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 Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing policies. Segment contribution, which is the Company’s segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company’s executive and administrative offices, information technology, research and development, and marketing and supply chain functions not recorded at the segment level. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on revenue and segment contribution. Each segment records direct expenses related to its employees and its operations. Summarized financial information for the Company’s reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company’s internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. Revenue by Segment Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2024 2023 2024 2023 Nu Skin Americas $ 84,935 $ 107,641 $ 159,966 $ 208,798 Mainland China 64,710 88,362 125,777 156,338 Southeast Asia/Pacific 60,341 63,764 120,406 131,574 Japan 42,587 50,862 86,823 103,468 South Korea 44,119 53,686 85,082 124,010 Europe & Africa 40,714 46,968 82,987 94,412 Hong Kong/Taiwan 33,846 37,108 64,312 71,656 Nu Skin other (4 ) 597 668 482 Total Nu Skin 371,248 448,988 726,021 890,738 Rhyz Investments Manufacturing (1) 51,473 45,551 101,775 81,318 Rhyz other 16,360 5,718 28,591 9,663 Total Rhyz Investments 67,833 51,269 130,366 90,981 Total $ 439,081 $ 500,257 $ 856,387 $ 981,719 (1) The . Segment Contribution Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2024 2023 2024 2023 Nu Skin Americas $ 17,379 $ 28,853 $ 32,355 $ 45,103 Mainland China 13,373 19,357 25,626 32,969 Southeast Asia/Pacific 10,706 11,396 21,790 23,867 Japan 11,704 12,508 23,710 25,416 South Korea 13,323 17,391 25,506 40,966 Europe & Africa 5,405 4,945 8,681 8,583 Hong Kong/Taiwan 8,414 10,148 15,781 17,982 Nu Skin contribution 80,304 104,598 153,449 194,886 Rhyz Investments Manufacturing 1,757 4,218 3,724 2,845 Rhyz other (5,473 ) (3,392 ) (11,415 ) (5,352 ) Rhyz Investments contribution (3,716 ) 826 (7,691 ) (2,507 ) Total segment contribution 76,588 105,424 145,758 192,379 Corporate and other (202,145 ) (62,918 ) (262,493 ) (133,809 ) Operating income (125,557 ) 42,506 (116,735 ) 58,570 Interest expense 6,720 5,769 14,045 10,657 Other income, net 629 376 233 3,788 Income (loss) before provision for income taxes $ (131,648 ) $ 37,113 $ (130,547 ) $ 51,701 Depreciation and Amortization Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2024 2023 2024 2023 Nu Skin Americas $ 93 $ 126 $ 198 $ 192 Mainland China 2,726 2,610 5,500 5,385 Southeast Asia/Pacific 174 276 423 556 Japan 71 94 152 1,148 South Korea 261 299 506 752 Europe & Africa 274 257 547 539 Hong Kong/Taiwan 318 822 897 1,275 Total Nu Skin 3,917 4,484 8,223 9,847 Rhyz Investments Manufacturing 3,432 3,329 6,767 6,753 Rhyz other 1,966 1,176 3,852 1,768 Total Rhyz Investments 5,398 4,505 10,619 8,521 Corporate and other 8,288 8,175 17,198 15,779 Total $ 17,603 $ 17,164 $ 36,040 $ 34,147 Capital Expenditures Three Months Ended June 30, Six Months Ended June 30, (U.S. dollars in thousands) 2024 2023 2024 2023 Nu Skin Americas $ 12 $ 91 $ 33 $ 191 Mainland China 1,578 4,734 4,267 8,769 Southeast Asia/Pacific 9 127 18 191 Japan 23 (2 ) 21 3 South Korea — 7 22 161 Europe & Africa 124 157 289 276 Hong Kong/Taiwan 38 348 236 608 Total Nu Skin 1,784 5,462 4,886 10,199 Rhyz Investments Manufacturing 1,115 4,216 2,464 5,697 Rhyz other 434 — 1,069 — Total Rhyz Investments 1,549 4,216 3,533 5,697 Corporate and other 4,790 5,034 11,985 10,303 Total $ 8,123 $ 14,712 $ 20,404 $ 26,199 |