Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Sep. 30, 2014 | Jul. 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 | ' | 59,284,182 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $194,944 | $525,153 |
Current investments | 12,227 | 21,974 |
Accounts receivable | 40,612 | 68,652 |
Inventories, net | 369,107 | 339,669 |
Prepaid expenses and other | 188,532 | 162,886 |
Total current assets | 805,422 | 1,118,334 |
Property and equipment, net | 440,352 | 396,042 |
Goodwill | 112,446 | 112,446 |
Other intangible assets, net | 77,234 | 83,168 |
Other assets | 137,795 | 111,072 |
Total assets | 1,573,249 | 1,821,062 |
Current liabilities: | ' | ' |
Accounts payable | 28,275 | 82,684 |
Accrued expenses | 328,973 | 626,284 |
Current portion of long-term debt | 92,926 | 67,824 |
Total current liabilities | 450,174 | 776,792 |
Long-term debt | 95,783 | 113,852 |
Other liabilities | 87,885 | 71,799 |
Total liabilities | 633,842 | 962,443 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Class A common stock - 500 million shares authorized, $.001 par value, 90.6 million shares issued | 91 | 91 |
Additional paid-in capital | 412,177 | 397,383 |
Treasury stock, at cost - 31.7 million and 32.2 million shares | -843,878 | -826,904 |
Accumulated other comprehensive loss | -44,964 | -46,228 |
Retained earnings | 1,415,981 | 1,334,277 |
Total stockholders' equity | 939,407 | 858,619 |
Total liabilities and stockholders' equity | $1,573,249 | $1,821,062 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) Parenthetical (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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) | 31.3 | 31.6 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements of Income (Unaudited) [Abstract] | ' | ' | ' | ' |
Revenue | $638,800 | $908,299 | $1,959,888 | $2,120,932 |
Cost of sales | 109,275 | 139,816 | 371,929 | 341,134 |
Gross profit | 529,525 | 768,483 | 1,587,959 | 1,779,798 |
Operating expenses: | ' | ' | ' | ' |
Selling expenses | 263,203 | 437,662 | 859,879 | 967,926 |
General and administrative expenses | 161,366 | 162,546 | 467,190 | 446,355 |
Total operating expenses | 424,569 | 600,208 | 1,327,069 | 1,414,281 |
Operating income | 104,956 | 168,275 | 260,890 | 365,517 |
Other income (expense), net | 1,073 | 504 | -37,554 | -571 |
Income before provision for income taxes | 106,029 | 168,779 | 223,336 | 364,946 |
Provision for income taxes | 37,721 | 57,879 | 80,667 | 125,329 |
Net income | $68,308 | $110,900 | $142,669 | $239,617 |
Net income per share (Note 2): | ' | ' | ' | ' |
Basic (in dollars per share) | $1.15 | $1.89 | $2.42 | $4.09 |
Diluted (in dollars per share) | $1.12 | $1.80 | $2.34 | $3.91 |
Weighted-average common shares outstanding (000s): | ' | ' | ' | ' |
Basic (in shares) | 59,249,000 | 58,661,000 | 59,058,000 | 58,544,000 |
Diluted (in shares) | 60,777,000,000 | 61,508,000,000 | 61,010,000,000 | 61,234,000,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income (Loss) Attributable to Parent | $68,308 | $110,900 | $142,669 | $239,617 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustment | -3,392 | 2,463 | 1,578 | -484 |
Net unrealized gains/(losses) on foreign currency cash flow hedges | 1,239 | -130 | 656 | 1,431 |
Less: Reclassification adjustment for realized losses/gains in current earnings | -527 | -924 | -970 | -2,988 |
Total | -2,680 | 1,409 | 1,264 | -2,041 |
Comprehensive Income | $65,628 | $112,309 | $143,933 | $237,576 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $142,669 | $239,617 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 38,933 | 24,026 |
Foreign currency (gains)/losses | 47,570 | 1,663 |
Stock-based compensation | 16,320 | 23,004 |
Deferred taxes | 8,795 | 3,163 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 27,094 | -16,073 |
Inventories, net | -37,107 | -120,153 |
Prepaid expenses and other | -41,879 | -42,059 |
Other assets | -17,721 | -13,237 |
Accounts payable | -53,273 | 21,652 |
Accrued expenses | -284,965 | 355,190 |
Other liabilities | 2,307 | 7,350 |
Net cash provided by operating activities | -151,257 | 484,143 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -80,580 | -143,068 |
Proceeds of investment sales | 27,328 | 13,148 |
Purchases of investments | -17,522 | -11,869 |
Net cash used in investing activities | -70,774 | -141,789 |
Cash flows from financing activities: | ' | ' |
Exercise of employee stock options | -3,146 | 18,361 |
Payment of debt | -102,167 | -23,902 |
Payment of cash dividends | -60,964 | -52,891 |
Income tax benefit of options exercised | 9,637 | 16,687 |
Proceeds from debt | 115,220 | 35,000 |
Repurchases of shares of common stock | -25,002 | -90,866 |
Net cash used in financing activities | -66,422 | -97,611 |
Effect of exchange rate changes on cash | -41,756 | -11,269 |
Net increase in cash and cash equivalents | -330,209 | 233,474 |
Cash and cash equivalents, beginning of period | 525,153 | 320,025 |
Cash and cash equivalents, end of period | $194,944 | $553,499 |
THE_COMPANY
THE COMPANY | 9 Months Ended | |
Sep. 30, 2014 | ||
THE COMPANY [Abstract] | ' | |
THE COMPANY | ' | |
1 | 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 several 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 Europe, Middle East and Africa ("EMEA"), which consists of several markets in Europe as well as Israel, Russia and South Africa (the Company's subsidiaries operating in these countries in each region are collectively referred to as the "Subsidiaries"). | ||
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial information as of September 30, 2014, and for the three- and nine-month periods ended September 30, 2014 and 2013. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 9 Months Ended | |
Sep. 30, 2014 | ||
NET INCOME PER SHARE [Abstract] | ' | |
NET INCOME PER SHARE | ' | |
2 | NET INCOME PER SHARE | |
Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented. For the three-month periods ended September 30, 2014 and 2013, stock options of 2.8 million and 1.6 million, respectively, and for the nine-month periods ended September 30, 2014 and 2013, stock options of 2.1 million and 0.8 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. |
DIVIDENDS_PER_SHARE
DIVIDENDS PER SHARE | 9 Months Ended | |
Sep. 30, 2014 | ||
DIVIDENDS PER SHARE [Abstract] | ' | |
DIVIDENDS PER SHARE | ' | |
3 | DIVIDENDS PER SHARE | |
In March, May and August 2014, the Company's board of directors declared a quarterly cash dividend of $0.345 per share. These quarterly cash dividends were $20.1 million, $20.4 million and $20.5 million, respectively, and were paid on March 26, 2014, June 11, 2014 and September 26, 2014, to stockholders of record on March 14, 2014, May 23, 2014 and September 12, 2014. In November 2014, the Company's board of directors declared a quarterly cash dividend of $0.345 per share to be paid December 3, 2014, to stockholders of record on November 21, 2014. | ||
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended | |
Sep. 30, 2014 | ||
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | ' | |
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |
4 | DERIVATIVE FINANCIAL INSTRUMENTS | |
The Company held mark-to-market forward contracts designated as foreign currency cash flow hedges with notional amounts of 800 million Japanese yen and 7.0 million euros ($7.3 million and $8.8 million, respectively) as of September 30, 2014 and 3.0 billion Japanese yen and 6.0 million euros ($30.5 million and $8.1 million, respectively) as of September 30, 2013 to hedge forecasted foreign-currency-denominated intercompany transactions. The fair value of these hedges were $1.5 million and $1.9 million as of September 30, 2014 and December 31, 2013, respectively. | ||
The contracts held at September 30, 2014 have maturities through May 2015 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 gains on foreign currency cash flow hedges reclassified from accumulated other comprehensive loss to revenue were $0.8 million and $1.4 million, respectively, for the three-month periods ended September 30, 2014 and 2013 and $1.5 million and $4.7 million, respectively, for the nine-month periods ended September 30, 2014 and 2013. The corresponding tax effects of these transactions were recorded in provision for income tax expense. As of September 30, 2014 and December 31, 2013, there were $0.9 million and $1.3 million, respectively, of unrealized gains included in accumulated other comprehensive loss related to foreign currency cash flow hedges. The remaining $45.9 million and $47.5 million as of September 30, 2014 and December 31, 2013, respectively, in accumulated other comprehensive loss are related to cumulative translation adjustments. |
REPURCHASES_OF_COMMON_STOCK
REPURCHASES OF COMMON STOCK | 9 Months Ended | |
Sep. 30, 2014 | ||
REPURCHASES OF COMMON STOCK [Abstract] | ' | |
REPURCHASES OF COMMON STOCK | ' | |
5 | REPURCHASES OF COMMON STOCK | |
During the three-month period ended September 30, 2014, the Company did not repurchase shares under its open market stock repurchase plan. During the three-month period ended September 30, 2013, the Company repurchased approximately 0.9 million shares of its Class A common stock under its open market stock repurchase plan for $76.3 million. During the nine-month periods ended September 30, 2014 and 2013, the Company repurchased approximately 0.3 million and 1.3 million shares of its Class A common stock under its open market repurchase plan for $25.0 million and $90.9 million, respectively. As of September 30, 2014, $369.5 million was available for repurchases under the open market stock repurchase program. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||
6 | 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, contractual sales promoters, and independent direct sellers to distribute its products. Contractual sales promoters sell products in similar fashion to the Company's sales employees, but act as independent agents to sell products through its retail stores and website. Independent direct sellers can sell away from the Company's stores in jurisdictions where the Company has obtained a direct sales license to do so. 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. | |||||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
Revenue generated in each of these regions is set forth below (U.S. dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Greater China | $ | 226,744 | $ | 449,558 | $ | 735,542 | $ | 881,621 | |||||||||
North Asia | 205,488 | 202,390 | 596,944 | 583,112 | |||||||||||||
South Asia/Pacific | 88,915 | 126,972 | 241,762 | 279,511 | |||||||||||||
Americas | 76,737 | 84,813 | 246,557 | 243,938 | |||||||||||||
EMEA | 40,916 | 44,566 | 139,083 | 132,750 | |||||||||||||
Totals | $ | 638,800 | $ | 908,299 | $ | 1,959,888 | $ | 2,120,932 | |||||||||
Revenue generated by each of the Company's product lines is set forth below (U.S. dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Nu Skin | $ | 392,513 | $ | 444,848 | $ | 1,186,592 | $ | 1,177,508 | |||||||||
Pharmanex | 244,690 | 462,093 | 768,178 | 939,306 | |||||||||||||
Other | 1,597 | 1,358 | 5,118 | 4,118 | |||||||||||||
Totals | $ | 638,800 | $ | 908,299 | $ | 1,959,888 | $ | 2,120,932 | |||||||||
Additional information as to the Company's operations in its most significant geographic areas is set forth below (U.S. dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Mainland China | $ | 152,983 | $ | 332,297 | $ | 518,995 | $ | 642,345 | |||||||||
South Korea | 127,094 | 111,473 | 359,891 | 289,988 | |||||||||||||
Japan | 78,394 | 90,917 | 237,053 | 293,124 | |||||||||||||
United States | 54,241 | 58,740 | 170,119 | 177,414 | |||||||||||||
Taiwan | 41,603 | 64,594 | 119,031 | 134,544 | |||||||||||||
Hong Kong | 32,158 | 52,667 | 97,516 | 104,732 | |||||||||||||
Malaysia | 22,637 | 49,122 | 64,942 | 94,962 | |||||||||||||
Long-lived assets: | 30-Sep-14 | 31-Dec-13 | |||||||||||||||
Mainland China | $ | 101,015 | $ | 82,726 | |||||||||||||
South Korea | 25,370 | 14,345 | |||||||||||||||
Japan | 13,405 | 9,970 | |||||||||||||||
United States | 286,997 | 273,388 | |||||||||||||||
Taiwan | 1,719 | 1,928 | |||||||||||||||
Hong Kong | 2,527 | 2,497 | |||||||||||||||
Malaysia | 1,094 | 1,463 | |||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
DEFERRED_TAX_ASSETS_AND_LIABIL
DEFERRED TAX ASSETS AND LIABILITIES | 9 Months Ended | |
Sep. 30, 2014 | ||
DEFERRED TAX ASSETS AND LIABILITIES [Abstract] | ' | |
DEFERRED TAX ASSETS AND LIABILITIES | ' | |
7 | DEFERRED TAX ASSETS AND LIABILITIES | |
The Company accounts for income taxes in accordance with the Income Taxes Topic of the Financial Accounting Standards Codification. This Topic establishes 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. As of September 30, 2014 and December 31, 2013, the Company had net deferred tax assets of $51.8 million and $67.2 million, respectively. | ||
The Company evaluates its indefinite reinvestment assertions with respect to foreign earnings for each quarter. Other than earnings the Company intends to reinvest indefinitely, the Company accrues for the U.S. federal and state income taxes applicable to the earnings. For all foreign earnings, the Company accrues the applicable foreign income taxes. Undistributed earnings that the Company has indefinitely reinvested, and for which no federal or state income taxes in the U.S. have been provided, aggregate to $50.0 million as of September 30, 2014 and December 31, 2013. In the event that all non-U.S. subsidiaries' undistributed earnings, which the Company has designated as indefinitely reinvested, were remitted to the United States, the amount of incremental taxes would be approximately $5.5 million. | ||
UNCERTAIN_TAX_POSITIONS
UNCERTAIN TAX POSITIONS | 9 Months Ended | |
Sep. 30, 2014 | ||
UNCERTAIN TAX POSITIONS [Abstract] | ' | |
UNCERTAIN TAX POSITIONS | ' | |
8 | UNCERTAIN TAX POSITIONS | |
The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company has filed its U.S. federal tax returns for all years through and including 2013, and it is no longer subject to tax examinations from the United States Internal Revenue Service (the "IRS") for any of these years except for 2011 and 2013. 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 generally not subject to income tax examinations for years before 2008. However, statutes in certain countries may be as long as ten years for transfer pricing related issues. 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. | ||
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 increase within the next 12 months by a range of approximately $1 to $3 million. | ||
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |
Sep. 30, 2014 | ||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
9 | 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 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. | ||
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 by Yokohama Customs on several of the Company's products 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 4.4 billion Japanese yen as of September 30, 2014 (approximately $39.7 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 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 purchases a majority of the affected products in Japan from a Japanese company that purchases and imports the products from the manufacturers. | ||
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
The Company is also currently being sued in a purported class action lawsuit and derivative claim relating to negative media and regulatory scrutiny regarding the Company's business in Mainland China and the associated decline in the Company's stock price. Beginning in January 2014, six purported class action complaints were filed in the United States District Court for the District of Utah. On April 10, 2014, the plaintiffs filed a stipulated motion requesting that the court consolidate the various purported class actions, appoint State-Boston Retirement System as lead plaintiff in the consolidated action, and appoint the law firm Labaton Sucharow as lead counsel for the purported class in the consolidated action. On May 1, 2014, that stipulated motion was granted and on June 30, 2014, a consolidated class action complaint was filed. On August 29, 2014, the Company filed a motion to dismiss the case and on October 28, 2014, the plaintiffs filed their opposition to the Company's motion to dismiss. The consolidated class action complaint purports to assert claims on behalf of certain of the Company's stockholders under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder against Nu Skin Enterprises, Ritch N. Wood, and M. Truman Hunt and to assert claims under Section 20(a) of the Securities Exchange Act of 1934 against Messrs. Wood and Hunt. The consolidated class action complaint alleges that, inter alia, the Company made materially false and misleading statements regarding its sales operations in and financial results derived from Mainland China, including purportedly operating a pyramid scheme based on illegal multi-level marketing activities. The Company believes that the claims asserted in the consolidated class action complaint are without merit and intends to vigorously defend itself. | ||
In addition, beginning in February 2014, five purported shareholder derivative complaints were filed in the United States District Court for the District of Utah. On April 17, 2014, the plaintiffs filed a joint motion to consolidate the derivative actions, to appoint plaintiffs Amos. C. Acoff and Analisa Suderov as co-lead plaintiffs in the consolidated action, and to appoint the law firms Bernstein Litowitz Berger & Grossmann LLP and The Weiser Law Firm, P.C. as co-lead counsel for the plaintiffs in the consolidated action. On May 1, 2014, that joint motion was granted. On July 25, 2014, a consolidated derivative complaint was filed. On September 25, 2014, the Company filed a motion to dismiss or stay the case. The consolidated derivative complaint purports to assert claims on behalf of Nu Skin Enterprises for, inter alia, breach of fiduciary duties for disseminating false and misleading information, failing to maintain adequate internal controls, unjust enrichment, abuse of control, and gross mismanagement against M. Truman Hunt, Ritch N. Wood, Steven J. Lund, Nevin N. Andersen, Neil Offen, Daniel W. Campbell, Andrew W. Lipman, Patricia A. Negrón, Thomas R. Pisano, and nominally against Nu Skin Enterprises. The consolidated derivative complaint also purports to assert claims on behalf of Nu Skin Enterprises for breach of fiduciary duty for insider selling and misappropriation of information against Messrs. Wood, Lund, and Campbell. The consolidated derivative complaint alleges that, inter alia, the defendants allowed materially false and misleading statements to be made regarding their sales operations in and financial results derived from Mainland China, including purportedly operating a pyramid scheme based on illegal multi-level marketing activities, and that certain defendants sold common stock on the basis of material, adverse non-public information. | ||
The purported class action lawsuit and derivative claim, or others filed alleging similar facts, could result in monetary or other penalties that may affect the Company's operating results and financial condition. | ||
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
DEBT
DEBT | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
DEBT [Abstract] | ' | |||||||||||
DEBT | ' | |||||||||||
10 | DEBT | |||||||||||
The following table summarizes the Company's debt facilities as of December 31, 2013 and September 30, 2014. The Company's book value for both the individual and consolidated debt included in the table 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. | ||||||||||||
Debt Facility | Original Principal Amount | Balance as of | Balance as of | Interest Rate | Repayment terms | |||||||
September 30, 2014(1) | December 31, 2013 | |||||||||||
Multi-currency uncommitted shelf facility(2): | ||||||||||||
U.S. dollar denominated: | $40.0 million | $11.4 million | $17.1 million | 6.20% | Notes due July 2016 with annual principal payments that began in July 2010. Paid in full on October 10, 2014. | |||||||
$20.0 million | $8.6 million | $11.4 million | 6.20% | Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | ||||||||
Japanese yen denominated: | 3.1 billion yen | – | 0.4 billion yen or $4.1 million | 1.70% | Notes paid in full on April 30, 2014. | |||||||
2.3 billion yen | 1.0 billion yen or $8.9 million | 1.3 billion yen or $12.3 million | 2.60% | Notes due September 2017 with annual principal payments that began in September 2011.Paid in full on October 10, 2014. | ||||||||
2.2 billion yen | 0.9 billion yen or $8.5 million | 1.2 billion yen or $11.8 million | 3.30% | Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | ||||||||
8.0 billion yen | 8.0 billion yen or $72.2 million | 8.0 billion yen or $75.8 million | 1.70% | Notes due May 2022 with annual principal payments that begin in May 2016. Paid in full on October 10, 2014. | ||||||||
Korean subsidiary loan(3): | $20.0 million | $20.0 million | – | 2.50% | Notes due December 2014, with a right to extend the term for an additional six months. | |||||||
Revolving credit facilities: | ||||||||||||
2010(4) | – | $35.0 million | N/A | Paid in full. | ||||||||
2013(5) | $50.0 million | $14.0 million | Variable 30 day: 1.1035% | Revolving line of credit. Paid in full on October 10, 2014. | ||||||||
2014 | – | – | N/A | Revolving line of credit. Terminated on October 15, 2014. | ||||||||
Japan subsidiary loan(6): | ||||||||||||
2014 | 1 billion yen or $9.1 million | – | 1.48% | Paid in full as of October 15, 2014. | ||||||||
NU SKIN ENTERPRISES, INC. | ||||||||||||
Notes to Consolidated Financial Statements | ||||||||||||
____________________ | ||||||||||||
-1 | As of September 30, 2014, the current portion of the Company's debt (i.e. becoming due in the next 12 months) included $5.2 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, $50.0 million of the Company's revolving loans, $20.0 million borrowed at its Korean subsidiary and $9.1 million borrowed at its Japanese subsidiary. | |||||||||||
-2 | On August 8, 2014, the Company entered into an amendment of the amended and restated note purchase and private shelf agreement (multi-currency), dated as of May 25, 2012, among the Company, Prudential Investment Management, Inc. and certain other purchasers. On October 10, 2014, the Company repaid all the amounts outstanding under the notes and also paid a $7.4 million fee related to the prepayment of debt. | |||||||||||
-3 | In July 2014, the Company's subsidiary in South Korea borrowed $20.0 million through a U.S. dollar-denominated term loan. | |||||||||||
-4 | The Company paid the outstanding balance in full prior to the August 8, 2014, expiration of the amended and restated credit agreement, dated as of May 25, 2012, among the Company, various financial institutions, and JPMorgan Chase Bank, N.A. as administrative agent. | |||||||||||
-5 | On August 15, 2014, the Company entered into an amendment of the loan agreement, dated as of September 5, 2013, with Bank of America, N.A. The amendment extended the term of the agreement from September 4, 2014 to December 3, 2014, and changed the applicable interest rate from LIBOR plus 0.425% to LIBOR plus 0.95%. On October 10, 2014, the Company paid the outstanding balance of the revolving credit facility. | |||||||||||
-6 | In July 2014, the Company's subsidiary in Japan borrowed 3 billion Japanese yen ($29.5 million) through a yen-denominated revolving credit facility. Effective October 1, 2014, the interest rate on this credit facility was reduced to 0.74%. On October 15, 2014, the Company paid the outstanding balance of the revolving credit facility. |
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 9 Months Ended | |
Sep. 30, 2014 | ||
ACCOUNTING PRONOUNCEMENTS [Abstract] | ' | |
ACCOUNTING PRONOUNCEMENTS | ' | |
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
11 | ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. The adoption of ASU 2013-11 did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. | ||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU changes the threshold for a disposal to qualify as a discontinued operation. To be considered a discontinued operation a disposal now must represent a strategic shift that has or will have a major effect on an entity's operations and financial results. This ASU also requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. This update will be applied prospectively and is effective for annual periods, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted provided the disposal was not previously disclosed. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual periods beginning after December 15, 2016 and shall be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. | ||
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This ASU is effective for annual periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. This ASU may be applied either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. | ||
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40). The purpose of this ASU is to incorporate into U.S. GAAP management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern within one year after the date that the financial statements are issued, and to provide related footnote disclosures. This update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. | ||
REVISIONS
REVISIONS | 9 Months Ended | |
Sep. 30, 2014 | ||
REVISIONS [Abstract] | ' | |
REVISIONS | ' | |
12 | REVISIONS | |
The presentation of the Company's consolidated statements of income for the three- and nine-month periods ended September 30, 2013, was revised to reduce the selling expense and revenue by $19.3 million and $39.7 million, respectively, 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. The revision was not considered to be material to the previously issued financial statements. |
VENEZUELA_HIGHLY_INFLATIONARY_
VENEZUELA HIGHLY INFLATIONARY ACCOUNTING | 9 Months Ended |
Sep. 30, 2014 | |
VENEZUELA HIGHLY INFLATIONARY ACCOUNTING [Abstract] | ' |
VENEZUELA HIGHLY INFLATIONARY ACCOUNTING | ' |
13. VENEZUELA HIGHLY INFLATIONARY ACCOUNTING | |
The Company commenced operations in Venezuela in 2007, where it markets a variety of personal care and nutritional products. Total assets in Venezuela as of September 30, 2014 are $11.4 million, $6.8 million of which are monetary assets. The Venezuela subsidiary also has a $32.2 million intercompany balance to its parent company as of September 30, 2014, with respect to charges for inventory, commissions, license fees and service fees. The Company imports all of its products into Venezuela from the United States. Venezuela represents a very small portion of the Company's overall business with sales for the nine months ended September 30, 2014 representing approximately 1% of the Company's overall revenue. | |
Since November of 2009, Venezuela has been considered a highly inflationary economy. A country is considered to have a highly inflationary economy if it has a cumulative inflation rate of approximately 100% or more over a three-year period as well as other qualitative factors including historic inflation rate trends (increasing and decreasing), the capital intensiveness of the operation and other pertinent economic factors. The functional currency in highly inflationary economies is required to be the functional currency of the entity's parent company (which for our Venezuela subsidiary is the U.S. dollar), and transactions denominated in the local currency are remeasured to the functional currency The remeasurement of bolivars into U.S. dollars creates foreign currency transaction gains or losses, which should be included in the Company's consolidated statement of income. | |
The Venezuela subsidiary did not transition to highly inflationary status until the first quarter of 2014. As a result, the Company continued to account for the Venezuela subsidiary as a bolivar functional currency entity, rather than a U.S. dollar functional currency entity. In the first quarter of 2014, the Company began to account for this subsidiary as highly inflationary, and therefore changed the functional currency of the entity to the U.S. dollar. As a result, for periods prior to 2014, the Company improperly recorded $6.3 million related to foreign currency remeasurement adjustments caused by changes in the Venezuela exchange rate in accumulated other comprehensive income (equity). The consolidated statement of income for the nine-month period ended September 30, 2014, includes an out-of-period adjustment of $6.3 million to correct this error. The Company has determined not to restate prior period financial statements because the amount of the adjustment is not material to the prior periods or this reporting period. | |
NU SKIN ENTERPRISES, INC. | |
Notes to Consolidated Financial Statements | |
The current operating environment in Venezuela continues to be challenging, with high inflation in the country, government restrictions on foreign exchange and pricing controls, and the possibility of the government announcing further devaluations to its currency. Currency restrictions enacted by the Venezuelan government have impacted the ability of the Company to exchange foreign currency at the official rate to pay for imported products, license fees, commissions and other service fees. The Company has been unsuccessful in obtaining U.S. dollars at the official exchange rates and under alternative exchange mechanisms described below. As a result, these foreign exchange controls in Venezuela have limited the Company's ability to repatriate earnings and settle the Company's intercompany obligations, which has resulted in the accumulation of bolivar-denominated cash and cash equivalents in Venezuela. | |
During the first quarter of 2014, two new foreign exchange mechanisms ("SICAD I" and "SICAD II") became available in Venezuela. Accordingly, there are three legal mechanisms in Venezuela to exchange currency. As of March 31, 2014, the Company determined it would be most appropriate for it to utilize the SICAD I rate, which was approximately 10.7 bolivars per U.S. dollar. As a result of the adoption of this rate during the period ended March 31, 2014, the Company recorded a $14.7 million charge in Other Income (Expense) to reflect foreign currency transaction losses on its net monetary assets denominated in bolivar, which is reflected in the nine-month period ended September 30, 2014. | |
As of June 30, 2014, the Company determined that it would be most appropriate for it to utilize the SICAD II rate, which was approximately 50 bolivars per U.S. dollar, as the Company had not been successful in getting approval under SICAD I and believed the SICAD II rate better reflects the rate at which the Company will be able to convert bolivars to U.S. dollars. As a result of the adoption of this rate during the three months ended June 30, 2014, the Company recorded an additional $25.3 million charge in Other Income (Expense) to reflect additional foreign currency translation losses on its net monetary assets denominated in bolivar, which is reflected in the nine-month period ended September 30, 2014. |
ADJUSTMENT_TO_INVENTORY
ADJUSTMENT TO INVENTORY | 9 Months Ended |
Sep. 30, 2014 | |
ADJUSTMENT TO INVENTORY [Abstract] | ' |
ADJUSTMENT TO INVENTORY | ' |
14. WRITE-DOWN OF INVENTORY | |
During the second quarter of 2014, the Company made a determination to adjust its inventory carrying value. Heightened media and regulatory scrutiny in Mainland China in the first part of 2014, and the voluntary actions the Company took in response to such scrutiny, had a negative impact on the size of the Company's limited-time offer in June, which significantly reduced its expectations for plans to sell ageLOC TR90 in a limited-time offer later in 2014 or the beginning of 2015. This resulted in a $50 million write-down of estimated surplus inventory primarily in Mainland China. Total adjustments to the Company's inventory carrying value as of September 30, 2014 and December 31, 2013 were $60.7 million and $5.9 million, respectively. |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 9 Months Ended | |
Sep. 30, 2014 | ||
SUBSEQUENT EVENT [Abstract] | ' | |
SUBSEQUENT EVENT | ' | |
15 | SUBSEQUENT EVENTS | |
On October 9, 2014, the Company entered into a Credit Agreement (the "Credit Agreement") with various financial institutions, and Bank of America, N.A. as administrative agent. The Credit Agreement provides for a $127.5 million term loan facility, a 6.6 billion Japanese yen term loan facility and a $187.5 million revolving credit facility, each with a term of five years. On October 10, 2014, the Company drew the full amount of the term loan facilities, which bear interest at 2.9018% on U.S. dollar borrowings and 2.835% on Japanese yen borrowings, and $112.5 million of the revolving credit facility, which bears interest at 2.9018%. Any additional amounts drawn under the revolving credit facility will bear interest at rates that will be determined in accordance with the Credit Agreement. Half of the principal amount of the term loan facilities will be payable in increasing quarterly installments over a five-year period, with the remainder payable at the end of the five-year term. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. | ||
NU SKIN ENTERPRISES, INC. | ||
Notes to Consolidated Financial Statements | ||
As set forth in Note 10, "Debt," on October 10, 2014, the Company repaid debt that was outstanding under its credit agreements with Bank of America., N.A. and its notes with Prudential Investment Management, Inc. and affiliates. The Company also paid a $7.4 million fee related to the prepayment of debt. On October 15, 2014 the Company repaid all amounts outstanding under its Japan subsidiary's revolving line of credit. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||
Revenue and Long-Lived Assets by Geographic Region | ' | ||||||||||||||||
Revenue generated in each of these regions is set forth below (U.S. dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Greater China | $ | 226,744 | $ | 449,558 | $ | 735,542 | $ | 881,621 | |||||||||
North Asia | 205,488 | 202,390 | 596,944 | 583,112 | |||||||||||||
South Asia/Pacific | 88,915 | 126,972 | 241,762 | 279,511 | |||||||||||||
Americas | 76,737 | 84,813 | 246,557 | 243,938 | |||||||||||||
EMEA | 40,916 | 44,566 | 139,083 | 132,750 | |||||||||||||
Totals | $ | 638,800 | $ | 908,299 | $ | 1,959,888 | $ | 2,120,932 | |||||||||
Revenue Generated by Each of the Company's Major Product Lines | ' | ||||||||||||||||
Revenue generated by each of the Company's product lines is set forth below (U.S. dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Nu Skin | $ | 392,513 | $ | 444,848 | $ | 1,186,592 | $ | 1,177,508 | |||||||||
Pharmanex | 244,690 | 462,093 | 768,178 | 939,306 | |||||||||||||
Other | 1,597 | 1,358 | 5,118 | 4,118 | |||||||||||||
Totals | $ | 638,800 | $ | 908,299 | $ | 1,959,888 | $ | 2,120,932 | |||||||||
Revenue and long-lived assets by significant geographic area | ' | ||||||||||||||||
Additional information as to the Company's operations in its most significant geographic areas is set forth below (U.S. dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Revenue: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Mainland China | $ | 152,983 | $ | 332,297 | $ | 518,995 | $ | 642,345 | |||||||||
South Korea | 127,094 | 111,473 | 359,891 | 289,988 | |||||||||||||
Japan | 78,394 | 90,917 | 237,053 | 293,124 | |||||||||||||
United States | 54,241 | 58,740 | 170,119 | 177,414 | |||||||||||||
Taiwan | 41,603 | 64,594 | 119,031 | 134,544 | |||||||||||||
Hong Kong | 32,158 | 52,667 | 97,516 | 104,732 | |||||||||||||
Malaysia | 22,637 | 49,122 | 64,942 | 94,962 | |||||||||||||
Long-lived assets: | 30-Sep-14 | 31-Dec-13 | |||||||||||||||
Mainland China | $ | 101,015 | $ | 82,726 | |||||||||||||
South Korea | 25,370 | 14,345 | |||||||||||||||
Japan | 13,405 | 9,970 | |||||||||||||||
United States | 286,997 | 273,388 | |||||||||||||||
Taiwan | 1,719 | 1,928 | |||||||||||||||
Hong Kong | 2,527 | 2,497 | |||||||||||||||
Malaysia | 1,094 | 1,463 | |||||||||||||||
NU SKIN ENTERPRISES, INC. | |||||||||||||||||
Notes to Consolidated Financial Statements | |||||||||||||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
DEBT [Abstract] | ' | |||||||||||
Summary of Debt Arrangements | ' | |||||||||||
Debt Facility | Original Principal Amount | Balance as of | Balance as of | Interest Rate | Repayment terms | |||||||
September 30, 2014(1) | December 31, 2013 | |||||||||||
Multi-currency uncommitted shelf facility(2): | ||||||||||||
U.S. dollar denominated: | $40.0 million | $11.4 million | $17.1 million | 6.20% | Notes due July 2016 with annual principal payments that began in July 2010. Paid in full on October 10, 2014. | |||||||
$20.0 million | $8.6 million | $11.4 million | 6.20% | Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | ||||||||
Japanese yen denominated: | 3.1 billion yen | – | 0.4 billion yen or $4.1 million | 1.70% | Notes paid in full on April 30, 2014. | |||||||
2.3 billion yen | 1.0 billion yen or $8.9 million | 1.3 billion yen or $12.3 million | 2.60% | Notes due September 2017 with annual principal payments that began in September 2011.Paid in full on October 10, 2014. | ||||||||
2.2 billion yen | 0.9 billion yen or $8.5 million | 1.2 billion yen or $11.8 million | 3.30% | Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | ||||||||
8.0 billion yen | 8.0 billion yen or $72.2 million | 8.0 billion yen or $75.8 million | 1.70% | Notes due May 2022 with annual principal payments that begin in May 2016. Paid in full on October 10, 2014. | ||||||||
Korean subsidiary loan(3): | $20.0 million | $20.0 million | – | 2.50% | Notes due December 2014, with a right to extend the term for an additional six months. | |||||||
Revolving credit facilities: | ||||||||||||
2010(4) | – | $35.0 million | N/A | Paid in full. | ||||||||
2013(5) | $50.0 million | $14.0 million | Variable 30 day: 1.1035% | Revolving line of credit. Paid in full on October 10, 2014. | ||||||||
2014 | – | – | N/A | Revolving line of credit. Terminated on October 15, 2014. | ||||||||
Japan subsidiary loan(6): | ||||||||||||
2014 | 1 billion yen or $9.1 million | – | 1.48% | Paid in full as of October 15, 2014. | ||||||||
NU SKIN ENTERPRISES, INC. | ||||||||||||
Notes to Consolidated Financial Statements | ||||||||||||
____________________ | ||||||||||||
-1 | As of September 30, 2014, the current portion of the Company's debt (i.e. becoming due in the next 12 months) included $5.2 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, $50.0 million of the Company's revolving loans, $20.0 million borrowed at its Korean subsidiary and $9.1 million borrowed at its Japanese subsidiary. | |||||||||||
-2 | On August 8, 2014, the Company entered into an amendment of the amended and restated note purchase and private shelf agreement (multi-currency), dated as of May 25, 2012, among the Company, Prudential Investment Management, Inc. and certain other purchasers. On October 10, 2014, the Company repaid all the amounts outstanding under the notes and also paid a $7.4 million fee related to the prepayment of debt. | |||||||||||
-3 | In July 2014, the Company's subsidiary in South Korea borrowed $20.0 million through a U.S. dollar-denominated term loan. | |||||||||||
-4 | The Company paid the outstanding balance in full prior to the August 8, 2014, expiration of the amended and restated credit agreement, dated as of May 25, 2012, among the Company, various financial institutions, and JPMorgan Chase Bank, N.A. as administrative agent. | |||||||||||
-5 | On August 15, 2014, the Company entered into an amendment of the loan agreement, dated as of September 5, 2013, with Bank of America, N.A. The amendment extended the term of the agreement from September 4, 2014 to December 3, 2014, and changed the applicable interest rate from LIBOR plus 0.425% to LIBOR plus 0.95%. On October 10, 2014, the Company paid the outstanding balance of the revolving credit facility. | |||||||||||
-6 | In July 2014, the Company's subsidiary in Japan borrowed 3 billion Japanese yen ($29.5 million) through a yen-denominated revolving credit facility. Effective October 1, 2014, the interest rate on this credit facility was reduced to 0.74%. On October 15, 2014, the Company paid the outstanding balance of the revolving credit facility. |
THE_COMPANY_Details
THE COMPANY (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Region | |
THE COMPANY [Abstract] | ' |
Number of geographic regions | 5 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
NET INCOME PER SHARE [Abstract] | ' | ' | ' | ' |
Other shares excluded from the calculation of diluted earnings per share (in shares) | 2.8 | 1.6 | 2.1 | 0.8 |
DIVIDENDS_PER_SHARE_Details
DIVIDENDS PER SHARE (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Dividend Declared 2014 Q1 [Member] | Dividend Declared 2014 Q1 [Member] | Dividend Declared 2014 Q1 [Member] | Dividend Declared 2014 Q2 [Member] | Dividend Declared 2014 Q2 [Member] | Dividend Declared 2014 Q2 [Member] | Dividend Declared 2014 Q3 [Member] | Dividend Declared 2014 Q3 [Member] | Dividend Declared 2014 Q4 [Member] | Dividend Declared 2014 Q4 [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date declared | ' | ' | ' | '2014-03 | ' | ' | '2014-05 | ' | '2014-08 | '2014-08 | '2014-11 | '2014-11 |
Cash dividend declared (in dollars per share) | ' | ' | ' | $0.35 | ' | ' | $0.35 | ' | $0.35 | ' | $0.35 | ' |
Payment of cash dividends | $60,964 | $52,891 | $20,141 | ' | ' | $20,355 | ' | ' | $20,453 | ' | ' | ' |
Date paid | ' | ' | ' | ' | 26-Mar-14 | ' | ' | 11-Jun-14 | ' | 26-Sep-14 | ' | 3-Dec-14 |
Date of record | ' | ' | ' | ' | 14-Mar-14 | ' | ' | 23-May-14 | ' | 12-Sep-14 | ' | 21-Nov-14 |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | |
USD ($) | USD ($) | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | USD ($) | USD ($) | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Japanese Yen [Member] | Japanese Yen [Member] | Japanese Yen [Member] | Japanese Yen [Member] | Euros [Member] | Euros [Member] | Euros [Member] | Euros [Member] | ||||||||||
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | EUR (€) | USD ($) | EUR (€) | ||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,300,000 | ¥ 800,000,000 | $30,500,000 | ¥ 3,000,000,000 | $8,800,000 | € 7,000,000 | $8,100,000 | € 6,000,000 |
Fair value of hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 638,800,000 | 908,299,000 | 1,959,888,000 | 2,120,932,000 | ' | ' | ' | 800,000 | 1,400,000 | 1,500,000 | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) | ($44,964,000) | ' | ($44,964,000) | ' | ($46,228,000) | $900,000 | $1,300,000 | ' | ' | ' | ' | ($45,900,000) | ($47,500,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REPURCHASES_OF_COMMON_STOCK_De
REPURCHASES OF COMMON STOCK (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Common stock repurchased (in shares) | 0 | 0.9 | 0.3 | 1.3 |
Common stock repurchased | $0 | $76.30 | $25 | $90.90 |
Available for repurchase under the repurchase program | $369.50 | ' | $369.50 | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
SEGMENT INFORMATION [Abstract] | ' | ' | ' | ' | ' |
Number of geographic regions | ' | ' | 5 | ' | ' |
Number of product lines | ' | ' | 3 | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | $638,800 | $908,299 | $1,959,888 | $2,120,932 | ' |
North Asia [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 205,488 | 202,390 | 596,944 | 583,112 | ' |
Greater China [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 226,744 | 449,558 | 735,542 | 881,621 | ' |
Americas [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 76,737 | 84,813 | 246,557 | 243,938 | ' |
South Asia/Pacific [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 88,915 | 126,972 | 241,762 | 279,511 | ' |
Europe - By Region [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 40,916 | 44,566 | 139,083 | 132,750 | ' |
Japan [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 78,394 | 90,917 | 237,053 | 293,124 | ' |
Long-lived assets | 13,405 | ' | 13,405 | ' | 9,970 |
South Korea [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 127,094 | 111,473 | 359,891 | 289,988 | ' |
Long-lived assets | 25,370 | ' | 25,370 | ' | 14,345 |
Hong Kong [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 32,158 | 52,667 | 97,516 | 104,732 | ' |
Long-lived assets | 2,527 | ' | 2,527 | ' | 2,497 |
United States [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 54,241 | 58,740 | 170,119 | 177,414 | ' |
Long-lived assets | 286,997 | ' | 286,997 | ' | 273,388 |
Mainland China [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 152,983 | 332,297 | 518,995 | 642,345 | ' |
Long-lived assets | 101,015 | ' | 101,015 | ' | 82,726 |
Taiwan [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 41,603 | 64,594 | 119,031 | 134,544 | ' |
Long-lived assets | 1,719 | ' | 1,719 | ' | 1,928 |
Malaysia [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenue | 22,637 | 49,122 | 64,942 | 94,962 | ' |
Long-lived assets | $1,094 | ' | $1,094 | ' | $1,463 |
SEGMENT_INFORMATION_Products_a
SEGMENT INFORMATION, Products and Services (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenue | $638,800 | $908,299 | $1,959,888 | $2,120,932 |
Nu Skin [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenue | 392,513 | 444,848 | 1,186,592 | 1,177,508 |
Pharmanex [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenue | 244,690 | 462,093 | 768,178 | 939,306 |
Other Product Lines [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenue | $1,597 | $1,358 | $5,118 | $4,118 |
DEFERRED_TAX_ASSETS_AND_LIABIL1
DEFERRED TAX ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
DEFERRED TAX ASSETS AND LIABILITIES [Abstract] | ' | ' |
Net deferred tax assets | $51.80 | $67.20 |
Accumulated reinvested foreign earnings | 50 | 50 |
Incremental taxes on indefinitely reinvested foreign earnings | $5.50 | ' |
UNCERTAIN_TAX_POSITIONS_Detail
UNCERTAIN TAX POSITIONS (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
UNCERTAIN TAX POSITIONS [Abstract] | ' |
Estimate of change in gross unrecognized tax benefits, net of foreign currency adjustments, within the next 12 months - minimum | $1 |
Estimate of change in gross unrecognized tax benefits, net of foreign currency adjustments, within the next 12 months - maximum | $3 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | USD ($) | JPY (¥) |
Loss Contingencies [Line Items] | ' | ' |
Aggregate amount of assessments and disputed duties | $39.70 | ¥ 4,400 |
DEBT_Details
DEBT (Details) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||
USD ($) | USD ($) | Multi-currency uncommitted shelf facility, U.S. dollar denominated 1 [Member] | Multi-currency uncommitted shelf facility, U.S. dollar denominated 1 [Member] | Multi-currency uncommitted shelf facility, U.S. dollar denominated 2 [Member] | Multi-currency uncommitted shelf facility, U.S. dollar denominated 2 [Member] | Multi-currency uncommitted shelf facility, total U.S. dollar-denominated debt [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 1 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 1 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 1 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 1 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 2 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 2 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 2 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 2 [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] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 4 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 4 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 4 [Member] | Multi-Currency Uncommitted Shelf Facility, Japanese Yen Denominated 4 [Member] | Multi-currency uncommitted shelf facility, total Japanese yen-denominated debt [Member] | Revolving credit facility 2010 [Member] | Revolving credit facility 2010 [Member] | Revolving Credit facility 2013 [Member] | Revolving Credit facility 2013 [Member] | Revolving Credit Facility 2014 [Member] | Revolving Line Of Credit 364 Day [Member] | Korea Subsidiary Loan [Member] | Korea Subsidiary Loan [Member] | Japan Subsidiary Loan [Member] | Japan Subsidiary Loan [Member] | Japan Subsidiary Loan [Member] | |||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Original principal amount - facilities | ' | ' | $40,000,000 | ' | $20,000,000 | ' | ' | ' | ¥ 3,100,000,000 | ' | ' | ' | ¥ 2,300,000,000 | ' | ' | ' | ¥ 2,200,000,000 | ' | ' | ' | ¥ 8,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ||||||||||
Balance - facilities | ' | ' | 11,400,000 | [1] | 17,100,000 | 8,600,000 | [1] | 11,400,000 | ' | 0 | 0 | [1] | 4,100,000 | [1] | 400,000,000 | 8,900,000 | 1,000,000,000 | [1] | 12,300,000 | 1,300,000,000 | 8,500,000 | 900,000,000 | [1] | 11,800,000 | 1,200,000,000 | 72,200,000 | [1] | 8,000,000,000 | [1] | 75,800,000 | 8,000,000,000 | ' | 0 | [1],[2],[3] | 35,000,000 | 50,000,000 | [2] | 14,000,000 | 0 | 0 | 20,000,000 | 0 | 9,100,000 | 1,000,000,000 | 0 |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ||||||||||
Repayment terms | ' | ' | 'Notes due July 2016 with annual principal payments that began in July 2010. Paid in full on October 10, 2014. | ' | 'Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | ' | ' | 'Notes paid in full on April 30, 2014. | 'Notes paid in full on April 30, 2014. | ' | ' | 'Notes due September 2017 with annual principal payments that began in September 2011.Paid in full on October 10, 2014. | 'Notes due September 2017 with annual principal payments that began in September 2011.Paid in full on October 10, 2014. | ' | ' | 'Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | 'Notes due January 2017 with annual principal payments that began in January 2011. Paid in full on October 10, 2014. | ' | ' | 'Notes due May 2022 with annual principal payments that begin in May 2016. Paid in full on October 10, 2014. | 'Notes due May 2022 with annual principal payments that begin in May 2016. Paid in full on October 10, 2014. | ' | ' | ' | 'Paid in full. | [2] | ' | 'Revolving line of credit. Paid in full on October 10, 2014. | [2] | ' | 'Revolving line of credit. Terminated on October 15, 2014. | ' | 'Notes due December 2014, with a right to extend the term for an additional six months. | ' | 'Paid in full as of October 15, 2014. | 'Paid in full as of October 15, 2014. | ' | ||||||||
Balance - other borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,800,000 | ' | ' | 50,000,000 | ' | ' | ' | 19,400,000 | ' | ' | ' | ' | ||||||||||
Interest rate description - other borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Variable 30 day: 1.1035% | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Interest rate - other borrowings (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.10% | ' | ' | ' | ' | ' | 1.48% | 1.48% | ' | ||||||||||
Maturity Date | 1-May-22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Current portion of long-term debt | $92,926,000 | $67,824,000 | ' | ' | ' | ' | $8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,100,000 | ' | ' | ||||||||||
[1] | The current portion of the Company's long-term debt (i.e., becoming due in the next 12 months) includes $10.9 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, $15.0 million of the Company's committed loan and $35.0 million of its revolving loan, | ||||||||||||||||||||||||||||||||||||||||||||
[2] | On February 5, 2013, the Company entered into a second amendment of the amended and restated credit agreement. The amendment increased the commitment amount from $25.0 million to $100.0 million from February 2013 to February 2014, after which the commitment amount returns to the current level over a three-month period. | ||||||||||||||||||||||||||||||||||||||||||||
[3] | The committed loan is secured by deeds of trust with respect to the Company's corporate headquarters and distribution center in Provo, Utah. |
REVISIONS_Details
REVISIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Other income (expense), net | $1,073 | $504 | ($37,554) | ($571) | ' |
Accumulated other comprehensive loss | -44,964 | ' | -44,964 | ' | -46,228 |
Net income | 68,308 | 110,900 | 142,669 | 239,617 | ' |
Comprehensive Income | 65,628 | 112,309 | 143,933 | 237,576 | ' |
Net increase in cash and cash equivalents | ' | ' | -330,209 | 233,474 | ' |
Selling expenses | 263,203 | 437,662 | 859,879 | 967,926 | ' |
Revenue | 638,800 | 908,299 | 1,959,888 | 2,120,932 | ' |
Operating income | 104,956 | 168,275 | 260,890 | 365,517 | ' |
Total assets | 1,573,249 | ' | 1,573,249 | ' | 1,821,062 |
Total liabilities and stockholders' equity | 1,573,249 | ' | 1,573,249 | ' | 1,821,062 |
Correct Error in Classification of Selling Rebates [Member] | ' | ' | ' | ' | ' |
Selling expenses | -19,300 | ' | -19,300 | ' | ' |
Revenue | ($39,700) | ' | ($39,700) | ' | ' |
VENEZUELA_HIGHLY_INFLATIONARY_1
VENEZUELA HIGHLY INFLATIONARY ACCOUNTING (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | Venezuela [Member] | Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Other Income (Expense), Net [Member] | Correct Certain Accounting Errors for Hyper-Inflationary Adjustments with Respect to Operations in Venezuela [Member] | Correct Certain Accounting Errors for Hyper-Inflationary Adjustments with Respect to Operations in Venezuela [Member] | |
Mechanism | SICAD I [Member] | USD ($) | Maximum [Member] | Subsidiary in Venezuela [Member] | USD ($) | Minimum [Member] | |||||
VEB | Sales Revenue [Member] | SICAD I [Member] | |||||||||
USD ($) | |||||||||||
Total assets | $1,573,249,000 | $1,821,062,000 | ' | ' | ' | ' | $11,400,000 | ' | ' | ' | ' |
Monetary assets | 194,944,000 | 525,153,000 | 553,499,000 | 320,025,000 | ' | ' | 6,800,000 | ' | ' | ' | ' |
Payable to parent company | ' | ' | ' | ' | ' | ' | 32,200,000 | ' | ' | ' | ' |
Percentage of revenue from subsidiary (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' |
Cumulative inflation rate (n hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Period used to determine highly inflationary economy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Adjustment to accumulated other comprehensive income (equity) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,300,000 | ' |
Out-of-period adjustment to income statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,300,000 | ' |
Number of foreign exchange mechanisms | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of legal mechanisms | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate | ' | ' | ' | ' | ' | 10.7 | ' | ' | ' | ' | ' |
Translation of monetary assets and liabilities | $25,300,000 | ' | ' | ' | ' | ' | ' | ' | $14,700,000 | ' | ' |
ADJUSTMENT_TO_INVENTORY_Detail
ADJUSTMENT TO INVENTORY (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
ADJUSTMENT TO INVENTORY [Abstract] | ' | ' | ' |
Write-down of inventory | $50 | ' | ' |
Total adjustments to inventory carrying value | ' | $60.70 | $5.90 |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (Subsequent Event [Member]) | 1 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 09, 2014 | Oct. 09, 2014 | Oct. 09, 2014 | Oct. 09, 2014 | Oct. 09, 2014 | Oct. 10, 2014 | Oct. 09, 2014 | Oct. 09, 2014 |
USD ($) | Credit Agreement [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Japanese Yen Term Loan Facility [Member] | Japanese Yen Term Loan Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |
USD ($) | JPY (¥) | USD ($) | USD ($) | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | $127.50 | ' | ¥ 6,600 | ' | ' | $187.50 |
Term of facility | ' | ' | '5 years | ' | '5 years | ' | ' | '5 years | ' |
Interest rate (in hundredths) | ' | ' | ' | 7.00% | ' | 7.00% | ' | ' | 5.00% |
Amount drawn under facility | ' | ' | ' | ' | ' | ' | 112.5 | ' | ' |
Percentage of principal to be paid in quarterly installments | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' |
Maximum consolidated leverage ratio | ' | 2.25 | ' | ' | ' | ' | ' | ' | ' |
Minimum consolidated interest coverage ratio | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Prepayment fee | $7.50 | ' | ' | ' | ' | ' | ' | ' | ' |