Mannatech (MTEX) 10-K 11 Mar 10 2009 FY Annual report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008
ASSETS
Cash and cash equivalents	$17,367	$30,945
Restricted cash	1,288	1,864
Accounts receivable, net of allowance of $16.5 and $23 in 2009 and 2008, respectively	664	291
Income tax receivable	8,075	3,531
Inventories, net	31,290	31,313
Prepaid expenses and other current assets	3,139	3,946
Deferred tax assets	2,662	5,632
Total current assets	64,485	77,522
Property and equipment, net	27,144	36,202
Construction in progress	317	840
Long-term restricted cash	7,201	7,579
Other assets	2,503	1,456
Long-term deferred tax assets	652	459
Total assets	102,302	124,058
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of capital leases	847	131
Accounts payable	11,319	5,067
Accrued expenses	14,231	24,324
Commissions and incentives payable	10,624	11,453
Taxes payable	2,577	873
Current deferred tax liability	274	192
Deferred revenue	2,807	3,476
Total current liabilities	42,679	45,516
Capital leases, excluding current portion	1,068	155
Long-term deferred tax liabilities	3,923	6,075
Other long-term liabilities	3,348	3,583
Total liabilities	51,018	55,329
Commitments and contingencies
Shareholders' equity
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.0001 par value, 99,000,000 shares authorized, 27,687,882 shares issued and 26,480,788 shares outstanding in 2009, and 27,667,882 shares issued and 26,460,788 shares outstanding in 2008.	3	3
Additional paid-in capital	41,442	40,753
Retained earnings	25,743	44,170
Accumulated other comprehensive loss	(1,113)	(1,406)
Less treasury stock, at cost, 1,207,094 shares in 2009 and 2008	(14,791)	(14,791)
Total shareholders' equity	51,284	68,729
Total liabilities and shareholders' equity	$102,302	$124,058

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Allowance for doubtful Accounts Receivable	$16	$23
Shareholders' equity
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock - shares issued	0	0
Preferred stock - shares outstanding	0	0
Common stock, par value	0.0001	0.0001
Common stock, shares authorized	99,000,000	99,000,000
Common stock, shares issued	27,687,882	27,667,882
Common stock, shares outstanding	26,480,788	26,460,788
Treasury stock, shares	1,207,094	1,207,094

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Income Statement [Abstract]
Net sales	$289,705	$332,703	$412,678
Cost of sales	46,813	48,564	59,765
Commissions and incentives	146,415	149,595	189,067
Total Cost of Sales	193,228	198,159	248,832
Gross profit	96,477	134,544	163,846
Operating expenses:
Selling and administrative expenses	69,997	81,077	84,298
Depreciation and amortization	12,333	12,310	10,236
Other operating costs	39,741	55,656	61,703
Total operating expenses	122,071	149,043	156,237
Income (loss) from operations	(25,594)	(14,499)	7,609
Interest income	473	1,604	2,700
Other income (expense), net	1,046	(5,303)	180
Income (loss) before income taxes	(24,075)	(18,198)	10,489
(Provision) benefit for income taxes	6,707	5,570	(3,895)
Net income (loss)	($17,368)	($12,628)	$6,594
Loss per share:
Basic	-0.66	-0.48	0.25
Diluted	-0.66	-0.48	0.25
Weighted-average common shares outstanding:
Basic	26,467	26,461	26,443
Diluted	26,467	26,461	26,893

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands	Common Stock Outstanding	Additional paid in capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury stock	Total
Balance - beginning of period (in shares) at Dec. 31, 2006	26,410				1,207
Balance - beginning of period at Dec. 31, 2006	$3	$38,941	$66,393	($1,749)	($14,791)	$88,797
Tax benefit (shortfall) from expiration of stock options		100				100
Proceeds from stock options exercised		157				157
Proceeds from stock options exercised (in shares)	51
Charge related to stock based compensation		948				948
Cumulative impact of a change in accounting for income tax uncertainties pursuant to FIN 48			(845)			(845)
Declared dividends of $0.36, $0.22, $0.04 in 2007, 2008, 2009, respectively, per common share			(9,522)			(9,522)
Components of comprehensive loss:
Foreign currency translations				613		613
Pension obligations, net of tax $8, $26, $12 in 2007, 2008 and 2009 respectively				12		12
Unrealized gain from investments classified as available-for-sale, net of tax				1		1
Net Loss			6,594			6,594
Total comprehensive loss						7,220
Balance - end of period at Dec. 31, 2007	3	40,146	62,620	(1,123)	(14,791)	86,855
Balance - end of period (in shares) at Dec. 31, 2007	26,461				1,207
Tax benefit (shortfall) from expiration of stock options		(120)				(120)
Charge related to stock based compensation		727				727
Declared dividends of $0.36, $0.22, $0.04 in 2007, 2008, 2009, respectively, per common share			(5,822)			(5,822)
Components of comprehensive loss:
Foreign currency translations				(318)		(318)
Pension obligations, net of tax $8, $26, $12 in 2007, 2008 and 2009 respectively				35		35
Net Loss			(12,628)			(12,628)
Total comprehensive loss						(12,911)
Balance - end of period at Dec. 31, 2008	3	40,753	44,170	(1,406)	(14,791)	68,729
Balance - end of period (in shares) at Dec. 31, 2008	26,461				1,207
Tax benefit (shortfall) from expiration of stock options		(13)				(13)
Proceeds from stock options exercised		66				66
Proceeds from stock options exercised (in shares)	20
Charge related to stock based compensation		636				636
Declared dividends of $0.36, $0.22, $0.04 in 2007, 2008, 2009, respectively, per common share			(1,059)			(1,059)
Components of comprehensive loss:
Foreign currency translations				276		276
Pension obligations, net of tax $8, $26, $12 in 2007, 2008 and 2009 respectively				17		17
Net Loss			(17,368)			(17,368)
Total comprehensive loss						(17,075)
Balance - end of period at Dec. 31, 2009	$3	$41,442	$25,743	($1,113)	($14,791)	$51,284
Balance - end of period (in shares) at Dec. 31, 2009	26,481				1,207

PARENTHETICAL DATA TO CONSOLIDA

PARENTHETICAL DATA TO CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Statement of Stockholders' Equity [Abstract]
Declared dividends per share	0.04	0.22	0.36
Components of Comprehensive Loss [Abstract]
Pension obligations, net of tax	$12	$26	$8

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	($17,368)	($12,628)	$6,594
Adjustments to reconcile net loss to net cash used in operating ativities:
Depreciation and amortization	12,333	12,310	10,236
Provision for inventory losses	1,544	1,321	568
Provision for doubtful accounts	33	23	877
Loss on disposal of assets	102	468	39
Accounting charge related to stock-based compensation expense	636	727	948
Deferred income taxes	761	(3,062)	(2,440)
Changes in operating assets and liabilities:
Accounts receivable	(405)	316	(495)
Income tax receivable	(4,525)	(1,395)	28
Inventories	(1,198)	(9,512)	(337)
Prepaid expenses and other current assets	2,821	1,927	(1,730)
Other assets	(1,019)	(9)	(76)
Accounts payable	6,245	1,407	276
Accrued expenses	(10,345)	(5,947)	3,028
Taxes payable	1,643	(4,901)	2,618
Commissions and incentives payable	(898)	362	(4,430)
Deferred revenue	(670)	(1,295)	2,072
Net cash provided by (used in) operating activities	(10,310)	(19,888)	17,776
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(2,797)	(5,614)	(13,409)
Proceeds from sale of assets	37	3	0
Change in restricted cash	1,473	(139)	(6,854)
Purchase of investments	0	(7,400)	0
Sale of investments	0	20,350	12,424
Net cash provided by (used in) investing activities	(1,287)	7,200	(7,839)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from exercise of stock options	0	0	100
Proceeds from stock options exercised	66	0	157
Payment of cash dividends	1,059	5,822	9,522
Repayment of capital lease obligation	473	115	107
Net cash used in financing activities	(1,466)	(5,937)	(9,372)
Effect of currency exchange rate changes on cash and cash equivalents	(515)	2,467	837
Net increase (decrease) in cash and cash equivalents	(13,578)	(16,158)	1,402
Cash and cash equivalents at the beginning of year	30,945	47,103	45,701
Cash and cash equivalents at the end of year	17,367	30,945	47,103
SUPPLIMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes received (paid), net	2,441	(1,266)	(4,146)
Interest paid on capital leases	50	17	21
Summary of non-cash investing and financing activities:
Assets Acquired through Capital Leases	2,099	30	37
Unrealized gains from investments	$0	$0	$1

NOTE 1: ORGANIZATION AND SUMMAR

NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Organization And Summary Of Significant Accounting Policies	NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Mannatech, Incorporated (together with its subsidiaries, the Company), located in Coppell, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on the NASDAQ Global Select Market under the symbol MTEX. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care products, and weight-management products that are primarily sold to independent associates and members located in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, Germany, South Africa, Singapore, Austria, the Netherlands, Norway, and Sweden. Independent associates (associates) purchase the Companys products at published wholesale prices to either sell to retail customers or consume personally. Members purchase the Companys products at a discount from published retail prices primarily for personal consumption. The Company cannot distinguish its personal consumption sales from its other sales because it has no involvement in its products after delivery, other than usual and customary product warranties and returns. Only independent associates are eligible to earn commissions and incentives. Principles of Consolidation The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Companys consolidated financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Companys estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. Actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered to be the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are generally received within 24 to 72 hours. As of December 31, 2009 and 2008, credit card receivables were $2.8 million and $3.3 million, respectively. Additionally, as of December31, 2009 and 2008, cash and cash equivalents held in bank accounts in foreign countries totaled $10.2 million and $18.2 million, respectively. Restricted Cash
Organization	NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Mannatech, Incorporated (together with its subsidiaries, the Company), located in Coppell, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on the NASDAQ Global Select Market under the symbol MTEX. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care products, and weight-management products that are primarily sold to independent associates and members located in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, Germany, South Africa, Singapore, Austria, the Netherlands, Norway, and Sweden. Independent associates (associates) purchase the Companys products at published wholesale prices to either sell to retail customers or consume personally. Members purchase the Companys products at a discount from published retail prices primarily for personal consumption. The Company cannot distinguish its personal consumption sales from its other sales because it has no involvement in its products after delivery, other than usual and customary product warranties and returns. Only independent associates are eligible to earn commissions and incentives
Summary of Significant Accounting Policies	Principles of Consolidation The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Companys consolidated financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Companys estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. Actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered to be the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are generally received within 24 to 72 hours. As of December 31, 2009 and 2008, credit card receivables were $2.8 million and $3.3 million, respectively. Additionally, as of December31, 2009 and 2008, cash and cash equivalents held in bank accounts in foreign countries totaled $10.2 million and $18.2 million, respectively. Restricted Cash The Company is required to restrict cash for (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in United States and Canada; and (iii) Australia building lease collateral. As of December 31, 2009 and 2008, our total restricted cash was $8.5 million and $9.4 million, respectively. Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of December 31, 2009 and 2008, receivables consisted primarily of amounts due from members and associates. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. At December 31, 2009 and 2008, the Company held an allowance for doubtful accounts of less than $0.1 million. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the

NOTE 2: RECENT ACCOUNTING PRONO

NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Recent Accounting Pronouncements	NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS In October 2009, the FASB issued Accounting Standards Update No.2009-13, Revenue RecognitionMultiple Deliverable Revenue Arrangements (ASU 2009-13). ASU 2009-13 updates the existing multiple-element revenue arrangements guidance currently included in FASB ASC 605-25. The revised guidance provides for two significant changes to the existing multiple element revenue arrangements guidance. The first change relates to the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting. The second change modifies the manner in which the transaction consideration is allocated across the separately identified deliverables. The revised guidance also expands the disclosures required for multiple-element revenue arrangements. The revised multiple-element revenue arrangements guidance will be effective for the first annual reporting period beginning on or after June15, 2010. The adoption of ASU 2009-13 is not expected to have a material impact on the Companys financial position or results of operations. In June2009, the Financial Accounting Standards Board (FASB) approved the FASB Accounting Standards Codification (Codification, FASB ASC) as the single source of authoritative generally accepted accounting principles (GAAP) and created a new Topic 105, Generally Accepted Accounting Principles, in the General Principles and Objective Section of the Codification. Topic 105 is effective for interim and annual periods ending after September15, 2009, and its adoption did not have an impact on our financial condition or results of operations. In May 2009, the FASB issued ASC Topic 855, Subsequent Events, which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. In February2010, the FASB issued amended guidance to Topic 855 which no longer requires that an SEC filer discloses the date through which subsequent events have been evaluated. The amended guidance did not change the requirement to evaluate subsequent events through the filing dates.The adoption of the new guidance did not have a material impact on the Companys consolidated financial statements and disclosures. In January2009, the Securities and Exchange Commission issued Release No.33-9002, Interactive Data to Improve Financial Reporting. The final rule requires companies to provide their financial statements and financial statement schedules to the Securities and Exchange Commission in interactive data format using the eXtensible Business Reporting Language (XBRL). The rule was adopted by the Securities and Exchange Commission to improve the ability of financial statement users to access and analyze financial data. The Securities and Exchange Commission adopted a phase-in schedule indicating when registrants must furnish interactive data. Under this schedule, the Company will be required to submit filings with financial statement information using XBRL commencing with our June30, 2011 quarterly report on Form 10-Q. We are furnishing financial informat

NOTE 3: FAIR VALUE

NOTE 3: FAIR VALUE
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Fair Value	NOTE 3: FAIR VALUE The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures. Fair Value Measurements and Disclosure Topic of the FASB ASC establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: Level 1Quoted unadjusted prices for identical instruments in active markets. Level 2Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The primary objective of the Companys investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of December 31, 2009. The Company does not have any material financial liabilities that were required to be measured at fair value on a recurring basis at December 31, 2009. Level 1 Level 2 Level 3 Total Assets Money Market Funds Fidelity, US $ $ 3,266 $ $ $ $ $ $ 3,266 Interest bearing deposits various banks, Korea 6,309 6,309 Total assets $ 9,575 $ $ $ 9,575 Amounts included in: Cash and cash equivalents $ $ 3,313 $ $ $ $ $ $ 3,313 Long-term restricted cash 6,262 6,262 Total $ 9,575 $ $ $ 9,575

NOTE 4: INVENTORIES

NOTE 4: INVENTORIES
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Inventories	NOTE 4: INVENTORIES Inventories consist of raw materials, work in progress, and finished goods, including promotional materials. The Company provides an allowance for any slow-moving or obsolete inventories. Inventories as of December 31, 2009 and 2008, consisted of the following (in thousands): 2009 2008 Raw materials $ 10,819 $ 13,715 Finished goods 21,844 18,275 Inventory reserves for obsolescence (1,373 ) (677 ) $ 31,290 $ 31,313

NOTE 5: PROPERTY AND EQUIPMENT

NOTE 5: PROPERTY AND EQUIPMENT
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5: PROPERTY AND EQUIPMENT As of December 31, 2009 and 2008, property and equipment consisted of the following (in thousands): 2009 2008 Office furniture and equipment $ 10,944 $ 10,951 Computer hardware 14,324 13,947 Computer software 46,901 44,927 Automobiles 115 128 Leasehold improvements 11,726 11,886 84,010 81,839 Less accumulated depreciation and amortization (56,866 ) (45,637 ) Property and equipment, net 27,144 36,202 Construction in process 317 840 $ 27,461 $ 37,042 At December 31, 2009, construction in progress consisted of $0.3 million for in-process leasehold improvements for its corporate facility and capitalized software costs of less than $0.1 million. At December 31, 2008, construction in progress consisted of capitalized software costs of $0.5 million and $0.3 million for in-process leasehold improvements for its corporate facility.

NOTE 6: CAPITAL LEASE OBLIGATIO

NOTE 6: CAPITAL LEASE OBLIGATIONS
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Capital Lease Obligations	NOTE 6: CAPITAL LEASE OBLIGATIONS As of December 31, 2009 and 2008, the net book value of leased assets was $0.4million for equipment leased under seven non-cancelable capital leases. The future minimum lease payments (in thousands) are as follows: 2010 $ 913 2011 774 2012 331 2013 2 Total future minimum lease payments 2,020 Less: Amounts representing interest (effective interest rate 4.2%) (105 ) Present value of minimum lease payments 1,915 Current portion of capital lease obligations (847 ) Long-term portion of capital lease obligations $ 1,068

NOTE 7: ACCRUED EXPENSES

NOTE 7: ACCRUED EXPENSES
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Accrued Expenses	NOTE 7: ACCRUED EXPENSES As of December 31, 2009 and 2008, accrued expenses consisted of the following (in thousands): 2009 2008 Accrued inventory purchases $ 2,562 $ 3,069 Accrued compensation 2,579 3,841 Accrued royalties 362 387 Accrued sales and other taxes 425 1,448 Other accrued operating expenses 4,255 4,273 Customer deposits and sales returns 607 729 Accrued travel expenses related to corporate events 892 1,181 Fixed asset purchases 185 409 Accrued legal and accounting fees 2,364 8,987 $ 14,231 $ 24,324

NOTE 8: INCOME TAXES

NOTE 8: INCOME TAXES
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Income Taxes	NOTE 8: INCOME TAXES The components of the Companys income (loss) before income taxes are attributable to the following jurisdictions for the years ended December 31 (in thousands): 2009 2008 2007 United States $ (23,945 ) $ (20,297 ) $ 1,747 Foreign (130 ) 2,099 8,742 $ (24,075 ) $ (18,198 ) $ 10,489 The components of the Companys income tax provision (benefit) for the years ended December 31 are as follows (in thousands): Current provision (benefit): 2009 2008 2007 Federal $ (8,521 ) $ (3,876 ) $ 3,022 State (1 ) (95 ) 362 Foreign 886 1,583 2,995 (7,636 ) (2,388 ) 6,379 Deferred provision (benefit): Federal 269 (2,411 ) (2,494 ) State 140 (299 ) (182 ) Foreign 520 (472 ) 192 929 (3,182 ) (2,484 ) $ (6,707 ) $ (5,570 ) $ 3,895 A reconciliation of the Companys effective income tax rate and the United States federal statutory income tax rate is summarized as follows, for the years ended December 31: 2009 2008 2007 Federal statutory income taxes 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.6 0.4 1.6 Difference in foreign and United States tax on foreign operations (3.0 ) (0.6 ) (0.6 ) Effect of changes in valuation allowance for net operating loss carryforwards (7.2 ) (1.1 ) (3.1 ) Effect of change in uncertain tax positions (net) 0.9 5.5 1.1 Other 0.6 (8.6 ) 3.1 27.9 % 30.6 % 37.1 % For 2009, the Companys effective income tax rate was lower than what would be expected if the federal statutory income tax rate were applied to income before taxes primarily because of increases in the valuation allowance for deferred tax assets and favorable differences from foreign operations. For 2008, the Companys effective income tax rate was lower than what would be expected if the federal statutory income tax rate were applied to income before income taxes primarily because of favorable differences from foreign operations. The tax rate difference for 2007 was primarily due to unfavorable permanent items from foreign operations. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Companys deferred tax assets and liabilities consisted of the following at December 31 (in thousands): 2009 2008 Deferred tax assets: Current: Deferred revenue $ 1 $ 63 Inventory capitalization 428 554 Inventory reserves 314 128 Accrued expenses 1,953 4,314 Net operating loss 152 Other 1,123 1,407 Total current deferred tax assets 3,819 6,618 Noncurrent: Depreciation and amortization Net operating loss(1) 2,

NOTE 9: TRANSACTIONS WITH RELAT

NOTE 9: TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES	NOTE 9: TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES Agreement with J. Stanley Fredrick In November 2003, the Company entered into a Lock-Up Agreement whereby the Company agreed to pay Mr.J. Stanley Fredrick, the Companys Chairman of the Board and a major shareholder, $185,000 per year for his agreement not to sell or transfer his shares to an outside party unless approved by the Companys Board of Directors. On March 6, 2009, the Lock-up Agreement was terminated by mutual agreement of the Company and Mr. Fredrick. As of December 31, 2009 and 2008, Mr.Fredrick beneficially owned 3,150,000 shares of the Companys common stock. Transactions involving Samuel Caster Mr. Caster, the Companys founder, major stockholder, and former Chairman of the Board, founded MannaRelief in 1999 and served as its Chairman from 1999 through August 2007. MannaRelief is a 501(c)(3) charitable organization that provides charitable services for children. Historically, the Company has made cash donations to MannaRelief, sold products to MannaRelief at cost plus shipping and handling charges, and shipped products purchased by MannaRelief to its chosen recipients. In addition, certain Company employees and consultants periodically volunteer to work or host various fund raising projects and events for MannaRelief at no cost to MannaRelief. The Company has made cash donations and sold products to MannaRelief as follows: 2009 2008 2007 Sold Products $ 0.7 million $ 0.8 million $ 1.0 million Contributed Cash Donations $ 0.3 million $ 0.8 million $ 0.9 million In July 2007, the Texas Attorney General filed suit against the Company, MannaRelief Ministries, Samuel L. Caster, the Fisher Institute, and H. Reginald McDaniel alleging violations of the Texas Deceptive Trade Practices Act and the Texas Food, Drug and Cosmetic Act. On February 26, 2009, we reached an agreement with the Texas Attorney Generals office settling the enforcement action. Mr. Caster, who resigned as Chairman on January 30, 2009, also entered into an agreed settlement on February 26, 2009 with the Attorney Generals Office settling the enforcement action against him. As part of that agreed judgment, Mr. Caster, without admitting any wrongdoing or violations of Texas law, has agreed to pay a fine of $1 million, and is enjoined from serving as an officer, director, or employee of the Company for a period of five years; provided, however, Mr. Caster is not prohibited by this settlement from acting as an independent consultant to the Company and that he comply with the terms of the settlement between the Company and the Texas Attorney General, including that he report directly to the Companys CEO. Pursuant to the requirements of the Companys articles of incorporation and bylaws, the Company has agreed to indemnify Mr. Caster for the amount of the fine and for any other expenses relating to this matter. On March 17, 2009, the Company entered into a Consulting Agreement with Salinda Enterprises, LLC (Salinda) for the consulting services of Mr. Caster who is an employee of Salinda. Pursuant to the terms of the Consulting Agreement, the Company will

NOTE 10: EMPLOYEE BENEFIT PLANS

NOTE 10: EMPLOYEE BENEFIT PLANS
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE 10: EMPLOYEE BENEFIT PLANS Employee Retirement Plan Effective May 9, 1997, the Company adopted a Defined Contribution 401(k) and Profit Sharing Plan (the 401(k) Plan) for its United States employees. The 401(k) Plan covers all full-time employees who have completed three months of service and attained the age of twenty-one. United States employees can contribute up to 100 percent of their annual compensation but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code. The 401(k) plan permits matching and discretionary employer contributions, although in response to adverse market conditions the Company suspended the matching contributions under the 401(k) Plan in the first quarter of 2009. The Companys matching contributions for its United States employees vest ratably over a five-year period. During the years ended December 31, 2008 and 2007, the Company contributed approximately $0.4 million, and $0.5 million, respectively, to the 401(k) Plan for matching contributions. The Company also sponsors a non-U.S. defined benefit plan covering its employees in its Japan subsidiary (the Benefit Plan). Pension benefits under the Benefit Plan are based on years of service and annual salary. The Company utilizes actuarial methods. Inherent in the application of these actuarial methods are key assumptions, including, but not limited to, discount rates and expected long-term rates of return on plan assets. Changes in the related Benefit Plan costs may occur in the future due to changes in the underlying assumptions, changes in the number and composition of plan participants, and changes in the level of benefits provided. The Company uses a measurement date of December31 to evaluate and record any post-retirement benefits related to the Benefit Plan. Projected Benefit Obligation and Fair Value of Plan Assets The Benefit Plans projected benefit obligation and valuation of plan assets are as follows for the years ended December 31 (in thousands): Projected benefit obligation: 2009 2008 Balance, beginning of year $ 792 $ 553 Service cost 196 194 Interest cost 18 16 Liability (gains) and losses (23 ) (56 ) Benefits paid to participants (123 ) (50 ) Foreign currency (14 ) 135 Balance, end of year $ 846 $ 792 Plan assets: Fair value, beginning of year $ $ Company contributions 123 50 Benefits paid to participants (123 ) (50 ) Fair value, end of year $ $ Funded status of the Benefit Plan as of December 31 (in thousands): 2009 2008 Benefit obligation $ (846 ) $ (792 ) Fair value of plan assets Excess of benefit obligation over fair value of plan assets $ (846 ) $ (792 ) Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands): 2009 2008 Accrued benefit liability $ (865 ) $ (783 ) Transition obligation 19 (9 ) Net amount recognized in the consolidated balance sheets $ (846 ) $

NOTE 11: STOCK OPTION PLAN

NOTE 11: STOCK OPTION PLAN
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Stock-Based Compensation	NOTE 11: STOCK OPTION PLAN Summary of Stock Plan The Company currently has one active stock-based compensation plan, which was approved by its shareholders. The Company generally grants stock options to its employees, consultants, and board members at the fair market value of its common stock, on the date of grant, with a term no greater than ten years. The stock options generally vest over two or three years. Shareholders who own 10% or more of the Companys outstanding stock are granted incentive stock options at an exercise price that may not be less than 110% of the fair market value of the Companys common stock on the date of grant and have a term no greater than five years. In February 2008, the Companys Board of Directors approved its 2008 Stock Incentive Plan (the 2008 Plan), which reserves, for issuance of stock options and restricted stock to its employees, board members, and consultants, up to 1,000,000 shares of its common stock plus any shares reserved under the Companys then-existing, unexpired stock plan for which options had not yet been issued plus any shares underlying outstanding options under the then-existing stock option plan that terminate without having been exercised in full. The 2008 Plan was approved by the Companys shareholders at its 2008 Annual Shareholders Meeting held on June 18, 2008. As of December 31, 2009, the 2008 Plan had 364,434 stock options available for grant before the plan expires on February 20, 2018. A summary of changes in stock options outstanding during the year ended December 31, 2009, is as follows: 2009 Numberof Options (in thousands) Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of year 1,570 $ 6.22 Granted 520 $ 3.15 Exercised (20 ) $ 2.63 Forfeited or expired (531 ) $ 6.67 Outstanding at end of year 1,539 $ 5.07 6.2 $296 Options exercisable at year end 994 $ 5.96 4.6 $211 The Company generally issues new shares upon the exercise of options. Options exercised during the years ended December 31, 2009 had a total intrinsic value, calculated as the difference between the exercise date stock price and the exercise price of the option, of approximately less than $0.1 million. Valuation and Expense Information Under FASB ASC Topic 718 Compensation Stock Compensation Under the provisions of FASB ASC Topic 718, the Company is required to measure and recognize compensation expense related to any outstanding and unvested stock options previously granted, and thereafter recognize, in its consolidated financial statements, compensation expense related to any new stock options granted after implementation using a calculated fair-value based option-pricing model. The Company uses the Black-Scholes option-pricing model to calculate the fair value of all of its stock options and its assumptions are based on historical information. The following assumptions were used to calculate the compensation expense and the calculated fair value of stock options granted each year:

NOTE 12: COMMITMENTS AND CONTIN

NOTE 12: COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12: COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases certain office space, automobiles, computer hardware, and warehouse equipment under various noncancelable operating leases. Some of these leases have renewal options. All of the Companys leases expire at various times through March 2017. The Company also leases equipment under various month-to-month cancelable operating leases. For the years ended December 31, 2009 and 2008, total rent expense was approximately $4.0 million and $4.1 million. Approximate future minimum rental commitments for non-cancelable operating leases (in millions) are as follows: Years ending December 31, 2010 $ 2.9 2011 1.5 2012 1.3 2013 1.2 2014 0.8 Thereafter 1.8 $ 9.5 Purchase Commitments The Company maintains supply agreements with its suppliers and manufacturers. Some of the supply agreements contain exclusivity clauses and/or minimum annual purchase requirements. Purchase agreements with suppliers that contain minimum purchase clauses are as follows: In May 2008, the Company entered into a supply agreement with Marinova PTY Limited to purchase raw materials used in its products through 2012. On August 13, 2009, the Company terminated the contract for an asserted breach. Pursuant to the terms of the contract, the parties are currently engaged in the arbitration process. In January 2006, the Company entered into a five-year supply agreement with Larex, Inc. to exclusively purchase Arabinogalactan, an important component used in the formulation of its Ambrotose complex. In order to retain exclusive rights to purchase Arabinogalactan, the Company is required to purchase a minimum monthly quantity over the five year agreement. As of December 31, 2009, the Company is required to purchase an aggregate of $0.6 million through 2010. In March 2006, the Company entered into a ten-year supply agreement to purchase plant-derived mineral nutrition products from InB:Biotechnologies, Inc. As of December 31, 2009, the Company is required to purchase an aggregate of $6.7 million through 2016. In June of 2008, the Company entered into a three-year supply agreement with Improve U.S.A. to purchase an aloe vera powder. As of December 31, 2009, under the terms of the agreement, the Company is required to purchase an aggregate of $6.4 million through 2011. Royalty and Consulting Agreements In 2001, the Company entered into a royalty agreement with a high level associate and shareholder, whereby the Company agreed to pay royalties totaling $1.6 million related to the sale of certain sales aids developed by the associate and sold by the Company. Pursuant to this royalty agreement, the Company has paid an aggregate of $1.4 million through December 31, 2009, of which approximately $0.1 million was paid each of the years 2009 and 2008 and $0.2 was paid in 2007. The Company also utilizes royalty agreements with individuals and entities to provide compensation for items such as reprints of articles or speeches relating to the Company, sales of promotional videos featuring sports personalities, and promotional efforts used by the Company for product sales or

NOTE 13: LITIGATION

NOTE 13: LITIGATION
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Litigation	NOTE 13: LITIGATION Securities Class Action Lawsuits Beginning in the third quarter of 2005, the Company was sued in three purported securities class actions, which were consolidated into a single cause of action styled Jonathan Crowell, et al. v. Mannatech, et al., and transferred to the United States District Court for the Northern District of Texas, No. 3:07-cv-00238-K, as disclosed in the Companys previous filings.These lawsuits remained pending at December 31, 2008.The consolidated complaint alleged violations of Sections 10(b), Rule 10b-5 and Section 20(a) of the Exchange Act through alleged artificial inflation of the value of the Companys stock by knowingly allowing independent contractors to recklessly misrepresent the efficacy of the Companys products during the purported class period.Without admitting any liability or wrongdoing of any kind, the Company entered into a settlement with the Lead Plaintiffs resolving all claims in the litigation, and agreed to authorize payment to the plaintiff class of $11.25 million.The Company paid $2.27 million in cash as part of the settlement, and the remainder was funded by our insurer. Preliminary approval of the settlement was granted by the Court on December 12, 2008. On March 10, 2009, the court granted final approval for the settlement and entered a final judgment. Shareholder Derivative Lawsuits Five purported derivative actions have also been brought by shareholders on the Companys behalf against certain current and former directors, as disclosed in the Companys previous filings. Two purported derivative actions were filed by shareholders Norma Middleton and Frances Nystrom on October 18, 2005 and January 13, 2006, respectively, in the United States District Court for the Northern District of Texas. In addition, three purported derivative actions were brought by shareholders Kelly Schrimpf, Duncan Gardner, and Frances Nystrom on January 11, 2006, April 25, 2007, and July 23, 2007, respectively, in the 44th and 162nd Judicial District Court of Dallas County, Texas. All five actions remained pending at December 31, 2008, but have since been settled with entry of final judgement or orders of dismissal. The first three derivative lawsuits made allegations similar to the allegations of the shareholder class action litigation described above. The last two derivative lawsuits made allegations with regard to our funding of various research projects. The Companys Special Litigation Committee of the Board of Directors reviewed the allegations contained in each of the five derivative lawsuits and determined that they should be dismissed or compromised. On June 13, 2008, the Company announced that it had reached a final settlement with all derivative plaintiffs. This settlement resolves all the claims in each of the five pending derivative lawsuits. Without admitting any liability or wrongdoing of any kind, the Company has implemented, or agreed to implement certain, and has implemented, the following items identified as corporate governance changes in the settlement: (i) the revision of the Companys policies and procedures regarding associate conduct; (ii) the engagement of

NOTE 14: SHAREHOLDERS' EQUITY

NOTE 14: SHAREHOLDERS' EQUITY
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
SHAREHOLDERS' EQUITY	NOTE 14: SHAREHOLDERS EQUITY Preferred Stock On April 8, 1998, the Company amended its Articles of Incorporation to reduce the number of authorized shares of common stock from 100.0 million to 99.0 million and the Company authorized 1.0 million shares of preferred stock with a par value of $0.01 per share. No shares of preferred stock have ever been issued or outstanding. Treasury Stock On June 30, 2004, the Companys Board of Directors authorized the Company to repurchase, in the open market, up to 5% of its outstanding shares, or approximately 1.3 million shares, of its common stock to help manage any dilutive effects of its common stock in the open market. On August 28, 2006, a second program permitting the Company to purchase, in the open market, up to $20 million of its outstanding shares was approved by our Board of Directors. As of December 31, 2009, the Company had repurchased the following number of shares of its common stock in the open market: Month purchased Number of common shares purchased in the open market Approximate cost Average price paid per share May 2005 190,850 $ 3.0 million $ 15.71 September 2005 182,626 2.0 million $ 10.95 October 2005 207,023 2.0 million $ 9.66 May 2006 73,955 1.0 million $ 13.52 June 2006 253,289 3.0 million $ 11.84 July 2006 144,840 2.0 million $ 13.81 August 2006 68,861 1.0 million $ 14.52 Total 1,121,444 $ 14.0 million $ 12.48 As of December 31, 2009, the maximum number of shares available for repurchase under the June 2004 plan, previously approved by the Companys Board of Directors, was 196,124. The Company is also authorized to purchase up to $20 million of its outstanding common stock, in the open market, under its August 2006 program. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss), net, which is displayed in the Consolidated Statement of Shareholders Equity and Comprehensive Income (loss), represents net income (loss) plus the results of certain shareholders equity changes not reflected in the consolidated statements of operations. Such items include unrealized gains/losses from investments, foreign currency translation, and certain pension and postretirement benefit obligations. The after-tax components of accumulated other comprehensive income (loss), are as follows (in thousands): Unrealized Gain (Loss) From Investments Foreign Currency Translation Pension Postretirement Benefit Obligation Accumulated Other Comprehensive Income (Loss),Net Balance as of December 31, 2006 $ (1 ) $ (1,704 ) $ (44 ) $ (1,749 ) Current-period change 1 613 12 626 Balance as of December 31, 2007 (1,091 ) (32 ) (1,123 ) Current-period change (318 ) 35 (283 Balance as of December 31, 2008 (1,409 ) 3 (1,406 ) Current-period change 276 17 293 Balance as of December 31, 2009 $ (1,133 ) $ 20 $ (1,113 )

NOTE 15: EARNINGS

NOTE 15: EARNINGS (LOSS) PER SHARE
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Loss Per Share	NOTE 15: EARNINGS (LOSS) PER SHARE Basic Earnings (Loss) Per Share (EPS) calculations are based on the calculated weighted-average number of the Companys common shares outstanding during the period. Diluted EPS calculations are based on the calculated weighted-average number of common shares and dilutive common share equivalents outstanding during each period. The following data shows the amounts used in computing the Companys EPS and their effect on the Companys weighted-average number of common shares and dilutive common share equivalents for the years ended December 31, 2009, 2008 and 2007. For 2009, approximately 1.4 million of the Companys common stock options were excluded from its diluted EPS calculation using average close price of $3.39 per share, as their effect was anti-dilutive. For 2008, approximately 1.3 million of the Companys common stock options were excluded from its diluted EPS calculation using average close price of $5.37 per share, as their effect was anti-dilutive. For 2007, approximately 0.4 million of the Companys common stock options were excluded from its diluted EPS calculation using an average close price of $11.60 per share, as their effect was anti-dilutive. The amounts are rounded to the nearest thousands, except per share amounts. 2009 2008 2007 Income/Loss (Numerator) Shares (Denominator) Per Share Amount) Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income (loss) available to common shareholders $ (17,368 ) 26,467 $ (0.66 ) $ (12,628 ) 26,461 $ (0.48 ) $ 6,594 26,443 $ 0.25 Effect of dilutive securities Stock options 354 Stock warrants(1) 96 Diluted EPS: Net income (loss) available to common shareholders plus assumed conversions $ (17,368 ) 26,467 $ (0.66 ) $ (12,628 ) 26,461 $ (0.48 ) $ 6,594 26,893 $ 0.25 _________________________ (1)In 2001, as part of a separation agreement, the Company granted an officer 213,333 stock warrants for common stock at exercise prices ranging from $1.75 to $4.00 per share. The stock warrants vested immediately and expired on February 28, 2008. The Companys quarterly cash dividends were $0.02 per share for the first and second quarters of 2009. In the third quarter of 2009, the Board of Directors suspended the quarterly cash dividend payment to shareholders due to the recent company financial performance, protracted worldwide economic recession, and theinternal funding needs ofnewinitiatives designed to accelerate sales and associate recruitment of the Company. The Companys quarterly cash dividends were $0.09 per share for the first and second quarters of 2008 and $0.02 per share for the third and fourth quarters of 2008. The Company paid $0.09 per share in quarterly cash dividends in 2007. The dividend policy is periodically re-evaluated based on consolidated results of ope

NOTE 16: SEGMENT INFORMATION

NOTE 16: SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements [Abstract]
Segment Information	NOTE 16: SEGMENT INFORMATION The Company conducts its business as a single operating segment, consolidating all of its business units into a single reportable entity, as a seller of proprietary nutritional supplements, topical and skin care products, and weight-management products through its network marketing distribution channels operating in sixteen countries. Each of the Companys business units sells similar packs and products and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Companys management reviews its financial information by country and focuses its internal reporting and analysis of revenues by packs and product sales. The Company sells its products through its independent associates and distributes its products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Companys consolidated net sales. The Company operates in eight physical locations and sells product in sixteen different countries around the world. The eight physical locations are the United States, Canada, Switzerland, Australia, the United Kingdom, Japan, the Republic of Korea (South Korea), and Taiwan. Each of the Companys physical locations services different geographic areas. The United States location processes orders for the United States, Canada, and South Africa. The Canadian location provides administrative support to the Canadian market and acts as a meeting location for independent associates. The Australian location processes orders for Australia, New Zealand, and Singapore. The Companys United Kingdom location processes orders for the United Kingdom, Denmark, Germany, Austria, the Netherlands, Norway, and Sweden. The Japan, Republic of Korea, and Taiwan locations process orders for their local markets only. The Companys Switzerland office manages certain day-to-day business needs of non-North American markets and coordinates the Companys continued global expansion. By country of operation, consolidated net sales shipped to customers in these locations, along with pack and product information for the years ended December 31, are as follows (in millions, except percentages): 2009 2008 2007 United States $ 140.7 48.6 % $ 176.9 53.1 % $ 244.5 59.2 % Japan 42.0 14.5 % 44.8 13.5 % 42.3 10.3 % Republic of Korea 26.4 9.1 % 35.7 10.7 % 44.0 10.7 % Canada 23.0 7.9 % 23.6 7.1 % 27.4 6.6 % Australia 22.9 7.9 % 26.1 7.8 % 29.4 7.1 % South Africa(1) 13.2 4.6 % 5.5 1.7 % % Taiwan 6.6 2.3 % 5.2 1.6 % 5.4 1.3 % New Zealand 4.3 1.5 % 5.2 1.6 % 6.9 1.7 % Germany 3.2 1.1 % 3.8 1.1 % 4.6 1.1 % United Kingdom 3.3 1.0 % 4.7 1.4 % 6.7 1.6 % Denmark 1.6 0.6 % 1.2 0.4 % 1.5 0.4 % Singapore(2) 1.5 0.5 % % % Austria(3) 0.3 0.1 % % % The Netherlands(3) 0.2 0.1 % % % N

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009
Schedule to Financial Statements [Abstract]
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	MANNATECH, INCORPORATED AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Additions Balance at Beginning of Year Chargedto Costsand Expenses Chargedto other Accounts Deductions Balanceat EndofYear Year Ended December31, 2007 Deducted from asset accounts: Allowance for Doubtful Accounts $ 877 $ 877 Allowance for Obsolete Inventories $ 392 $ 134 $ 526 Valuation allowance for deferred tax assets $ 1,069 $ (326 ) $ 743 Year Ended December31, 2008 Deducted from asset accounts: Allowance for Doubtful Accounts 877 $ 23 $ (877 ) $ 23 Allowance for Obsolete Inventories $ 526 $ 1,321 $ (1,170 ) $ 677 Valuation allowance for deferred tax assets $ 743 $ 189 $ 932 Year Ended December31, 2009 Deducted from asset accounts: Allowance for Doubtful Accounts $ 23 $ 33 $ (40 ) $ 16 Allowance for Obsolete Inventories $ 677 $ 1,544 $ (848 ) $ 1,373 Valuation allowance for deferred tax assets $ 932 $ 1,358 (1) $ 2,290 _________________________________________ (1)The 2009 valuation allowance for Taiwan was adjusted to reflect the tax rate change effective for 2010.Without the rate change, the Taiwan valuation allowance would have been $ 1.1 million

Document Information

Document Information
	12 Months Ended Dec. 31, 2009
Document Information [Text Block]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Mar. 05, 2010	Jun. 30, 2009
Entity [Text Block]
Entity Registrant Name	MANNATECH INC
Entity Central Index Key	0001056358
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$51,972,297
Entity Common Stock, Shares Outstanding		26,480,788