Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-12421 | |
Entity Registrant Name | NU SKIN ENTERPRISES, INC. | |
Entity Central Index Key | 0001021561 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0565309 | |
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, $.001 par value | |
Trading Symbol | NUS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,667,403 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 212,532 | $ 256,057 |
Current investments | 8,674 | 11,759 |
Accounts receivable, net | 67,041 | 72,879 |
Inventories, net | 265,100 | 279,978 |
Prepaid expenses and other | 93,913 | 81,198 |
Total current assets | 647,260 | 701,871 |
Property and equipment, net | 422,818 | 432,965 |
Operating lease right-of-use assets | 93,092 | 90,107 |
Goodwill | 230,768 | 230,768 |
Other intangible assets, net | 101,933 | 105,309 |
Other assets | 246,044 | 245,443 |
Total assets | 1,741,915 | 1,806,463 |
Current liabilities: | ||
Accounts payable | 32,237 | 43,505 |
Accrued expenses | 247,068 | 260,366 |
Current portion of long-term debt | 30,000 | 25,000 |
Total current liabilities | 309,305 | 328,871 |
Operating lease liabilities | 74,198 | 70,943 |
Long-term debt | 453,183 | 478,040 |
Other liabilities | 95,023 | 106,641 |
Total liabilities | 931,709 | 984,495 |
Commitments and contingencies (Notes 5 and 11) | ||
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 | 618,706 | 621,853 |
Treasury stock, at cost - 40.9 million and 41.1 million shares | (1,564,942) | (1,570,440) |
Accumulated other comprehensive loss | (110,607) | (100,006) |
Retained earnings | 1,866,958 | 1,870,470 |
Total stockholders' equity | 810,206 | 821,968 |
Total liabilities and stockholders' equity | $ 1,741,915 | $ 1,806,463 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 40.9 | 41.1 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Income [Abstract] | ||
Revenue | $ 417,306 | $ 481,462 |
Cost of sales | 123,242 | 133,588 |
Gross profit | 294,064 | 347,874 |
Operating expenses: | ||
Selling expenses | 153,542 | 188,124 |
General and administrative expenses | 124,566 | 133,899 |
Restructuring and impairment expenses | 7,134 | 9,787 |
Total operating expenses | 285,242 | 331,810 |
Operating income | 8,822 | 16,064 |
Interest expense | 7,325 | 4,888 |
Other income (expense), net | (396) | 3,412 |
Income before provision for income taxes | 1,101 | 14,588 |
Provision for income taxes | 1,634 | 3,212 |
Net (loss) income | $ (533) | $ 11,376 |
Net (loss) income per share (Note 6): | ||
Basic (in dollars per share) | $ (0.01) | $ 0.23 |
Diluted (in dollars per share) | $ (0.01) | $ 0.23 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 49,538 | 49,644 |
Diluted (in shares) | 49,538 | 50,058 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (533) | $ 11,376 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustment, net of taxes of $- and $(68) for the three months ended March 31, 2024 and 2023, respectively | (10,104) | (2,139) |
Net unrealized gains/(losses) on cash flow hedges, net of taxes of $(435) and $175 for the three months ended March 31, 2024 and 2023, respectively | 1,574 | (635) |
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $572 and $475 for the three months ended March 31, 2024 and 2023, respectively | (2,071) | (1,722) |
Other comprehensive loss, net of tax | (10,601) | (4,496) |
Comprehensive (loss) income | $ (11,134) | $ 6,880 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustment, tax | $ 0 | $ (68) |
Net unrealized gains/(losses) on foreign currency cash flow hedges, tax | (435) | 175 |
Reclassification adjustment for realized losses/(gains) in current earnings on cash flow hedges, tax | $ 572 | $ 475 |
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 |
Balance at beginning of period at Dec. 31, 2022 | $ 91 | $ 613,278 | $ (1,569,061) | $ (86,509) | $ 1,939,497 | $ 897,296 |
Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 0 | 0 | 0 | 0 | 11,376 | 11,376 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | (4,496) | 0 | (4,496) |
Exercise of employee stock options/vesting of stock awards | 0 | (5,797) | 9,981 | 0 | 0 | 4,184 |
Stock-based compensation | 0 | 4,002 | 0 | 0 | 0 | 4,002 |
Cash dividends | 0 | 0 | 0 | 0 | (19,392) | (19,392) |
Balance at end of period at Mar. 31, 2023 | 91 | 611,483 | (1,559,080) | (91,005) | 1,931,481 | 892,970 |
Balance at beginning of period at Dec. 31, 2023 | 91 | 621,853 | (1,570,440) | (100,006) | 1,870,470 | 821,968 |
Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 0 | 0 | 0 | 0 | (533) | (533) |
Other comprehensive loss, net of tax | 0 | 0 | 0 | (10,601) | 0 | (10,601) |
Exercise of employee stock options/vesting of stock awards | 0 | (7,389) | 5,498 | 0 | 0 | (1,891) |
Stock-based compensation | 0 | 4,242 | 0 | 0 | 0 | 4,242 |
Cash dividends | 0 | 0 | 0 | 0 | (2,979) | (2,979) |
Balance at end of period at Mar. 31, 2024 | $ 91 | $ 618,706 | $ (1,564,942) | $ (110,607) | $ 1,866,958 | $ 810,206 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stockholders' Equity [Roll Forward] | ||
Exercise of employee stock options (in shares) | 0.2 | 0.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (533) | $ 11,376 |
Adjustments to reconcile net (loss) income to cash flows from operating activities: | ||
Depreciation and amortization | 18,437 | 16,983 |
Non-cash lease expense | 7,987 | 8,566 |
Stock-based compensation | 4,242 | 4,002 |
Inventory write-down | 2,003 | 3,267 |
Foreign currency losses / (gains) | 1,639 | (2,102) |
Loss / (gain) on disposal of assets | 218 | (17) |
Deferred taxes | 1,348 | (72) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 7,447 | (15,336) |
Inventories, net | 6,999 | (23,001) |
Prepaid expenses and other | (13,352) | (12,895) |
Other assets | (4,295) | (864) |
Accounts payable | (10,575) | (4,495) |
Accrued expenses | (4,227) | (4,129) |
Other liabilities | (14,020) | (3,360) |
Net cash provided by / (used in) operating activities | 3,318 | (22,077) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (12,281) | (11,487) |
Proceeds on investment sales | 3,019 | 4,986 |
Purchases of investments | 0 | (8,195) |
Net cash used in investing activities | (9,262) | (14,696) |
Cash flows from financing activities: | ||
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards | (1,891) | 4,184 |
Payment of cash dividends | (2,979) | (19,392) |
Finance lease principal payments | (785) | (912) |
Contingent consideration payments | (6,300) | 0 |
Payments of debt | (20,000) | (2,500) |
Proceeds from debt | 0 | 20,000 |
Net cash (used in) / provided by financing activities | (31,955) | 1,380 |
Effect of exchange rate changes on cash | (5,626) | 609 |
Net decrease in cash and cash equivalents | (43,525) | (34,784) |
Cash and cash equivalents, beginning of period | 256,057 | 264,725 |
Cash and cash equivalents, end of period | $ 212,532 | $ 229,941 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2024 | |
The Company [Abstract] | |
The Company | 1. The Company Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin being the primary operating unit. Nu Skin develops and distributes premium-quality, innovative beauty 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 nine segments, consisting of its seven geographic Nu Skin segments —Americas, , , Australia, New Zealand, and other markets; South Korea; |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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”) The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information as of March and for the -month periods ended March and 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 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 -K for the year ended December Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. This amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company will adopt this standard with its fiscal 2024 annual filing. The Company is currently evaluating these new disclosure requirements and the impact of adoption. Reclassifications Certain prior period amounts have been reclassified to conform with current presentation. The Company reclassified $4.9 million of interest expense from other income (expense), net to the interest expense Inventory Inventories consist of the following (U.S. dollars in thousands): March 31, 2024 December 31, 2023 Raw materials $ 133,600 $ 140,133 Finished goods 131,500 139,845 Total Inventory, net $ 265,100 $ 279,978 Reserves of inventories consist of the following (U.S. dollars in thousands): Three Months Ended March 31, 2024 2023 Beginning balance $ 83,378 $ 37,267 Additions 2,003 3,267 Write-offs (4,862 ) (4,518 ) Ending Balance $ 80,519 $ 36,016 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 March and December was and , respectively. The contract liabilities impact to revenue for the -month periods ended March and was an increase of vely. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill [Abstract] | |
Goodwill | 3. Goodwill The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments, with the exception of Rhyz other. The Company’s Rhyz other segment consists of three During the three months ended March 31, 2024, the Company determined that the recent decline in the Company’s stock price and corresponding market capitalization was a triggering event that required the Company to perform a quantitative impairment analysis for all reporting units. Based on the analysis, the Company concluded the fair value of all reporting units were in excess of their carrying amounts and no impairment charge was required. For goodwill, the estimated fair value of all reporting units exceeded the carrying value by approximately 1% - 7%; therefore the reporting units are considered to be at risk of future impairment. The reporting units’ fair values remain sensitive to unfavorable changes in assumptions utilized including revenue growth rates, profitability margins, estimated future cash flows, and the discount rates that could result in impairment charges in a future period. The following table presents goodwill allocated to the Company’s reportable segments for the periods ended and December 31, 2023 (U.S. dollars in thousands): March 31, 2024 December 31, 2023 Nu Skin Americas $ 9,449 $ 9,449 Mainland China 32,179 32,179 Southeast Asia/Pacific 18,537 18,537 Japan 16,019 16,019 Europe & Africa 2,875 2,875 South Korea 29,261 29,261 Hong Kong/Taiwan 6,634 6,634 Rhyz Investments Manufacturing 78,875 78,875 Rhyz other 36,939 36,939 Total $ 230,768 $ 230,768 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt [Abstract] | |
Debt | 4. Debt Credit Agreement On June 14, 2022, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent, which amended and restated the 2018 Credit Agreement. The Credit Agreement provides for a $400 million term loan facility and a $500 million revolving credit facility, each with a term of five years. Both facilities bear interest at the SOFR, plus a margin based on the Company’s consolidated leverage ratio. Commitment fees payable under the Credit Agreement are also based on the consolidated leverage ratio as defined in the Credit Agreement and range from 0.175% to 0.30% on the unused portion of the total lender commitments then in effect. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 2.5% during the first year and 5.0% during the second, third, fourth and fifth years after the closing date of the Credit Agreement, with the remainder payable at final maturity. The Credit Agreement is guaranteed by certain of the Company’s domestic subsidiaries and collateralized by assets of such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.75 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of March 31, 2024, the Company was in compliance with all covenants under the Credit Agreement. The following table summarizes the Company’s debt facilities as of March 31, 2024 and December 31, 2023: Facility or Arrangement Original Principal Amount Balance as of March 31, 2024 (1)(2) Balance as of December 31, 2023 (1)(2) Interest Rate Repayment Terms Credit Agreement term loan facility $400.0 million $375.0 million $385.0 million Variable 21% of the principal amount is payable Credit Agreement revolving credit facility $110.0 million $120.0 million Variable Revolving line of credit expires June 14, 2027. (1) As of March 31, 2024 and December 31, 2023, the current portion of the Company’s debt (i.e., becoming due in the next 12 months) included $20.0 million and $25.0 million, respectively, of the balance of its term loan under the Credit Agreement and $10.0 million and zero, respectively, of the balance under the revolving line of credit. (2) The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.8 million and $ million as of and December 31, 2023, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 5. Leases As of . The components of lease expense were as follows (U.S. dollars in thousands): Three Months Ended March 31 2024 2023 Operating lease expense Operating lease cost $ 6,066 $ 8,161 Variable lease cost 1,776 1,075 Finance lease expense Amortization of right-of-use assets 758 1,000 Interest on lease liabilities 109 134 Total lease expense $ 8,709 $ 10,370 Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands): Three March 31 2024 2023 Operating cash outflow from operating leases $ 6,371 $ 8,150 Operating cash outflow from finance leases $ 111 $ 132 Financing cash outflow from finance leases $ 785 $ 912 Right-of-use assets obtained in exchange for operating lease obligations $ 13,034 $ 7,981 Right-of-use assets obtained in exchange for finance lease obligations $ 5 $ 520 Maturities of lease liabilities were as follows (U.S. dollars in thousands): Year Ending December 31 Operating Leases Finance Leases 2024 $ 18,576 $ 2,541 2025 19,920 3,305 2026 15,170 3,213 2027 11,496 2,882 2028 8,531 47 Thereafter 36,730 — Total 110,423 11,988 Less: Finance charges 15,306 795 Total principal liability $ 95,117 $ 11,193 |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and 2023, the only dilutive common shares outstanding relate to the Company’s outstanding stock awards and options. For the three-month periods ended March 31, 2024 and 2023, stock awards and options of 1.8 million and 0.1 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Dividends In February 2024 May 2024 Repurchase of common stock During the three-month periods ended March 31, 2024 and 2023, the Company repurchased zero shares of its Class A common stock under its stock repurchase plans. As of March 31, 2024, $162.4 million was available for repurchases under the Company’s stock repurchase plan. |
Fair Value and Equity Investmen
Fair Value and Equity Investments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value and Equity Investments [Abstract] | |
Fair Value and Equity Investments | 7. Fair Value and Equity Investments 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. The carrying value of debt approximates fair value due to the variable 30-day interest rate. 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; and ■ 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 and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands): Fair Value at March 31, 2024 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 34,571 $ — $ — $ 34,571 Derivative financial instruments asset — 12,054 — 12,054 Life insurance contracts — — 48,414 48,414 Contingent consideration — — — — Total $ 34,571 $ 12,054 $ 48,414 $ 95,039 Fair Value at December 31, 2023 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 42,916 $ — $ — $ 42,916 Derivative financial instruments asset — 12,689 — 12,689 Life insurance contracts — — 45,041 45,041 Contingent consideration — — (6,300 ) (6,300 ) Total $ 42,916 $ 12,689 $ 38,741 $ 94,346 The following table provides a summary of changes in fair value of the Company’s Level 3 life insurance contracts (U.S. dollars in thousands): 2024 2023 Beginning balance at January 1 $ 45,041 $ 40,055 Actual return on plan assets 3,373 1,998 Ending balance at March 31 $ 48,414 $ 42,053 Life insurance contracts: The following table provides a summary of changes in fair value of the Company’s Level 3 contingent consideration (U.S. dollars in thousands): 2024 2023 Beginning balance at January 1 $ (6,300 ) $ (6,364 ) Changes in fair value of contingent consideration — 93 Payments 6,300 — Ending balance at March 31 $ — $ (6,271 ) Contingent consideration: Equity Investments The Company maintains equity investments in companies which are accounted for under the measurement alternative described in ASC - - - for equity securities that lack readily determinable fair values. The carrying amount of equity securities held by the Company without readily determinable fair values was at each of March 31, 2024 and December During the months ended September the Company recognized upward fair value adjustments, based on the valuation of additional equity issued by the investee which was deemed to be an observable transaction of a similar investment under ASC was recorded within Other income (expense), net on the Consolidated Statement of Income. The upward fair value adjustment represents a nonrecurring fair value measurement based on observable price changes and is classified as a Level fair value measurement. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes Provision for income taxes for the first quarter of 2024 was $1.6 million, compared to $3.2 million for the prior-year period. The effective tax rate for the first quarter 2024 was 148.4% of pre-tax income compared to 22.0% in the prior-year period. 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 $105.6 million and $105.0 million as of March 31, 2024 and December 31, 2023, 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, 2023. If the amount designated as indefinitely reinvested as of December 31, 2023 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. 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. As of December 31, 2023, tax years through 2020 and 2022 have been audited and are effectively closed to further examination. For tax year 2021, the Company was in the Bridge phase of the CAP program, pursuant to which the IRS will not accept disclosures, will not conduct reviews and will not provide letters of assurance for the Bridge years. There are limited circumstances that tax years in the Bridge phase will be opened for examination. For tax years 2023 and 2024, the Company has been accepted in the IRS’s Bridge Plus program. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2020. Foreign jurisdictions have varying lengths of statutes of limitations for income tax examinations. Some statutes are as short as three years and in certain markets 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 increase in the next 12 months by approximately $2.0 to $3.0 million. In 2021, as part of the Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework, 140 member countries agreed to the implementation of the Pillar Two Global Minimum Tax (“Pillar Two”) of 15%. The OECD continues to release additional guidance, including administrative guidance on how Pillar Two rules should be interpreted and applied by jurisdictions as they adopt Pillar Two. A number of countries have utilized the administrative guidance as a starting point for legislation that went into effect January 1, 2024. Based on current enacted legislation, the Company anticipates the impact of Pillar Two to be immaterial for 2024. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
Derivatives and Hedging Activities [Abstract] | |
Derivatives and Hedging Activities | 9. Derivatives and Hedging Activities Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2024, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $9.5 million will be reclassified as a reduction to interest expense. As of March 31, 2024 and December 31, 2023, the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk with a total notional amount of $200 million. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet: Fair Values of Derivative Instruments Derivatives in Cash flow Hedging Relationships: Balance Sheet Location March 31, 2024 December 31, 2023 Interest Rate Swap - Asset Prepaid expenses and other $ 9,451 $ 8,955 Interest Rate Swap - Asset Other assets $ 2,603 $ 3,734 Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Loss. Amount of Gain (Loss) Recognized in OCI on Derivatives Three Months Ended Derivatives in Cash flow March 31, Hedging Relationships: 2024 2023 Interest Rate Swaps $ 2,009 $ (810 ) Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income Three Months Ended Derivatives in Cash flow Income Statement March 31, Hedging Relationships: Location 2024 2023 Interest Rate Swaps Other income (expense), net $ 2,643 $ 2,197 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information [Abstract] | |
Segment Information | 10. Segment Information The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments— Americas, Mainland China, Southeast Asia/Pacific, South Korea, Japan, Europe & Africa, and Hong Kong/Taiwan Company’s 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. Effective June 2023, the Company closed its Israel market. As a result the EMEA segment has been renamed Europe & Africa. 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 March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 75,031 $ 101,157 Mainland China 61,067 67,976 Southeast Asia/Pacific 60,065 67,810 Japan 44,236 52,606 Europe & Africa 42,273 47,444 South Korea 40,963 70,324 Hong Kong/Taiwan 30,466 34,548 Other 672 (115 ) Total Nu Skin 354,773 441,750 Rhyz Investments Manufacturing (1) 50,302 35,767 Rhyz other 12,231 3,945 Total Rhyz Investments 62,533 39,712 Total $ 417,306 $ 481,462 (1) The Rhyz Investments Manufacturing segment had $ 8.6 11.8 Segment Contribution Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 14,976 $ 16,250 Mainland China 12,253 13,612 Southeast Asia/Pacific 11,084 12,471 Japan 12,006 12,908 Europe & Africa 3,276 3,638 South Korea 12,183 23,575 Hong Kong/Taiwan 7,367 7,834 Nu Skin contribution 73,145 90,288 Rhyz Investments Manufacturing 1,967 (1,373 ) Rhyz other (5,942 ) (1,960 ) Total (3,975 ) (3,333 ) Total segment contribution 69,170 86,955 Corporate and other (60,348 ) (70,891 ) Operating income 8,822 16,064 Interest expense 7,325 4,888 Other income (expense), net (396 ) 3,412 Income before provision for income taxes $ 1,101 $ 14,588 Depreciation and Amortization Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 105 $ 66 Mainland China 2,774 2,775 Southeast Asia/Pacific 249 280 Japan 81 1,054 Europe & Africa 273 282 South Korea 245 453 Hong Kong/Taiwan 579 453 Total Nu Skin 4,306 5,363 Rhyz Investments Manufacturing 3,335 3,424 Rhyz other 1,886 592 Total Rhyz Investments 5,221 4,016 Corporate and other 8,910 7,604 Total $ 18,437 $ 16,983 Capital Expenditures Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 21 $ 100 Mainland China 2,689 4,035 Southeast Asia/Pacific 9 64 Japan — 5 Europe & Africa 165 119 South Korea 22 154 Hong Kong/Taiwan 198 260 Total Nu Skin 3,104 4,737 Rhyz Investments Manufacturing 1,349 1,481 Rhyz other 635 — Total Rhyz Investments 1,984 1,481 Corporate and other 7,193 5,269 Total $ 12,281 $ 11,487 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. 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. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Acquisitions [Abstract] | |
Acquisitions | 12. Acquisitions In April 2023, the Company acquired 60 percent of LifeDNA, Inc. (“LifeDNA”), a DNA assessment company. Consideration paid included $4.0 million of cash, along with the conversion of a previous $3.0 million Simple Agreement for Future Equity (“SAFE”), and a $0.2 million convertible note. The acquisition enables the Company to continue to expand its digital tools. The Company allocated the fair value of $12.0 million to the assets acquired and liabilities assumed at estimated fair values. The estimated fair value of assets acquired included $7.3 million of intangible assets, $1.7 million of cash, $0.1 million of current assets, $0.9 million of accrued liabilities and also resulted in a deferred tax liability of $0.9 million. The excess purchase price over the aggregate fair value of assets acquired less liabilities assumed of $4.7 million was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies. None of the goodwill is expected to be deductible for income tax purposes. The intangible assets acquired comprised $0.6 million of customer relationships, $1.7 million of technology, $1.0 million of tradenames and $4.1 million of other intangibles. The intangibles were assigned useful lives of 7 years for the technology, tradenames and other intangibles, and 2 years for the customer relationships. All the goodwill was assigned to our Rhyz other segment. The numbers above are stated net of measurement period adjustments recorded during the fourth quarter of 2023 of $1.1 million to deferred tax liability and goodwill. The allocation of the fair value of assets acquired and liabilities assumed for the acquisition was finalized during the three months ended December 31, 2023. In June 2023, the Company acquired 100 percent ownership in Beauty Biosciences, LLC (“BeautyBio”), making BeautyBio a wholly owned subsidiary of the Company. The acquisition expands the Company’s product and device offerings within its Rhyz segment. The purchase price for BeautyBio was $75.0 million, net of cash acquired of $1.5 million, all payable in cash. The Company allocated the gross purchase price of $76.5 million to the assets acquired and liabilities assumed at estimated fair values. The estimated fair value of assets acquired included $43.0 million of intangible assets, $1.5 million of cash, $3.5 million of accounts receivable, $10.3 million of inventory, $0.8 million of prepaid and other assets, $1.0 million of fixed assets, $1.2 million of an ROU operating lease asset and corresponding lease liability, $2.5 million of accounts payable and accrued liabilities and also resulted in a deferred tax liability of $0.7 million. The excess purchase price over the aggregate fair value of assets acquired less liabilities assumed of $19.6 million was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies. None of the goodwill is expected to be deductible for income tax purposes. The intangible assets acquired comprised $18.4 million of customer relationships, $2.3 million of technology, $20.9 million of tradenames and $1.4 million of other intangibles. The intangibles were assigned useful lives of approximately 19 years for the technology and tradenames, approximately 9 years for the customer relationships and 3 years for the other intangibles. All the goodwill was assigned to our Rhyz other segment. The numbers above are stated net of measurement period adjustments recorded during the fourth quarter of 2023 of $(1.2) million to accounts receivable, $(0.7) million of inventory, $(0.5) million of accrued liabilities, $0.7 million of deferred tax liability, $(0.3) of intangible assets and $2.4 million of goodwill. The allocation of the fair value of assets acquired and liabilities assumed for the acquisition was finalized during the three months ended March 31, 2024. The financial results of LifeDNA and BeautyBio are included in the Rhyz other segment from the date of acquisition. For the three months ended March 31, 2024, the Company included $5.3 million of revenue from these acquisitions. The unaudited pro forma revenue for the Company, including LifeDNA and BeautyBio, as if the acquisitions occurred on January 1, 2023, would have been $486.3 million for the three months ended March 31, 2023. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring [Abstract] | |
Restructuring | 13. Restructuring In the third quarter of 2022, the Company adopted a strategic plan (“2022 Plan”) to focus resources on the Company’s strategic priorities and optimize future growth and profitability. The global program includes workforce reductions and footprint optimization. The Company incurred total charges under the program of approximately $53.3 million, with $40.8 million in cash charges of severance and lease termination cost and approximately $12.5 million of non-cash charges of impairment of fixed assets, acceleration of depreciation and impairment of other intangibles related to the footprint optimization. During 2022, the Company incurred charges to be settled in cash of $20.1 million in severance charges, $7.4 million in lease termination cost, and $5.2 million in other associated cost, and non-cash charges of $8.2 million in fixed asset impairments, $0.9 million in accelerated depreciation and $1.7 million in impairment of other intangibles. During 2022, the Company made cash payments of $21.0 million related to this global program, leaving an ending restructuring accrual of $11.7 million. During the first quarter and full year of 2023, the Company incurred charges to be settled in cash of $4.0 million in severance charges, $1.9 million in lease termination cost, and $2.2 million in other associated cost, and non-cash charges of $1.7 million in accelerated depreciation. In 2023, the Company made cash payments of $19.8 million, leaving no restructuring accrual related to this plan as of December 31, 2023. Restructuring expense by segment - 2022 Plan (U.S. dollars in thousands) Three Months Ended March 31, 2023 Year Ended December 31, 2022 Total Nu Skin Americas $ 918 $ 1,687 $ 2,605 Mainland China 1,352 13,181 14,533 Southeast Asia/Pacific 131 1,809 1,940 Japan 1,515 699 2,214 Europe & Africa (113 ) 2,143 2,030 South Korea 422 1,533 1,955 Hong Kong/Taiwan (201 ) 2,464 2,263 Total Nu Skin 4,024 23,516 27,540 Rhyz Investments Manufacturing 13 401 414 Rhyz other — — — Total Rhyz Investments 13 401 414 Corporate and other 5,750 19,577 25,327 Total $ 9,787 $ 43,494 $ 53,281 In the fourth quarter of 2023, the Company adopted another strategic plan (“2023 Plan”) to focus resources on the Company’s global priorities and optimize future growth and profitability. The global program includes workforce reductions. The Company estimates total charges under the program will approximate $20–$25 million in cash charges of severance. The Company expects to substantially complete the program during the first half of 2024. During the fourth quarter of 2023, the Company incurred charges to be settled in cash of $10.0 million in severance charges. During the fourth quarter of 2023, the Company made cash payments of $0.3 million, leaving an ending restructuring accrual of $9.7 million. During the first quarter of 2024, the Company incurred charges to be settled in cash of $4.1 million in severance charges and $2.0 million in other associated cost, and non-cash charges of $1.0 million in write-down of assets. During the first quarter of 2024, the Company made cash payments of $7.0 million, leaving an ending restructuring accrual of $8.8 million. R Three Months Ended (U.S. dollars in thousands) March 31, 2024 December 31, 2023 Total Nu Skin Americas $ 3,145 $ 598 $ 3,743 Mainland China 1,017 2,910 3,927 Southeast Asia/Pacific 307 862 1,169 Japan 24 — 24 Europe & Africa 677 554 1,231 South Korea 134 — 134 Hong Kong/Taiwan 357 432 789 Total Nu Skin 5,661 5,356 11,017 Rhyz Investments Manufacturing — — — Rhyz other — — — Total Rhyz Investments — — — Corporate and other 1,473 4,647 6,120 Total $ 7,134 $ 10,003 $ 17,137 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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”) |
Consolidation | The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. |
Accounting Pronouncements | Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. This amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company will adopt this standard with its fiscal 2024 annual filing. The Company is currently evaluating these new disclosure requirements and the impact of adoption. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform with current presentation. The Company reclassified $4.9 million of interest expense from other income (expense), net to the interest expense |
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 March and December was and , respectively. The contract liabilities impact to revenue for the -month periods ended March and was an increase of vely. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Inventories | Inventories consist of the following (U.S. dollars in thousands): March 31, 2024 December 31, 2023 Raw materials $ 133,600 $ 140,133 Finished goods 131,500 139,845 Total Inventory, net $ 265,100 $ 279,978 |
Inventory Reserves | Reserves of inventories consist of the following (U.S. dollars in thousands): Three Months Ended March 31, 2024 2023 Beginning balance $ 83,378 $ 37,267 Additions 2,003 3,267 Write-offs (4,862 ) (4,518 ) Ending Balance $ 80,519 $ 36,016 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill [Abstract] | |
Goodwill | The following table presents goodwill allocated to the Company’s reportable segments for the periods ended and December 31, 2023 (U.S. dollars in thousands): March 31, 2024 December 31, 2023 Nu Skin Americas $ 9,449 $ 9,449 Mainland China 32,179 32,179 Southeast Asia/Pacific 18,537 18,537 Japan 16,019 16,019 Europe & Africa 2,875 2,875 South Korea 29,261 29,261 Hong Kong/Taiwan 6,634 6,634 Rhyz Investments Manufacturing 78,875 78,875 Rhyz other 36,939 36,939 Total $ 230,768 $ 230,768 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt [Abstract] | |
Debt Facilities | The following table summarizes the Company’s debt facilities as of March 31, 2024 and December 31, 2023: Facility or Arrangement Original Principal Amount Balance as of March 31, 2024 (1)(2) Balance as of December 31, 2023 (1)(2) Interest Rate Repayment Terms Credit Agreement term loan facility $400.0 million $375.0 million $385.0 million Variable 21% of the principal amount is payable Credit Agreement revolving credit facility $110.0 million $120.0 million Variable Revolving line of credit expires June 14, 2027. (1) As of March 31, 2024 and December 31, 2023, the current portion of the Company’s debt (i.e., becoming due in the next 12 months) included $20.0 million and $25.0 million, respectively, of the balance of its term loan under the Credit Agreement and $10.0 million and zero, respectively, of the balance under the revolving line of credit. (2) The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.8 million and $ million as of and December 31, 2023, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (U.S. dollars in thousands): Three Months Ended March 31 2024 2023 Operating lease expense Operating lease cost $ 6,066 $ 8,161 Variable lease cost 1,776 1,075 Finance lease expense Amortization of right-of-use assets 758 1,000 Interest on lease liabilities 109 134 Total lease expense $ 8,709 $ 10,370 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands): Three March 31 2024 2023 Operating cash outflow from operating leases $ 6,371 $ 8,150 Operating cash outflow from finance leases $ 111 $ 132 Financing cash outflow from finance leases $ 785 $ 912 Right-of-use assets obtained in exchange for operating lease obligations $ 13,034 $ 7,981 Right-of-use assets obtained in exchange for finance lease obligations $ 5 $ 520 |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows (U.S. dollars in thousands): Year Ending December 31 Operating Leases Finance Leases 2024 $ 18,576 $ 2,541 2025 19,920 3,305 2026 15,170 3,213 2027 11,496 2,882 2028 8,531 47 Thereafter 36,730 — Total 110,423 11,988 Less: Finance charges 15,306 795 Total principal liability $ 95,117 $ 11,193 |
Fair Value and Equity Investm_2
Fair Value and Equity Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value and Equity Investments [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 March 31, 2024 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 34,571 $ — $ — $ 34,571 Derivative financial instruments asset — 12,054 — 12,054 Life insurance contracts — — 48,414 48,414 Contingent consideration — — — — Total $ 34,571 $ 12,054 $ 48,414 $ 95,039 Fair Value at December 31, 2023 Level 1 Level 2 Level 3 Total Financial assets (liabilities): Cash equivalents and current investments $ 42,916 $ — $ — $ 42,916 Derivative financial instruments asset — 12,689 — 12,689 Life insurance contracts — — 45,041 45,041 Contingent consideration — — (6,300 ) (6,300 ) Total $ 42,916 $ 12,689 $ 38,741 $ 94,346 |
Changes in Fair Value of Level 3 Life Insurance Contracts | The following table provides a summary of changes in fair value of the Company’s Level 3 life insurance contracts (U.S. dollars in thousands): 2024 2023 Beginning balance at January 1 $ 45,041 $ 40,055 Actual return on plan assets 3,373 1,998 Ending balance at March 31 $ 48,414 $ 42,053 |
Changes in Fair Value of Level 3 Contingent Consideration | The following table provides a summary of changes in fair value of the Company’s Level 3 contingent consideration (U.S. dollars in thousands): 2024 2023 Beginning balance at January 1 $ (6,300 ) $ (6,364 ) Changes in fair value of contingent consideration — 93 Payments 6,300 — Ending balance at March 31 $ — $ (6,271 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivatives and Hedging Activities [Abstract] | |
Fair Value of Derivative Instruments on the Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet: Fair Values of Derivative Instruments Derivatives in Cash flow Hedging Relationships: Balance Sheet Location March 31, 2024 December 31, 2023 Interest Rate Swap - Asset Prepaid expenses and other $ 9,451 $ 8,955 Interest Rate Swap - Asset Other assets $ 2,603 $ 3,734 |
Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss | The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Loss. Amount of Gain (Loss) Recognized in OCI on Derivatives Three Months Ended Derivatives in Cash flow March 31, Hedging Relationships: 2024 2023 Interest Rate Swaps $ 2,009 $ (810 ) Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income Three Months Ended Derivatives in Cash flow Income Statement March 31, Hedging Relationships: Location 2024 2023 Interest Rate Swaps Other income (expense), net $ 2,643 $ 2,197 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information [Abstract] | |
Revenue by Segment | Revenue by Segment Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 75,031 $ 101,157 Mainland China 61,067 67,976 Southeast Asia/Pacific 60,065 67,810 Japan 44,236 52,606 Europe & Africa 42,273 47,444 South Korea 40,963 70,324 Hong Kong/Taiwan 30,466 34,548 Other 672 (115 ) Total Nu Skin 354,773 441,750 Rhyz Investments Manufacturing (1) 50,302 35,767 Rhyz other 12,231 3,945 Total Rhyz Investments 62,533 39,712 Total $ 417,306 $ 481,462 (1) The Rhyz Investments Manufacturing segment had $ 8.6 11.8 |
Segment Contribution | Segment Contribution Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 14,976 $ 16,250 Mainland China 12,253 13,612 Southeast Asia/Pacific 11,084 12,471 Japan 12,006 12,908 Europe & Africa 3,276 3,638 South Korea 12,183 23,575 Hong Kong/Taiwan 7,367 7,834 Nu Skin contribution 73,145 90,288 Rhyz Investments Manufacturing 1,967 (1,373 ) Rhyz other (5,942 ) (1,960 ) Total (3,975 ) (3,333 ) Total segment contribution 69,170 86,955 Corporate and other (60,348 ) (70,891 ) Operating income 8,822 16,064 Interest expense 7,325 4,888 Other income (expense), net (396 ) 3,412 Income before provision for income taxes $ 1,101 $ 14,588 |
Depreciation and Amortization and Capital Expenditures | Depreciation and Amortization Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 105 $ 66 Mainland China 2,774 2,775 Southeast Asia/Pacific 249 280 Japan 81 1,054 Europe & Africa 273 282 South Korea 245 453 Hong Kong/Taiwan 579 453 Total Nu Skin 4,306 5,363 Rhyz Investments Manufacturing 3,335 3,424 Rhyz other 1,886 592 Total Rhyz Investments 5,221 4,016 Corporate and other 8,910 7,604 Total $ 18,437 $ 16,983 Capital Expenditures Three Months Ended March 31, (U.S. dollars in thousands) 2024 2023 Nu Skin Americas $ 21 $ 100 Mainland China 2,689 4,035 Southeast Asia/Pacific 9 64 Japan — 5 Europe & Africa 165 119 South Korea 22 154 Hong Kong/Taiwan 198 260 Total Nu Skin 3,104 4,737 Rhyz Investments Manufacturing 1,349 1,481 Rhyz other 635 — Total Rhyz Investments 1,984 1,481 Corporate and other 7,193 5,269 Total $ 12,281 $ 11,487 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
2022 Plan [Member] | |
Restructuring [Abstract] | |
Restructuring Expense by Segment | Restructuring expense by segment - 2022 Plan (U.S. dollars in thousands) Three Months Ended March 31, 2023 Year Ended December 31, 2022 Total Nu Skin Americas $ 918 $ 1,687 $ 2,605 Mainland China 1,352 13,181 14,533 Southeast Asia/Pacific 131 1,809 1,940 Japan 1,515 699 2,214 Europe & Africa (113 ) 2,143 2,030 South Korea 422 1,533 1,955 Hong Kong/Taiwan (201 ) 2,464 2,263 Total Nu Skin 4,024 23,516 27,540 Rhyz Investments Manufacturing 13 401 414 Rhyz other — — — Total Rhyz Investments 13 401 414 Corporate and other 5,750 19,577 25,327 Total $ 9,787 $ 43,494 $ 53,281 |
2023 Plan [Member] | |
Restructuring [Abstract] | |
Restructuring Expense by Segment | R Three Months Ended (U.S. dollars in thousands) March 31, 2024 December 31, 2023 Total Nu Skin Americas $ 3,145 $ 598 $ 3,743 Mainland China 1,017 2,910 3,927 Southeast Asia/Pacific 307 862 1,169 Japan 24 — 24 Europe & Africa 677 554 1,231 South Korea 134 — 134 Hong Kong/Taiwan 357 432 789 Total Nu Skin 5,661 5,356 11,017 Rhyz Investments Manufacturing — — — Rhyz other — — — Total Rhyz Investments — — — Corporate and other 1,473 4,647 6,120 Total $ 7,134 $ 10,003 $ 17,137 |
The Company (Details)
The Company (Details) | 3 Months Ended |
Mar. 31, 2024 Segment | |
The Company [Abstract] | |
Number of reportable segments | 9 |
Number of geographic segments | 7 |
Number of Rhyz segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Expense [Abstract] | ||
Interest expense | $ 7,325 | $ 4,888 |
Reclassification [Member] | Other Income (Expense), Net [Member] | ||
Interest Expense [Abstract] | ||
Interest expense | (4,900) | |
Reclassification [Member] | Interest Expense [Member] | ||
Interest Expense [Abstract] | ||
Interest expense | $ 4,900 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Inventories [Abstract] | |||
Raw materials | $ 133,600 | $ 140,133 | |
Finished goods | 131,500 | 139,845 | |
Total Inventory, net | 265,100 | $ 279,978 | |
Valuation Allowance [Roll Forward] | |||
Beginning balance | 83,378 | $ 37,267 | |
Additions | 2,003 | 3,267 | |
Write-offs | (4,862) | (4,518) | |
Ending balance | $ 80,519 | $ 36,016 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Contract Liabilities - Customer Loyalty Programs [Abstract] | |||
Contract liabilities for customer loyalty programs | $ 11.9 | $ 12.6 | |
Contract liabilities, increase to revenue | $ 0.7 | $ 1.3 |
Goodwill (Details)
Goodwill (Details) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2024 USD ($) ReportingUnit | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Goodwill [Abstract] | |||
Impairment of goodwill | $ 0 | ||
Goodwill | $ 230,768,000 | 230,768,000 | $ 230,768,000 |
Americas [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 9,449,000 | 9,449,000 | 9,449,000 |
Mainland China [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 32,179,000 | 32,179,000 | 32,179,000 |
Southeast Asia/Pacific [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 18,537,000 | 18,537,000 | 18,537,000 |
Japan [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 16,019,000 | 16,019,000 | 16,019,000 |
Europe & Africa [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 2,875,000 | 2,875,000 | 2,875,000 |
South Korea [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 29,261,000 | 29,261,000 | 29,261,000 |
Hong Kong/Taiwan [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 6,634,000 | 6,634,000 | 6,634,000 |
Manufacturing [Member] | |||
Goodwill [Abstract] | |||
Goodwill | $ 78,875,000 | 78,875,000 | 78,875,000 |
Rhyz Other [Member] | |||
Goodwill [Abstract] | |||
Number of reporting units | ReportingUnit | 3 | ||
Goodwill | $ 36,939,000 | 36,939,000 | 36,939,000 |
Rhyz Other [Member] | Reporting Unit 1 [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 12,600 | 12,600 | 12,600 |
Rhyz Other [Member] | Reporting Unit 2 [Member] | |||
Goodwill [Abstract] | |||
Goodwill | 19,600 | 19,600 | 19,600 |
Rhyz Other [Member] | Reporting Unit 3 [Member] | |||
Goodwill [Abstract] | |||
Goodwill | $ 4,700 | $ 4,700 | $ 4,700 |
Minimum [Member] | |||
Goodwill [Abstract] | |||
Percentage of fair value in excess of carrying amount | 1% | 1% | |
Maximum [Member] | |||
Goodwill [Abstract] | |||
Percentage of fair value in excess of carrying amount | 7% | 7% |
Debt, Credit Agreement (Details
Debt, Credit Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Jun. 14, 2022 | |
Credit Agreement [Member] | ||
Debt [Abstract] | ||
Percentage of capital stock of certain foreign subsidiaries pledged as collateral | 65% | |
Credit Agreement [Member] | Minimum [Member] | ||
Debt [Abstract] | ||
Commitment fee percentage payable on unused portion | 0.175% | |
Consolidated interest coverage ratio | 3 | |
Credit Agreement [Member] | Maximum [Member] | ||
Debt [Abstract] | ||
Commitment fee percentage payable on unused portion | 0.30% | |
Consolidated leverage ratio | 2.75 | |
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 | 2.50% | |
Term Loan Facility [Member] | Second Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5% | |
Term Loan Facility [Member] | Third Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5% | |
Term Loan Facility [Member] | Fourth Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5% | |
Term Loan Facility [Member] | Fifth Year [Member] | ||
Debt [Abstract] | ||
Annual amortization percentage | 5% | |
Revolving Credit Facility [Member] | ||
Debt [Abstract] | ||
Borrowing capacity | $ 500 | |
Term of loan | 5 years |
Debt, Debt Facilities (Details)
Debt, Debt Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Jun. 14, 2022 | ||
Debt [Abstract] | ||||
Term of variable rate | 30 days | |||
Current portion of long-term debt | $ 30,000 | $ 25,000 | ||
Credit Agreement [Member] | ||||
Debt [Abstract] | ||||
Unamortized debt issuance costs | 1,800 | 2,000 | ||
Credit Agreement Term Loan Facility [Member] | ||||
Debt [Abstract] | ||||
Original principal amount | 400,000 | $ 400,000 | ||
Balance | [1],[2] | $ 375,000 | 385,000 | |
Interest rate | Variable 30 day: 7.43% | |||
Interest rate | 7.43% | |||
Term of variable rate | 30 days | |||
Repayment terms | 21% of the principal amount is payable in increasing quarterly installments over a five-year period that began on September 30, 2022, with the remainder payable at the end of the five-year term. | |||
Percentage of principal payable in installments | 21% | |||
Term of loan | 5 years | |||
Current portion of long-term debt | $ 20,000 | 25,000 | ||
Credit Agreement Revolving Credit Facility [Member] | ||||
Debt [Abstract] | ||||
Balance | [1],[2] | $ 110,000 | 120,000 | |
Interest rate | Variable 30 day: 7.43% | |||
Interest rate | 7.43% | |||
Term of variable rate | 30 days | |||
Repayment terms | Revolving line of credit expires June 14, 2027. | |||
Term of loan | 5 years | |||
Current portion of long-term debt | $ 10,000 | $ 0 | ||
[1]As of March 31, 2024 and December 31, 2023, the current portion of the Company’s debt (i.e., becoming due in the next 12 months) included $20.0 million and $25.0 million, respectively, of the balance of its term loan under the Credit Agreement and $10.0 million and zero, respectively, of the balance under the revolving line of credit.[2]The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.8 million and $ million as of and December 31, 2023, respectively, related to the Credit Agreement, which are not reflected in this table. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Weighted-average remaining lease term for operating leases | 8 years 2 months 12 days | |
Weighted-average remaining lease term for finance leases | 3 years 6 months | |
Weighted-average discount rate for operating leases | 3.80% | |
Weighted-average discount rate for finance leases | 3.70% | |
Operating Lease Expense [Abstract] | ||
Operating lease cost | $ 6,066 | $ 8,161 |
Variable lease cost | 1,776 | 1,075 |
Finance Lease Expense [Abstract] | ||
Amortization of right-of-use assets | 758 | 1,000 |
Interest on lease liabilities | 109 | 134 |
Total lease expense | 8,709 | 10,370 |
Supplemental Cash Flow Information Related to Leases [Abstract] | ||
Operating cash outflow from operating leases | 6,371 | 8,150 |
Operating cash outflow from finance leases | 111 | 132 |
Financing cash outflow from finance leases | 785 | 912 |
Right-of-use assets obtained in exchange for operating lease obligations | 13,034 | 7,981 |
Right-of-use assets obtained in exchange for finance lease obligations | 5 | $ 520 |
Maturities of Operating Lease Liabilities [Abstract] | ||
2024 | 18,576 | |
2025 | 19,920 | |
2026 | 15,170 | |
2027 | 11,496 | |
2028 | 8,531 | |
Thereafter | 36,730 | |
Total | 110,423 | |
Less: Finance charges | 15,306 | |
Total principal liability | 95,117 | |
Maturities of Financing Lease Liabilities [Abstract] | ||
2024 | 2,541 | |
2025 | 3,305 | |
2026 | 3,213 | |
2027 | 2,882 | |
2028 | 47 | |
Thereafter | 0 | |
Total | 11,988 | |
Less: Finance charges | 795 | |
Total principal liability | $ 11,193 |
Capital Stock, Net Income per S
Capital Stock, Net Income per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Awards and Options [Member] | ||
Net Income per Share [Abstract] | ||
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares) | 1.8 | 0.1 |
Capital Stock, Dividends (Detai
Capital Stock, Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
May 31, 2024 | Feb. 28, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends per Share [Abstract] | ||||
Payment of cash dividends | $ 2,979 | $ 19,392 | ||
Dividend Declared 2024-Q1 [Member] | ||||
Dividends per Share [Abstract] | ||||
Dividend payable, date declared | 2024-02 | |||
Dividend payable per share (in dollars per share) | $ 0.06 | |||
Payment of cash dividends | $ 3,000 | |||
Dividend payable, date paid | Mar. 06, 2024 | |||
Dividend payable, date of record | Feb. 26, 2024 | |||
Dividend Declared 2024-Q2 [Member] | Subsequent Event [Member] | ||||
Dividends per Share [Abstract] | ||||
Dividend payable, date declared | 2024-05 | |||
Dividend payable per share (in dollars per share) | $ 0.06 | |||
Dividend payable, date paid | Jun. 12, 2024 | |||
Dividend payable, date of record | May 31, 2024 |
Capital Stock, Repurchase of Co
Capital Stock, Repurchase of Common Stock (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Repurchases of Common Stock [Abstract] | ||
Amount available for repurchases | $ 162.4 | |
Treasury Stock [Member] | ||
Repurchases of Common Stock [Abstract] | ||
Class A common stock repurchased (in shares) | 0 | 0 |
Fair Value and Equity Investm_3
Fair Value and Equity Investments, Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value and Equity Investments [Abstract] | |||
Term of variable rate | 30 days | ||
Contingent Consideration [Member] | |||
Changes in Fair Value of Level 3 Contingent Consideration [Roll Forward] | |||
Beginning balance | $ (6,300) | $ (6,364) | |
Changes in fair value of contingent consideration | 0 | 93 | |
Payments | 6,300 | 0 | |
Ending balance | 0 | (6,271) | |
Fair Value on a Recurring Basis [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 34,571 | $ 42,916 | |
Derivative financial instruments asset | 12,054 | 12,689 | |
Life insurance contracts | 48,414 | 45,041 | |
Contingent consideration | 0 | (6,300) | |
Financial assets (liabilities) | 95,039 | 94,346 | |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 34,571 | 42,916 | |
Derivative financial instruments asset | 0 | 0 | |
Life insurance contracts | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Financial assets (liabilities) | 34,571 | 42,916 | |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 0 | 0 | |
Derivative financial instruments asset | 12,054 | 12,689 | |
Life insurance contracts | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Financial assets (liabilities) | 12,054 | 12,689 | |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | |||
Financial Assets (Liabilities) [Abstract] | |||
Cash equivalents and current investments | 0 | 0 | |
Derivative financial instruments asset | 0 | 0 | |
Life insurance contracts | 48,414 | 45,041 | |
Contingent consideration | 0 | (6,300) | |
Financial assets (liabilities) | 48,414 | $ 38,741 | |
Life Insurance Contracts [Member] | |||
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward] | |||
Beginning balance | 45,041 | 40,055 | |
Actual return on plan assets | 3,373 | 1,998 | |
Ending balance | $ 48,414 | $ 42,053 |
Fair Value and Equity Investm_4
Fair Value and Equity Investments, Equity Investments (Details) - Equity Securities [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Equity Investments [Abstract] | |||
Carrying amount of equity securities without readily determinable fair values | $ 28.1 | $ 28.1 | |
Other Income (Expense), Net [Member] | |||
Equity Investments [Abstract] | |||
Upward fair value adjustments on equity securities | $ 18.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Taxes [Abstract] | |||
Provision for income taxes | $ 1,634 | $ 3,212 | |
Effective tax rate | 148.40% | 22% | |
Net deferred tax assets | $ 105,600 | $ 105,000 | |
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] | |||
Increase in unrecognized tax benefits within the next 12 months that is reasonably possible | 2,000 | ||
Maximum [Member] | |||
Income Taxes [Abstract] | |||
Increase in unrecognized tax benefits within the next 12 months that is reasonably possible | $ 3,000 | ||
Foreign Jurisdictions [Member] | Minimum [Member] | |||
Income Taxes [Abstract] | |||
Statute of limitations related to income tax examinations | 3 years | ||
Foreign Jurisdictions [Member] | Maximum [Member] | |||
Income Taxes [Abstract] | |||
Statute of limitations related to income tax examinations | 10 years |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities, Fair Value of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) Derivatives | Dec. 31, 2023 USD ($) Derivatives | |
Derivatives and Hedging Activities [Abstract] | ||
Loss to be reclassified to interest expense during next twelve months | $ (9,500) | |
Number of outstanding derivatives held | Derivatives | 4 | 4 |
Notional amount | $ 200,000 | $ 200,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Fair value, asset | 9,451 | 8,955 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Fair value, asset | $ 2,603 | $ 3,734 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities, Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss (Details) - Interest Rate Swaps [Member] - Designated as Hedging Instrument [Member] - Cash Flow Hedges [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income (Expense), Net [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Gain reclassified from accumulated other comprehensive loss into income | $ 2,643 | $ 2,197 |
Other Comprehensive Loss [Member] | ||
Derivatives and Hedging Activities [Abstract] | ||
Gain (loss) recognized in OCI | $ 2,009 | $ (810) |
Segment Information, Revenue by
Segment Information, Revenue by Segment (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) Segment | Mar. 31, 2023 USD ($) | ||
Segment Information [Abstract] | |||
Number of reportable segments | Segment | 9 | ||
Number of geographic segments | Segment | 7 | ||
Number of Rhyz segments | Segment | 2 | ||
Revenue by Segment [Abstract] | |||
Revenue | $ 417,306 | $ 481,462 | |
Other [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 672 | (115) | |
Operating Segment [Member] | Nu Skin [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 354,773 | 441,750 | |
Operating Segment [Member] | Americas [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 75,031 | 101,157 | |
Operating Segment [Member] | Mainland China [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 61,067 | 67,976 | |
Operating Segment [Member] | Southeast Asia/Pacific [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 60,065 | 67,810 | |
Operating Segment [Member] | Japan [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 44,236 | 52,606 | |
Operating Segment [Member] | Europe & Africa [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 42,273 | 47,444 | |
Operating Segment [Member] | South Korea [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 40,963 | 70,324 | |
Operating Segment [Member] | Hong Kong/Taiwan [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 30,466 | 34,548 | |
Operating Segment [Member] | Rhyz Investments [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 62,533 | 39,712 | |
Operating Segment [Member] | Manufacturing [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | [1] | 50,302 | 35,767 |
Operating Segment [Member] | Rhyz Other [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | 12,231 | 3,945 | |
Intersegment [Member] | Manufacturing [Member] | |||
Revenue by Segment [Abstract] | |||
Revenue | $ 8,600 | $ 11,800 | |
[1]The Rhyz Investments Manufacturing segment had $ 8.6 11.8 |
Segment Information, Segment Co
Segment Information, Segment Contribution (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Contribution [Abstract] | ||
Operating income | $ 8,822 | $ 16,064 |
Interest expense | 7,325 | 4,888 |
Other income (expense), net | (396) | 3,412 |
Income before provision for income taxes | 1,101 | 14,588 |
Operating Segment [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 69,170 | 86,955 |
Operating Segment [Member] | Nu Skin [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 73,145 | 90,288 |
Operating Segment [Member] | Americas [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 14,976 | 16,250 |
Operating Segment [Member] | Mainland China [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 12,253 | 13,612 |
Operating Segment [Member] | Southeast Asia/Pacific [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 11,084 | 12,471 |
Operating Segment [Member] | Japan [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 12,006 | 12,908 |
Operating Segment [Member] | Europe & Africa [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 3,276 | 3,638 |
Operating Segment [Member] | South Korea [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 12,183 | 23,575 |
Operating Segment [Member] | Hong Kong/Taiwan [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 7,367 | 7,834 |
Operating Segment [Member] | Rhyz Investments [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | (3,975) | (3,333) |
Operating Segment [Member] | Manufacturing [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | 1,967 | (1,373) |
Operating Segment [Member] | Rhyz Other [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | (5,942) | (1,960) |
Corporate and Other [Member] | ||
Segment Contribution [Abstract] | ||
Operating income | $ (60,348) | $ (70,891) |
Segment Information, Depreciati
Segment Information, Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | $ 18,437 | $ 16,983 |
Capital expenditures | 12,281 | 11,487 |
Operating Segments [Member] | Nu Skin [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 4,306 | 5,363 |
Capital expenditures | 3,104 | 4,737 |
Operating Segments [Member] | Americas [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 105 | 66 |
Capital expenditures | 21 | 100 |
Operating Segments [Member] | Mainland China [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 2,774 | 2,775 |
Capital expenditures | 2,689 | 4,035 |
Operating Segments [Member] | Southeast Asia/Pacific [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 249 | 280 |
Capital expenditures | 9 | 64 |
Operating Segments [Member] | Japan [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 81 | 1,054 |
Capital expenditures | 0 | 5 |
Operating Segments [Member] | Europe & Africa [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 273 | 282 |
Capital expenditures | 165 | 119 |
Operating Segments [Member] | South Korea [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 245 | 453 |
Capital expenditures | 22 | 154 |
Operating Segments [Member] | Hong Kong/Taiwan [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 579 | 453 |
Capital expenditures | 198 | 260 |
Operating Segments [Member] | Rhyz Investments [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 5,221 | 4,016 |
Capital expenditures | 1,984 | 1,481 |
Operating Segments [Member] | Manufacturing [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 3,335 | 3,424 |
Capital expenditures | 1,349 | 1,481 |
Operating Segments [Member] | Rhyz Other [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 1,886 | 592 |
Capital expenditures | 635 | 0 |
Corporate and Other [Member] | ||
Summarized Financial Information [Abstract] | ||
Depreciation and amortization | 8,910 | 7,604 |
Capital expenditures | $ 7,193 | $ 5,269 |
Acquisitions, LifeDNA (Details)
Acquisitions, LifeDNA (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value of Assets Acquired [Abstract] | |||
Goodwill | $ 230,768 | $ 230,768 | |
LifeDNA [Member] | |||
Acquisitions [Abstract] | |||
Percentage interest acquired | 60% | ||
Consideration paid, cash | $ 4,000 | ||
Consideration paid, conversion of previous SAFE | 3,000 | ||
Consideration paid, convertible note | 200 | ||
Gross purchase price | 12,000 | ||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 7,300 | ||
Cash | 1,700 | ||
Current assets | 100 | ||
Accrued liabilities | 900 | ||
Deferred tax liability | 900 | ||
Goodwill | 4,700 | ||
Measurement period adjustments to deferred tax liability and goodwill | $ 1,100 | ||
LifeDNA [Member] | Customer Relationships [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 600 | ||
Useful life | 2 years | ||
LifeDNA [Member] | Technology [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 1,700 | ||
Useful life | 7 years | ||
LifeDNA [Member] | Tradenames [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 1,000 | ||
Useful life | 7 years | ||
LifeDNA [Member] | Other Intangibles [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | $ 4,100 | ||
Useful life | 7 years |
Acquisitions, BeautyBio (Detail
Acquisitions, BeautyBio (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value of Assets Acquired [Abstract] | |||
Goodwill | $ 230,768 | $ 230,768 | |
BeautyBio [Member] | |||
Acquisitions [Abstract] | |||
Percentage interest acquired | 100% | ||
Purchase price, net of cash acquired | $ 75,000 | ||
Cash acquired | 1,500 | ||
Gross purchase price | 76,500 | ||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 43,000 | ||
Cash | 1,500 | ||
Accounts receivable | 3,500 | ||
Inventory | 10,300 | ||
Prepaid and other assets | 800 | ||
Fixed assets | 1,000 | ||
ROU operating lease asset | 1,200 | ||
Lease liability | 1,200 | ||
Accounts payable and accrued liabilities | 2,500 | ||
Deferred tax liability | 700 | ||
Goodwill | 19,600 | ||
Measurement period adjustment to accounts receivable | (1,200) | ||
Measurement period adjustment to inventory | (700) | ||
Measurement period adjustment to accrued liabilities | (500) | ||
Measurement period adjustment to deferred tax liability | 700 | ||
Measurement period adjustment to intangible assets | (300) | ||
Measurement period adjustment to goodwill | $ 2,400 | ||
BeautyBio [Member] | Customer Relationships [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 18,400 | ||
Useful life | 9 years | ||
BeautyBio [Member] | Technology [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 2,300 | ||
Useful life | 19 years | ||
BeautyBio [Member] | Tradenames [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | 20,900 | ||
Useful life | 19 years | ||
BeautyBio [Member] | Other Intangibles [Member] | |||
Fair Value of Assets Acquired [Abstract] | |||
Intangible assets | $ 1,400 | ||
Useful life | 3 years |
Acquisitions, Revenue and Pro F
Acquisitions, Revenue and Pro Forma Revenue (Details) - LifeDNA and BeautyBio [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Acquisitions [Abstract] | ||
Unaudited pro forma revenue as if acquisitions occurred on January 1, 2023 | $ 486.3 | |
Rhyz Other [Member] | ||
Acquisitions [Abstract] | ||
Revenue since acquisitions | $ 5.3 |
Restructuring, 2022 Plan (Detai
Restructuring, 2022 Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Restructuring [Abstract] | |||||
Restructuring expense | $ 7,134 | $ 9,787 | |||
2022 Plan [Member] | |||||
Restructuring [Abstract] | |||||
Cash restructuring charges | $ 40,800 | ||||
Non-cash restructuring charges | 12,500 | ||||
Severance charges | 4,000 | $ 4,000 | $ 20,100 | ||
Lease termination cost | 1,900 | 1,900 | 7,400 | ||
Other associated restructuring costs | 2,200 | 2,200 | 5,200 | ||
Impairment of fixed assets | 8,200 | ||||
Accelerated depreciation | 1,700 | 1,700 | 900 | ||
Impairment of other intangible assets | 1,700 | ||||
Cash payments | 19,800 | 21,000 | |||
Ending restructuring accrual | $ 0 | 11,700 | |||
Restructuring expense | 9,787 | 43,494 | 53,281 | ||
2022 Plan [Member] | Operating Segment [Member] | Nu Skin [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 4,024 | 23,516 | 27,540 | ||
2022 Plan [Member] | Operating Segment [Member] | Americas [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 918 | 1,687 | 2,605 | ||
2022 Plan [Member] | Operating Segment [Member] | Mainland China [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 1,352 | 13,181 | 14,533 | ||
2022 Plan [Member] | Operating Segment [Member] | Southeast Asia/Pacific [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 131 | 1,809 | 1,940 | ||
2022 Plan [Member] | Operating Segment [Member] | Japan [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 1,515 | 699 | 2,214 | ||
2022 Plan [Member] | Operating Segment [Member] | Europe & Africa [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | (113) | 2,143 | 2,030 | ||
2022 Plan [Member] | Operating Segment [Member] | South Korea [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 422 | 1,533 | 1,955 | ||
2022 Plan [Member] | Operating Segment [Member] | Hong Kong/Taiwan [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | (201) | 2,464 | 2,263 | ||
2022 Plan [Member] | Operating Segment [Member] | Rhyz Investments [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 13 | 401 | 414 | ||
2022 Plan [Member] | Operating Segment [Member] | Manufacturing [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 13 | 401 | 414 | ||
2022 Plan [Member] | Operating Segment [Member] | Rhyz Other [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | 0 | 0 | 0 | ||
2022 Plan [Member] | Corporate and Other [Member] | |||||
Restructuring [Abstract] | |||||
Restructuring expense | $ 5,750 | $ 19,577 | $ 25,327 |
Restructuring, 2023 Plan (Detai
Restructuring, 2023 Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | |
Restructuring [Abstract] | ||||
Restructuring expense | $ 7,134 | $ 9,787 | ||
2023 Plan [Member] | ||||
Restructuring [Abstract] | ||||
Severance charges | 4,100 | $ 10,000 | ||
Other associated restructuring costs | 2,000 | |||
Accelerated depreciation | 1,000 | |||
Cash payments | 7,000 | 300 | ||
Ending restructuring accrual | 8,800 | 9,700 | $ 8,800 | |
Restructuring expense | 7,134 | 10,003 | 17,137 | |
2023 Plan [Member] | Operating Segment [Member] | Nu Skin [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 5,661 | 5,356 | 11,017 | |
2023 Plan [Member] | Operating Segment [Member] | Americas [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 3,145 | 598 | 3,743 | |
2023 Plan [Member] | Operating Segment [Member] | Mainland China [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 1,017 | 2,910 | 3,927 | |
2023 Plan [Member] | Operating Segment [Member] | Southeast Asia/Pacific [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 307 | 862 | 1,169 | |
2023 Plan [Member] | Operating Segment [Member] | Japan [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 24 | 0 | 24 | |
2023 Plan [Member] | Operating Segment [Member] | Europe & Africa [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 677 | 554 | 1,231 | |
2023 Plan [Member] | Operating Segment [Member] | South Korea [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 134 | 0 | 134 | |
2023 Plan [Member] | Operating Segment [Member] | Hong Kong/Taiwan [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 357 | 432 | 789 | |
2023 Plan [Member] | Operating Segment [Member] | Rhyz Investments [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 0 | 0 | 0 | |
2023 Plan [Member] | Operating Segment [Member] | Manufacturing [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 0 | 0 | 0 | |
2023 Plan [Member] | Operating Segment [Member] | Rhyz Other [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | 0 | 0 | 0 | |
2023 Plan [Member] | Corporate and Other [Member] | ||||
Restructuring [Abstract] | ||||
Restructuring expense | $ 1,473 | 4,647 | $ 6,120 | |
2023 Plan [Member] | Minimum [Member] | ||||
Restructuring [Abstract] | ||||
Estimated total charges under restructuring program | 20,000 | |||
2023 Plan [Member] | Maximum [Member] | ||||
Restructuring [Abstract] | ||||
Estimated total charges under restructuring program | $ 25,000 |