Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 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 | 54,452,098 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 516,994 | $ 289,354 |
Current investments | 15,603 | 14,371 |
Accounts receivable | 35,985 | 35,464 |
Inventories, net | 253,350 | 265,256 |
Prepaid expenses and other | 160,537 | 101,947 |
Total current assets | 982,469 | 706,392 |
Property and equipment, net | 451,571 | 454,537 |
Goodwill | 114,954 | 112,446 |
Other intangible assets, net | 65,408 | 67,009 |
Other assets | 137,413 | 165,459 |
Total assets | 1,751,815 | 1,505,843 |
Current liabilities: | ||
Accounts payable | 40,490 | 28,832 |
Accrued expenses | 337,562 | 310,916 |
Current portion of long-term debt | 73,328 | 67,849 |
Total current liabilities | 451,380 | 407,597 |
Long-term debt | 356,298 | 181,745 |
Other liabilities | 89,726 | 90,880 |
Total liabilities | 897,404 | 680,222 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Class A common stock - 500 million shares authorized, $.001 par value, 90.6 million shares issued | 91 | 91 |
Additional paid-in capital | 431,563 | 419,921 |
Treasury stock, at cost - 34.8 million and 34.6 million shares, respectively | (1,047,975) | (1,017,063) |
Accumulated other comprehensive loss | (68,523) | (71,269) |
Retained earnings | 1,539,255 | 1,493,941 |
Total stockholders' equity | 854,411 | 825,621 |
Total liabilities and stockholders' equity | $ 1,751,815 | $ 1,505,843 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Sep. 30, 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) | 34.8 | 34.6 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||||
Revenue | $ 604,162 | $ 571,308 | $ 1,676,468 | $ 1,674,849 |
Cost of sales | 125,863 | 152,755 | 391,937 | 368,073 |
Gross profit | 478,299 | 418,553 | 1,284,531 | 1,306,776 |
Operating expenses: | ||||
Selling expenses | 255,274 | 240,260 | 699,196 | 713,714 |
General and administrative expenses | 140,651 | 135,752 | 415,014 | 410,074 |
Total operating expenses | 395,925 | 376,012 | 1,114,210 | 1,123,788 |
Operating income | 82,374 | 42,541 | 170,321 | 182,988 |
Other income (expense), net | (5,695) | (14,428) | (19,618) | (29,454) |
Income before provision for income taxes | 76,679 | 28,113 | 150,703 | 153,534 |
Provision for income taxes | 19,807 | 11,846 | 45,802 | 56,328 |
Net income | $ 56,872 | $ 16,267 | $ 104,901 | $ 97,206 |
Net income per share (Note 2): | ||||
Basic (in dollars per share) | $ 1.02 | $ 0.28 | $ 1.87 | $ 1.66 |
Diluted (in dollars per share) | $ 0.98 | $ 0.28 | $ 1.85 | $ 1.63 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 55,983 | 57,725 | 55,963 | 58,403 |
Diluted (in shares) | 57,852 | 58,663 | 56,586 | 59,565 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $ 56,872 | $ 16,267 | $ 104,901 | $ 97,206 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, net of taxes of $(760) and $2,787 for the three months ended September 30, 2016 and 2015, respectively, and $(2,324) and $(3,036) for the nine months ended September 30, 2016 and 2015, respectively | 2,463 | (9,629) | 4,413 | (20,355) |
Net unrealized gains/(losses) on foreign currency cash flow hedges, net of taxes of $147 and $61 for the three months ended September 30, 2016 and 2015, respectively, and $1,722 and $(109) for the nine months ended September 30, 2016 and 2015, respectively | (266) | (110) | (3,126) | 199 |
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $(409) and $5 for the three months ended September 30, 2016 and 2015, respectively, and $(803) and $729 for the nine months ended September 30, 2016 and 2015, respectively | 743 | (10) | 1,459 | (1,323) |
Total other comprehensive income | 2,940 | (9,749) | 2,746 | (21,479) |
Comprehensive Income | $ 59,812 | $ 6,518 | $ 107,647 | $ 75,727 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, tax | $ (760) | $ 2,787 | $ (2,324) | $ (3,036) |
Net unrealized gains/(losses) on foreign currency cash flow hedges, tax | 147 | 61 | 1,722 | (109) |
Reclassification adjustment for realized losses/(gains) in current earnings, tax | $ (409) | $ 5 | $ (803) | $ 729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 104,901 | $ 97,206 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 53,402 | 52,101 |
Japan customs expense | 31,355 | 0 |
Foreign currency losses | 14,749 | 24,953 |
Stock-based compensation | 5,163 | 4,444 |
Deferred taxes | (5,718) | 12,110 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 671 | (2,067) |
Inventories, net | 14,957 | 65,692 |
Prepaid expenses and other | (59,230) | (3,586) |
Other assets | (3,842) | (18,387) |
Accounts payable | 10,927 | 2,252 |
Accrued expenses | 19,635 | 15,455 |
Other liabilities | (1,540) | (8,209) |
Net cash provided by operating activities | 185,430 | 241,964 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (35,019) | (44,171) |
Proceeds of investment sales | 14,591 | 11,526 |
Purchases of investments | (17,024) | (11,526) |
Acquisitions | (4,400) | 0 |
Net cash used in investing activities | (41,852) | (44,171) |
Cash flows from financing activities: | ||
Exercises of employee stock options | 6,295 | (1,107) |
Payments of cash dividends | (59,585) | (61,382) |
Payments on debt financing | (50,452) | (31,954) |
Proceeds from long-term debt | 233,721 | 36,217 |
Payment of debt issuance costs | (6,596) | 0 |
Income tax benefit of options exercised | 4,186 | 4,731 |
Repurchases of shares of common stock | (41,693) | (104,058) |
Net cash provided by (used in) financing activities | 85,876 | (157,553) |
Effect of exchange rate changes on cash | (1,814) | (22,847) |
Net increase in cash and cash equivalents | 227,640 | 17,393 |
Cash and cash equivalents, beginning of period | 289,354 | 288,415 |
Cash and cash equivalents, end of period | $ 516,994 | $ 305,808 |
THE COMPANY
THE COMPANY | 9 Months Ended |
Sep. 30, 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 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; Americas, which consists of the United States, Canada and Latin America; South Asia/Pacific, which consists of Australia, Brunei, French Polynesia, Indonesia, Malaysia, New Caledonia, New Zealand, the Philippines, Singapore, Thailand and Vietnam; and Europe, Middle East and Africa ("EMEA"), which consists of several markets in Europe as well as Israel, Russia, Ukraine 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, 2016, and for the three- and nine-month periods ended September 30, 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. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 9 Months Ended |
Sep. 30, 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 September 30, 2016 and 2015, stock options of 0.2 million and 1.6 million, respectively, and for the nine-month periods ended September 30, 2016 and 2015, stock options of 1.2 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 | 9 Months Ended |
Sep. 30, 2016 | |
DIVIDENDS PER SHARE [Abstract] | |
DIVIDENDS PER SHARE | 3. DIVIDENDS PER SHARE In January, April and July 2016, the Company's board of directors declared a quarterly cash dividend of $0.355 per share. These quarterly cash dividends of $19.8 million, $19.9 million and $19.9 million were paid on March 16, 2016, June 8, 2016 and September 14, 2016 to stockholders of record on February 26, 2016, May 27, 2016 and August 26, 2016. In November 2016, the Company's board of directors declared a quarterly cash dividend of $0.355 per share to be paid on December 7, 2016 to stockholders of record on November 18, 2016. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2016 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 4. DERIVATIVE FINANCIAL INSTRUMENTS The Company enters into non-designated foreign currency derivatives, primarily comprised of foreign currency forward contracts, for which hedge accounting does not apply. The changes in the fair market value of these non-designated derivatives are included in other income/expense in the Company's consolidated statements of income. The Company uses non-designated foreign currency derivatives to hedge foreign-currency-denominated intercompany transactions and to partially mitigate the impact of foreign-currency fluctuations. The fair value of the non-designated foreign currency derivatives is based on third-party quotes. As of September 30, 2016, the Company held non-designated derivative contracts with notional amounts of 300 million Japanese yen and 11.5 billion South Korean won ($3.0 million and $10.4 million, respectively) and 500 million Japanese yen ($4.2 million) as of September 30, 2015. The fair values of these non-designated derivative contracts were $0.9 million and none as of September 30, 2016 and 2015, respectively. The contracts held at September 30, 2016 have maturities through March 2017, and accordingly, all gains and losses on non-designated derivative contracts will be recognized in current earnings over the next 6 months. The following table summarizes gains (losses) related to derivative instruments not designated as hedging instruments during the three- and nine-month periods ended September 30, 2016 and 2015 (U.S. dollars in thousands): Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Foreign currency contracts Other income (expense) $ (765) $ 2 $ (1,243) $ 2 The Company designates as cash-flow hedges those foreign currency forward contracts it enters to hedge forecasted intercompany transactions that are subject to foreign currency exposures. Changes in the fair value of these forward contracts designated as cash-flow hedges are recorded as a component of accumulated other comprehensive income (loss) within shareholders' equity (deficit), and are recognized in the consolidated statement of income during the period which approximates the time the hedged transaction is settled. As of September 30, 2016, the Company held forward contracts designated as foreign currency cash flow hedges with notional amounts totaling 2.3 billion Japanese yen and 6.0 million euros ($22.7 million and $6.7 million, respectively), and 1.5 billion Japanese yen and 15.0 million euros ($12.5 million and $16.8 million, respectively) as of September 30, 2015 to hedge forecasted foreign-currency-denominated intercompany transactions. The fair value of these hedges were $2.1 million and $0.1 million as of September 30, 2016 and 2015, respectively. The contracts held at September 30, 2016 have maturities through June 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 9 months. The following table summarizes gains (losses) related to derivative instruments recorded in other comprehensive income (loss) during the three- and nine-month periods ended September 30, 2016 and 2015 (U.S. dollars in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Loss Three Months Ended Nine Months Ended September 30, September 30, Derivatives designated as hedging instruments: 2016 2015 2016 2015 Foreign currency forward contracts related to intercompany license fee, product sales, and selling expense hedges $ (266) $ (110) $ (3,126) $ 199 The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the three- and nine-month periods ended September 30, 2016 and 2015 (U.S. dollars in thousands): Derivatives designated as hedging instruments: Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Foreign currency forward contracts related to intercompany license fees and product sales hedges Revenue $ (300 ) $ (50 ) $ (609 ) $ 1,091 Foreign currency forward contracts related to intercompany selling expense hedges Selling expenses $ (443 ) $ 60 $ (850 ) $ 232 As of September 30, 2016 and December 31, 2015, there were $(1.4) million and $0.3 million, respectively, of unrealized gains/(losses) included in accumulated other comprehensive loss related to foreign currency cash flow hedges. The remaining $67.1 million and $71.6 million as of September 30, 2016 and December 31, 2015, respectively, in accumulated other comprehensive loss are related to cumulative translation adjustments. The Company assesses hedge effectiveness at least quarterly. During the three and nine months ended September 30, 2016 and 2015, all hedges were determined to be effective. The Company reports its derivatives at fair value as either other current assets or accrued expenses within its consolidated balance sheet. See Note 13 Fair Value. |
REPURCHASES OF COMMON STOCK
REPURCHASES OF COMMON STOCK | 9 Months Ended |
Sep. 30, 2016 | |
REPURCHASES OF COMMON STOCK [Abstract] | |
REPURCHASES OF COMMON STOCK | 5. REPURCHASES OF COMMON STOCK During the three-month periods ended September 30, 2016 and 2015, the Company repurchased 0.3 million and 0.6 million shares of its Class A common stock under its open market stock repurchase plans for $17.4 million and $28.2 million, respectively. During the nine-month periods ended September 30, 2016 and 2015, the Company repurchased 1.0 million and 2.1 million shares of its Class A common stock under its open market repurchase plans for $41.7 million and $104.1 million, respectively. As of September 30, 2016, $405.3 million was available for repurchases under the Company's open market stock repurchase plan. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 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 and website, 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, South Asia/Pacific, Americas and EMEA. 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: 2016 2015 2016 2015 Greater China $ 216,460 $ 188,669 $ 611,887 $ 576,172 North Asia 208,677 167,748 525,771 512,757 South Asia/Pacific 70,867 108,857 226,742 247,697 Americas 71,250 70,775 204,882 234,115 EMEA 36,908 35,259 107,186 104,108 Totals $ 604,162 $ 571,308 $ 1,676,468 $ 1,674,849 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: 2016 2015 2016 2015 Nu Skin $ 343,131 $ 324,115 $ 998,386 $ 1,018,317 Pharmanex 259,896 245,569 674,624 652,345 Other 1,135 1,624 3,458 4,187 Totals $ 604,162 $ 571,308 $ 1,676,468 $ 1,674,849 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: 2016 2015 2016 2015 Mainland China $ 168,320 $ 138,050 $ 471,319 $ 421,498 South Korea 136,188 104,012 315,342 321,812 Japan 72,489 63,736 210,429 190,945 United States 51,714 52,720 148,975 170,288 |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2016 | |
INVENTORY [Abstract] | |
INVENTORY | 7. INVENTORY Inventories consist of the following (U.S. dollars in thousands): September 30, 2016 December 31, 2015 Raw materials $ 118,313 $ 114,193 Finished goods 135,037 151,063 $ 253,350 $ 265,256 |
DEFERRED TAX ASSETS AND LIABILI
DEFERRED TAX ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2016 | |
DEFERRED TAX ASSETS AND LIABILITIES [Abstract] | |
DEFERRED TAX ASSETS AND LIABILITIES | 8. DEFERRED TAX ASSETS AND LIABILITIES The Company accounts for income taxes in accordance with ASC 740 Income Taxes Topic of the Financial Accounting Standards Codification. These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise's activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. As of September 30, 2016 and December 31, 2015, the Company had net deferred tax assets of $27.8 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 | 9 Months Ended |
Sep. 30, 2016 | |
UNCERTAIN TAX POSITIONS [Abstract] | |
UNCERTAIN TAX POSITIONS | 9. 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 before 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 | 9 Months Ended |
Sep. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. 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. 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. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2016 | |
DEBT [Abstract] | |
DEBT | 11. 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 September 30, 2016 and December 31, 2015, the Company had an outstanding balance of $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 September 30, 2016: Facility or Arrangement Original Principal Amount Balance as of December 31, 2015 Balance as of September 30, 2016 (1)(2) Interest Rate Repayment terms Credit Agreement term loan facility: U.S. dollar denominated: $127.5 million $118.7 million $111.6 million Variable 30 day: 3.2744% 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) 5.8 billion yen ($56.9 million as of September 30, 2016) Variable 30 day: 2.75% 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 $47.5 million Variable 30 day: 3.2744% Revolving line of credit expires October 2019. Korea subsidiary loan: $20.0 million $20.0 million $10.0 million 1.12% Remaining balance payable on March 16, 2018. Japan subsidiary loan: 2.0 billion yen 2.0 billion yen ($16.6 million as of December 31, 2015) 1.3 billion yen ($13.2 million as of September 30, 2016) 0.66% Payable in semi-annual installments over three years that began on January 31, 2016. Convertible note (3) $210.0 million - $210.0 million 4.75% Principal amount payable on June 15, 2020. (1) As of September 30, 2016, the current portion of the Company's debt (i.e., becoming due in the next 12 months) included $60.3 million of the balance of its U.S. dollar-denominated debt under the Credit Agreement term loan facility, $6.5 million of the balance of its Japanese yen-denominated debt under the Credit Agreement term loan facility and $6.5 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 $3.4 million on the Credit Agreement and $16.1 million on the convertible debt, which is not reflected in this table. (3) See Note 12 for more information regarding the convertible note. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 9 Months Ended |
Sep. 30, 2016 | |
CONVERTIBLE NOTE [Abstract] | |
CONVERTIBLE NOTE | 12. CONVERTIBLE NOTE On June 16, 2016, the Company issued $210.0 million of convertible senior notes (the "Convertible Notes") in a private offering to a Chinese investor (the "Holder"). The Convertible Notes are senior unsecured obligations which will rank equal in right of payment to all senior unsecured indebtedness of the Company, and will rank senior in right of payment to any indebtedness that is contractually subordinated to the Convertible Notes. Interest on the Convertible Notes is payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2016 at a rate of 4.75% per annum. The Convertible Notes mature on June 15, 2020, unless repurchased or converted prior to maturity. Prior to the stated maturity date, the Company may, at its option, redeem all or part of the Convertible Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, provided that its common stock share price is equal to or exceeds 180% of the applicable conversion price for 20 or more trading days (including the final three trading days) in the 30 consecutive trading days prior to the Company's exercise of such redemption right. The Holder of the Convertible Notes may, at its option, cause the Company to repurchase all of such Holder's Convertible Notes or any portion thereof that is equal to $1,000 in principal amount or multiples of $1,000 upon a change in control or a termination of trading of the Company's common stock, as those terms are defined in the indenture governing the Convertible Notes. In addition, each holder of the Convertible Notes shall have the right, at such holder's option, to convert all or any portion thereof that is equal to $1,000 in principal amount or multiples of $1,000 at any time beginning six calendar months following June 16, 2016, at the then-applicable conversion rate. Upon conversion by the Holder, the Convertible Notes will be settled in cash with respect to principal and any accrued and unpaid interest to such date and in the Company's common shares with respect to any additional amounts, based on the applicable conversion rate at such time. The Convertible Notes had an initial conversion rate of 21.5054 common shares per $1,000 principal amount of the Convertible Notes (which is equal to an initial conversion price of approximately $46.50 per common share). Throughout the term of the Convertible Notes, the conversion rate may be adjusted upon the occurrence of certain specified events. Of the $210.0 million in proceeds received from the issuance of the Convertible Notes, $199.1 million was allocated to long-term debt (the "Liability Component") and $10.9 million was allocated to additional paid-in-capital (the "Equity Component") within the Company's consolidated balance sheet. The Liability Component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The amount allocated to the Equity Component, which represents the conversion option, was calculated by deducting the fair value of the Liability Component from the par value of the Convertible Notes. The Company determined that the conversion option does not require separate accounting treatment as a derivative instrument because it is both indexed to the Company's own stock and would be classified in stockholders' equity if freestanding. The Equity Component will not be remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Liability Component over its carrying amount (the "Debt Discount") will be amortized to interest expense over the term of the Convertible Notes. As a result, the Liability Component will be accreted up to the Convertible Notes' $210.0 million face value, resulting in additional non-cash interest expense being recognized within the Company's consolidated statement of income. The effective interest rate on the Convertible Notes is approximately 7.1% per annum. The net carrying amount of the Liability Component is as follows (in thousands): September 30, 2016 Principal $ 210,000 Unamortized debt discount (conversion option) (10,231 ) Total long-term debt, net 199,769 Unamortized debt discount (issuance costs) (5,854 ) Net carrying amount $ 193,915 The net carrying amount of the Liability Component was recorded to long-term debt within the Company's consolidated balance sheet. The Company incurred approximately $6.6 million of issuance costs related to the issuance of the Convertible Notes. Of the $6.6 million in issuance costs incurred, $6.3 million and $0.3 million were recorded to deferred financing cost and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the Convertible Notes. The $6.3 million recorded to deferred financing cost on the Company's consolidated balance sheet as a reduction of long-term debt is being amortized over the contractual term of the Convertible Notes using the effective interest method. During the quarter ended September 30, 2016, the Company recognized $3.4 million in non-cash interest expense related to the Convertible Notes, which included $2.5 million of contractual interest and $0.9 million in amortization of debt issuance costs and in amortization of the Debt Discount. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2016 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | 13. FAIR VALUE The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair values due to the short-term nature of these instruments. The Company's current investments as of December 31, 2015 include certificates of deposits and pre-refunded municipal bonds that are classified by management as held-to-maturity as the Company had the positive intent and ability to hold to maturity. The carrying value of these current investments approximate fair values due to the short-term nature of these instruments. The Company has classified these instruments as Level 2 in the fair value hierarchy. Fair value estimates are made at a specific point in time, based on relevant market information. The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: ▪ Level 1 – quoted prices in active markets for identical assets or liabilities; ▪ Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; ▪ Level 3 – unobservable inputs based on the Company's own assumptions. Accounting standards permit companies, at their option, to measure many financial instruments and certain other items at fair value. The Company has elected not to apply the fair value option to existing eligible items. 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 September 30, 2016 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 57,616 $ − $ − $ 57,616 Forward contracts − (3,044 ) − (3,044 ) Life insurance contracts − − 31,033 31,033 Total $ 57,616 $ (3,044 ) $ 31,033 $ 85,605 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 1,914 Purchases and issuances 2,029 Sales and settlements (202 ) Transfers into Level 3 - Ending balance at September 30, 2016 $ 31,033 |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2016 | |
ACCOUNTING PRONOUNCEMENTS [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | 14. ACCOUNTING PRONOUNCEMENTS In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. |
COST OF SALES
COST OF SALES | 9 Months Ended |
Sep. 30, 2016 | |
COST OF SALES [Abstract] | |
COST OF SALES | 15. 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 to cost of sales 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 | 9 Months Ended |
Sep. 30, 2016 | |
CLASS ACTION SETTLEMENT [Abstract] | |
CLASS ACTION SETTLEMENT | 16. CLASS ACTION SETTLEMENT In February 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. In May 2016, the court issued preliminary approval of the settlement. In October 2016, the court gave its final approval of the settlement and dismissed the consolidated class action complaint in its entirety, with prejudice. 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. As expected, the Company's insurers fully funded the settlement payment in an escrow account in June 2016, and the Company maintained the corresponding amount as a short-term receivable, which it had recorded during the first quarter of 2016. There was no net impact on the Company's consolidated statement of income. |
ACQUISITION
ACQUISITION | 9 Months Ended |
Sep. 30, 2016 | |
ACQUISITION [Abstract] | |
ACQUISITION | 17. 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 recorded approximately $4.4 million of intangible assets which are being 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). |
DERIVATIVE FINANCIAL INSTRUME25
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments | The following table summarizes gains (losses) related to derivative instruments not designated as hedging instruments during the three- and nine-month periods ended September 30, 2016 and 2015 (U.S. dollars in thousands): Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Foreign currency contracts Other income (expense) $ (765) $ 2 $ (1,243) $ 2 |
Gains (Losses) Related to Derivative Instruments Designated as Cash Flow Hedges | The following table summarizes gains (losses) related to derivative instruments recorded in other comprehensive income (loss) during the three- and nine-month periods ended September 30, 2016 and 2015 (U.S. dollars in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Loss Three Months Ended Nine Months Ended September 30, September 30, Derivatives designated as hedging instruments: 2016 2015 2016 2015 Foreign currency forward contracts related to intercompany license fee, product sales, and selling expense hedges $ (266) $ (110) $ (3,126) $ 199 The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the three- and nine-month periods ended September 30, 2016 and 2015 (U.S. dollars in thousands): Derivatives designated as hedging instruments: Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Foreign currency forward contracts related to intercompany license fees and product sales hedges Revenue $ (300 ) $ (50 ) $ (609 ) $ 1,091 Foreign currency forward contracts related to intercompany selling expense hedges Selling expenses $ (443 ) $ 60 $ (850 ) $ 232 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, Revenue: 2016 2015 2016 2015 Greater China $ 216,460 $ 188,669 $ 611,887 $ 576,172 North Asia 208,677 167,748 525,771 512,757 South Asia/Pacific 70,867 108,857 226,742 247,697 Americas 71,250 70,775 204,882 234,115 EMEA 36,908 35,259 107,186 104,108 Totals $ 604,162 $ 571,308 $ 1,676,468 $ 1,674,849 |
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 Nine Months Ended September 30, September 30, Revenue: 2016 2015 2016 2015 Nu Skin $ 343,131 $ 324,115 $ 998,386 $ 1,018,317 Pharmanex 259,896 245,569 674,624 652,345 Other 1,135 1,624 3,458 4,187 Totals $ 604,162 $ 571,308 $ 1,676,468 $ 1,674,849 |
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 Nine Months Ended September 30, September 30, Revenue: 2016 2015 2016 2015 Mainland China $ 168,320 $ 138,050 $ 471,319 $ 421,498 South Korea 136,188 104,012 315,342 321,812 Japan 72,489 63,736 210,429 190,945 United States 51,714 52,720 148,975 170,288 Long-lived assets: September 30, 2016 December 31, 2015 Mainland China $ 101,482 $ 110,839 South Korea 46,960 48,702 Japan 13,910 13,587 United States 278,994 271,057 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
INVENTORY [Abstract] | |
Inventories | Inventories consist of the following (U.S. dollars in thousands): September 30, 2016 December 31, 2015 Raw materials $ 118,313 $ 114,193 Finished goods 135,037 151,063 $ 253,350 $ 265,256 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
DEBT [Abstract] | |
Debt Facilities | The following table summarizes the Company's debt facilities as of December 31, 2015 and September 30, 2016: Facility or Arrangement Original Principal Amount Balance as of December 31, 2015 Balance as of September 30, 2016 (1)(2) Interest Rate Repayment terms Credit Agreement term loan facility: U.S. dollar denominated: $127.5 million $118.7 million $111.6 million Variable 30 day: 3.2744% 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) 5.8 billion yen ($56.9 million as of September 30, 2016) Variable 30 day: 2.75% 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 $47.5 million Variable 30 day: 3.2744% Revolving line of credit expires October 2019. Korea subsidiary loan: $20.0 million $20.0 million $10.0 million 1.12% Remaining balance payable on March 16, 2018. Japan subsidiary loan: 2.0 billion yen 2.0 billion yen ($16.6 million as of December 31, 2015) 1.3 billion yen ($13.2 million as of September 30, 2016) 0.66% Payable in semi-annual installments over three years that began on January 31, 2016. Convertible note (3) $210.0 million - $210.0 million 4.75% Principal amount payable on June 15, 2020. (1) As of September 30, 2016, the current portion of the Company's debt (i.e., becoming due in the next 12 months) included $60.3 million of the balance of its U.S. dollar-denominated debt under the Credit Agreement term loan facility, $6.5 million of the balance of its Japanese yen-denominated debt under the Credit Agreement term loan facility and $6.5 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 $3.4 million on the Credit Agreement and $16.1 million on the convertible debt, which is not reflected in this table. (3) See Note 12 for more information regarding the convertible note. |
CONVERTIBLE NOTE (Tables)
CONVERTIBLE NOTE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
CONVERTIBLE NOTE [Abstract] | |
Convertible Note | The net carrying amount of the Liability Component is as follows (in thousands): September 30, 2016 Principal $ 210,000 Unamortized debt discount (conversion option) (10,231 ) Total long-term debt, net 199,769 Unamortized debt discount (issuance costs) (5,854 ) Net carrying amount $ 193,915 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
FAIR VALUE [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at September 30, 2016 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 57,616 $ − $ − $ 57,616 Forward contracts − (3,044 ) − (3,044 ) Life insurance contracts − − 31,033 31,033 Total $ 57,616 $ (3,044 ) $ 31,033 $ 85,605 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 1,914 Purchases and issuances 2,029 Sales and settlements (202 ) Transfers into Level 3 - Ending balance at September 30, 2016 $ 31,033 |
THE COMPANY (Details)
THE COMPANY (Details) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Options [Member] | ||||
Net Income per Share [Abstract] | ||||
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares) | 0.2 | 1.6 | 1.2 | 1.6 |
DIVIDENDS PER SHARE (Details)
DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 03, 2016 | Sep. 14, 2016 | Jun. 08, 2016 | Mar. 16, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Dividends per Share [Abstract] | |||||||||
Payment of cash dividends | $ 59,585 | $ 61,382 | |||||||
Dividend Declared 2016-Q1 [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2016-01 | ||||||||
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-Q2 [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2016-04 | ||||||||
Dividend payable per share (in dollars per share) | $ 0.355 | ||||||||
Payment of cash dividends | $ 19,900 | ||||||||
Dividend payable, date to be paid | Jun. 8, 2016 | ||||||||
Dividend payable, date of record | May 27, 2016 | ||||||||
Dividend Declared 2016-Q3 [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2016-07 | ||||||||
Dividend payable per share (in dollars per share) | $ 0.355 | ||||||||
Payment of cash dividends | $ 19,900 | ||||||||
Dividend payable, date to be paid | Sep. 14, 2016 | ||||||||
Dividend payable, date of record | Aug. 26, 2016 | ||||||||
Dividend Declared 2016-Q4 [Member] | Subsequent Event [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2016-11 | ||||||||
Dividend payable per share (in dollars per share) | $ 0.355 | ||||||||
Dividend payable, date to be paid | Dec. 7, 2016 | ||||||||
Dividend payable, date of record | Nov. 18, 2016 |
DERIVATIVE FINANCIAL INSTRUME34
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands, € in Millions, ¥ in Millions, ₩ in Billions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016EUR (€) | Sep. 30, 2016JPY (¥) | Sep. 30, 2016KRW (₩) | Dec. 31, 2015USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2015JPY (¥) | |
Foreign Currency Derivatives [Abstract] | ||||||||||
Unrealized gains/(losses) related to foreign currency cash flow hedges included in accumulated other comprehensive loss | $ (1,400) | $ (1,400) | $ 300 | |||||||
Cumulative translation adjustments included in accumulated other comprehensive loss | 67,100 | 67,100 | $ 71,600 | |||||||
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Fair value | 900 | $ 0 | $ 900 | $ 0 | ||||||
Term to recognize gains (losses) in current earnings | 6 months | |||||||||
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | Japanese Yen [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Notional amount | 3,000 | 4,200 | $ 3,000 | 4,200 | ¥ 300 | ¥ 500 | ||||
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | Korean Won [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Notional amount | 10,400 | 10,400 | ₩ 11.5 | |||||||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Fair value | 2,100 | 100 | $ 2,100 | 100 | ||||||
Term to recognize gains (losses) in current earnings | 9 months | |||||||||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Japanese Yen [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Notional amount | 22,700 | 12,500 | $ 22,700 | 12,500 | ¥ 2,300 | ¥ 1,500 | ||||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Euros [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Notional amount | 6,700 | 16,800 | 6,700 | 16,800 | € 6 | € 15 | ||||
Foreign Currency Forward Contracts [Member] | Other Comprehensive Loss [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Gain (loss) recognized in other comprehensive income (loss) | (266) | (110) | (3,126) | 199 | ||||||
Foreign Currency Forward Contracts [Member] | Other Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Gain (loss) recognized in income | (765) | 2 | (1,243) | 2 | ||||||
Foreign Currency Forward Contracts [Member] | Revenue [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Gain (loss) reclassified from accumulated other comprehensive loss into income | (300) | (50) | (609) | 1,091 | ||||||
Foreign Currency Forward Contracts [Member] | Selling Expenses [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||||||||||
Foreign Currency Derivatives [Abstract] | ||||||||||
Gain (loss) reclassified from accumulated other comprehensive loss into income | $ (443) | $ 60 | $ (850) | $ 232 |
REPURCHASES OF COMMON STOCK (De
REPURCHASES OF COMMON STOCK (Details) - Common Class A [Member] - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Repurchases of Common Stock [Abstract] | ||||
Common stock repurchased (in shares) | 0.3 | 0.6 | 1 | 2.1 |
Common stock repurchased | $ 17.4 | $ 28.2 | $ 41.7 | $ 104.1 |
Available for repurchase under the repurchase program | $ 405.3 | $ 405.3 |
SEGMENT INFORMATION, Revenue by
SEGMENT INFORMATION, Revenue by Region (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Region | Sep. 30, 2015USD ($) | |
SEGMENT INFORMATION [Abstract] | ||||
Number of geographic regions | Region | 5 | |||
Revenue by Region [Abstract] | ||||
Revenue | $ 604,162 | $ 571,308 | $ 1,676,468 | $ 1,674,849 |
Reportable Geographic Region [Member] | Greater China [Member] | ||||
Revenue by Region [Abstract] | ||||
Revenue | 216,460 | 188,669 | 611,887 | 576,172 |
Reportable Geographic Region [Member] | North Asia [Member] | ||||
Revenue by Region [Abstract] | ||||
Revenue | 208,677 | 167,748 | 525,771 | 512,757 |
Reportable Geographic Region [Member] | South Asia/Pacific [Member] | ||||
Revenue by Region [Abstract] | ||||
Revenue | 70,867 | 108,857 | 226,742 | 247,697 |
Reportable Geographic Region [Member] | Americas [Member] | ||||
Revenue by Region [Abstract] | ||||
Revenue | 71,250 | 70,775 | 204,882 | 234,115 |
Reportable Geographic Region [Member] | EMEA [Member] | ||||
Revenue by Region [Abstract] | ||||
Revenue | $ 36,908 | $ 35,259 | $ 107,186 | $ 104,108 |
SEGMENT INFORMATION, Revenue 37
SEGMENT INFORMATION, Revenue by Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue by Product Line [Abstract] | ||||
Revenue | $ 604,162 | $ 571,308 | $ 1,676,468 | $ 1,674,849 |
Nu Skin [Member] | ||||
Revenue by Product Line [Abstract] | ||||
Revenue | 343,131 | 324,115 | 998,386 | 1,018,317 |
Pharmanex [Member] | ||||
Revenue by Product Line [Abstract] | ||||
Revenue | 259,896 | 245,569 | 674,624 | 652,345 |
Other [Member] | ||||
Revenue by Product Line [Abstract] | ||||
Revenue | $ 1,135 | $ 1,624 | $ 3,458 | $ 4,187 |
SEGMENT INFORMATION, Significan
SEGMENT INFORMATION, Significant Geographical Areas and Long Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Revenue | $ 604,162 | $ 571,308 | $ 1,676,468 | $ 1,674,849 | |
Mainland China [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Long-lived assets | 101,482 | 101,482 | $ 110,839 | ||
South Korea [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Long-lived assets | 46,960 | 46,960 | 48,702 | ||
Japan [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Long-lived assets | 13,910 | 13,910 | 13,587 | ||
United States [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Long-lived assets | 278,994 | 278,994 | $ 271,057 | ||
Significant Geographic Area [Member] | Mainland China [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Revenue | 168,320 | 138,050 | 471,319 | 421,498 | |
Significant Geographic Area [Member] | South Korea [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Revenue | 136,188 | 104,012 | 315,342 | 321,812 | |
Significant Geographic Area [Member] | Japan [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Revenue | 72,489 | 63,736 | 210,429 | 190,945 | |
Significant Geographic Area [Member] | United States [Member] | |||||
Revenue by Geographical Area and Long-Lived Assets [Abstract] | |||||
Revenue | $ 51,714 | $ 52,720 | $ 148,975 | $ 170,288 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Raw materials | $ 118,313 | $ 114,193 |
Finished goods | 135,037 | 151,063 |
Inventories | $ 253,350 | $ 265,256 |
DEFERRED TAX ASSETS AND LIABI40
DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
DEFERRED TAX ASSETS AND LIABILITIES [Abstract] | ||
Net deferred tax assets | $ 27.8 | $ 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 | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Uncertain Tax Positions [Abstract] | |
Statute period for transfer pricing related issues | 10 years |
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 | 9 Months Ended | ||||||
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jun. 16, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | |||
Debt [Abstract] | ||||||||
Current portion of long-term debt | $ 73,328 | $ 73,328 | $ 67,849 | |||||
Maximum [Member] | ||||||||
Debt [Abstract] | ||||||||
Consolidated leverage ratio | 2.25 | |||||||
Minimum [Member] | ||||||||
Debt [Abstract] | ||||||||
Consolidated interest coverage ratio | 3 | |||||||
Credit Agreement [Member] | ||||||||
Debt [Abstract] | ||||||||
Debt discount | $ 3,400 | 3,400 | ||||||
Term Loan Facility [Member] | ||||||||
Debt [Abstract] | ||||||||
Original principal amount | 127,500 | 127,500 | ||||||
Balance | $ 111,600 | [1],[2] | $ 111,600 | [1],[2] | 118,700 | |||
Interest rate | Variable 30 day: 3.2744 | |||||||
Interest rate | 3.2744% | 3.2744% | 3.2744% | |||||
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 | $ 60,300 | $ 60,300 | ||||||
Japanese Yen Term Loan Facility [Member] | ||||||||
Debt [Abstract] | ||||||||
Original principal amount | ¥ | ¥ 6.6 | |||||||
Balance | $ 56,900 | [1],[2] | $ 56,900 | [1],[2] | ¥ 5.8 | 51,100 | ¥ 6.1 | |
Interest rate | Variable 30 day: 2.75 | |||||||
Interest rate | 2.75% | 2.75% | 2.75% | |||||
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 | $ 6,500 | $ 6,500 | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt [Abstract] | ||||||||
Borrowing capacity | 187,500 | 187,500 | ||||||
Balance | $ 47,500 | [1],[2] | $ 47,500 | [1],[2] | 47,500 | |||
Interest rate | Variable 30 day: 3.2744 | |||||||
Interest rate | 3.2744% | 3.2744% | 3.2744% | |||||
Repayment terms | Revolving line of credit expires October 2019. | |||||||
Korea Subsidiary Loan [Member] | ||||||||
Debt [Abstract] | ||||||||
Original principal amount | $ 20,000 | $ 20,000 | ||||||
Balance | $ 10,000 | [1],[2] | $ 10,000 | [1],[2] | 20,000 | |||
Interest rate | 1.12% | 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. | |||||||
Japan Subsidiary Loan [Member] | ||||||||
Debt [Abstract] | ||||||||
Original principal amount | ¥ | ¥ 2 | |||||||
Balance | $ 13,200 | [1],[2] | $ 13,200 | [1],[2] | ¥ 1.3 | 16,600 | ¥ 2 | |
Interest rate | 0.66% | 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 | $ 6,500 | $ 6,500 | ||||||
Convertible Note [Member] | ||||||||
Debt [Abstract] | ||||||||
Original principal amount | 210,000 | [3] | 210,000 | [3] | $ 210,000 | |||
Balance | $ 210,000 | [2],[3] | $ 210,000 | [2],[3] | $ 0 | |||
Interest rate | 7.10% | 7.10% | 7.10% | |||||
Interest rate | 4.75% | 4.75% | 4.75% | |||||
Repayment terms | Principal amount payable on June 15, 2020. | |||||||
Debt discount | $ 10,231 | $ 10,231 | ||||||
Debt discount | $ 16,100 | $ 16,100 | ||||||
[1] | As of September 30, 2016, the current portion of the Company's debt (i.e., becoming due in the next 12 months) included $60.3 million of the balance of its U.S. dollar-denominated debt under the Credit Agreement term loan facility, $6.5 million of the balance of its Japanese yen-denominated debt under the Credit Agreement term loan facility, $10.0 million of the Korea subsidiary loan and $6.5 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 $3.4 million on the Credit Agreement and $16.1 million on the convertible debt, which is not reflected in this table. | |||||||
[3] | See Note 12 for more information regarding the convertible note. |
CONVERTIBLE NOTE (Details)
CONVERTIBLE NOTE (Details) | Jun. 16, 2016USD ($) | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)d$ / sharesshares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | ||
Net Carrying Amount of Liability Component [Abstract] | |||||||
Debt issuance costs | $ 6,596,000 | $ 0 | |||||
Convertible Note [Member] | |||||||
Convertible Debt [Abstract] | |||||||
Original principal amount | $ 210,000,000 | $ 210,000,000 | [1] | $ 210,000,000 | [1] | ||
Interest rate | 4.75% | 4.75% | |||||
Maturity date | Jun. 15, 2020 | ||||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||||
Threshold percentage of stock price trigger | 180.00% | ||||||
Threshold trading days | d | 20 | ||||||
Threshold final trading days | d | 3 | ||||||
Threshold consecutive trading days | 30 days | ||||||
Principal amount increments that can be repurchased upon a change in control or termination of trading of common stock | $ 1,000 | ||||||
Principal amount increments that can be converted | $ 1,000 | ||||||
Holding period following issue date before notes can be converted | 6 months | ||||||
Initial conversion rate (in shares) | shares | 21.5054 | ||||||
Initial conversion price (in dollars per share) | $ / shares | $ 46.50 | $ 46.50 | |||||
Proceeds from issuance of notes | 210,000,000 | ||||||
Liability component of convertible notes | 199,100,000 | ||||||
Equity component of convertible notes allocated to additional paid-in capital | $ 10,900,000 | ||||||
Effective interest rate | 7.10% | 7.10% | |||||
Net Carrying Amount of Liability Component [Abstract] | |||||||
Principal | $ 210,000,000 | [1],[2] | $ 210,000,000 | [1],[2] | $ 0 | ||
Unamortized debt discount (conversion option) | (10,231,000) | (10,231,000) | |||||
Total long-term debt, net | 199,769,000 | 199,769,000 | |||||
Unamortized debt discount (issuance costs) | (5,854,000) | (5,854,000) | |||||
Net carrying amount | 193,915,000 | 193,915,000 | |||||
Debt issuance costs | 6,596,000 | ||||||
Additions to deferred financing cost | 6,300,000 | ||||||
Adjustments to additional paid-in capital for debt issuance costs | $ 300,000 | ||||||
Interest expense | 3,400,000 | ||||||
Contractual interest | 2,500,000 | ||||||
Amortization of debt issuance costs and debt discount | $ 900,000 | ||||||
[1] | See Note 12 for more information regarding the convertible note. | ||||||
[2] | The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $3.4 million on the Credit Agreement and $16.1 million on the convertible debt, which is not reflected in this table. |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
FAIR VALUE [Abstract] | |||
Long-term debt, fair value | $ 252,400 | $ 252,800 | |
Fair Value on a Recurring Basis [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | $ 57,616 | 47,121 | |
Forward contracts | (3,044) | ||
Forward contracts | 485 | ||
Life insurance contracts | 31,033 | 27,292 | |
Financial assets (liabilities), net | 85,605 | 74,898 | |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 57,616 | 47,121 | |
Forward contracts | 0 | ||
Forward contracts | 0 | ||
Life insurance contracts | 0 | 0 | |
Financial assets (liabilities), net | 57,616 | 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 | (3,044) | ||
Forward contracts | 485 | ||
Life insurance contracts | 0 | 0 | |
Financial assets (liabilities), net | (3,044) | 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 | ||
Forward contracts | 0 | ||
Life insurance contracts | 31,033 | 27,292 | |
Financial assets (liabilities), net | 31,033 | $ 27,292 | |
Life Insurance Contracts [Member] | |||
Changes in Fair Value of Marketable Securities [Roll Forward] | |||
Beginning balance | 27,292 | ||
Actual Return on Plan Assets [Abstract] | |||
Relating to assets still held at the reporting date | 1,914 | ||
Purchases and issuances | 2,029 | ||
Sales and settlements | (202) | ||
Transfers into Level 3 | 0 | ||
Ending balance | $ 31,033 |
COST OF SALES (Details)
COST OF SALES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
COST OF SALES [Abstract] | ||
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 | 9 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Acquisition [Abstract] | ||||
Cash paid for acquisition | $ 4,400 | $ 0 | ||
Goodwill | $ 114,954 | $ 112,446 | ||
Vertical Eden, LLC [Member] | ||||
Acquisition [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] | ||||
Acquisition [Abstract] | ||||
Useful life | 3 years | |||
Vertical Eden, LLC [Member] | Maximum [Member] | ||||
Acquisition [Abstract] | ||||
Useful life | 7 years |