ' |
Common stock, authorized (in shares) | 100,000,000 | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' | ' |
Shares outstanding (in shares) | 0 | ' | ' |
Number of votes class is entitled to | 10 | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | |||
Weighted average grant date fair value of grants (in dollars per share) | $22.10 | $13.31 | $9.98 | |||
Risk-free interest rate (in hundredths) | 1.40% | [1] | 0.80% | [1] | 1.80% | [1] |
Dividend yield (in hundredths) | 3.10% | [2] | 2.70% | [2] | 2.60% | [2] |
Expected volatility (in hundredths) | 41.70% | [3] | 46.80% | [3] | 38.40% | [3] |
Expected life | '62 months | [4] | '58 months | [4] | '63 months | [4] |
Options, Outstanding [Roll Forward] | ' | ' | ' | |||
Outstanding, beginning balance (in shares) | 5,962,200 | ' | ' | |||
Granted (in shares) | 2,778,000 | ' | ' | |||
Exercised (in shares) | -2,038,400 | ' | ' | |||
Forfeited/cancelled/expired (in shares) | -58,900 | ' | ' | |||
Outstanding, Ending (in shares) | 6,642,900 | 5,962,200 | ' | |||
Exercisable (in shares) | 3,589,700 | ' | ' | |||
Weighted-average Exercise Price [Abstract] | ' | ' | ' | |||
Outstanding, beginning balance (in dollars per share) | $22.90 | ' | ' | |||
Granted (in dollars per share) | $78.57 | ' | ' | |||
Exercised (in dollars per share) | $19.65 | ' | ' | |||
Forfeited/cancelled/expired (in dollars per share) | $32.54 | ' | ' | |||
Outstanding, Ending (in dollars per share) | $47.10 | $22.90 | ' | |||
Exercisable (in dollars per share) | $23.23 | ' | ' | |||
Outstanding options, weighted-average remaining contractual term | '4 years 5 months 19 days | ' | ' | |||
Exercisable options, weighted-average remaining contractual term | '2 years 9 months 29 days | ' | ' | |||
Aggregate intrinsic value | $605,322,000 | ' | ' | |||
Aggregate intrinsic value, exercisable | 412,774,000 | ' | ' | |||
Weighted-average Grant Date Fair Value [Abstract] | ' | ' | ' | |||
Granted (in dollars per share) | $78.57 | ' | ' | |||
Unrecognized stock-based compensation expense, period for recognition | '4 years 5 months 19 days | ' | ' | |||
Stock Options [Member] | ' | ' | ' | |||
Weighted-average Exercise Price [Abstract] | ' | ' | ' | |||
Outstanding options, weighted-average remaining contractual term | '4 years | ' | ' | |||
Total fair value of options vested and expensed, net of tax | 13,200,000 | ' | ' | |||
Cash proceeds from stock options exercised | 37,900,000 | 8,000,000 | 29,700,000 | |||
Tax benefit realized for stock options exercised | 41,900,000 | 6,300,000 | 17,400,000 | |||
Intrinsic value of stock options exercised | 241,700,000 | 10,600,000 | 61,600,000 | |||
Weighted-average Grant Date Fair Value [Abstract] | ' | ' | ' | |||
Unrecognized stock-based compensation expense | 58,400,000 | ' | ' | |||
Unrecognized stock-based compensation expense, period for recognition | '4 years | ' | ' | |||
Omnibus Incentive Plan [Member] | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Contractual term of stock options granted (in years) | '7 years | ' | ' | |||
Number of shares authorized for issuance (in shares) | 7,000,000 | ' | ' | |||
Share-based compensation arrangement by share-based payment award, terms of award | 'Vesting for the options is performance based, with the options vesting in two installments if the Company's earnings per share equal or exceed the two established performance levels, measured in terms of diluted earnings per share. Fifty percent of the options vest upon earnings per share meeting or exceeding the first performance level and fifty percent of the options vest upon earnings per share meeting or exceeding the second performance level. | ' | ' | |||
Weighted-average Grant Date Fair Value [Abstract] | ' | ' | ' | |||
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized | 3,200,000 | ' | ' | |||
Performance-Based Options [Member] | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Share-based compensation arrangement by share-based payment award, terms of award | 'Vesting for the options is performance based, with the options vesting in three installments if the Company's earnings per share equal or exceed the three established performance levels, measured in terms of diluted earnings per share. One third of the options will vest upon earnings per share meeting or exceeding the first performance level, one third of the options will vest upon earnings per share meeting or exceeding the second performance level and one third of the options will vest upon earnings per share meeting or exceeding the third performance level. | ' | ' | |||
Options, Outstanding [Roll Forward] | ' | ' | ' | |||
Outstanding, beginning balance (in shares) | 2,727,000 | ' | ' | |||
Granted (in shares) | 2,605,500 | ' | ' | |||
Exercised (in shares) | -794,400 | ' | ' | |||
Forfeited/cancelled/expired (in shares) | -55,000 | ' | ' | |||
Outstanding, Ending (in shares) | 4,483,100 | ' | ' | |||
Exercisable (in shares) | 1,826,700 | ' | ' | |||
Weighted-average Exercise Price [Abstract] | ' | ' | ' | |||
Outstanding, beginning balance (in dollars per share) | $28.06 | ' | ' | |||
Granted (in dollars per share) | $77.51 | ' | ' | |||
Exercised (in dollars per share) | $25.10 | ' | ' | |||
Forfeited/cancelled/expired (in dollars per share) | $33.89 | ' | ' | |||
Outstanding, Ending (in dollars per share) | $57.25 | ' | ' | |||
Exercisable (in dollars per share) | $28.72 | ' | ' | |||
Outstanding options, weighted-average remaining contractual term | '5 years 3 months 4 days | ' | ' | |||
Exercisable options, weighted-average remaining contractual term | '3 years 5 months 19 days | ' | ' | |||
Aggregate intrinsic value | 362,975,000 | ' | ' | |||
Aggregate intrinsic value, exercisable | 200,034,000 | ' | ' | |||
Weighted-average Grant Date Fair Value [Abstract] | ' | ' | ' | |||
Granted (in dollars per share) | $77.51 | ' | ' | |||
Unrecognized stock-based compensation expense, period for recognition | '5 years 3 months 4 days | ' | ' | |||
Service-Based Options [Member] | ' | ' | ' | |||
Options, Outstanding [Roll Forward] | ' | ' | ' | |||
Outstanding, beginning balance (in shares) | 3,235,200 | ' | ' | |||
Granted (in shares) | 172,500 | ' | ' | |||
Exercised (in shares) | -1,244,000 | ' | ' | |||
Forfeited/cancelled/expired (in shares) | -3,900 | ' | ' | |||
Outstanding, Ending (in shares) | 2,159,800 | ' | ' | |||
Exercisable (in shares) | 1,763,000 | ' | ' | |||
Weighted-average Exercise Price [Abstract] | ' | ' | ' | |||
Outstanding, beginning balance (in dollars per share) | $18.55 | ' | ' | |||
Granted (in dollars per share) | $94.53 | ' | ' | |||
Exercised (in dollars per share) | $16.16 | ' | ' | |||
Forfeited/cancelled/expired (in dollars per share) | $13.45 | ' | ' | |||
Outstanding, Ending (in dollars per share) | $26.01 | ' | ' | |||
Exercisable (in dollars per share) | $17.55 | ' | ' | |||
Outstanding options, weighted-average remaining contractual term | '2 years 9 months 25 days | ' | ' | |||
Exercisable options, weighted-average remaining contractual term | '2 years 2 months 1 day | ' | ' | |||
Aggregate intrinsic value | 242,347,000 | ' | ' | |||
Aggregate intrinsic value, exercisable | 212,740,000 | ' | ' | |||
Weighted-average Grant Date Fair Value [Abstract] | ' | ' | ' | |||
Granted (in dollars per share) | $94.53 | ' | ' | |||
Unrecognized stock-based compensation expense, period for recognition | '2 years 9 months 25 days | ' | ' | |||
Non-Vested Restricted Stock [Member] | ' | ' | ' | |||
Weighted-average Exercise Price [Abstract] | ' | ' | ' | |||
Granted (in dollars per share) | $41.59 | ' | ' | |||
Number of shares [Roll forward] | ' | ' | ' | |||
Nonvested, beginning balance (in shares) | 729,000 | ' | ' | |||
Granted (in shares) | 315,800 | ' | ' | |||
Vested (in shares) | -305,400 | ' | ' | |||
Forfeited (in shares) | -9,800 | ' | ' | |||
Nonvested, Ending Balance (in shares) | 729,600 | ' | ' | |||
Weighted-average Grant Date Fair Value [Abstract] | ' | ' | ' | |||
Nonvested, Beginning Balance (in dollars per share) | $39.68 | ' | ' | |||
Granted (in dollars per share) | $41.59 | ' | ' | |||
Vested (in dollars per share) | $34.88 | ' | ' | |||
Forfeited (in dollars per share) | $42.10 | ' | ' | |||
Nonvested, Ending Balance (in dollars per share) | $42.48 | ' | ' | |||
Unrecognized stock-based compensation expense | $16,400,000 | ' | ' | |||
Unrecognized stock-based compensation expense, period for recognition | '2 years 2 months 12 days | ' | ' | |||
Minimum [Member] | Stock Incentive Plan 1996 [Member] | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Contractual term of stock options granted (in years) | '7 years | ' | ' | |||
Maximum [Member] | Stock Incentive Plan 1996 [Member] | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Contractual term of stock options granted (in years) | '10 years | ' | ' | |||
[1] | The risk-free interest rate is based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant. | |||||
[2] | The dividend yield is based on the average of historical stock prices and actual dividends paid. | |||||
[3] | Expected volatility is based on the historical volatility of the Companybs stock price, over a period similar to the expected life of the option. | |||||
[4] | The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years. |
Fair_Value_Details
Fair Value (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets (liabilities) [Abstract] | ' | ' |
Forward contracts | $1,939 | $2,968 |
Summary of changes in fair value of marketable securities [Roll Forward] | ' | ' |
Balance, Beginning of period | 18,605 | 14,925 |
Relating to assets still held at the reporting date | 2,568 | 1,560 |
Purchases and issuances | 3,408 | 2,970 |
Sales and settlements | -1,409 | -850 |
Transfers into Level III | 0 | 0 |
Balance, End of period | 23,172 | 18,605 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets (liabilities) [Abstract] | ' | ' |
Cash equivalents | 61,136 | 76,006 |
Forward contracts | 1,939 | 2,969 |
Insurance company contracts | 23,172 | 18,605 |
Total | 86,247 | 97,580 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Financial assets (liabilities) [Abstract] | ' | ' |
Cash equivalents | 61,136 | 76,006 |
Insurance company contracts | 0 | 0 |
Total | 61,136 | 76,006 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Financial assets (liabilities) [Abstract] | ' | ' |
Forward contracts | 1,939 | 2,969 |
Insurance company contracts | 0 | 0 |
Total | 1,939 | 2,969 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' |
Financial assets (liabilities) [Abstract] | ' | ' |
Insurance company contracts | 23,172 | 18,605 |
Total | $23,172 | $18,605 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated income before provision for income taxes [Abstract] | ' | ' | ' |
U.S. | $307,994,000 | $259,309,000 | $142,929,000 |
Foreign | 248,946,000 | 85,933,000 | 83,840,000 |
Income before provision for income taxes | 556,940,000 | 345,242,000 | 226,769,000 |
Current [Abstract] | ' | ' | ' |
Federal | 84,394,000 | 70,727,000 | 14,723,000 |
State | 361,000 | 2,425,000 | 2,245,000 |
Foreign | 148,310,000 | 45,851,000 | 56,973,000 |
Current income tax expense (benefit) | 233,065,000 | 119,003,000 | 73,941,000 |
Deferred [Abstract] | ' | ' | ' |
Federal | -5,354,000 | 12,918,000 | 17,756,000 |
State | 551,000 | 656,000 | 582,000 |
Foreign | -36,210,000 | -8,980,000 | -18,840,000 |
Deferred income tax expense (benefit) | -41,013,000 | 4,594,000 | -502,000 |
Provision for income taxes | 192,052,000 | 123,597,000 | 73,439,000 |
Deferred tax assets [Abstract] | ' | ' | ' |
Inventory differences | 2,927,000 | 3,490,000 | ' |
Foreign tax credit and other foreign benefits | 120,534,000 | 42,128,000 | ' |
Stock-based compensation | 18,132,000 | 13,772,000 | ' |
Accrued expenses not deductible until paid | 88,465,000 | 45,003,000 | ' |
Foreign currency exchange | 13,734,000 | 10,947,000 | ' |
Net operating losses | 10,808,000 | 10,561,000 | ' |
Capitalized research and development | 6,202,000 | 10,535,000 | ' |
Other | 739,000 | 648,000 | ' |
Gross deferred tax assets | 261,541,000 | 137,084,000 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Exchange gains and losses | 9,924,000 | 7,504,000 | ' |
Intangibles step-up | 16,375,000 | 18,379,000 | ' |
Amortization of intangibles | 17,360,000 | 15,840,000 | ' |
Foreign outside basis in controlled foreign corporation | 76,470,000 | 32,592,000 | ' |
Other | 63,409,000 | 20,867,000 | ' |
Gross deferred tax liabilities | 183,538,000 | 95,182,000 | ' |
Valuation allowance | -10,803,000 | -10,522,000 | ' |
Deferred taxes, net | 67,200,000 | 31,380,000 | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Years in which foreign operating loss carryforwards will expire | '2014 and 2023 | ' | ' |
Deferred tax assets, net, classification [Abstract] | ' | ' | ' |
Net current deferred tax assets | 75,979,000 | 25,420,000 | ' |
Net noncurrent deferred tax assets | 5,174,000 | 9,002,000 | ' |
Total net deferred tax assets | 81,153,000 | 34,422,000 | ' |
Deferred tax liabilities, classification [Abstract] | ' | ' | ' |
Net current deferred tax liabilities | 1,000 | 2,000 | ' |
Net noncurrent deferred tax liabilities | 13,952,000 | 3,040,000 | ' |
Total net deferred tax liabilities | 13,953,000 | 3,042,000 | ' |
Effective income tax rate, continuing operations, tax rate reconciliation [Abstract] | ' | ' | ' |
Income taxes at statutory rate (in hundredths) | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary | -76.00% | 0.00% | 0.00% |
Non-deductible expenses (in hundredths) | 12.00% | 12.00% | 16.00% |
Extraterritorial income tax credit (in hundredths) | 0.00% | 0.00% | -339.00% |
Other (in hundredths) | 12.00% | 68.00% | 62.00% |
Effective income tax rate, continuing operations (in hundredths) | 34.48% | 35.80% | 32.39% |
UndistributedEarningsOfForeignSubsidiaries | 50,000,000 | ' | ' |
DeferredTaxLiabilitiesUndistributedForeignEarnings | 5,500,000 | ' | ' |
Foreign Country [Member] | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Operating loss carryforwards | 49,400,000 | ' | ' |
Operating loss carryforwards scheduled to expire | 12,600,000 | ' | ' |
Operating loss carrying that will not expire | 36,800,000 | ' | ' |
Operating loss carryforwards, valuation allowance | $41,600,000 | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefit Plan [Abstract] | ' | ' | ' |
Maximum compensation deferred subject to limitations (in hundredths) | 100.00% | ' | ' |
Deferred compensation arrangement with individual, description | 'Employees age 18 and older are eligible to contribute to the plan starting the first day of employment | ' | ' |
Requisite service period | 'After completing at least one day of service, employees are eligible to receive matching contributions from the Company | ' | ' |
Employer matched employees' base pay (in hundredths) | 4.00% | 4.00% | 4.00% |
Company's contribution evenly vest (in years) | '4 years | ' | ' |
Company's contributions cliff vest (in years) | '2 years | ' | ' |
Compensation expense | $2.70 | $2.40 | $2.30 |
Additional deferred compensation arrangement, percentage of employees pay, maximum (in hundredths) | 10.00% | ' | ' |
Additional deferred compensation contribution | 6.1 | 3.5 | 2.1 |
Accrued pension liability | 6.2 | 7.6 | 8.4 |
Pension expense | $0.80 | $1.10 | $0.90 |
Vesting period | '5 years | ' | ' |
Vesting period expressed as a percentage per year (in hundredths) | 20.00% | ' | ' |
Executive_Deferred_Compensatio1
Executive Deferred Compensation Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Deferred compensation arrangement with individual, description | 'Employees age 18 and older are eligible to contribute to the plan starting the first day of employment | ' | ' |
Executive [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Deferred compensation arrangement with individual, description | 'The Company has an executive deferred compensation plan for select management personnel. | ' | ' |
Percentage of matching contribution maximum (in hundredths) | 10.00% | ' | ' |
Percentage of compensation deferred, maximum (in hundredths) | 80.00% | ' | ' |
Percentage of bonus deferred, maximum (in hundredths) | 100.00% | ' | ' |
Compensation expense | $3.10 | $1.20 | $1.70 |
Compensation cost accrued related to executive deferred compensation plan | 28.5 | 22.1 | ' |
Investment in Rabbi Trust | $23.20 | $18.60 | ' |
Percentage vested after ten years of service (in hundredths) | 50.00% | ' | ' |
Number of years of service to attain fifty percent vesting | '10 years | ' | ' |
Percentage vested per year after ten years of service (in hundredths) | 5.00% | ' | ' |
Minimum age for automatic fully vesting | '60 | ' | ' |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | EUR (€) | JPY (¥) | EUR (€) | JPY (¥) | |
Derivative Financial Instruments [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency cash flow hedges | $23.70 | $21.90 | $16.50 | € 12 | ¥ 2,500 | € 0 | ¥ 1,900 |
Pre-tax net gains on foreign currency cash flow hedges | 5.1 | 0.5 | 1.4 | ' | ' | ' | ' |
Number of months that unrealized gains and losses of foreign currency cash flow hedges are included in AOCI will be recognized | '12 months | ' | ' | ' | ' | ' | ' |
AccumulatedOtherComprehensiveIncomeLossCumulativeChangesInNetGainLossFromCashFlowHedgesEffectNetOfTax | 1.3 | 1.9 | ' | ' | ' | ' | ' |
Cumulative translation adjustment related to foreign currency adjustment | $47.50 | $53.70 | ' | ' | ' | ' | ' |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Cash paid for interest | $4.80 | $5.10 | $5.20 |
Cash paid for income taxes | 130.1 | 95.2 | 75.6 |
Non-cash item in deferred tax liabilities and intangibles in conjunction with acquisition | ' | 7 | ' |
NoncashOrPartNoncashAcquisitionFixedAssetsAcquired1 | $9.20 | $5.50 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Region | |||||||||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of geographic regions | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Revenue by region [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $3,176,718 | $2,132,257 | $1,719,588 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 1,055,800 | 908,300 | 671,300 | 541,300 | 579,200 | 519,700 | 577,200 | 456,200 | 3,176,718 | 2,132,257 | 1,719,588 |
Nu Skin [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,641,618 | 1,158,213 | 950,639 |
Pharmanex [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,529,211 | 966,572 | 759,280 |
Other Product Lines [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,889 | 7,472 | 9,669 |
North Asia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by region [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,363,182 | 550,690 | 333,569 |
Greater China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by region [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 869,400 | 785,302 | 741,857 |
Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by region [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 370,087 | 285,283 | 248,180 |
South Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by region [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 378,988 | 328,597 | 235,000 |
EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue by region [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $195,061 | $182,385 | $160,982 |
Segment_Information_External_C
Segment Information, External Customers and Long Lived Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $1,055,800 | $908,300 | $671,300 | $541,300 | $579,200 | $519,700 | $577,200 | $456,200 | $3,176,718 | $2,132,257 | $1,719,588 |
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 402,580 | 489,302 | 464,934 |
Long-lived assets | 9,970 | ' | ' | ' | 8,441 | ' | ' | ' | 9,970 | 8,441 | ' |
South Korea [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 466,820 | 296,000 | 276,923 |
Long-lived assets | 14,345 | ' | ' | ' | 14,030 | ' | ' | ' | 14,345 | 14,030 | ' |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 268,232 | 227,872 | 208,246 |
Long-lived assets | 273,388 | ' | ' | ' | 163,137 | ' | ' | ' | 273,388 | 163,137 | ' |
Hong Kong [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 158,626 | 159,265 | 77,465 |
Long-lived assets | 2,497 | ' | ' | ' | 559 | ' | ' | ' | 2,497 | 559 | ' |
Malaysia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 128,656 | 65,998 | 65,411 |
Long-lived assets | 1,463 | ' | ' | ' | 0 | ' | ' | ' | 1,463 | 0 | ' |
Mainland China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,005,395 | 256,833 | 148,388 |
Long-lived assets | 82,726 | ' | ' | ' | 30,199 | ' | ' | ' | 82,726 | 30,199 | ' |
Taiwan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 199,161 | 134,592 | 107,716 |
Long-lived assets | $1,928 | ' | ' | ' | $1,945 | ' | ' | ' | $1,928 | $1,945 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Customs and Disputed Duties in Japan [Member]) | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | JPY (¥) |
Loss Contingencies [Line Items] | ' | ' |
Aggregate amount additional assessments | $40.20 | ¥ 4,200 |
Dividends_Per_Share_Details
Dividends Per Share (Details) (USD $) | 6 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 13, 2013 |
Dividend Declared [Member] | |||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Cash dividend declared (in dollars per share) | ' | $0.30 | $0.20 | ' | $0.35 |
Payment of cash dividends | ' | $70,514 | $48,374 | $36,638 | ' |
Date dividend to be paid | ' | ' | ' | ' | 26-Mar-14 |
Date of record of stockholders to whom dividends will be paid | ' | ' | ' | ' | 14-Mar-14 |
Quarterly_Results_Details
Quarterly Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Results [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $1,055,800 | $908,300 | $671,300 | $541,300 | $579,200 | $519,700 | $577,200 | $456,200 | $3,176,718 | $2,132,257 | $1,719,588 |
Gross profit | 891,100 | 768,500 | 560,000 | 451,300 | 484,100 | 433,000 | 481,600 | 380,400 | 2,670,912 | 1,779,105 | 1,396,964 |
Operating income | 188,600 | 168,300 | 114,600 | 82,600 | 88,900 | 82,400 | 97,900 | 71,600 | 554,112 | 340,844 | 233,742 |
Net income | $125,300 | $110,900 | $74,400 | $54,300 | $59,200 | $54,200 | $60,400 | $47,800 | $364,888 | $221,645 | $153,330 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $2.13 | $1.89 | $1.27 | $0.93 | $1.01 | $0.90 | $0.98 | $0.77 | $6.23 | $3.66 | $2.47 |
Diluted (in dollars per share) | $2.02 | $1.80 | $1.22 | $0.90 | $0.97 | $0.87 | $0.94 | $0.74 | $5.94 | $3.52 | $2.38 |
Other_income_expense_net_Detai
Other income (expense), net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other income (expense), net [Abstract] | ' | ' | ' |
Other income (expense), net | $2.80 | $4.40 | ($7) |
Interest expense included in Other income (expense), net | $3 | $5.20 | $4.80 |
Acquisitions_Details
Acquisitions (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 |
In Millions, unless otherwise specified | Patents [Member] | Patents [Member] | ||
Acquisitions [Abstract] | ' | ' | ' | ' |
Business acquisition, cost of acquired entity | $12.60 | $11.70 | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Patents, estimated life | ' | ' | '8 years | '17 years |