Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 20, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NU SKIN ENTERPRISES INC | |
Entity Central Index Key | 1,021,561 | |
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 Common Stock, Shares Outstanding | 55,970,482 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 250,087 | $ 289,354 |
Current investments | 14,972 | 14,371 |
Accounts receivable | 31,985 | 35,464 |
Inventories, net | 275,281 | 265,256 |
Prepaid expenses and other | 169,833 | 101,947 |
Total current assets | 742,158 | 706,392 |
Property and equipment, net | 453,648 | 454,537 |
Goodwill | 114,954 | 112,446 |
Other intangible assets, net | 69,424 | 67,009 |
Other assets | 131,289 | 165,459 |
Total assets | 1,511,473 | 1,505,843 |
Current liabilities: | ||
Accounts payable | 34,084 | 28,832 |
Accrued expenses | 319,282 | 310,916 |
Current portion of long-term debt | 94,697 | 67,849 |
Total current liabilities | 448,063 | 407,597 |
Long-term debt | 168,377 | 181,745 |
Other liabilities | 93,602 | 90,880 |
Total liabilities | $ 710,042 | $ 680,222 |
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 | 419,804 | 419,921 |
Treasury stock, at cost - 34.6 million shares | (1,028,629) | (1,017,063) |
Accumulated other comprehensive loss | (67,250) | (71,269) |
Retained earnings | 1,477,415 | 1,493,941 |
Total stockholders' equity | 801,431 | 825,621 |
Total liabilities and stockholders' equity | $ 1,511,473 | $ 1,505,843 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Stockholders' equity: | ||
Common stock - authorized (in shares) | 500 | 500 |
Common stock - par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock - issued (in shares) | 90.6 | 90.6 |
Treasury stock, at cost (in shares) | 34.6 | 34.6 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||
Revenue | $ 471,831 | $ 543,332 |
Cost of sales | 137,869 | 105,055 |
Gross profit | 333,962 | 438,277 |
Operating expenses: | ||
Selling expenses | 195,559 | 234,005 |
General and administrative expenses | 130,254 | 135,626 |
Total operating expenses | 325,813 | 369,631 |
Operating income | 8,149 | 68,646 |
Other income (expense), net | (2,863) | (12,268) |
Income before provision for income taxes | 5,286 | 56,378 |
Provision for income taxes | 1,970 | 20,096 |
Net income | $ 3,316 | $ 36,282 |
Net income per share (Note 2): | ||
Basic (in dollars per share) | $ 0.06 | $ 0.62 |
Diluted (in dollars per share) | $ 0.06 | $ 0.60 |
Weighted-average common shares outstanding (000s): | ||
Basic (in shares) | 55,955 | 58,991 |
Diluted (in shares) | 56,411 | 60,261 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||
Net income | $ 3,316 | $ 36,282 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustment, net of taxes of $(2,451) and $(6,453), respectively | 5,589 | (10,050) |
Net unrealized gains (losses) on foreign currency cash flow hedges, net of taxes of $931 and $(221), respectively | (1,690) | 402 |
Reclassification adjustment for realized losses (gains) in current earnings, net of taxes of $(66) and $445, respectively | 120 | (807) |
Total other comprehensive income | 4,019 | (10,455) |
Comprehensive Income | $ 7,335 | $ 25,827 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustment, tax | $ (2,451) | $ (6,453) |
Net unrealized gains (losses) on foreign currency cash flow hedges, tax | 931 | (221) |
Reclassification adjustment for realized losses (gains) in current earnings, tax | $ (66) | $ 445 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 3,316 | $ 36,282 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,945 | 16,595 |
Japan customs expense | 31,355 | 0 |
Foreign currency losses | 2,411 | 12,530 |
Stock-based compensation | 2,447 | 3,559 |
Deferred taxes | 3,668 | 3,992 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,254 | 103 |
Inventories, net | (6,906) | 20,396 |
Prepaid expenses and other | (68,479) | 7,315 |
Other assets | 2,361 | (6,166) |
Accounts payable | 4,607 | (1,004) |
Accrued expenses | 5,128 | (10,738) |
Other liabilities | (3,823) | (8,666) |
Net cash provided by (used in) operating activities | (2,716) | 74,198 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,942) | (18,191) |
Proceeds of investment sales | 3,902 | 4,318 |
Purchases of investments | (4,538) | (4,318) |
Acquisitions | (3,300) | 0 |
Net cash used in investing activities | (14,878) | (18,191) |
Cash flows from financing activities: | ||
Exercise of employee stock options | 2,271 | (3,269) |
Payment of debt | (15,308) | (2,280) |
Payment of cash dividends | (19,840) | (20,694) |
Income tax benefit of options exercised | 3,402 | 2,602 |
Proceeds from debt | 23,721 | 20,000 |
Repurchases of shares of common stock | (20,006) | (26,300) |
Net cash used in financing activities | (25,760) | (29,941) |
Effect of exchange rate changes on cash | 4,087 | (9,769) |
Net increase/(decrease) in cash and cash equivalents | (39,267) | 16,297 |
Cash and cash equivalents, beginning of period | 289,354 | 288,415 |
Cash and cash equivalents, end of period | $ 250,087 | $ 304,712 |
THE COMPANY
THE COMPANY | 3 Months Ended |
Mar. 31, 2016 | |
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 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 March 31, 2016, and for the three-month periods ended March 31, 2016 and 2015. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. The consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Certain prior-year amounts in the Consolidated Statements of Income, none of which are material to current or prior periods, have not been reclassified to conform with the current year presentation. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015, stock options of 2.6 million and 1.6 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. |
DIVIDENDS PER SHARE
DIVIDENDS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
DIVIDENDS PER SHARE [Abstract] | |
DIVIDENDS PER SHARE | 3. DIVIDENDS PER SHARE In January 2016, the Company's board of directors declared a quarterly cash dividend of $0.355 per share. This quarterly cash dividend of $19.8 million was paid on March 16, 2016 to stockholders of record on February 26, 2016. [In April 2016, the Company's board of directors declared a quarterly cash dividend of $0.355 per share to be paid on June 8, 2016 to stockholders of record on May 27, 2016.] |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2016 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 4. DERIVATIVE FINANCIAL INSTRUMENTS As of March 31, 2016, the Company held mark-to-market forward derivative contracts to hedge foreign denominated intercompany positions with notional amounts of 500 million Japanese yen ($4.4 million) and 5.8 billion Korean won ($5.0 million), with related gains and losses being recorded as part of Other Income (Expense); in addition, the Company held mark-to-market forward contracts designated as foreign currency cash flow hedges with notional amounts totaling 3.9 billion Japanese yen and 12.0 million euros ($34.6 million and $13.7 million, respectively) as of March 31, 2016 and 1.8 billion Japanese yen and 7.0 million euros ($15.0 million and $7.5 million, respectively) as of March 31, 2015 to hedge forecasted foreign-currency-denominated intercompany transactions. The fair value of these hedges were $1.0 million and $(2.0) million as of March 31, 2015 and 2016, respectively. The contracts held at March 31, 2016 have maturities through March 2017, 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 loss to revenue were $0.2 million of pre-tax net gains and $1.3 million of pre-tax net losses for the three-month periods ended March 31, 2016 and 2015, respectively. The corresponding tax effects of these transactions were recorded in provision for income tax expense. As of March 31, 2016 and December 31, 2015, there were $1.3 million of unrealized losses and $0.3 million of unrealized gains, respectively, included in accumulated other comprehensive loss related to foreign currency cash flow hedges. The remaining $66.0 million and $71.6 million as of March 31, 2016 and December 31, 2015, respectively, in accumulated other comprehensive income are related to cumulative translation adjustments. During the quarter ended March 31, 2015, the Company identified and recorded an adjustment to correct an out-of-period error related to certain tax effects of a prior period net investment hedge, resulting in a $7.8 million reduction to deferred tax assets and accumulated other comprehensive income, which had no impact on net income. The Company has concluded the effect to be immaterial to both the current quarter and prior period financial statements. |
REPURCHASES OF COMMON STOCK
REPURCHASES OF COMMON STOCK | 3 Months Ended |
Mar. 31, 2016 | |
REPURCHASES OF COMMON STOCK [Abstract] | |
REPURCHASES OF COMMON STOCK | 5. REPURCHASES OF COMMON STOCK During the three-month periods ended March 31, 2016 and 2015, the Company repurchased 0.6 million and 0.5 million shares of its Class A common stock under its open market stock repurchase plans for $20.0 million and $26.3 million, respectively. As of March 31, 2016, $427.0 million was available for repurchases under the Company's current open market stock repurchase plan. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
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, independent direct sellers and independent marketers to distribute its products. While sales employees sell products through the Company's stores, independent direct sellers can sell away from the Company's stores where the Company has obtained a direct selling license to do so. Independent marketers are licensed business owners who are authorized to sell the Company's products either at their own approved premises or through the Company's stores. Selling expenses are the Company's largest expense comprised of sales compensation and incentives paid to its sales force. 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, Americas, South Asia/Pacific and EMEA. Revenue generated in each of these regions is set forth below (U.S. dollars in thousands): Three Months Ended March 31, Revenue: 2016 2015 Greater China $ 158,711 $ 187,367 North Asia 151,209 172,066 Americas 65,748 79,872 South Asia/Pacific 63,578 70,817 EMEA 32,585 33,210 Total $ 471,831 $ 543,332 Revenue generated by each of the Company's product lines is set forth below (U.S. dollars in thousands): Three Months Ended March 31, Revenue: 2016 2015 Nu Skin $ 289,989 $ 342,766 Pharmanex 180,714 199,272 Other 1,128 1,294 Total $ 471,831 $ 543,332 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 March 31, Revenue: 2016 2015 Mainland China $ 118,655 $ 134,197 South Korea 86,118 108,777 Japan 65,091 63,289 United States 47,233 58,988 Long-lived assets: March 31, 2016 December 31, 2015 United States $ 269,618 $ 271,057 Mainland China 110,259 110,839 South Korea 48,653 48,702 Japan 14,150 13,587 |
DEFERRED TAX ASSETS AND LIABILI
DEFERRED TAX ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 liabilitie s 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 March 31, 2016 and December 31, 2015, the Company had net deferred tax assets of $22.1 million and $24.2 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. The Company intends to utilize the offshore earnings to fund foreign investments, specifically capital expenditures. Undistributed earnings that the Company has indefinitely reinvested, for which no federal or state income taxes in the U.S. have been provided, aggregate to $70.0 million as of December 31, 2015. If the amount designated as indefinitely reinvested as of December 31, 2015 was repatriated to the United States, the amount of incremental taxes would be approximately $3.4 million. |
UNCERTAIN TAX POSITIONS
UNCERTAIN TAX POSITIONS | 3 Months Ended |
Mar. 31, 2016 | |
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 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 2011. 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 2016 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 no longer subject to income tax examinations for years before 2010. 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 [$0.1 million to $1.0] million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES The Company is subject to government regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and the Company's direct selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company's sales force is not in compliance with existing statutes, laws, rules or regulations could have a material adverse effect on the Company's operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. 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 currently has litigation pending 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. As further discussed in footnote 14, a settlement of the purported class action has been reached by the parties but remains subject to court approval. In addition, beginning in February 2014, five purported shareholder derivative complaints were filed in the United States District Court for the District of Utah. In May 2014, the court issued an order consolidating the derivative actions, appointing plaintiffs Amos C. Acoff and Analisa Suderov as co-lead plaintiffs in the consolidated action, and appointing 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. In July 2014, a consolidated derivative complaint was filed. The consolidated derivative complaint purports to assert claims on behalf of Nu Skin Enterprises, Inc. 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 H. Offen, Daniel W. Campbell, Andrew W. Lipman, Patricia A. Negrón, Thomas R. Pisano, and nominally against Nu Skin Enterprises, Inc. The consolidated derivative complaint also purports to assert claims on behalf of Nu Skin Enterprises, Inc. 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. In July 2015, the court stayed the derivative action pending a final resolution in the class action lawsuit and denied the Company's motion to dismiss without prejudice to renewing the motion when the stay is lifted. [Check for updates before filing] Although the derivative claim (and the purported class action if the proposed settlement is not approved) remain subject to significant contingencies and could result in material monetary or other penalties, the Company at this time does not believe that their resolution will have a material adverse effect on the Company's operating results, liquidity or financial position. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2016 | |
DEBT [Abstract] | |
DEBT | 10. DEBT 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, and as of March 31, 2016 and December 31, 2015, the Company had outstanding balances of $62.5 million and $47.5 million on the revolving credit facility. Any additional amounts drawn under the revolving credit facility will bear interest at rates that will be determined in accordance with the Credit Agreement. The Credit Agreement requires that the Company 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. The Company believes these covenants provide it with greater flexibility to pay dividends and repurchase stock. The Company is in compliance with its debt covenants. The following table summarizes the Company's debt facilities as of December 31, 2015 and March 31, 2016: Facility or Arrangement Original Principal Amount Balance as of December 31, 2015 Balance as of March 31, 2016 (1)(2) Interest Rate Repayment terms Credit Agreement term loan facility: U.S. dollar denominated: $127.5 million $118.7 million $116.3 million Variable 30 day: 2.69% One half of the principal amount payable in increasing quarterly installments over a five-year period that began on December 31, 2014, with the remainder payable at the end of the five-year term. Japanese yen denominated: 6.6 billion yen 6.1 billion yen ($51.1 million as of December 31, 2015) 6.0 billion yen ($53.4 million as of March 31, 2016) Variable 30 day: 2.25% One half of the principal amount payable in increasing quarterly installments over a five-year period that began on December 31, 2014, with the remainder payable at the end of the five-year term. Credit Agreement revolving credit facility: $47.5 million $62.5 million Variable 30 day: 2.69% Revolving line of credit expires October 2019. Korea subsidiary loan: $20.0 million $20.0 million $20.0 million 1.12% One half of the principal amount payable on March 17, 2017 and the remainder payable on March 16, 2018. Japan subsidiary loan: 2.0 billion yen 2.0 billion yen ($16.6 million as of December 31,2015) 1.7 billion yen ($14.8 million as of March 31, 2016) 0.66% Payable in semi-annual installments over three years that began on January 31, 2016. (1) As of March 31, 2016, the current portion of the Company's debt (i.e. becoming due in the next 12 months) included $73.7 million of the balance of its U.S. dollar-denominated debt under the Credit Agreement term loan facility, $5.1 million of the balance of its Japanese yen-denominated debt under the Credit Agreement facility, $10.0 million of the Korea subsidiary loan and $5.9 million of the Japan subsidiary loan. The Company has classified the amount borrowed under the Credit Agreement revolving credit facility as short term because it is the Company's intention to use this line of credit to borrow and pay back funds over short periods of time. (2) The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
ACCOUNTING PRONOUNCEMENTS [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | 11. ACCOUNTING PRONOUNCEMENTS 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. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 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) In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40). In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs associated with Line-of-Credit Arrangements In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases (Subtopic 842) In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
COST OF SALES
COST OF SALES | 3 Months Ended |
Mar. 31, 2016 | |
COST OF SALES [Abstract] | |
COST OF SALES | 12. COST OF SALES In February 2016, the Tokyo District Court issued its ruling on a dispute between the Company and the customs authorities in Japan. The District Court upheld previous customs assessments related to the importation of several of the Company's products into Japan. As a result of the District Court's decision, the Company recorded a charge of $31.4 million in the first quarter of 2016. This is a non-cash item because the Company was previously required to pay the assessments. This charge represents the full amount that was disputed, including assessments 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 date of the District Court's decision. The Company has appealed this decision to the Tokyo High Court. |
CLASS ACTION SETTLEMENT
CLASS ACTION SETTLEMENT | 3 Months Ended |
Mar. 31, 2016 | |
CLASS ACTION SETTLEMENT [Abstract] | |
CLASS ACTION SETTLEMENT | 13. CLASS ACTION SETTLEMENT On February 22, 2016, the Company entered into a Settlement Term Sheet (the "Agreement") in potential settlement of the previously reported putative securities class action consolidated lawsuit. The litigation was brought against the Company and certain of the Company's officers (collectively, the "Defendants") on behalf of a class consisting of persons or entities that publicly traded the Company's common stock during the period from May 4, 2011 through January 17, 2014 and were allegedly damaged thereby. The terms of the Agreement provide for, among other things, a settlement payment by, or on behalf of, the Company of $47 million, which the Company recorded as a short-term liability in its consolidated balance sheet. The settlement payment is expected to be entirely funded by the Company's insurers, which the Company recorded the corresponding amount as a short-term receivable in its consolidated balance sheet. There was no net impact on the Company's consolidated statement of income. The settlement remains subject to court approval and may be cancelled by the Defendants at their sole election in certain limited circumstances. Final court approval of the settlement is expected to occur in mid-2016 but could be delayed by circumstances beyond the Company's control. Upon final approval of the settlement by the court, the litigation will be dismissed, with prejudice. |
ACQUISITION
ACQUISITION | 3 Months Ended |
Mar. 31, 2016 | |
ACQUISITION [Abstract] | |
ACQUISITION | 14. ACQUISITION In the first quarter of 2016, the Company purchased 70% of Vertical Eden, LLC, an early-stage company in the warehouse growing market, based in Alpine, Utah, for $3.3 million in cash and contingent consideration valued at $1.5 million. The purchase of Vertical Eden includes specialized technology in remote programming and management of the entire crop growing cycle. As a result of this acquisition, the Company has recorded approximately $4.4 million of intangible assets which will be amortized over the useful lives of 3 to 7 years. The Company has also recorded $2.5 million of goodwill. Due to the insignificance of the transaction to the Company's consolidated financial statements, the Company has not separately presented the $2.1 million non-controlling interest related to this acquisition, but has included it in additional paid-in capital and has included the net income (loss) attributable to the non-controlling interest in other income (expense). |
ADDITIONAL QUARTERLY DISCLOSURE
ADDITIONAL QUARTERLY DISCLOSURES | 3 Months Ended |
Mar. 31, 2016 | |
ADDITIONAL QUARTERLY DISCLOSURES [Abstract] | |
ADDITIONAL QUARTERLY DISCLOSURES | 15. ADDITIONAL QUARTERLY DISCLOSURES Inventory Inventories consist of the following (U.S. dollars in thousands): March 31, 2016 December 31, 2015 Raw materials $ 135,496 $ 114,193 Finished goods 139,785 151,063 $ 275,281 $ 265,256 Fair Value The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at March 31, 2016 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 42,101 $ − $ − $ 42,101 Forward contracts − (1,954 ) − (1,954 ) Life insurance contracts − − 27,415 27,415 Total $ 42,101 $ (1,954 ) $ 27,415 $ 67,562 Fair Value at December 31, 2015 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 47,121 $ − $ − $ 47,121 Forward contracts − 485 − 485 Life insurance contracts − − 27,292 27,292 Total $ 47,121 $ 485 $ 27,292 $ 74,898 The following table provides a summary of changes in fair value of the Company's Level 3 marketable securities (U.S. dollars in thousands): Life Insurance Contracts Beginning balance at January 1, 2016 $ 27,292 Actual return on plan assets: Relating to assets still held at the reporting date (47 ) Purchases and issuances 262 Sales and settlements (92 ) Transfers into Level 3 − Ending balance at March 31, 2016 $ 27,415 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
SEGMENT INFORMATION [Abstract] | |
Revenue by Region | Revenue generated in each of these regions is set forth below (U.S. dollars in thousands): Three Months Ended March 31, Revenue: 2016 2015 Greater China $ 158,711 $ 187,367 North Asia 151,209 172,066 Americas 65,748 79,872 South Asia/Pacific 63,578 70,817 EMEA 32,585 33,210 Total $ 471,831 $ 543,332 |
Revenue by Product Lines | Revenue generated by each of the Company's product lines is set forth below (U.S. dollars in thousands): Three Months Ended March 31, Revenue: 2016 2015 Nu Skin $ 289,989 $ 342,766 Pharmanex 180,714 199,272 Other 1,128 1,294 Total $ 471,831 $ 543,332 |
Significant Geographical Areas and Long-lived Assets | 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 March 31, Revenue: 2016 2015 Mainland China $ 118,655 $ 134,197 South Korea 86,118 108,777 Japan 65,091 63,289 United States 47,233 58,988 Long-lived assets: March 31, 2016 December 31, 2015 United States $ 269,618 $ 271,057 Mainland China 110,259 110,839 South Korea 48,653 48,702 Japan 14,150 13,587 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
DEBT [Abstract] | |
Debt Facilities | The following table summarizes the Company's debt facilities as of December 31, 2015 and March 31, 2016: Facility or Arrangement Original Principal Amount Balance as of December 31, 2015 Balance as of March 31, 2016 (1)(2) Interest Rate Repayment terms Credit Agreement term loan facility: U.S. dollar denominated: $127.5 million $118.7 million $116.3 million Variable 30 day: 2.69% One half of the principal amount payable in increasing quarterly installments over a five-year period that began on December 31, 2014, with the remainder payable at the end of the five-year term. Japanese yen denominated: 6.6 billion yen 6.1 billion yen ($51.1 million as of December 31, 2015) 6.0 billion yen ($53.4 million as of March 31, 2016) Variable 30 day: 2.25% One half of the principal amount payable in increasing quarterly installments over a five-year period that began on December 31, 2014, with the remainder payable at the end of the five-year term. Credit Agreement revolving credit facility: $47.5 million $62.5 million Variable 30 day: 2.69% Revolving line of credit expires October 2019. Korea subsidiary loan: $20.0 million $20.0 million $20.0 million 1.12% One half of the principal amount payable on March 17, 2017 and the remainder payable on March 16, 2018. Japan subsidiary loan: 2.0 billion yen 2.0 billion yen ($16.6 million as of December 31,2015) 1.7 billion yen ($14.8 million as of March 31, 2016) 0.66% Payable in semi-annual installments over three years that began on January 31, 2016. (1) As of March 31, 2016, the current portion of the Company's debt (i.e. becoming due in the next 12 months) included $73.7 million of the balance of its U.S. dollar-denominated debt under the Credit Agreement term loan facility, $5.1 million of the balance of its Japanese yen-denominated debt under the Credit Agreement facility, $10.0 million of the Korea subsidiary loan and $5.9 million of the Japan subsidiary loan. The Company has classified the amount borrowed under the Credit Agreement revolving credit facility as short term because it is the Company's intention to use this line of credit to borrow and pay back funds over short periods of time. (2) The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table. |
ADDITIONAL QUARTERLY DISCLOSU25
ADDITIONAL QUARTERLY DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
ADDITIONAL QUARTERLY DISCLOSURES [Abstract] | |
Inventories | Inventories consist of the following (U.S. dollars in thousands): March 31, 2016 December 31, 2015 Raw materials $ 135,496 $ 114,193 Finished goods 139,785 151,063 $ 275,281 $ 265,256 |
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 (U.S. dollars in thousands): Fair Value at March 31, 2016 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 42,101 $ − $ − $ 42,101 Forward contracts − (1,954 ) − (1,954 ) Life insurance contracts − − 27,415 27,415 Total $ 42,101 $ (1,954 ) $ 27,415 $ 67,562 Fair Value at December 31, 2015 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 47,121 $ − $ − $ 47,121 Forward contracts − 485 − 485 Life insurance contracts − − 27,292 27,292 Total $ 47,121 $ 485 $ 27,292 $ 74,898 |
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): Life Insurance Contracts Beginning balance at January 1, 2016 $ 27,292 Actual return on plan assets: Relating to assets still held at the reporting date (47 ) Purchases and issuances 262 Sales and settlements (92 ) Transfers into Level 3 − Ending balance at March 31, 2016 $ 27,415 |
THE COMPANY (Details)
THE COMPANY (Details) | 3 Months Ended |
Mar. 31, 2016Region | |
THE COMPANY [Abstract] | |
Number of geographic regions | 5 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
NET INCOME PER SHARE [Abstract] | ||
Other shares excluded from the calculation of diluted earnings per share (in shares) | 2.6 | 1.6 |
DIVIDENDS PER SHARE (Details)
DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2016 | Jan. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Dividends per Share [Abstract] | ||||
Dividends payable, date declared | 2016-01 | |||
Payment of cash dividends | $ 19,840 | $ 20,694 | ||
Dividend Declared [Member] | ||||
Dividends per Share [Abstract] | ||||
Dividend payable per share (in dollars per share) | $ 0.355 | |||
Payment of cash dividends | $ 19,800 | |||
Dividend payable, date to be paid | Mar. 16, 2016 | |||
Dividend payable, date of record | Feb. 26, 2016 | |||
Dividend Declared 2016-Q1 [Member] | ||||
Dividends per Share [Abstract] | ||||
Dividends payable, date declared | 2016-04 | |||
Dividend payable, date to be paid | Jun. 8, 2016 | |||
Dividend payable, date of record | May 27, 2016 | |||
Dividend Declared 2016-Q1 [Member] | Subsequent Event [Member] | ||||
Dividends per Share [Abstract] | ||||
Dividend payable per share (in dollars per share) | $ 0.355 |
DERIVATIVE FINANCIAL INSTRUME29
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands, € in Millions, ¥ in Millions, ₩ in Billions | 3 Months Ended | |||||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016JPY (¥) | Mar. 31, 2016KRW (₩) | Mar. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Mar. 31, 2015JPY (¥) | Mar. 31, 2015EUR (€) | |
Derivative Financial Instruments [Abstract] | ||||||||
Revenue | $ 471,831 | $ 543,332 | ||||||
Derivative Financial Instruments [Abstract] | ||||||||
Accumulated other comprehensive income (loss) | (67,250) | $ (71,269) | ||||||
Deferred tax assets | 22,100 | 24,200 | ||||||
Correct Out-of-Period Error Related to Certain Tax Effects of a Prior Period Net Investment Hedge [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Deferred tax assets | 7,800 | |||||||
Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Accumulated other comprehensive income (loss) | (1,300) | 300 | ||||||
Accumulated Unrealized Gains (Losses) on Foreign Currency Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Revenue | 200 | (1,300) | ||||||
Accumulated Translation Adjustment [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Accumulated other comprehensive income (loss) | (66,000) | 71,600 | ||||||
Forward Contracts [Member] | Fair Value Hedges [Member] | Japanese Yen [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Notional amount | 4,400 | ¥ 500 | ||||||
Forward Contracts [Member] | Fair Value Hedges [Member] | Korean Won [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Notional amount | 5,000 | ₩ 5.8 | ||||||
Forward Contracts [Member] | Cash Flow Hedges [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Fair value | (2,000) | $ 1,000 | ||||||
Forward Contracts [Member] | Cash Flow Hedges [Member] | Japanese Yen [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Notional amount | 34,600 | 15,000 | ¥ 3,900 | ¥ 1,800 | ||||
Forward Contracts [Member] | Cash Flow Hedges [Member] | Euros [Member] | ||||||||
Derivative Financial Instruments [Abstract] | ||||||||
Notional amount | $ 13,700 | $ 7,500 | € 12 | € 7 |
REPURCHASES OF COMMON STOCK (De
REPURCHASES OF COMMON STOCK (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Repurchases of Common Stock [Abstract] | ||
Common stock repurchased (in shares) | 0.6 | 0.5 |
Common stock repurchased | $ 20 | $ 26.3 |
Available for repurchase under the repurchase program | $ 427 |
SEGMENT INFORMATION, Revenue by
SEGMENT INFORMATION, Revenue by Region (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)Region | Mar. 31, 2015USD ($) | |
SEGMENT INFORMATION [Abstract] | ||
Number of geographic regions | Region | 5 | |
Revenue by region [Abstract] | ||
Revenue | $ 471,831 | $ 543,332 |
Greater China [Member] | ||
Revenue by region [Abstract] | ||
Revenue | 158,711 | 187,367 |
North Asia [Member] | ||
Revenue by region [Abstract] | ||
Revenue | 151,209 | 172,066 |
Americas [Member] | ||
Revenue by region [Abstract] | ||
Revenue | 65,748 | 79,872 |
South Asia/Pacific [Member] | ||
Revenue by region [Abstract] | ||
Revenue | 63,578 | 70,817 |
EMEA [Member] | ||
Revenue by region [Abstract] | ||
Revenue | 32,585 | 33,210 |
Japan [Member] | ||
Revenue by region [Abstract] | ||
Revenue | $ 65,091 | $ 63,289 |
SEGMENT INFORMATION, Revenue 32
SEGMENT INFORMATION, Revenue by Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue by product line [Abstract] | ||
Revenue | $ 471,831 | $ 543,332 |
Nu Skin [Member] | ||
Revenue by product line [Abstract] | ||
Revenue | 289,989 | 342,766 |
Pharmanex [Member] | ||
Revenue by product line [Abstract] | ||
Revenue | 180,714 | 199,272 |
Other [Member] | ||
Revenue by product line [Abstract] | ||
Revenue | $ 1,128 | $ 1,294 |
SEGMENT INFORMATION, Significan
SEGMENT INFORMATION, Significant Geographical Areas and Long Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Revenue by geographical area and long-lived assets [Abstract] | |||
Revenue | $ 471,831 | $ 543,332 | |
Japan [Member] | |||
Revenue by geographical area and long-lived assets [Abstract] | |||
Revenue | 65,091 | 63,289 | |
Long-lived assets | 14,150 | $ 13,587 | |
Mainland China [Member] | |||
Revenue by geographical area and long-lived assets [Abstract] | |||
Revenue | 118,655 | 134,197 | |
Long-lived assets | 110,259 | 110,839 | |
South Korea [Member] | |||
Revenue by geographical area and long-lived assets [Abstract] | |||
Revenue | 86,118 | 108,777 | |
Long-lived assets | 48,653 | 48,702 | |
United States [Member] | |||
Revenue by geographical area and long-lived assets [Abstract] | |||
Revenue | 47,233 | 58,988 | |
Long-lived assets | 269,618 | $ 271,057 | |
Europe [Member] | |||
Revenue by geographical area and long-lived assets [Abstract] | |||
Revenue | $ 32,585 | $ 33,210 |
DEFERRED TAX ASSETS AND LIABI34
DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
DEFERRED TAX ASSETS AND LIABILITIES [Abstract] | ||
Net deferred tax assets | $ 22.1 | $ 24.2 |
Undistributed foreign earnings indefinitely reinvested | $ 70 | |
Incremental taxes on indefinitely reinvested foreign earnings | $ 3.4 |
UNCERTAIN TAX POSITIONS (Detail
UNCERTAIN TAX POSITIONS (Details) $ in Millions | Mar. 31, 2016USD ($) |
Minimum [Member] | |
Uncertain Tax Positions [Abstract] | |
Estimate of change in gross unrecognized tax benefits, net of foreign adjustments | $ 0.1 |
Maximum [Member] | |
Uncertain Tax Positions [Abstract] | |
Estimate of change in gross unrecognized tax benefits, net of foreign adjustments | $ 1 |
DEBT (Details)
DEBT (Details) $ in Thousands, ¥ in Billions | 3 Months Ended | |||||
Mar. 31, 2016USD ($) | Mar. 31, 2016JPY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | |||
Debt Facilities [Abstract] | ||||||
Current portion of long-term debt | $ 94,697 | $ 67,849 | ||||
Debt discount | $ 4,000 | |||||
Maximum [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Consolidated leverage ratio | 2.25 | |||||
Minimum [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Consolidated interest coverage ratio | 3 | |||||
Term Loan Facility [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Original principal amount | $ 127,500 | |||||
Balance | $ 116,300 | [1],[2] | 118,700 | |||
Interest rate | Variable 30 day: 2.69 | |||||
Interest rate | 2.69% | 2.69% | ||||
Repayment terms | One half of the principal amount payable in increasing quarterly installments over a five-year period that began on December 31, 2014, with the remainder payable at the end of the five-year term. | |||||
Term | 5 years | |||||
Current portion of long-term debt | $ 73,700 | |||||
Japanese Yen Term Loan Facility [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Original principal amount | ¥ | ¥ 6.6 | |||||
Balance | $ 53,400 | [1],[2] | ¥ 6 | [1],[2] | 51,100 | ¥ 6.1 |
Interest rate | Variable 30 day: 2.25 | |||||
Interest rate | 2.25% | 2.25% | ||||
Repayment terms | One half of the principal amount payable in increasing quarterly installments over a five-year period that began on December 31, 2014, with the remainder payable at the end of the five-year term. | |||||
Term | 5 years | |||||
Current portion of long-term debt | $ 5,100 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Borrowing capacity | 187,500 | |||||
Balance | $ 62,500 | [1],[2] | 47,500 | |||
Interest rate | Variable 30 day: 2.69 | |||||
Interest rate | 2.69% | 2.69% | ||||
Repayment terms | Revolving line of credit expires October 2019. | |||||
Korea Subsidiary Loan [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Original principal amount | $ 20,000 | |||||
Balance | $ 20,000 | [1],[2] | 20,000 | |||
Interest rate | 1.12% | 1.12% | ||||
Repayment terms | One half of the principal amount payable on March 17, 2017 and the remainder payable on March 16, 2018. | |||||
Current portion of long-term debt | $ 10,000 | |||||
Japan Subsidiary Loan [Member] | ||||||
Debt Facilities [Abstract] | ||||||
Original principal amount | ¥ | ¥ 2 | |||||
Balance | $ 14,800 | [1],[2] | ¥ 1.7 | [1],[2] | $ 16,600 | ¥ 2 |
Interest rate | 0.66% | 0.66% | ||||
Repayment terms | Payable in semi-annual installments over three years that began on January 31, 2016. | |||||
Term | 3 years | |||||
Current portion of long-term debt | $ 5,900 | |||||
[1] | As of March 31, 2016, the current portion of the Company's debt (i.e. becoming due in the next 12 months) included $73.7 million of the balance of its U.S. dollar-denominated debt under the Credit Agreement term loan facility, $5.1 million of the balance of its Japanese yen-denominated debt under the Credit Agreement facility, $10.0 million of the Korea subsidiary loan and $5.9 million of the Japan subsidiary loan. The Company has classified the amount borrowed under the Credit Agreement revolving credit facility as short term because it is the Company's intention to use this line of credit to borrow and pay back funds over short periods of time. | |||||
[2] | The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table. |
COST OF SALES (Details)
COST OF SALES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
COST OF SALES [Abstract] | ||
Japan customs expense | $ 31,355 | $ 0 |
CLASS ACTION SETTLEMENT (Detail
CLASS ACTION SETTLEMENT (Details) $ in Millions | Feb. 22, 2016USD ($) |
Putative Securities Class Action Consolidated Lawsuit [Member] | Settled Litigation [Member] | |
Litigation Settlement [Abstract] | |
Litigation settlement | $ 47 |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Business Combination, Description [Abstract] | |||
Cash paid for acquisition | $ 3,300 | $ 0 | |
Goodwill | $ 114,954 | $ 112,446 | |
Vertical Eden, LLC [Member] | |||
Business Combination, Description [Abstract] | |||
Percentage of entity acquired | 70.00% | ||
Cash paid for acquisition | $ 3,300 | ||
Contingent consideration | 1,500 | ||
Intangible assets | 4,400 | ||
Goodwill | 2,500 | ||
Non-controlling interest | $ 2,100 | ||
Vertical Eden, LLC [Member] | Minimum [Member] | |||
Business Combination, Description [Abstract] | |||
Useful life | 3 years | ||
Vertical Eden, LLC [Member] | Maximum [Member] | |||
Business Combination, Description [Abstract] | |||
Useful life | 7 years |
ADDITIONAL QUARTERLY DISCLOSU40
ADDITIONAL QUARTERLY DISCLOSURES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | ||
Raw materials | $ 135,496 | $ 114,193 |
Finished goods | 139,785 | 151,063 |
Inventories | 275,281 | 265,256 |
Fair Value on a Recurring Basis [Member] | ||
Financial Assets (Liabilities) [Abstract] | ||
Cash equivalents and current investments | 42,101 | 47,121 |
Forward contracts | (1,954) | 485 |
Life insurance contracts | 27,415 | 27,292 |
Total | 67,562 | 74,898 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | ||
Financial Assets (Liabilities) [Abstract] | ||
Cash equivalents and current investments | 42,101 | 47,121 |
Forward contracts | 0 | 0 |
Life insurance contracts | 0 | 0 |
Total | 42,101 | 47,121 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Financial Assets (Liabilities) [Abstract] | ||
Cash equivalents and current investments | 0 | 0 |
Forward contracts | (1,954) | 485 |
Life insurance contracts | 0 | 0 |
Total | (1,954) | 485 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | ||
Financial Assets (Liabilities) [Abstract] | ||
Cash equivalents and current investments | 0 | 0 |
Forward contracts | 0 | 0 |
Life insurance contracts | 27,415 | 27,292 |
Total | 27,415 | $ 27,292 |
Life Insurance Contracts [Member] | ||
Changes in Fair Value of Marketable Securities [Roll Forward] | ||
Balance, beginning of period | 27,292 | |
Actual Return on Plan Assets [Abstract] | ||
Relating to assets still held at the reporting date | (47) | |
Purchases and issuances | 262 | |
Sales and settlements | (92) | |
Transfers into Level 3 | 0 | |
Balance, end of period | $ 27,415 |