Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 01, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | NU SKIN ENTERPRISES, INC. | |
Entity Central Index Key | 0001021561 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 51,387,183 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-12421 | |
Entity Tax Identification Number | 87-0565309 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 75 West Center Street | |
Entity Address, City or Town | Provo | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84601 | |
City Area Code | 801 | |
Local Phone Number | 345-1000 | |
Title of 12(b) Security | Class A Common Stock, $.001 par value | |
Trading Symbol | NUS | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 375,512 | $ 335,630 |
Current investments | 10,788 | 8,413 |
Accounts receivable, net | 64,371 | 50,378 |
Inventories, net | 261,969 | 275,891 |
Prepaid expenses and other | 73,200 | 69,854 |
Total current assets | 785,840 | 740,166 |
Property and equipment, net | 444,848 | 453,604 |
Right-of-use assets | 142,700 | 144,326 |
Goodwill | 196,573 | 196,573 |
Other intangible assets, net | 76,161 | 80,321 |
Other assets | 148,371 | 154,016 |
Total assets | 1,794,493 | 1,769,006 |
Current liabilities: | ||
Accounts payable | 51,655 | 38,979 |
Accrued expenses | 337,980 | 290,281 |
Current portion of long-term debt | 95,000 | 27,500 |
Total current liabilities | 484,635 | 356,760 |
Operating lease liabilities | 103,043 | 105,701 |
Long-term debt | 319,932 | 334,461 |
Other liabilities | 94,871 | 96,795 |
Total liabilities | 1,002,481 | 893,717 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Class A common stock - 500 million shares authorized, $0.001 par value, 90.6 million shares issued | 91 | 91 |
Additional paid-in capital | 563,115 | 557,544 |
Treasury stock, at cost - 39.1 million and 35.0 million shares | (1,427,064) | (1,324,826) |
Accumulated other comprehensive loss | (93,441) | (85,292) |
Retained earnings | 1,749,311 | 1,727,772 |
Total stockholders' equity | 792,012 | 875,289 |
Total liabilities and stockholders' equity | $ 1,794,493 | $ 1,769,006 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Stockholders' equity: | ||
Common stock, shares authorized (in shares) | 500 | 500 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 90.6 | 90.6 |
Treasury stock (in shares) | 39.1 | 35 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||||
Revenue | $ 612,366 | $ 623,500 | $ 1,130,394 | $ 1,247,123 |
Cost of sales | 154,110 | 154,028 | 279,903 | 300,692 |
Gross profit | 458,256 | 469,472 | 850,491 | 946,431 |
Operating expenses: | ||||
Selling expenses | 248,628 | 245,828 | 454,670 | 495,536 |
General and administrative expenses | 151,554 | 149,442 | 301,182 | 308,040 |
Total operating expenses | 400,182 | 395,270 | 755,852 | 803,576 |
Operating income | 58,074 | 74,202 | 94,639 | 142,855 |
Other income (expense), net | 1,581 | (3,326) | (4,593) | (6,174) |
Income before provision for income taxes | 59,655 | 70,876 | 90,046 | 136,681 |
Provision for income taxes | 17,804 | 24,527 | 28,465 | 47,330 |
Net income | $ 41,851 | $ 46,349 | $ 61,581 | $ 89,351 |
Net income per share (Note 6): | ||||
Basic (in dollars per share) | $ 0.81 | $ 0.83 | $ 1.15 | $ 1.61 |
Diluted (in dollars per share) | $ 0.81 | $ 0.83 | $ 1.15 | $ 1.59 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 51,872 | 55,536 | 53,466 | 55,486 |
Diluted (in shares) | 51,925 | 55,943 | 53,502 | 56,030 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $ 41,851 | $ 46,349 | $ 61,581 | $ 89,351 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, net of taxes of $8 and $362 for the three months ended June 30, 2020 and 2019, respectively, and $6 and $217 for the six months ended June 30, 2020 and 2019, respectively | 6,848 | (5,482) | (8,149) | (1,342) |
Comprehensive income | $ 48,699 | $ 40,867 | $ 53,432 | $ 88,009 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, tax | $ 8 | $ 362 | $ 6 | $ 217 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member]Class A [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total | Cumulative Effect Adjustment [Member]Common Stock [Member]Class A [Member] | Cumulative Effect Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect Adjustment [Member]Treasury Stock [Member] | Cumulative Effect Adjustment [Member]Accumulated Other Comprehensive Loss [Member] | Cumulative Effect Adjustment [Member]Retained Earnings [Member] | Cumulative Effect Adjustment [Member] |
Balance at beginning of period at Dec. 31, 2018 | $ 91 | $ 552,564 | $ (1,326,605) | $ (79,934) | $ 1,635,751 | $ 781,867 | ||||||
Balance at beginning of period (ASC 842 [Member]) at Dec. 31, 2018 | $ 0 | $ 0 | $ 0 | $ 0 | $ 657 | $ 657 | ||||||
Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 0 | 0 | 89,351 | 89,351 | ||||||
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | (1,342) | 0 | (1,342) | ||||||
Repurchase of Class A common stock (Note 6) | 0 | 0 | (825) | 0 | 0 | (825) | ||||||
Exercise of employee stock options/vesting of stock awards | 0 | (4,904) | 2,596 | 0 | 0 | (2,308) | ||||||
Stock-based compensation | 0 | 8,634 | 0 | 0 | 0 | 8,634 | ||||||
Cash dividends | 0 | 0 | 0 | 0 | (41,084) | (41,084) | ||||||
Balance at end of period at Jun. 30, 2019 | 91 | 556,294 | (1,324,834) | (81,276) | 1,684,675 | 834,950 | ||||||
Balance at beginning of period at Mar. 31, 2019 | 91 | 553,270 | (1,325,251) | (75,794) | 1,658,879 | 811,195 | ||||||
Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 0 | 0 | 46,349 | 46,349 | ||||||
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | (5,482) | 0 | (5,482) | ||||||
Repurchase of Class A common stock (Note 6) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Exercise of employee stock options/vesting of stock awards | 0 | (569) | 417 | 0 | 0 | (152) | ||||||
Stock-based compensation | 0 | 3,593 | 0 | 0 | 0 | 3,593 | ||||||
Cash dividends | 0 | 0 | 0 | 0 | (20,553) | (20,553) | ||||||
Balance at end of period at Jun. 30, 2019 | 91 | 556,294 | (1,324,834) | (81,276) | 1,684,675 | 834,950 | ||||||
Balance at beginning of period at Dec. 31, 2019 | 91 | 557,544 | (1,324,826) | (85,292) | 1,727,772 | 875,289 | ||||||
Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 0 | 0 | 61,581 | 61,581 | ||||||
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | (8,149) | 0 | (8,149) | ||||||
Repurchase of Class A common stock (Note 6) | 0 | 0 | (107,367) | 0 | 0 | (107,367) | ||||||
Exercise of employee stock options/vesting of stock awards | 0 | (2,753) | 5,129 | 0 | 0 | 2,376 | ||||||
Stock-based compensation | 0 | 8,324 | 0 | 0 | 0 | 8,324 | ||||||
Cash dividends | 0 | 0 | 0 | 0 | (40,042) | (40,042) | ||||||
Balance at end of period at Jun. 30, 2020 | 91 | 563,115 | (1,427,064) | (93,441) | 1,749,311 | 792,012 | ||||||
Balance at beginning of period at Mar. 31, 2020 | 91 | 557,916 | (1,384,036) | (100,289) | 1,726,816 | 800,498 | ||||||
Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 0 | 0 | 41,851 | 41,851 | ||||||
Other comprehensive (loss) income, net of tax | 0 | 0 | 0 | 6,848 | 0 | 6,848 | ||||||
Repurchase of Class A common stock (Note 6) | 0 | 0 | (46,481) | 0 | 0 | (46,481) | ||||||
Exercise of employee stock options/vesting of stock awards | 0 | 330 | 3,453 | 0 | 0 | 3,783 | ||||||
Stock-based compensation | 0 | 4,869 | 0 | 0 | 0 | 4,869 | ||||||
Cash dividends | 0 | 0 | 0 | 0 | (19,356) | (19,356) | ||||||
Balance at end of period at Jun. 30, 2020 | $ 91 | $ 563,115 | $ (1,427,064) | $ (93,441) | $ 1,749,311 | $ 792,012 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 0.2 | 0 | 0.3 | 0.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 61,581 | $ 89,351 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,359 | 38,659 |
Foreign currency losses | 1,347 | 1,355 |
Stock-based compensation | 8,324 | 8,634 |
Loss on disposal of assets | 2,580 | 0 |
Deferred taxes | 506 | 5,854 |
Non-cash lease expense | 22,238 | 22,505 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,343) | (8,220) |
Inventories, net | 9,951 | 3,085 |
Prepaid expenses and other | (5,025) | (13,245) |
Other assets | (41,168) | (14,892) |
Accounts payable | 13,063 | 1,606 |
Accrued expenses | 62,932 | (66,152) |
Other liabilities | 5,736 | 5,937 |
Net cash provided by operating activities | 166,081 | 74,477 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (28,692) | (29,214) |
Proceeds on investment sales | 4,234 | 7,615 |
Purchases of investments | (4,031) | (4,774) |
Acquisitions and investments in equity investees | 0 | (8,073) |
Net cash used in investing activities | (28,489) | (34,446) |
Cash flows from financing activities: | ||
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards | 2,376 | (2,308) |
Payments of debt | (62,500) | (152,455) |
Payment of cash dividends | (40,042) | (41,084) |
Proceeds from debt | 115,000 | 130,000 |
Repurchases of shares of common stock | (107,367) | (825) |
Net cash used in financing activities | (92,533) | (66,672) |
Effect of exchange rate changes on cash | (5,177) | 362 |
Net increase (decrease) in cash and cash equivalents | 39,882 | (26,279) |
Cash and cash equivalents, beginning of period | 335,630 | 386,911 |
Cash and cash equivalents, end of period | $ 375,512 | $ 360,632 |
The Company
The Company | 6 Months Ended |
Jun. 30, 2020 | |
The Company [Abstract] | |
The Company | 1. The Company Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin, a leading global direct selling company, being the primary operating unit. Nu Skin develops and distributes premium-quality, innovative personal care products and wellness products that are sold worldwide under the Nu Skin, Pharmanex and ageLOC brands and a small number of other products and services. The Company reports revenue from segments, consisting of its geographic Nu Skin segments — Mainland China; South Korea; Southeast Asia, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam; Americas/Pacific, which includes Australia, Canada, Latin America, New Zealand and the United States; Japan; Hong Kong/Taiwan, which also includes Macau; and Europe, Middle East and Africa (“EMEA”), which includes several markets in Europe as well as Israel, Russia and South Africa —its Manufacturing segment, which includes manufacturing and packaging subsidiaries; and its (the Company’s subsidiaries operating within each segment are collectively referred to as the “Subsidiaries”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) 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 US GAAP 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 June 30, 2020, and for the three- and six-month periods ended June 30, 2020 and 2019. 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, 2019 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, 2019. Additionally, based on the duration and severity of the novel coronavirus (“COVID-19”) pandemic, including but not limited to limitations of holding sales meetings, supply chain disruptions, reduced travel and closed walk-in locations, the Company remains uncertain of the ultimate impact COVID-19 could have on the business. To date, the pandemic has not increased the Company’s costs of or access to capital under the revolving credit facility, and at this time the Company cannot provide assurance it will not in the future. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the second quarter financial results, including, but not limited to impairment of goodwill and other long-lived assets, income tax provision and recoverability of inventory. Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance modifies the measurement of expected credit losses of certain financial instruments. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods and should be applied on a modified retrospective basis to all periods presented. This ASU was effective for the Company beginning on January 1, 2020. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU was effective for the Company beginning on January The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract his ASU was effective for the Company beginning on January The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Inventory Inventories consist of the following (U.S. dollars in thousands): June 30, 2020 December 31, 2019 Raw materials $ 92,460 $ 87,942 Finished goods 169,509 187,949 Total Inventory, net $ 261,969 $ 275,891 Revenue Recognition Contract Liabilities – Customer Loyalty Programs Contract liabilities, recorded as deferred revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products. The balance of deferred revenue related to contract liabilities as of June 30, 2020 and December 31, 2019 was $ million and $ million, respectively. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill [Abstract] | |
Goodwill | 3. Goodwill The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. The following table presents goodwill allocated to the Company’s reportable segments for the periods ended June 30, 2020 and December 31, 2019 (U.S. dollars in thousands): June 30, 2020 December 31, 2019 Nu Skin Mainland China $ 32,179 $ 32,179 Americas/Pacific 9,449 9,449 South Korea 29,261 29,261 Southeast Asia 18,537 18,537 Japan 16,019 16,019 EMEA 2,875 2,875 Hong Kong/Taiwan 6,634 6,634 Manufacturing 72,469 72,469 Grow Tech 9,150 9,150 Total $ 196,573 $ 196,573 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | 4. Debt Credit Agreement On April 18, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $400 million term loan facility and a $350 million revolving credit facility, each with a term of five years. Both facilities bear interest at the London Interbank Offered Rate (“LIBOR”), plus a margin based on the consolidated leverage ratio. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year after the closing date of the Credit Agreement, with the remainder payable at final maturity. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of June 30, 2020, the Company was in compliance with all covenants under the Credit Agreement. The following table summarizes the Company’s debt facilities as of June 30, 2020 and December 31, 2019: Facility or Arrangement Original Principal Amount Balance as of June 30 , 2020 (1)(2) Balance as of December 31, 2019 (2) Interest Rate Repayment Terms Credit Agreement term loan facility $ 400.0 million $ 352.5 million $ 365.0 million Variable 35% of the principal amount is payable Credit Agreement revolving credit facility $ 65.0 million $ — Variable Revolving line of credit expires April 18, 2023. (1) As of June 30, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $ million of the balance of its term loan under the Credit Agreement. . (2) The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $2.6 million and $ million as of June 30, 2020 and December 31, 2019, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 24 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year. As of June 30, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.1 years and 4.7%. The components of lease expense were as follows (U.S. dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 12,869 $ 12,417 $ 26,005 $ 25,278 Variable lease cost 410 1,105 1,384 2,157 Short-term lease cost 95 52 140 104 Sublease income (1,058 ) (1,575 ) (2,189 ) (3,168 ) Total lease expense $ 12,316 $ 11,999 $ 25,340 $ 24,371 Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands): Six Months Ended June 30, 2020 2019 Operating cash outflow from operating leases $ 25,955 $ 26,570 Right-of-use assets obtained in exchange for lease obligations $ 31,178 $ 140,585 Maturities of lease liabilities were as follows (U.S. dollars in thousands): Year Ending December 31, Operating leases 2020 $ 27,085 2021 46,780 2022 30,950 2023 21,409 2024 16,604 Thereafter 27,835 Total 170,663 Less: Finance charges 26,054 Total principal liability $ 144,609 The Company has additional lease liabilities of $28.2 million which have not yet commenced as of June 30, 2020, and as such, have not been recognized on the consolidated balance sheets. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2020 | |
Capital Stock [Abstract] | |
Capital Stock | 6. Capital Stock 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 June 30, 2020 and 2019, stock options of 0.9 million and 1.1 million, respectively, and for the six-month periods ended June 30, 2020 and 2019, stock options of 1.0 million and 1.1 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Dividends In February and April 2020 , the Company’s board of directors declared quarterly cash dividends of $ per share. These quarterly cash dividends of $ million and $ million were paid on and to stockholders of record on and . July 2020 Company’s Repurchase of common stock During the three-month periods ended June 30, 2020 and 2019, the Company repurchased of its Class A common stock under its stock repurchase plan for $ million and respectively. During the six-month periods ended June 30, 2020 and 2019, the Company repurchased million shares and shares of its Class A common stock under its stock repurchase plan for $ million and $ million, respectively. As of June 30, 2020, $ million was available for repurchases under the Company’s stock repurchase plan. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value [Abstract] | |
Fair Value | 7. Fair Value The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximates fair values due to the short-term nature of these instruments. 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 certain financial instruments and other eligible items at fair value. The Company has elected not to apply the fair value option to existing eligible items beyond what is required by US GAAP. The following tables present the fair value hierarchy for those assets measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at June 30, 2020 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents and current investments $ 68,422 $ — $ — $ 68,422 Other long-term assets 205 — — 205 Life insurance contracts — — 39,967 39,967 Total $ 68,627 $ — $ 39,967 $ 108,594 Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents and current investments $ 54,642 $ — $ — $ 54,642 Other long-term assets 3,216 — — 3,216 Life insurance contracts — — 41,707 41,707 Total $ 57,858 $ — $ 41,707 $ 99,565 The following table provides a summary of changes in fair value of the Company’s Level 3 marketable securities (U.S. dollars in thousands): Beginning balance at January 1, 2020 $ 41,707 Actual return on plan assets (1,740 ) Purchase and issuances — Sales and settlements — Transfers into Level 3 — Ending balance at June 30, 2020 $ 39,967 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes Provision for income taxes for the three- and six-month periods of 2020 was $17.8 million and $28.5 million, compared to $24.5 million and $47.3 million for the prior-year periods. The effective tax rates for the three- and six-month periods were 29.8% and 31.6% of pre-tax income compared to 34.6% and 34.6% in the prior-year periods. The Company accounts for income taxes in accordance with ASC Topic 740 “Income Taxes.” 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. The Company had net deferred tax assets of $20.3 million and $20.0 million as of June 30, 2020 and December 31, 2019, respectively. The Company evaluates its indefinite reinvestment assertions with respect to foreign earnings for each quarter. For all foreign earnings, the Company accrues the applicable foreign income taxes. For the earnings that have been indefinitely reinvested, the Company does not accrue foreign withholding taxes. Undistributed earnings that the Company has indefinitely reinvested, for which no foreign withholding taxes have been provided, aggregate to $60.0 million as of December 31, 2019. If the amount designated as indefinitely reinvested as of December 31, 2019 was repatriated to the United States, the amount of incremental taxes would be approximately $6.0 million. The Company intends to utilize the indefinitely reinvested offshore earnings to fund foreign investments, specifically capital expenditures. 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 2019. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2016. 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 CAP for 2020 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 2012. However, statutes of limitations in certain countries may be as long as ten years. 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 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 limitations, it is reasonably possible that the Company’s gross unrecognized tax benefits, net of foreign currency adjustments, may decrease in the next 12 months by approximately $1.3 to $2.3 million. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Segment Information | 9. Segment Information The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China, Americas/Pacific, South Korea, Southeast Asia, Japan, EMEA, and Hong Kong/Taiwan—and its Manufacturing and Grow Tech segments. The Other category includes miscellaneous corporate revenue and related adjustments. These segments reflect the way the chief operating decision maker evaluates the Company’s business performance and allocates resources. Reported revenue includes only the revenue generated by sales to external customers. Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing policies. Segment contribution, which is the Company’s segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company’s executive and administrative offices, information technology, research and development, and marketing and supply chain functions not recorded at the segment level. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on revenue and segment contribution. Each segment records direct expenses related to its employees and its operations. Summarized financial information for the Company’s reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company’s internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. Revenue by Segment Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 146,332 $ 185,333 $ 284,028 $ 393,821 Americas/Pacific 127,919 92,841 202,492 179,297 South Korea 76,915 84,732 152,634 168,585 Southeast Asia 66,829 75,395 136,415 147,890 Japan 68,291 65,251 129,591 127,360 EMEA 50,776 43,400 86,179 85,218 Hong Kong/Taiwan 37,161 43,712 72,988 84,270 Other (85 ) 1,249 688 (177 ) Total Nu Skin 574,138 591,913 1,065,015 1,186,264 Manufacturing (1) 37,918 31,557 65,065 60,829 Grow Tech 310 30 314 30 Total $ 612,366 $ 623,500 $ 1,130,394 $ 1,247,123 (1) The Manufacturing segment had $ million and $ million of intersegment revenue for the months ended and , respectively, and $ million and $ million, for the months ended and , respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above. Segment Contribution Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 43,668 $ 51,087 $ 81,055 $ 110,254 Americas/Pacific 24,343 16,420 34,928 28,439 South Korea 24,090 25,979 48,189 51,647 Southeast Asia 16,977 20,840 33,695 38,832 Japan 16,455 15,823 31,047 29,929 EMEA 3,342 3,234 3,973 4,585 Hong Kong/Taiwan 6,839 9,217 13,777 16,691 Nu Skin contribution 135,714 142,600 246,664 280,377 Manufacturing 5,402 3,375 8,251 7,021 Grow Tech (5,487 ) (4,582 ) (12,337 ) (8,211 ) Total segment contribution 135,629 141,393 242,578 279,187 Corporate and other (77,555 ) (67,191 ) (147,939 ) (136,332 ) Operating income 58,074 74,202 94,639 142,855 Other income (expense) 1,581 (3,326 ) (4,593 ) (6,174 ) Income before provision for income taxes $ 59,655 $ 70,876 $ 90,046 $ 136,681 Depreciation and Amortization Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 2,558 $ 2,909 $ 4,982 $ 6,025 Americas/Pacific 253 206 498 420 South Korea 918 1,358 1,975 2,882 Southeast Asia 444 462 931 939 Japan 834 957 1,306 2,005 EMEA 242 272 500 712 Hong Kong/Taiwan 618 537 1,257 1,053 Total Nu Skin 5,867 6,701 11,449 14,036 Manufacturing 2,062 1,631 3,877 3,205 Grow Tech 1,248 945 2,473 1,820 Corporate and other 9,087 9,775 19,560 19,598 Total $ 18,264 $ 19,052 $ 37,359 $ 38,659 Capital Expenditures Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 716 $ 1,033 $ 3,577 $ 2,714 Americas/Pacific 72 473 766 747 South Korea 195 30 364 79 Southeast Asia 6 225 639 319 Japan 1,491 946 1,648 1,118 EMEA 633 42 660 76 Hong Kong/Taiwan 12 1,091 16 1,554 Total Nu Skin 3,125 3,840 7,670 6,607 Manufacturing 603 1,579 11,108 3,181 Grow Tech 239 2,066 417 5,051 Corporate and other 5,338 7,964 9,497 14,375 Total $ 9,305 $ 15,449 $ 28,692 $ 29,214 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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. 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, results of operations or cash flows. The Company and its Subsidiaries are defendants in litigation, investigations and other proceedings involving various matters. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse 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. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring [Abstract] | |
Restructuring | 11. Restructuring In the quarter of , the Company began a strategic plan to align its resources and capabilities to support its vision of being a world-leading business platform. This program primarily impacted the Company’s information technology infrastructure and organization and other departments within its corporate and Americas offices. As a result of the restructuring program, the Company recorded a non-cash charge of $ million for impairment of information technology assets, including internally developed software for social sharing and digital initiatives, and $ million of cash charges, including $ million for employee severance and $ million for other related cash charges with the restructuring. The restructuring charges were predominately recorded in the Corporate and Other category. See the table below for detail of restructuring activity for the three months ended March 31, 2019 (U.S. dollars in thousands): Beginning balance at January 1, 2019 $ 15,462 Amounts paid (15,046 ) Adjustments (416 ) Ending balance at March 31, 2019 $ — There was no restructuring activity for the three or six months ended June 30, 2020 and three months ended June 30, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) 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 US GAAP 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 June 30, 2020, and for the three- and six-month periods ended June 30, 2020 and 2019. 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, 2019 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, 2019. Additionally, based on the duration and severity of the novel coronavirus (“COVID-19”) pandemic, including but not limited to limitations of holding sales meetings, supply chain disruptions, reduced travel and closed walk-in locations, the Company remains uncertain of the ultimate impact COVID-19 could have on the business. To date, the pandemic has not increased the Company’s costs of or access to capital under the revolving credit facility, and at this time the Company cannot provide assurance it will not in the future. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the second quarter financial results, including, but not limited to impairment of goodwill and other long-lived assets, income tax provision and recoverability of inventory. |
Accounting Pronouncements | Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance modifies the measurement of expected credit losses of certain financial instruments. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods and should be applied on a modified retrospective basis to all periods presented. This ASU was effective for the Company beginning on January 1, 2020. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU was effective for the Company beginning on January The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract his ASU was effective for the Company beginning on January The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Inventory | Inventory Inventories consist of the following (U.S. dollars in thousands): June 30, 2020 December 31, 2019 Raw materials $ 92,460 $ 87,942 Finished goods 169,509 187,949 Total Inventory, net $ 261,969 $ 275,891 |
Revenue Recognition | Revenue Recognition Contract Liabilities – Customer Loyalty Programs Contract liabilities, recorded as deferred revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products. The balance of deferred revenue related to contract liabilities as of June 30, 2020 and December 31, 2019 was $ million and $ million, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Inventories | Inventories consist of the following (U.S. dollars in thousands): June 30, 2020 December 31, 2019 Raw materials $ 92,460 $ 87,942 Finished goods 169,509 187,949 Total Inventory, net $ 261,969 $ 275,891 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill [Abstract] | |
Goodwill | The following table presents goodwill allocated to the Company’s reportable segments for the periods ended June 30, 2020 and December 31, 2019 (U.S. dollars in thousands): June 30, 2020 December 31, 2019 Nu Skin Mainland China $ 32,179 $ 32,179 Americas/Pacific 9,449 9,449 South Korea 29,261 29,261 Southeast Asia 18,537 18,537 Japan 16,019 16,019 EMEA 2,875 2,875 Hong Kong/Taiwan 6,634 6,634 Manufacturing 72,469 72,469 Grow Tech 9,150 9,150 Total $ 196,573 $ 196,573 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt Facilities | The following table summarizes the Company’s debt facilities as of June 30, 2020 and December 31, 2019: Facility or Arrangement Original Principal Amount Balance as of June 30 , 2020 (1)(2) Balance as of December 31, 2019 (2) Interest Rate Repayment Terms Credit Agreement term loan facility $ 400.0 million $ 352.5 million $ 365.0 million Variable 35% of the principal amount is payable Credit Agreement revolving credit facility $ 65.0 million $ — Variable Revolving line of credit expires April 18, 2023. (1) As of June 30, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $ million of the balance of its term loan under the Credit Agreement. . (2) The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $2.6 million and $ million as of June 30, 2020 and December 31, 2019, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (U.S. dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 12,869 $ 12,417 $ 26,005 $ 25,278 Variable lease cost 410 1,105 1,384 2,157 Short-term lease cost 95 52 140 104 Sublease income (1,058 ) (1,575 ) (2,189 ) (3,168 ) Total lease expense $ 12,316 $ 11,999 $ 25,340 $ 24,371 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands): Six Months Ended June 30, 2020 2019 Operating cash outflow from operating leases $ 25,955 $ 26,570 Right-of-use assets obtained in exchange for lease obligations $ 31,178 $ 140,585 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows (U.S. dollars in thousands): Year Ending December 31, Operating leases 2020 $ 27,085 2021 46,780 2022 30,950 2023 21,409 2024 16,604 Thereafter 27,835 Total 170,663 Less: Finance charges 26,054 Total principal liability $ 144,609 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for those assets measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at June 30, 2020 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents and current investments $ 68,422 $ — $ — $ 68,422 Other long-term assets 205 — — 205 Life insurance contracts — — 39,967 39,967 Total $ 68,627 $ — $ 39,967 $ 108,594 Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Cash equivalents and current investments $ 54,642 $ — $ — $ 54,642 Other long-term assets 3,216 — — 3,216 Life insurance contracts — — 41,707 41,707 Total $ 57,858 $ — $ 41,707 $ 99,565 |
Changes in Fair Value of Level 3 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): Beginning balance at January 1, 2020 $ 41,707 Actual return on plan assets (1,740 ) Purchase and issuances — Sales and settlements — Transfers into Level 3 — Ending balance at June 30, 2020 $ 39,967 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Revenue by Segment | Revenue by Segment Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 146,332 $ 185,333 $ 284,028 $ 393,821 Americas/Pacific 127,919 92,841 202,492 179,297 South Korea 76,915 84,732 152,634 168,585 Southeast Asia 66,829 75,395 136,415 147,890 Japan 68,291 65,251 129,591 127,360 EMEA 50,776 43,400 86,179 85,218 Hong Kong/Taiwan 37,161 43,712 72,988 84,270 Other (85 ) 1,249 688 (177 ) Total Nu Skin 574,138 591,913 1,065,015 1,186,264 Manufacturing (1) 37,918 31,557 65,065 60,829 Grow Tech 310 30 314 30 Total $ 612,366 $ 623,500 $ 1,130,394 $ 1,247,123 (1) The Manufacturing segment had $ million and $ million of intersegment revenue for the months ended and , respectively, and $ million and $ million, for the months ended and , respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above. |
Segment Contribution | Segment Contribution Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 43,668 $ 51,087 $ 81,055 $ 110,254 Americas/Pacific 24,343 16,420 34,928 28,439 South Korea 24,090 25,979 48,189 51,647 Southeast Asia 16,977 20,840 33,695 38,832 Japan 16,455 15,823 31,047 29,929 EMEA 3,342 3,234 3,973 4,585 Hong Kong/Taiwan 6,839 9,217 13,777 16,691 Nu Skin contribution 135,714 142,600 246,664 280,377 Manufacturing 5,402 3,375 8,251 7,021 Grow Tech (5,487 ) (4,582 ) (12,337 ) (8,211 ) Total segment contribution 135,629 141,393 242,578 279,187 Corporate and other (77,555 ) (67,191 ) (147,939 ) (136,332 ) Operating income 58,074 74,202 94,639 142,855 Other income (expense) 1,581 (3,326 ) (4,593 ) (6,174 ) Income before provision for income taxes $ 59,655 $ 70,876 $ 90,046 $ 136,681 |
Depreciation and Amortization and Capital Expenditures | Depreciation and Amortization Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 2,558 $ 2,909 $ 4,982 $ 6,025 Americas/Pacific 253 206 498 420 South Korea 918 1,358 1,975 2,882 Southeast Asia 444 462 931 939 Japan 834 957 1,306 2,005 EMEA 242 272 500 712 Hong Kong/Taiwan 618 537 1,257 1,053 Total Nu Skin 5,867 6,701 11,449 14,036 Manufacturing 2,062 1,631 3,877 3,205 Grow Tech 1,248 945 2,473 1,820 Corporate and other 9,087 9,775 19,560 19,598 Total $ 18,264 $ 19,052 $ 37,359 $ 38,659 Capital Expenditures Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2020 2019 2020 2019 Nu Skin Mainland China $ 716 $ 1,033 $ 3,577 $ 2,714 Americas/Pacific 72 473 766 747 South Korea 195 30 364 79 Southeast Asia 6 225 639 319 Japan 1,491 946 1,648 1,118 EMEA 633 42 660 76 Hong Kong/Taiwan 12 1,091 16 1,554 Total Nu Skin 3,125 3,840 7,670 6,607 Manufacturing 603 1,579 11,108 3,181 Grow Tech 239 2,066 417 5,051 Corporate and other 5,338 7,964 9,497 14,375 Total $ 9,305 $ 15,449 $ 28,692 $ 29,214 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring [Abstract] | |
Restructuring Activity | See the table below for detail of restructuring activity for the three months ended March 31, 2019 (U.S. dollars in thousands): Beginning balance at January 1, 2019 $ 15,462 Amounts paid (15,046 ) Adjustments (416 ) Ending balance at March 31, 2019 $ — |
The Company (Details)
The Company (Details) | 6 Months Ended |
Jun. 30, 2020Segment | |
The Company [Abstract] | |
Number of reportable segments | 9 |
Number of geographic segments | 7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Raw materials | $ 92,460 | $ 87,942 |
Finished goods | 169,509 | 187,949 |
Total Inventory, net | $ 261,969 | $ 275,891 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Contract Liabilities - Customer Loyalty Programs [Abstract] | |||||
Contract liabilities for customer loyalty programs | $ 16 | $ 16 | $ 12.5 | ||
Contract liabilities impact to revenue | $ (4.1) | $ 0.6 | $ (3.5) | $ 1.1 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill [Abstract] | ||
Goodwill | $ 196,573 | $ 196,573 |
Nu Skin [Member] | Mainland China [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 32,179 | 32,179 |
Nu Skin [Member] | Americas/Pacific [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 9,449 | 9,449 |
Nu Skin [Member] | South Korea [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 29,261 | 29,261 |
Nu Skin [Member] | Southeast Asia [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 18,537 | 18,537 |
Nu Skin [Member] | Japan [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 16,019 | 16,019 |
Nu Skin [Member] | EMEA [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 2,875 | 2,875 |
Nu Skin [Member] | Hong Kong/Taiwan [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 6,634 | 6,634 |
Manufacturing [Member] | ||
Goodwill [Abstract] | ||
Goodwill | 72,469 | 72,469 |
Grow Tech [Member] | ||
Goodwill [Abstract] | ||
Goodwill | $ 9,150 | $ 9,150 |
Debt, Credit Agreement (Details
Debt, Credit Agreement (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Apr. 18, 2018 | |
Credit Agreement [Member] | Maximum [Member] | ||
Debt [Abstract] | ||
Consolidated leverage ratio | 2.25 | |
Credit Agreement [Member] | Minimum [Member] | ||
Debt [Abstract] | ||
Consolidated interest coverage ratio | 3 | |
Term Loan Facility [Member] | ||
Debt [Abstract] | ||
Original principal amount | $ 400 | $ 400 |
Term of loan | 5 years | |
Term Loan Facility [Member] | First Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5.00% | |
Term Loan Facility [Member] | Second Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5.00% | |
Term Loan Facility [Member] | Third Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 7.50% | |
Term Loan Facility [Member] | Fourth Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 7.50% | |
Term Loan Facility [Member] | Fifth Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 10.00% | |
Revolving Credit Facility [Member] | ||
Debt [Abstract] | ||
Borrowing capacity | $ 350 | |
Term of loan | 5 years |
Debt, Debt Facilities (Details)
Debt, Debt Facilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2020 | Dec. 31, 2019 | Apr. 18, 2018 | ||||
Debt [Abstract] | ||||||
Current portion of long-term debt | $ 95,000 | $ 27,500 | ||||
Credit Agreement [Member] | ||||||
Debt [Abstract] | ||||||
Unamortized debt issuance costs | 2,600 | 3,000 | ||||
Credit Agreement Term Loan Facility [Member] | ||||||
Debt [Abstract] | ||||||
Original principal amount | 400,000 | $ 400,000 | ||||
Balance | [2] | $ 352,500 | [1] | 365,000 | ||
Interest rate | Variable 30 day: 2.43% | |||||
Interest rate | 2.43% | |||||
Term of variable rate | 30 days | |||||
Repayment terms | 35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term. | |||||
Percentage of principal payable in installments | 35.00% | |||||
Term of loan | 5 years | |||||
Current portion of long-term debt | $ 30,000 | |||||
Credit Agreement Revolving Credit Facility [Member] | ||||||
Debt [Abstract] | ||||||
Balance | $ 65,000 | $ 0 | [2] | |||
Interest rate | Variable 30 day: 2.43% | |||||
Interest rate | 2.43% | |||||
Term of variable rate | 30 days | |||||
Repayment terms | Revolving line of credit expires April 18, 2023. | |||||
Term of loan | 5 years | |||||
[1] | As of June 30, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $30.0 million of the balance of its term loan under the Credit Agreement. The Company has classified the $65.0 million borrowed under the revolving line of credit as short term because it is the Company’s intention to use the 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 debt issuance costs of $2.6 million and $3.0 million as of June 30, 2020 and December 31, 2019, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Weighted average remaining lease term for operating leases | 6 years 1 month 6 days | 6 years 1 month 6 days | ||
Weighted average discount rate for operating leases | 4.70% | 4.70% | ||
Components of Lease Expense [Abstract] | ||||
Operating lease cost | $ 12,869 | $ 12,417 | $ 26,005 | $ 25,278 |
Variable lease cost | 410 | 1,105 | 1,384 | 2,157 |
Short-term lease cost | 95 | 52 | 140 | 104 |
Sublease income | (1,058) | (1,575) | (2,189) | (3,168) |
Total lease expense | 12,316 | $ 11,999 | 25,340 | 24,371 |
Supplemental Cash Flow Information Related to Leases [Abstract] | ||||
Operating cash outflow from operating leases | 25,955 | 26,570 | ||
Right-of-use assets obtained in exchange for lease liabilities | 31,178 | $ 140,585 | ||
Maturities of Operating Lease Liabilities [Abstract] | ||||
2020 | 27,085 | 27,085 | ||
2021 | 46,780 | 46,780 | ||
2022 | 30,950 | 30,950 | ||
2023 | 21,409 | 21,409 | ||
2024 | 16,604 | 16,604 | ||
Thereafter | 27,835 | 27,835 | ||
Total | 170,663 | 170,663 | ||
Less: Finance charges | 26,054 | 26,054 | ||
Total principal liability | 144,609 | 144,609 | ||
Additional lease liabilities not yet commenced | $ 28,200 | $ 28,200 | ||
Minimum [Member] | ||||
Leases [Abstract] | ||||
Remaining lease terms | 1 year | |||
Maximum [Member] | ||||
Leases [Abstract] | ||||
Remaining lease terms | 24 years | |||
Extension period for leases | 20 years | |||
Termination period for leases | 1 year |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 10, 2020 | Mar. 11, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Feb. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Dividends per Share [Abstract] | |||||||||
Payment of cash dividends | $ 40,042 | $ 41,084 | |||||||
Repurchases of Common Stock [Abstract] | |||||||||
Class A common stock repurchased | $ 46,481 | $ 0 | 107,367 | $ 825 | |||||
Amount available for repurchases | $ 362,800 | $ 362,800 | |||||||
Treasury Stock [Member] | |||||||||
Repurchases of Common Stock [Abstract] | |||||||||
Class A common stock repurchased (in shares) | 1,700,000 | 0 | 4,400,000 | 14,000 | |||||
Class A common stock repurchased | $ 46,481 | $ 0 | $ 107,367 | $ 825 | |||||
Dividend Declared 2020-Q1 [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2020-02 | 2020-02 | |||||||
Dividend payable per share (in dollars per share) | $ 0.375 | ||||||||
Payment of cash dividends | $ 20,700 | ||||||||
Dividend payable, date paid | Mar. 11, 2020 | ||||||||
Dividend payable, date of record | Feb. 28, 2020 | ||||||||
Dividend Declared 2020-Q2 [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2020-04 | 2020-04 | |||||||
Dividend payable per share (in dollars per share) | $ 0.375 | ||||||||
Payment of cash dividends | $ 19,400 | ||||||||
Dividend payable, date paid | Jun. 10, 2020 | ||||||||
Dividend payable, date of record | May 29, 2020 | ||||||||
Dividend Declared 2020-Q3 [Member] | Subsequent Event [Member] | |||||||||
Dividends per Share [Abstract] | |||||||||
Dividend payable, date declared | 2020-07 | ||||||||
Dividend payable per share (in dollars per share) | $ 0.375 | ||||||||
Dividend payable, date paid | Sep. 9, 2020 | ||||||||
Dividend payable, date of record | Aug. 28, 2020 | ||||||||
Stock Options [Member] | |||||||||
Net Income per Share [Abstract] | |||||||||
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares) | 900,000 | 1,100,000 | 1,000,000 | 1,100,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value on a Recurring Basis [Member] | ||
Financial Assets [Abstract] | ||
Cash equivalents and current investments | $ 68,422 | $ 54,642 |
Other long-term assets | 205 | 3,216 |
Life insurance contracts | 39,967 | 41,707 |
Financial assets | 108,594 | 99,565 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash equivalents and current investments | 68,422 | 54,642 |
Other long-term assets | 205 | 3,216 |
Life insurance contracts | 0 | 0 |
Financial assets | 68,627 | 57,858 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash equivalents and current investments | 0 | 0 |
Other long-term assets | 0 | 0 |
Life insurance contracts | 0 | 0 |
Financial assets | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash equivalents and current investments | 0 | 0 |
Other long-term assets | 0 | 0 |
Life insurance contracts | 39,967 | 41,707 |
Financial assets | 39,967 | $ 41,707 |
Life Insurance Contracts [Member] | ||
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward] | ||
Beginning balance | 41,707 | |
Actual return on plan assets | (1,740) | |
Purchases and issuances | 0 | |
Sales and settlements | 0 | |
Transfers into Level 3 | 0 | |
Ending balance | $ 39,967 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Taxes [Abstract] | |||||
Provision for income taxes | $ 17,804 | $ 24,527 | $ 28,465 | $ 47,330 | |
Effective tax rate | 29.80% | 34.60% | 31.60% | 34.60% | |
Net deferred tax assets | $ 20,300 | $ 20,300 | $ 20,000 | ||
Undistributed earnings of non-U.S. subsidiaries | 60,000 | ||||
Incremental taxes if undistributed earnings on non-U.S. subsidiaries were repatriated | $ 6,000 | ||||
Minimum [Member] | |||||
Income Taxes [Abstract] | |||||
Decrease in unrecognized tax benefits within the next 12 months that is reasonably possible | (1,300) | $ (1,300) | |||
Maximum [Member] | |||||
Income Taxes [Abstract] | |||||
Statute of limitations related to income tax examinations | 10 years | ||||
Income Taxes [Abstract] | |||||
Decrease in unrecognized tax benefits within the next 12 months that is reasonably possible | $ (2,300) | $ (2,300) |
Segment Information, Revenue by
Segment Information, Revenue by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Segment | Jun. 30, 2019USD ($) | ||
Segment Information [Abstract] | |||||
Number of reportable segments | Segment | 9 | ||||
Number of geographic segments | Segment | 7 | ||||
Revenue by Segment [Abstract] | |||||
Revenue | $ 612,366 | $ 623,500 | $ 1,130,394 | $ 1,247,123 | |
Other [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | (85) | 1,249 | 688 | (177) | |
Operating Segment [Member] | Nu Skin [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 574,138 | 591,913 | 1,065,015 | 1,186,264 | |
Operating Segment [Member] | Nu Skin [Member] | Mainland China [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 146,332 | 185,333 | 284,028 | 393,821 | |
Operating Segment [Member] | Nu Skin [Member] | Americas/Pacific [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 127,919 | 92,841 | 202,492 | 179,297 | |
Operating Segment [Member] | Nu Skin [Member] | South Korea [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 76,915 | 84,732 | 152,634 | 168,585 | |
Operating Segment [Member] | Nu Skin [Member] | Southeast Asia [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 66,829 | 75,395 | 136,415 | 147,890 | |
Operating Segment [Member] | Nu Skin [Member] | Japan [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 68,291 | 65,251 | 129,591 | 127,360 | |
Operating Segment [Member] | Nu Skin [Member] | EMEA [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 50,776 | 43,400 | 86,179 | 85,218 | |
Operating Segment [Member] | Nu Skin [Member] | Hong Kong/Taiwan [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 37,161 | 43,712 | 72,988 | 84,270 | |
Operating Segment [Member] | Manufacturing [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | [1] | 37,918 | 31,557 | 65,065 | 60,829 |
Operating Segment [Member] | Grow Tech [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | 310 | 30 | 314 | 30 | |
Intersegment Member] | Manufacturing [Member] | |||||
Revenue by Segment [Abstract] | |||||
Revenue | $ 6,900 | $ 6,500 | $ 13,300 | $ 12,400 | |
[1] | The Manufacturing segment had $6.9 million and $6.5 million of intersegment revenue for the three months ended June 30, 2020 and 2019, respectively, and $13.3 million and $12.4 million, for the six months ended June 30, 2020 and 2019, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above. |
Segment Information, Segment Co
Segment Information, Segment Contribution (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Contribution [Abstract] | ||||
Operating income | $ 58,074 | $ 74,202 | $ 94,639 | $ 142,855 |
Other income (expense) | 1,581 | (3,326) | (4,593) | (6,174) |
Income before provision for income taxes | 59,655 | 70,876 | 90,046 | 136,681 |
Operating Segment [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 135,629 | 141,393 | 242,578 | 279,187 |
Operating Segment [Member] | Nu Skin [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 135,714 | 142,600 | 246,664 | 280,377 |
Operating Segment [Member] | Nu Skin [Member] | Mainland China [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 43,668 | 51,087 | 81,055 | 110,254 |
Operating Segment [Member] | Nu Skin [Member] | South Korea [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 24,090 | 25,979 | 48,189 | 51,647 |
Operating Segment [Member] | Nu Skin [Member] | Americas/Pacific [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 24,343 | 16,420 | 34,928 | 28,439 |
Operating Segment [Member] | Nu Skin [Member] | Southeast Asia [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 16,977 | 20,840 | 33,695 | 38,832 |
Operating Segment [Member] | Nu Skin [Member] | Japan [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 16,455 | 15,823 | 31,047 | 29,929 |
Operating Segment [Member] | Nu Skin [Member] | EMEA [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 3,342 | 3,234 | 3,973 | 4,585 |
Operating Segment [Member] | Nu Skin [Member] | Hong Kong/Taiwan [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 6,839 | 9,217 | 13,777 | 16,691 |
Operating Segment [Member] | Manufacturing [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | 5,402 | 3,375 | 8,251 | 7,021 |
Operating Segment [Member] | Grow Tech [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | (5,487) | (4,582) | (12,337) | (8,211) |
Corporate and Other [Member] | ||||
Segment Contribution [Abstract] | ||||
Operating income | $ (77,555) | $ (67,191) | $ (147,939) | $ (136,332) |
Segment Information, Depreciati
Segment Information, Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | $ 18,264 | $ 19,052 | $ 37,359 | $ 38,659 |
Capital expenditures | 9,305 | 15,449 | 28,692 | 29,214 |
Operating Segments [Member] | Nu Skin [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 5,867 | 6,701 | 11,449 | 14,036 |
Capital expenditures | 3,125 | 3,840 | 7,670 | 6,607 |
Operating Segments [Member] | Nu Skin [Member] | Mainland China [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 2,558 | 2,909 | 4,982 | 6,025 |
Capital expenditures | 716 | 1,033 | 3,577 | 2,714 |
Operating Segments [Member] | Nu Skin [Member] | South Korea [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 918 | 1,358 | 1,975 | 2,882 |
Capital expenditures | 195 | 30 | 364 | 79 |
Operating Segments [Member] | Nu Skin [Member] | Americas/Pacific [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 253 | 206 | 498 | 420 |
Capital expenditures | 72 | 473 | 766 | 747 |
Operating Segments [Member] | Nu Skin [Member] | Southeast Asia [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 444 | 462 | 931 | 939 |
Capital expenditures | 6 | 225 | 639 | 319 |
Operating Segments [Member] | Nu Skin [Member] | Japan [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 834 | 957 | 1,306 | 2,005 |
Capital expenditures | 1,491 | 946 | 1,648 | 1,118 |
Operating Segments [Member] | Nu Skin [Member] | EMEA [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 242 | 272 | 500 | 712 |
Capital expenditures | 633 | 42 | 660 | 76 |
Operating Segments [Member] | Nu Skin [Member] | Hong Kong/Taiwan [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 618 | 537 | 1,257 | 1,053 |
Capital expenditures | 12 | 1,091 | 16 | 1,554 |
Operating Segments [Member] | Manufacturing [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 2,062 | 1,631 | 3,877 | 3,205 |
Capital expenditures | 603 | 1,579 | 11,108 | 3,181 |
Operating Segments [Member] | Grow Tech [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 1,248 | 945 | 2,473 | 1,820 |
Capital expenditures | 239 | 2,066 | 417 | 5,051 |
Corporate and Other [Member] | ||||
Summarized Financial Information [Abstract] | ||||
Depreciation and amortization | 9,087 | 9,775 | 19,560 | 19,598 |
Capital expenditures | $ 5,338 | $ 7,964 | $ 9,497 | $ 14,375 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Restructuring [Abstract] | |||||
Non-cash impairment charges | $ 48,600 | ||||
Cash charges associated with restructuring | 22,100 | ||||
Employee severance | 20,100 | ||||
Other related restructuring charges | 2,000 | ||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 0 | $ 15,462 | $ 15,462 | ||
Amounts paid | (15,046) | ||||
Adjustments | (416) | ||||
Ending balance | $ 0 | ||||
Restructuring activity | $ 0 | $ 0 | $ 0 |