Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'NATURES SUNSHINE PRODUCTS INC | ' | ' |
Entity Central Index Key | '0000275053 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $260,980,000 |
Entity Common Stock, Shares Outstanding | ' | 16,179,080 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $77,247 | $79,241 |
Accounts receivable, net of allowance for doubtful accounts of $1087 and $631, respectively | 10,206 | 9,614 |
Investments available for sale | 2,006 | 2,071 |
Inventories | 41,910 | 43,280 |
Deferred income tax assets | 5,711 | 5,307 |
Prepaid expenses and other | 11,514 | 5,820 |
Total current assets | 148,594 | 145,333 |
Property, plant and equipment, net | 32,022 | 27,950 |
Investment securities - trading | 971 | 1,276 |
Intangible assets, net | 853 | 1,002 |
Deferred income tax assets | 9,928 | 11,516 |
Other assets | 7,244 | 6,842 |
Total Assets | 199,612 | 193,919 |
Current liabilities: | ' | ' |
Accounts payable | 5,664 | 6,226 |
Accrued volume incentives | 19,206 | 18,130 |
Accrued liabilities | 34,893 | 27,302 |
Deferred revenue | 4,173 | 4,311 |
Current installments of long-term debt and revolving credit facility | 2,267 | 3,350 |
Income taxes payable | 2,366 | 2,071 |
Total current liabilities | 68,569 | 61,390 |
Liability related to unrecognized tax benefits | 12,402 | 10,571 |
Long-term debt and revolving credit facility | 10,000 | 2,270 |
Deferred compensation payable | 971 | 1,276 |
Other liabilities | 2,411 | 2,776 |
Total long-term liabilities | 25,784 | 16,893 |
Commitments and Contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value; 50,000 shares authorized, 16,179 and 15,810 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 83,122 | 77,292 |
Retained earnings | 36,100 | 48,910 |
Accumulated other comprehensive loss | -13,963 | -10,566 |
Total shareholders' equity | 105,259 | 115,636 |
Total Liabilities and Shareholders' Equity | $199,612 | $193,919 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,087 | $631 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 16,179 | 15,810 |
Common stock, shares outstanding | 16,179 | 15,810 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Net sales revenue | $378,096 | $367,468 | $367,813 |
Cost of sales | -94,814 | -93,324 | -89,409 |
Gross profit | 283,282 | 274,144 | 278,404 |
Operating expenses: | ' | ' | ' |
Volume incentives | 138,482 | 133,267 | 133,883 |
Selling, general and administrative | 120,743 | 106,861 | 109,606 |
Contract termination costs | ' | ' | 14,750 |
Operating income | 24,057 | 34,016 | 20,165 |
Other income: | ' | ' | ' |
Interest and other income, net | 573 | 1,368 | 1,470 |
Interest expense | -231 | -178 | -89 |
Foreign exchange gains, net | 1,254 | 290 | 466 |
Other income (expense), net | 1,596 | 1,480 | 1,847 |
Income before provision for income taxes | 25,653 | 35,496 | 22,012 |
Provision for income taxes | 8,044 | 10,116 | 4,411 |
Net income | $17,609 | $25,380 | $17,601 |
Basic: | ' | ' | ' |
Net income (in dollars per share) | $1.10 | $1.62 | $1.13 |
Diluted: | ' | ' | ' |
Net income (in dollars per share) | $1.07 | $1.59 | $1.12 |
Weighted average basic common shares outstanding (in shares) | 15,997 | 15,648 | 15,550 |
Weighted average diluted common shares outstanding (in shares) | 16,390 | 15,987 | 15,695 |
Dividends declared per common share (in dollars per share) | $1.90 | $0.15 | ' |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $17,609 | $25,380 | $17,601 |
Foreign currency translation loss (net of tax) | -3,480 | -522 | -2,397 |
Net unrealized gains (losses) on investment securities (net of tax) | 83 | 25 | -24 |
Total comprehensive income | $14,212 | $24,883 | $15,180 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2010 | $68,382 | $67,752 | $8,278 | ($7,648) |
Balance (in shares) at Dec. 31, 2010 | ' | 15,533 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Share-based compensation expense | 3,478 | 3,478 | ' | ' |
Proceeds from the exercise of stock options | 398 | 398 | ' | ' |
Proceeds from the exercise of stock options (in shares) | ' | 36 | ' | ' |
Net income | 17,601 | ' | 17,601 | ' |
Other comprehensive income (loss) | -2,421 | ' | ' | -2,421 |
Balance at Dec. 31, 2011 | 87,438 | 71,628 | 25,879 | -10,069 |
Balance (in shares) at Dec. 31, 2011 | ' | 15,569 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Share-based compensation expense | 2,878 | 2,878 | ' | ' |
Tax benefit from exercise of stock options | 378 | 378 | ' | ' |
Proceeds from the exercise of stock options | 2,408 | 2,408 | ' | ' |
Proceeds from the exercise of stock options (in shares) | ' | 241 | ' | ' |
Cash dividends (0.15 per share and 1.90 par share as of December 31, 2012 and 2013, respectively ) | -2,349 | ' | -2,349 | ' |
Net income | 25,380 | ' | 25,380 | ' |
Other comprehensive income (loss) | -497 | ' | ' | -497 |
Balance at Dec. 31, 2012 | 115,636 | 77,292 | 48,910 | -10,566 |
Balance (in shares) at Dec. 31, 2012 | 15,810 | 15,810 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Share-based compensation expense | 3,389 | 3,389 | ' | ' |
Tax benefit from exercise of stock options | 653 | 653 | ' | ' |
Proceeds from the exercise of stock options | 4,334 | 4,334 | ' | ' |
Proceeds from the exercise of stock options (in shares) | ' | 509 | ' | ' |
Repurchase of common stock | -2,546 | -2,546 | ' | ' |
Repurchase of common stock (in shares) | -140 | -140 | ' | ' |
Cash dividends (0.15 per share and 1.90 par share as of December 31, 2012 and 2013, respectively ) | -30,419 | ' | -30,419 | ' |
Net income | 17,609 | ' | 17,609 | ' |
Other comprehensive income (loss) | -3,397 | ' | ' | -3,397 |
Balance at Dec. 31, 2013 | $105,259 | $83,122 | $36,100 | ($13,963) |
Balance (in shares) at Dec. 31, 2013 | 16,179 | 16,179 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ' | ' |
Cash dividends (in dollars per share) | $1.90 | $0.15 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $17,609 | $25,380 | $17,601 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for doubtful accounts | 535 | 45 | -133 |
Depreciation and amortization | 4,466 | 4,078 | 4,362 |
Tax benefit from stock option exercise | -653 | -378 | ' |
Share-based compensation expense | 3,389 | 2,878 | 3,478 |
(Gain) loss on sale of property and equipment | -128 | 85 | 224 |
Deferred income taxes | 1,092 | 4,270 | -5,073 |
Amortization of bond discount | 1 | 9 | 9 |
Purchase of trading investment securities | -88 | -92 | -102 |
Proceeds from sale of trading investment securities | 510 | 354 | 438 |
Realized and unrealized gains on investments | -122 | -90 | -44 |
Foreign exchange gains | -1,254 | -290 | -466 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -1,358 | 266 | -3,742 |
Inventories | 838 | -1,466 | -5,566 |
Prepaid expenses and other | -5,728 | -1,155 | 1,032 |
Other assets | -303 | -193 | 2,986 |
Accounts payable | -552 | 77 | 1,316 |
Accrued volume incentives | 1,286 | -1,279 | 805 |
Accrued liabilities | 7,379 | -1,289 | -6,152 |
Deferred revenue | -138 | 1,708 | -782 |
Income taxes payable | 1,071 | -6,259 | 5,009 |
Liability related to unrecognized tax positions | 1,831 | 145 | -10,943 |
Deferred compensation payable | -305 | -153 | -349 |
Net cash provided by operating activities | 29,378 | 26,651 | 3,908 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property, plant and equipment | -8,570 | -6,629 | -2,419 |
Purchases of investments available for sale | -442 | -174 | -6,968 |
Proceeds from sale/maturities of investments available for sale | 200 | 3,789 | 7,697 |
Proceeds from sale of property, plant and equipment | 248 | 25 | 11 |
Net cash used in investing activities | -8,564 | -2,989 | -1,679 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Payments of cash dividends | -30,419 | -2,349 | ' |
Borrowings on long-term debt and revolving credit facility | 10,000 | ' | 10,000 |
Principal payments of long-term debt and revolving credit facility | -3,353 | -3,570 | -810 |
Tax benefit from stock option exercise | 653 | 378 | ' |
Proceeds from exercise of stock options | 4,334 | 2,408 | 398 |
Repurchase of common stock | -2,546 | ' | ' |
Net cash provided by (used in) financing activities | -21,331 | -3,133 | 9,588 |
Effect of exchange rates on cash and cash equivalents | -1,477 | -257 | -452 |
Net increase (decrease) in cash and cash equivalents | -1,994 | 20,272 | 11,365 |
Cash and cash equivalents at beginning of the year | 79,241 | 58,969 | 47,604 |
Cash and cash equivalents at end of the year | 77,247 | 79,241 | 58,969 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for income taxes | 10,278 | 12,960 | 6,570 |
Cash paid for interest | 128 | 128 | 36 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' | ' |
Purchases of property, plant and equipment included in accounts payable | $155 | $169 | $19 |
NATURE_OF_OPERATIONS_AND_SIGNI
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
NOTE 1: NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Nature of Operations | |||||||||||
Nature’s Sunshine Products, Inc., together with its subsidiaries (hereinafter referred to collectively as the “Company”), is a natural health and wellness company primarily engaged in the manufacturing and direct selling of nutritional and personal care products. The Company is a Utah corporation with its principal place of business in Lehi, Utah and sells its products to a sales force of Managers and Distributors who use the products themselves or resell them to other Distributors or consumers. The formulation, manufacturing, packaging, labeling, advertising, distribution and sale of each of the Company’s major product groups are subject to regulation by one or more governmental agencies. | |||||||||||
The Company markets its products in Australia, Austria, Belarus, Canada, Colombia, Costa Rica, the Czech Republic, Denmark, the Dominican Republic, Ecuador, El Salvador, Finland, Germany, Guatemala, Honduras, Hong Kong, Iceland, Indonesia, Ireland, Italy, Japan, Kazakhstan, Latvia, Lithuania, Malaysia, Mexico, Moldova, Mongolia, the Netherlands, Nicaragua, Norway, Panama, Peru, the Philippines, Poland, Russia, Singapore, Slovenia, South Korea, Spain, Sweden, Taiwan, Thailand, the Ukraine, the United Kingdom, the United States, Venezuela and Vietnam. The Company also exports its products to Argentina, Australia, Chile, Israel, New Zealand and Norway. | |||||||||||
Principles of Consolidation | |||||||||||
The accompanying consolidated financial statements include the accounts and transactions of the Company and its subsidiaries. At December 31, 2013 and 2012, substantially all of the Company’s subsidiaries were wholly owned. The Company operates a limited number of markets in jurisdictions where local laws require the formation of a partnership with an entity domiciled in that market. These partners have no rights to participate in the sharing of revenues, profits, losses or distribution of assets upon liquidation of these partnerships. | |||||||||||
Intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
Use of Estimates | |||||||||||
The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities, in these financial statements and accompanying notes. Actual results could differ from these estimates and those differences could have a material effect on the Company’s financial position and results of operations. | |||||||||||
The significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with its evaluation of impairment of long-lived assets, the determination of liabilities related to Manager and Distributor incentives, the determination of income tax assets and liabilities, certain other non-income tax and value-added tax contingencies, legal contingencies, share-based compensation and the valuation of investments. In addition, significant estimates form the basis for allowances with respect to the collection of accounts receivable, inventory valuations and self-insurance liabilities associated with product liability and medical claims. Various assumptions and other factors enter into the determination of these significant estimates. The process of determining significant estimates takes into account historical experience and current and expected economic conditions. | |||||||||||
Classification of Venezuela as a Highly Inflationary Economy and Devaluation of Its Currency | |||||||||||
Since January 1, 2010, Venezuela has been designated as a highly inflationary economy. Accordingly, the U.S. dollar became the functional currency for the Company’s subsidiary in Venezuela. All gains and losses resulting from the re-measurement of its financial statements are determined using official rates. On February 11, 2013, the Venezuelan government announced the further devaluation of the bolivar to 6.3 bolivars per U.S. dollar. | |||||||||||
Currency restrictions enacted by the government of Venezuela require approval from the government’s currency control agency (“CADIVI”) in order for the Company’s subsidiary in Venezuela to obtain U.S. dollars at the official exchange rate to pay for imported products or to repatriate dividends back to the Company. Prior to January 1, 2010, the market rate, which is substantially lower than the official rate, was available to obtain U.S. dollars or other currencies without approval of the CADIVI. In 2013, the CADIVI established a new official exchange rate of 6.3 bolivars per U.S. dollar, and mandated that entities domiciled in Venezuela must formerly apply and be approved by the CADIVI to obtain U.S. dollars or U.S. dollar denominated securities through banking institutions approved by the government at the official CADIVI exchange rate of 6.3. On a daily basis, the CADIVI will determine how many U.S. dollars will be sold and which previously approved companies are authorized to buy. Subsequently, the Venezuela Central Bank will pay the foreign entities directly to limit the amount of U.S. dollars available within Venezuela. | |||||||||||
The Company re-measures its results in Venezuela at the official CADIVI rate, which was approximately 6.3 bolivars per U.S. dollar as of December 31, 2013. However, since the further devaluation of the bolivar to 6.3, the Company has been unsuccessful in obtaining U.S. dollars at the official CADIVI exchange rate and it remains uncertain when the Company’s applications will be approved to complete exchange transactions in the future. | |||||||||||
In addition to the further devaluation of the bolivar in 2013, the CADIVI enacted a new currency exchange mechanism, the Complementary System for Foreign Currency Administration (“SICAD”), to replace the System for Foreign Currency Denominated Securities (“SITME”) which was enacted in 2010 to end the trading of currency at the market rate. Under SICAD, the Company will be able to obtain U.S. dollars at a higher unofficial exchange rate determined by the CADIVI. The Company is currently monitoring the SICAD exchange mechanism and the potential for exchange transactions should the Company’s applications to exchange at the official CADIVI rate of 6.3 be unsuccessful. | |||||||||||
During 2013, 2012 and 2011, the Company’s Venezuelan subsidiary’s net sales revenue represented approximately 2.2 percent, 1.8 percent and 1.4 percent of consolidated net sales revenue, respectively. As of December 31, 2013 and 2012, the Company’s Venezuelan subsidiary held cash and cash equivalents of $3,922 and $1,748, respectively. At this time, the Company is not able to reasonably estimate the future state of exchange controls in Venezuela and its availability of U.S. dollars at the official CADIVI exchange rate. | |||||||||||
Classification of Belarus as a Highly Inflationary Economy and Devaluation of Its Currency | |||||||||||
Since June 30, 2012, Belarus has been designated as a highly inflationary economy. The U.S. dollar is the Company’s functional currency for this market. As a result, there were no resulting gains or losses from a re-measurement of the financial statements using official rates of the Company’s Belarusian subsidiary. However, as a result of the weakening of the Belarusian ruble, the purchasing power of the Company’s Distributors in this market has diminished. During the periods ended December 31, 2013, 2012 and 2011, the Company’s Belarusian subsidiary’s net sales revenue represented approximately 2.1 percent, 1.8 percent and 1.6 percent of consolidated net sales revenue, respectively. | |||||||||||
Cash and Cash Equivalents | |||||||||||
The Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. Substantially all of the Company’s cash deposits either exceed the United States federally insured limit or are located in countries that do not have government insured accounts or are subject to tax withholdings when repatriating earnings. | |||||||||||
Accounts Receivable | |||||||||||
Accounts receivable consist principally of receivables from credit card companies, arising from the sale of products to the Company’s Distributors, and receivables from Distributors in foreign markets. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. However, due to the geographic dispersion of credit card and Distributor receivables, the collection risk is not considered to be significant. Substantially all of the receivables from credit card companies were current as of December 31, 2013 and 2012. Although receivables from Distributors can be significant, the Company performs ongoing credit evaluations of its importers and maintains an allowance for potential credit losses. This estimated allowance is based primarily on the aging category, historical trends and management’s evaluation of the financial condition of the customer. This reserve is adjusted periodically as information about specific accounts becomes available. | |||||||||||
Investment Securities | |||||||||||
The Company’s available-for-sale investment portfolio is recorded at fair value and consists of various securities such as state and municipal obligations, U.S. government security funds, short-term deposits and various equity securities. These investments are valued using (a) quoted prices for identical assets in active markets or (b) from significant inputs that are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset. The Company’s trading portfolio is recorded at fair value and consists of various marketable securities that are valued using quoted prices in active markets. | |||||||||||
For available-for-sale debt securities with unrealized losses, the Company performs an analysis to assess whether it intends to sell or whether it would be more likely than not required to sell the security before the expected recovery of the amortized cost basis. Where the Company intends to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary, and the full amount of the unrealized loss is recorded within earnings as an impairment loss. | |||||||||||
For all other debt securities that experience a decline in fair value that is determined to be other-than-temporary and not related to credit loss, the Company records a loss, net of any tax, in accumulated other comprehensive income (loss). The credit loss is recorded within earnings as an impairment loss when sold. Management judgment is involved in evaluating whether a decline in an investment’s fair value is other-than-temporary. | |||||||||||
Regardless of the Company’s intent to sell a security, the Company performs additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where the Company does not expect to receive cash flows sufficient to recover the amortized cost basis of a security. | |||||||||||
For equity securities, when assessing whether a decline in fair value below the Company's cost basis is other-than-temporary, the Company considers the fair market value of the security, the length of time and extent to which market value has been less than cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer, and the Company’s intent and ability to hold the investment for a sufficient time in order to enable recovery of the cost. New information and the passage of time can change these judgments. Where the Company has determined that it lacks the intent and ability to hold an equity security to its expected recovery, the security’s decline in fair value is deemed to be other-than-temporary and is recorded within earnings as an impairment loss. | |||||||||||
The Company also has certain investment securities classified as trading securities. The Company maintains its trading securities portfolio to generate returns that are offset by corresponding changes in certain liabilities related to the Company’s deferred compensation plans (see Note 11). The trading securities portfolio consists of marketable securities, which are recorded at fair value and are included in long-term investment securities on the consolidated balance sheets because they remain assets of the Company until they are actually paid out to the participants. These investment securities are not available to the Company to fund its operations as they are restricted for the payment of the deferred compensation payable. The Company has established a rabbi trust to finance obligations under the plan. Both realized and unrealized gains and losses on trading securities are included in interest and other income. | |||||||||||
Fair Value of Financial Instruments | |||||||||||
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable and long-term debt. Other than investments, which are carried at fair value, and long-term debt, the carrying values of these financial instruments approximate their fair values due to their short-term nature. The carrying amount reflected in the consolidated balance sheet for long-term debt approximates fair value due to the interest rate on the debt being variable based on current market rates. During the year ended December 31, 2013 and 2012, the Company did not have any write-offs related to the re-measurement of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. | |||||||||||
Inventories | |||||||||||
Inventories are stated at the lower-of-cost-or-market, using the first-in, first-out method. The components of inventory cost include raw materials, labor and overhead. To estimate any necessary obsolescence or lower-of-cost-or-market adjustments, various assumptions are made in regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning and market conditions. | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives for buildings range from 20 to 50 years; building improvements range from 7 to 10 years; machinery and equipment range from 2 to 10 years; computer software and hardware range from 3 to 10 years; and furniture and fixtures range from 2 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs are expensed as incurred and major improvements are capitalized. | |||||||||||
Intangible Assets | |||||||||||
Intangible assets consist of purchased product formulations. Such intangible assets are amortized using the straight-line method over the estimated economic lives of the assets of 9 to 15 years. Intangible assets, net of accumulated amortization, totaled $853 and $1,002 at December 31, 2013 and 2012, respectively. | |||||||||||
Impairment of Long-Lived Assets | |||||||||||
The Company reviews its long-lived assets, such as property, plant and equipment and intangible assets for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company uses an estimate of future undiscounted net cash flows of the related assets or groups of assets over their remaining lives in measuring whether the assets are recoverable. An impairment loss is calculated by determining the difference between the carrying values and the fair values of these assets. The Company did not consider any of its long-lived assets to be impaired during the years ended December 31, 2013, 2012 or 2011. | |||||||||||
Incentive Trip Accrual | |||||||||||
The Company accrues for expenses associated with its direct sales program, which rewards Managers and Distributors with paid attendance for incentive trips, including Company conventions and meetings. Expenses associated with incentive trips are accrued over qualification periods as they are earned. The Company specifically analyzes incentive trip accruals based on historical and current sales trends as well as contractual obligations when evaluating the adequacy of the incentive trip accrual. Actual results could generate liabilities more or less than the amounts recorded. The Company has accrued convention and meeting costs of $5,784 and $4,624 at December 31, 2013 and 2012, respectively, which are included in accrued liabilities in the consolidated balance sheets. | |||||||||||
Foreign Currency Translation | |||||||||||
The local currency of the foreign subsidiaries is used as the functional currency, except for subsidiaries operating in highly inflationary economies or where the Company’s operations are served by a U.S. based subsidiary (for example Belarus, Russia and the Ukraine). The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at year end for assets and liabilities and average exchange rates during each year for the results of operations. Adjustments resulting from translation of financial statements are reflected in accumulated other comprehensive loss, net of income taxes. Foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations. | |||||||||||
The functional currency in highly inflationary economies is the U.S. dollar and transactions denominated in the local currency are re-measured as if the functional currency were the U.S. dollar. The re-measurement of local currencies into U.S. dollars creates translation adjustments, which are included in the consolidated statements of operations. A country is considered to have a highly inflationary economy if it has a cumulative inflation rate of approximately 100 percent or more over a three year period as well as other qualitative factors including historical inflation rate trends (increasing and decreasing), the capital intensiveness of the operation, and other pertinent economic factors. Belarus and Venezuela were considered to be highly inflationary as noted above. With the exception of Belarus and Venezuela, there were no countries considered to have a highly inflationary economy during 2013, 2012 or 2011. | |||||||||||
Revenue Recognition | |||||||||||
Net sales revenue and related volume incentive expenses are recorded when persuasive evidence of an arrangement exists, collectability is reasonably assured, the amount is fixed and determinable, and title and risk of loss have passed. The amount of the volume incentive is determined based upon the amount of qualifying purchases in a given month. It is necessary for the Company to make estimates about the timing of when merchandise has been delivered. These estimates are based upon the Company’s historical experience related to time in transit, timing of when shipments occurred and shipping volumes. Amounts received for undelivered merchandise are recorded as deferred revenue. | |||||||||||
From time to time, the Company’s U.S. operations extend short-term credit associated with product promotions. In addition for certain of the Company’s international operations, the Company offers credit terms consistent with industry standards within the country of operation. Payments to Managers and Distributors for sales incentives or rebates are recorded as a reduction of revenue. Payments for sales incentives and rebates are calculated monthly based upon qualifying sales. Membership fees are deferred and amortized as revenue over the life of the membership, primarily one year. Prepaid event registration fees are deferred and recognized as revenues when the related event is held. | |||||||||||
A reserve for product returns is recorded based upon historical experience. The Company allows Managers or Distributors to return the unused portion of products within ninety days of purchase if they are not satisfied with the product. In some of the Company's markets, the requirements to return product are more restrictive. Sales returns for the years 2013, 2012 and 2011, were $1,454, $2,249 and $606, respectively. The increase in sales returns for year ended December 31, 2012 was due to unusually high product returns during the first quarter of 2012 related to a specific promotion in the Synergy Japan market. Product returns were not related to product quality and have since returned to lower return rates. | |||||||||||
Amounts billed to customers for shipping and handling are reported as a component of net sales revenue. Shipping and handling revenues of approximately $10,868, $11,264 and $11,615 were reported as net sales revenue for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
Taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales, use, value-added, and some excise taxes, are presented on a net basis (excluded from net sales). | |||||||||||
Advertising Costs | |||||||||||
Advertising costs are expensed as incurred and classified in selling, general and administrative expenses. Advertising expense incurred for the years ended December 31, 2013, 2012 and 2011 totaled approximately $2,194, $1,418 and $1,191, respectively. | |||||||||||
Research and Development | |||||||||||
All research and development costs are expensed as incurred and classified in selling, general and administrative expense. Total research and development expenses were approximately $2,039, $1,464 and $1,552 in 2013, 2012 and 2011, respectively. | |||||||||||
Contingencies | |||||||||||
The Company is involved in certain legal proceedings. When a loss is considered probable in connection with litigation or non-income tax contingencies and when such loss can be reasonably estimated with a range, the Company records its best estimate within the range related to the contingency. If there is no best estimate, the Company records the minimum of the range. As additional information becomes available, it assesses the potential liability related to the contingency and revises the estimates. The Company’s contingencies are discussed in further detail in Note 12. | |||||||||||
Income Taxes | |||||||||||
The Company’s income tax expense, deferred tax assets and liabilities and contingent reserves reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. | |||||||||||
Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating the Company’s ability to recover its deferred tax assets, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, the Company develops assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income, and are consistent with the plans and estimates that the Company is using to manage the underlying businesses. | |||||||||||
Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. | |||||||||||
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. | |||||||||||
Net Income (Loss) Per Common Share | |||||||||||
Basic net income per common share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. | |||||||||||
Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for all years: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net income available to common stockholders | |||||||||||
Net income | $ | 17,609 | $ | 25,380 | $ | 17,601 | |||||
Basic weighted-average shares outstanding | 15,997 | 15,648 | 15,550 | ||||||||
Basic net income per common share: | |||||||||||
Net income | $ | 1.1 | $ | 1.62 | $ | 1.13 | |||||
Diluted Shares Outstanding | |||||||||||
Basic weighted-average shares outstanding | 15,997 | 15,648 | 15,550 | ||||||||
Stock-based awards | 393 | 339 | 145 | ||||||||
Diluted weighted-average shares outstanding | 16,390 | 15,987 | 15,695 | ||||||||
Diluted net income per common share: | |||||||||||
Net income | $ | 1.07 | $ | 1.59 | $ | 1.12 | |||||
Potentially dilutive shares excluded from diluted-per-share amounts: | |||||||||||
Stock options | 135 | 88 | 219 | ||||||||
Potentially anti-dilutive shares excluded from diluted-per-share amounts: | |||||||||||
Stock options | 210 | 254 | 200 | ||||||||
Potentially dilutive shares excluded from diluted-per-share amounts include performance-based options to purchase shares of common stock for which certain earnings metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income per share for each of the years presented. | |||||||||||
Share-Based Compensation | |||||||||||
The Company’s outstanding stock options include time-based stock options which vest over differing periods ranging from the date of issuance up to 48 months from the option grant date, performance-based stock options which already vested upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options, performance-based stock options which vest upon achieving cumulative annual net sales revenue growth targets over a rolling two-year period subject to the Company maintaining at least an eight percent operating income margin during the applicable period, and performance-based stock options which vest upon achieving annual net sales targets over a rolling one-year period. | |||||||||||
The Company recognizes all share-based payments to Directors and employees, including grants of stock options and restricted stock units, to be recognized in the statement of operations based on their grant-date fair values. We record compensation expense, net of an estimated forfeiture rate, over the vesting period of the stock options based on the fair value of the stock options on the date of grant. The Company’s estimated forfeiture rate is based upon historical experience. | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Comprehensive income (loss) includes all changes in shareholders’ equity except those resulting from investments by, and distributions to, shareholders. Accordingly, the Company’s comprehensive income (loss) includes net income (loss), net unrealized gains (losses) on investment securities, reclassifications of realized gains, and foreign currency adjustments that arise from the translation of the financial statements of the Company’s foreign subsidiaries. | |||||||||||
Recent Accounting Pronouncements | |||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11 Income Taxes (Topic 740): “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This update provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The amendments in this update are effective for interim and annual periods beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
NOTE 2: INVENTORIES | ||||||||
The composition of inventories is as follows: | ||||||||
As of December 31, | 2013 | 2012 | ||||||
Raw materials | $ | 10,848 | $ | 13,287 | ||||
Work in process | 740 | 742 | ||||||
Finished goods | 30,322 | 29,251 | ||||||
Total inventory | $ | 41,910 | $ | 43,280 |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
NOTE 3: PROPERTY, PLANT AND EQUIPMENT | ||||||||
The composition of property, plant and equipment is as follows: | ||||||||
As of December 31, | 2013 | 2012 | ||||||
Land and improvements | $ | 3,800 | $ | 3,800 | ||||
Buildings and improvements | 33,655 | 33,309 | ||||||
Machinery and equipment | 18,209 | 17,919 | ||||||
Furniture and fixtures | 17,884 | 16,956 | ||||||
Computer software and hardware | 8,255 | 4,226 | ||||||
81,803 | 76,210 | |||||||
Accumulated depreciation and amortization | (49,781 | ) | (48,260 | ) | ||||
Total property, plant and equipment | $ | 32,022 | $ | 27,950 | ||||
Depreciation expense was $4,317, $3,929 and $4,210 for the years ended December 31, 2013, 2012 and 2011, respectively. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
INTANGIBLE ASSETS | ' | ||||
INTANGIBLE ASSETS | ' | ||||
NOTE 4: INTANGIBLE ASSETS | |||||
At December 31, 2013 and 2012, intangibles for product formulations had a gross carrying amount of $1,763 and $1,763, accumulated amortization of $910 and $761, and a net amount of $853 and $1,002, respectively. The estimated useful lives of the product formulations range from 9 to 15 years. | |||||
Amortization expense for intangible assets for the years ended December 31, 2013, 2012 and 2011 was $149, $149 and $152, respectively. Estimated amortization expense for the five succeeding fiscal years and thereafter is as follows: | |||||
Year Ending December 31, | |||||
2014 | $ | 149 | |||
2015 | 149 | ||||
2016 | 91 | ||||
2017 | 91 | ||||
2018 | 91 | ||||
Thereafter | 282 | ||||
Total | $ | 853 |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||
NOTE 5: INVESTMENT SECURITIES | ||||||||||||||
The amortized cost and estimated fair values of available-for-sale securities by balance sheet classification are as follows: | ||||||||||||||
As of December 31, 2013 | Amortized | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||
Gains | Losses | |||||||||||||
Municipal obligations | $ | 403 | $ | 12 | $ | — | $ | 415 | ||||||
U.S. government securities funds | 997 | — | (14 | ) | 983 | |||||||||
Equity securities | 227 | 386 | (5 | ) | 608 | |||||||||
Total short-term investment securities | $ | 1,627 | $ | 398 | $ | (19 | ) | $ | 2,006 | |||||
As of December 31, 2012 | Amortized | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||
Gains | Losses | |||||||||||||
Municipal obligations | $ | 608 | $ | 30 | $ | — | $ | 638 | ||||||
U.S. government securities funds | 995 | — | (9 | ) | 986 | |||||||||
Equity securities | 227 | 228 | (8 | ) | 447 | |||||||||
Total short-term investment securities | $ | 1,830 | $ | 258 | $ | (17 | ) | $ | 2,071 | |||||
The municipal obligations held at fair value of $415 at December 31, 2013, all mature in less than two years. | ||||||||||||||
During 2013, 2012 and 2011, the proceeds from the sales of available-for-sale securities were $200, $3,789 and $7,697, respectively. There were no gross realized gains (losses) on sales of available-for-sale securities (net of tax) for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
The Company’s trading securities portfolio totaled $971 and $1,276 at December 31, 2013 and 2012, respectively, and generated gains of $122, $116 and $16, for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
As of December 31, 2013 and 2012, the Company had unrealized losses of $14 and $9, respectively, in its U.S. government securities funds. These losses are due to the interest rate sensitivity of the municipal obligations and the performance of the overall stock market for the equity securities. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
ACCRUED LIABILITIES | ' | |||||||
NOTE 6: ACCRUED LIABILITIES | ||||||||
The composition of accrued liabilities is as follows: | ||||||||
As of December 31, | 2013 | 2012 | ||||||
Foreign non-income tax contingencies (See Note 12) | $ | 5,363 | $ | 5,358 | ||||
Sales, use and property tax (See Note 12) | 4,498 | 3,690 | ||||||
Salaries and employee benefits | 11,749 | 8,217 | ||||||
Convention and meeting costs | 5,784 | 4,624 | ||||||
Other | 7,499 | 5,413 | ||||||
Total | $ | 34,893 | $ | 27,302 |
LONGTERM_DEBT_AND_REVOLVING_CR
LONG-TERM DEBT AND REVOLVING CREDIT FACILITY | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT AND REVOLVING CREDIT FACILITY | ' | |||||||
LONG-TERM DEBT AND REVOLVING CREDIT FACILITY | ' | |||||||
NOTE 7: LONG-TERM DEBT AND REVOLVING CREDIT FACILITY | ||||||||
On August 9, 2011, the Company entered into a revolving credit agreement with Wells Fargo Bank, N.A. that permits the Company to borrow up to $15,000 through August 9, 2014, bearing interest at LIBOR plus 1.25 percent (1.50 percent as of December 31, 2013). The Company must pay an annual commitment fee of 0.25 percent on the unused portion of the commitment. | ||||||||
On August 8, 2013, the Company renegotiated the revolving credit agreement with Wells Fargo Bank, N.A. to increase to the borrowing limit to $25,000 and extend the maturity to September 1, 2015. At December 31, 2013, the outstanding balance under the revolving credit agreement was $10,000. | ||||||||
A term loan of $10,000 was obtained in conjunction with the revolving credit agreement with Wells Fargo Bank, N.A. and has a maturity date of August 9, 2014 and a variable interest rate of LIBOR plus 1.25 percent (1.50 percent as of December 31, 2013 and 2012). As of December 31, 2013, the outstanding balance under the term loan was $2,267. The term loan is collateralized by the Company’s manufacturing facility in Spanish Fork, Utah. | ||||||||
Long-term debt consists of the following: | ||||||||
As of December 31, | 2013 | 2012 | ||||||
Term loan in monthly installments of approximately $284, including interest | $ | 2,267 | $ | 5,620 | ||||
Less current installments | (2,267 | ) | (3,350 | ) | ||||
— | 2,270 | |||||||
Revolving credit agreement | 10,000 | — | ||||||
Long-term debt less current installments | $ | 10,000 | $ | 2,270 | ||||
The various debt agreements contain restrictions on liquidity, leveraging, minimum net income and consecutive quarterly net losses. In addition, the agreements restrict capital expenditures, lease expenditures, other indebtedness, liens on assets, guaranties, loans and advances, and the merger, consolidation and the transfer of assets except in the ordinary course of business. The Company is in compliance with these debt covenants as of December 31, 2013. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||
NOTE 8: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
The components of accumulated other comprehensive income (loss), net of tax, are as follows: | |||||||||||
Foreign Currency | Net Unrealized | Total | |||||||||
Translation | Gains (Losses) On | Accumulated Other | |||||||||
Adjustments | Available-For-Sale | Comprehensive Loss | |||||||||
Securities | |||||||||||
Balance as of January 1, 2011 | $ | (7,794 | ) | $ | 146 | $ | (7,648 | ) | |||
Activity, net of tax | (2,397 | ) | (24 | ) | (2,421 | ) | |||||
Balance as of December 31, 2011 | (10,191 | ) | 122 | (10,069 | ) | ||||||
Activity, net of tax | (522 | ) | 25 | (497 | ) | ||||||
Balance as of December 31, 2012 | (10,713 | ) | 147 | (10,566 | ) | ||||||
Activity, net of tax | (3,480 | ) | 83 | (3,397 | ) | ||||||
Balance as of December 31, 2013 | $ | (14,193 | ) | 230 | $ | (13,963 | ) | ||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 9: INCOME TAXES | |||||||||||
Income from before provision for income taxes are taxed under the following jurisdictions: | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Domestic | $ | 6,111 | $ | 17,625 | $ | 2,338 | |||||
Foreign | 19,542 | 17,871 | 19,674 | ||||||||
Total | $ | 25,653 | $ | 35,496 | $ | 22,012 | |||||
Components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2013 are as follows: | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Current: | |||||||||||
Federal | $ | (773 | ) | $ | 1,901 | $ | 4,094 | ||||
State | 399 | 248 | 961 | ||||||||
Foreign | 7,326 | 3,835 | 4,429 | ||||||||
Subtotal | 6,952 | 5,984 | 9,484 | ||||||||
Deferred: | |||||||||||
Federal | 1,654 | 2,303 | (4,408 | ) | |||||||
State | 186 | 1,207 | (719 | ) | |||||||
Foreign | (748 | ) | 622 | 54 | |||||||
Subtotal | 1,092 | 4,132 | (5,073 | ) | |||||||
Total provision for income taxes | $ | 8,044 | $ | 10,116 | $ | 4,411 | |||||
The provision for income taxes, as a percentage of income before provision for income taxes, differs from the statutory U.S. federal income tax rate due to the following: | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Statutory U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of U.S. federal income tax benefit | 1.4 | 2.7 | 0.7 | ||||||||
U.S. tax impact of foreign operations | (15.9 | ) | (2.1 | ) | (20.3 | ) | |||||
Valuation allowance change | 9.3 | (3.9 | ) | (0.3 | ) | ||||||
Unrecognized tax benefits | 8.4 | 0.4 | 8.2 | ||||||||
Domestic manufacturing deduction | (1.3 | ) | (0.4 | ) | (1.1 | ) | |||||
Nondeductible foreign expenses | (4.4 | ) | (0.9 | ) | (1.3 | ) | |||||
Other | (1.1 | ) | (2.3 | ) | (0.9 | ) | |||||
Effective income tax rate | 31.4 | % | 28.5 | % | 20 | % | |||||
Pretax earnings of a foreign subsidiary or affiliate are subject to U.S. taxation when effectively repatriated. The Company does not intend to reinvest undistributed earnings indefinitely in the Company’s foreign subsidiaries. | |||||||||||
Adjustments relating to the U.S. impact of foreign operations decreased the effective tax rate by 15.9 percentage points in 2013, decreased the effective tax rate by 2.1 percentage points in 2012 and decreased the effective tax rate by 20.3 percentage points in 2011. Included were adjustments for dividends received from foreign subsidiaries, adjustments for foreign tax credits, foreign tax rate differentials and adjustments relating to the unremitted earnings calculations under applicable U.S. GAAP. The components of this calculation were: | |||||||||||
Components of U.S. tax impact of foreign operations | 2013 | 2012 | 2011 | ||||||||
Dividends received from foreign subsidiaries | 29.2 | % | 4.5 | % | 26.2 | % | |||||
Foreign tax credits | (34.1 | ) | (4.0 | ) | (33.1 | ) | |||||
Foreign tax rate differentials | (10.6 | ) | (2.3 | ) | (5.2 | ) | |||||
Unremitted earnings | (0.4 | ) | (0.3 | ) | (8.2 | ) | |||||
Total | (15.9 | )% | (2.1 | )% | (20.3 | )% | |||||
The significant components of the deferred tax assets (liabilities) are as follows: | |||||||||||
As of December 31, | 2013 | 2012 | |||||||||
Inventory | $ | 1,502 | $ | 1,718 | |||||||
Accrued liabilities | 4,380 | 3,464 | |||||||||
Impaired investments | — | 727 | |||||||||
Deferred compensation | 364 | 483 | |||||||||
Equity-based compensation | 2,993 | 2,592 | |||||||||
Intangibles assets | 389 | 2,308 | |||||||||
Bad debts | 225 | 49 | |||||||||
Net operating losses | 5,593 | 4,152 | |||||||||
Foreign tax and withholding credits | 4,066 | 4,406 | |||||||||
Non-income tax accruals | 397 | 452 | |||||||||
Health insurance accruals | 184 | 186 | |||||||||
Undistributed foreign earnings | 4,008 | 2,704 | |||||||||
Other deferred tax assets | 2,260 | 2,357 | |||||||||
Capital loss carryforward | 721 | — | |||||||||
Valuation allowance | (11,340 | ) | (8,149 | ) | |||||||
Total deferred tax assets | 15,742 | 17,449 | |||||||||
Other deferred tax liabilities | (231 | ) | (720 | ) | |||||||
Total deferred tax liabilities | (231 | ) | (720 | ) | |||||||
Total deferred taxes, net | $ | 15,511 | $ | 16,729 | |||||||
The components of deferred tax assets (liabilities), net are as follows: | |||||||||||
As of December 31, | 2013 | 2012 | |||||||||
Net current deferred tax assets | $ | 5,711 | $ | 5,307 | |||||||
Net non-current deferred tax assets | 9,928 | 11,516 | |||||||||
Total net deferred tax assets | 15,639 | 16,823 | |||||||||
Net current deferred tax liabilities | (2 | ) | (1 | ) | |||||||
Net non-current deferred tax liabilities | (126 | ) | (93 | ) | |||||||
Total net deferred tax liabilities | (128 | ) | (94 | ) | |||||||
Total deferred taxes, net | $ | 15,511 | $ | 16,729 | |||||||
Net current deferred tax liabilities are included in accrued liabilities and net non-current deferred tax liabilities are included in other liabilities in the consolidated balance sheets. | |||||||||||
Management has provided a valuation allowance of $11,340 and $8,149 as of December 31, 2013 and 2012, respectively, for certain deferred tax assets, including foreign net operating losses, for which management cannot conclude it is more likely than not that they will be realized. The Company reviewed its tax positions and increased its valuation allowance by approximately $3,191 in 2013 primarily due to a domestic increase of $1,965 and a foreign increase of $1,226. | |||||||||||
At December 31, 2013, foreign subsidiaries had unused operating loss carryovers for tax purposes of approximately $5,593. The net operating losses will expire at various dates from 2014 through 2023. For financial reporting purposes, the release of these valuation allowances would reduce income tax expenses. At December 31, 2013, the Company had approximately $4,066 of foreign tax and withholding credits, most of which expire in 2020. | |||||||||||
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) the 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. | |||||||||||
The Company’s U.S. federal income tax returns for 2009 through 2012 are open to examination for federal tax purposes. The Company has several foreign tax jurisdictions that have open tax years from 2006 through 2012. The Internal Revenue Service (“IRS”) is currently conducting an audit of the Company’s U.S. federal income tax returns for the 2009 through 2011 tax years. | |||||||||||
The total outstanding balance for liabilities related to unrecognized tax benefits at December 31, 2013 and 2012 was $12,402 and $10,571, respectively, all of which would favorably impact the effective tax rate if recognized. Included in these amounts is approximately $1,352 and $1,052, respectively, of interest and penalties. The Company increased interest and penalties approximately $300 and decreased interest and penalties approximately $408 for the years ended December 31, 2013 and 2012, respectively. The Company accounts for interest expense and penalties for unrecognized tax benefits as part of its income tax provision. | |||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company added approximately $2,656, $3,471 and $2,379, respectively, to its liability for unrecognized tax benefits. Included in these amounts are approximately $300, $339 and $491 for the years ended December 31, 2013, 2012 and 2011, respectively, related to interest expense and penalties. In addition, the Company recorded a benefit related to the lapse of applicable statute of limitations of approximately $323, $2,815 and $1,728 for the years ended December 31, 2013, 2012 and 2011, respectively, all of which favorably impacted the Company’s effective tax rate. | |||||||||||
A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties, is as follows for the years: | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Unrecognized tax benefits, opening balance | $ | 9,519 | $ | 8,966 | $ | 15,058 | |||||
Settlement of liability reclassified as income tax payable | (10 | ) | — | (4,479 | ) | ||||||
Payments on liability | — | (15 | ) | (2,590 | ) | ||||||
Tax positions taken in a prior period | |||||||||||
Gross increases | — | 1,120 | 541 | ||||||||
Gross decreases | (184 | ) | (504 | ) | — | ||||||
Tax positions taken in the current period | |||||||||||
Gross increases | 2,356 | 2,011 | 1,347 | ||||||||
Gross decreases | — | — | — | ||||||||
Lapse of applicable statute of limitations | (323 | ) | (2,068 | ) | (914 | ) | |||||
Currency translation adjustments | (308 | ) | 9 | 3 | |||||||
Unrecognized tax benefits, ending balance | $ | 11,050 | $ | 9,519 | $ | 8,966 | |||||
The Company anticipates that unrecognized tax benefits will increase approximately $1,200 to $1,700 within the next twelve months due to additional transactions related to commissions and transfer pricing. | |||||||||||
The Company believes that it is reasonably possible that unrecognized tax benefits will decrease approximately $0 to $500 within the next twelve months due to the close of audits or the expiration of statutes of limitations in various foreign jurisdictions. | |||||||||||
Although the Company believes its estimates are reasonable, the Company can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in its historical income tax provisions and accruals. Such differences could have a material impact on the Company’s income tax provision and operating results in the period in which the Company makes such determination. | |||||||||||
In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations addressing the acquisition, production and improvement of tangible property, and also proposed regulations addressing the disposition of property. These regulations replace previously issued temporary regulations and are effective for tax years beginning January 1, 2014. The Company is in the process of analyzing the impact of these new regulations but does not believe they will have a material impact on the Company’s consolidated financial statements. |
CAPITAL_TRANSACTIONS
CAPITAL TRANSACTIONS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
CAPITAL TRANSACTIONS | ' | |||||||||||||||
CAPITAL TRANSACTIONS | ' | |||||||||||||||
NOTE 10: CAPITAL TRANSACTIONS | ||||||||||||||||
Dividends | ||||||||||||||||
The declaration of future dividends is subject to the discretion of the Company’s Board of Directors and will depend upon various factors, including the Company’s earnings, financial condition, restrictions imposed by any indebtedness that may be outstanding, cash requirements, future prospects and other factors deemed relevant by its Board of Directors. | ||||||||||||||||
On March 6, 2013, the Company’s Board of Directors declared a cash dividend of $0.10 per common share in an aggregate amount of $1,583 that was paid on March 28, 2013, to shareholders of record on March 18, 2013. On May 8, 2013, the Company’s Board of Directors declared a cash dividend of $0.10 per common share in an aggregate amount of $1,587 that was paid on May 30, 2013, to shareholders of record on May 20, 2013. On August 8, 2013, the Company’s Board of Directors declared a special one-time cash dividend of $1.50 per common share in addition to the Company’s recurring quarterly dividend of $0.10 per common share that was paid on August 29, 2013, to shareholders of record on August 19, 2013. The amount of the cash dividend paid to shareholders was $25,627. On November 6, 2013, the Company’s Board of Directors declared a cash dividend of $0.10 per common share in an aggregate amount of $1,622 that was paid on November 29, 2013, to shareholders of record on November 19, 2013. | ||||||||||||||||
Share Repurchase Program | ||||||||||||||||
On August 8, 2013, the Board of Directors authorized a $10,000 share repurchase program to be implemented over two years. Such purchases may be made in the open market, through block trades, in privately negotiated transactions or otherwise. The timing and amount of any shares repurchased will be determined based on the Company’s evaluation of market conditions and other factors and the program may be discontinued or suspended at any time. | ||||||||||||||||
The following is a summary of the Company's repurchases of common shares during the year ended December 31, 2013: | ||||||||||||||||
Period | Number of | Average | Program Balance Used | |||||||||||||
Shares | Price Paid per Share | for Repurchases | ||||||||||||||
July 1 — September 30, 2013 | 108 | $ | 18.06 | $ | 1,945 | |||||||||||
October 1 — December 31, 2013 | 32 | 18.44 | 601 | |||||||||||||
140 | $ | 18.14 | $ | 2,546 | ||||||||||||
Share-Based Compensation | ||||||||||||||||
During the year ended December 31, 2012, the Company’s shareholders adopted and approved the Nature’s Sunshine Products, Inc. 2012 Stock Incentive Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. The Compensation Committee of the Board of Directors has authority and discretion to determine the type of award as well as the amount, terms and conditions of each award under the 2012 Incentive Plan, subject to the limitations of the 2012 Incentive Plan. A total of 1,500 shares of the Company’s common stock were authorized for the granting of awards under the 2012 Incentive Plan. The number of shares available for awards, as well as the terms of outstanding awards, are subject to adjustment as provided in the 2012 Incentive Plan for stock splits, stock dividends, recapitalizations and other similar events. | ||||||||||||||||
The Company also maintains a stock incentive plan, which was approved by shareholders in 2009 (the “2009 Incentive Plan”). The 2009 Incentive Plan also provided for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. Under the 2012 Incentive Plan, any shares subject to award, or awards forfeited or reacquired by the Company issued under the 2009 Incentive Plan are available for award up to a maximum of 400 shares. | ||||||||||||||||
Stock option activity for 2013, 2012 and 2011 consisted of the following: | ||||||||||||||||
Number of | Weighted Average Exercise | |||||||||||||||
Shares (in | Price Per Share | |||||||||||||||
thousands) | ||||||||||||||||
Options outstanding at January 1, 2011 | 859 | $ | 9.2 | |||||||||||||
Granted | 630 | 10.84 | ||||||||||||||
Forfeited or canceled | (79 | ) | 9.64 | |||||||||||||
Exercised | (36 | ) | 11.08 | |||||||||||||
Options outstanding at December 31, 2011 | 1,374 | 9.88 | ||||||||||||||
Granted | 686 | 15.11 | ||||||||||||||
Forfeited or canceled | (35 | ) | 13.6 | |||||||||||||
Exercised | (241 | ) | 9.95 | |||||||||||||
Options outstanding at December 31, 2012 | 1,784 | 11.81 | ||||||||||||||
Granted | 832 | 15.85 | ||||||||||||||
Forfeited or canceled | (184 | ) | 13.65 | |||||||||||||
Exercised | (506 | ) | 8.56 | |||||||||||||
Options outstanding at December 31, 2013 | 1,926 | $ | 12.54 | |||||||||||||
On August 29, 2013, the Company paid a special one-time cash dividend of $1.50 per common share. In accordance with the provisions of the Company’s stock incentive plans, the exercise price of all outstanding stock options on the ex-dividend date were decreased by $1.50 per share in order to prevent a dilution of benefits or potential benefits intended to be made available to the stock option holders. Because this modification was required by the provisions of the Company’s stock incentive plans, no additional share-based compensation expense was recorded. | ||||||||||||||||
The Company’s outstanding stock options include time-based stock options which vest over differing periods ranging from the date of issuance up to 48 months from the option grant date, performance-based stock options which already vested upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options, performance-based stock options which vest upon achieving cumulative annual net sales revenue growth targets over a rolling two-year period subject to the Company maintaining at least an eight percent operating income margin during the applicable period, and performance-based stock options which vest upon achieving annual net sales targets over a rolling one-year period. | ||||||||||||||||
During the year ended December 31, 2013, the Company issued options to purchase 832 shares of common stock under the 2012 Stock Incentive Plan to the Company’s executive officers and other employees, which are composed of both time-based stock options and net sales revenue performance-based stock options. These options were issued with a weighted-average exercise price of $15.85 per share and a weighted-average grant date fair value of $6.55 per share. All of the options issued have an option termination date of ten years from the option grant date. | ||||||||||||||||
During the year ended December 31, 2012, the Company issued time-based options to purchase 217 shares of common stock under the 2009 Incentive Plan to the Company’s new senior executives. These options were issued with a weighted average exercise price of $15.65 per share and a weighted average grant date fair value of $7.66 per share. All of the options issued have an option termination date of ten years from the option grant date. | ||||||||||||||||
Also, during the year ended December 31, 2012, the Company issued options to purchase 469 shares of common stock under the 2012 Incentive Plan to the Company’s executive officers and other employees, which are composed of both time-based stock options and net sales revenue performance-based stock options. These options were issued with a weighted average exercise price of $14.86 per share and a weighted average grant date fair value of $7.00 per share. All of the options issued have an option termination date of ten years from the option grant date. | ||||||||||||||||
During the year ended December 31, 2011, the Company issued options to purchase 630 shares of common stock under the 2009 Incentive Plan to the Company’s executive officers, other employees and to new members of its Board of Directors. These options were issued with a weighted-average exercise price of $10.84 per share, and a weighted-average grant date fair value of $5.13 per share. All of the options issued have an option termination date of ten years from the option grant date. | ||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company issued 506, 241 and 36 shares of common stock upon the exercise of stock options at an average exercise price of $8.56, $9.95 and $11.08 per share, respectively. The aggregate intrinsic values of options exercised during the years ended December 31, 2013, 2012 and 2011 was $4,576, $1,427 and $211, respectively. For the years ended December 31, 2013 and 2012, the Company recognized $653 and $378 of tax benefits from the exercise of stock options during the period, respectively. | ||||||||||||||||
The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Weighted average grant date fair value of grants | $ | 6.55 | $ | 7.21 | $ | 5.13 | ||||||||||
Expected life (in years) | 5.0 to 6.0 | 4.0 to 6.0 | 3.0 to 4.0 | |||||||||||||
Risk-free interest rate | 0.6 to 1.5 | 0.3 to 0.9 | 0.7 to 1.2 | |||||||||||||
Expected volatility | 55.9 to 58.2 | 58.5 to 66.0 | 49.0 to 67.7 | |||||||||||||
Dividend yield | 2.1 to 2.7 | 0.0 to 1.3 | 0 | |||||||||||||
Expected option lives and volatilities are based on historical data of the Company. The risk free interest rate is calculated as the average U.S. Treasury bill rate that corresponds with the option life. The dividend yield is based on the Company’s historical and expected amount of dividend payouts, at the time of grant. On August 29, 2013, the Company paid a special one-time cash dividend of $1.50 per common share. The Company has excluded this special one-time cash dividend from the dividend yield used in the Black-Scholes option-pricing model calculations as it is not representative of future dividends declared by the Company. | ||||||||||||||||
Share-based compensation expense from time-based stock options for the years ended December 31, 2013, 2012 and 2011 was $3,166, $2,101 and $557, respectively; the related tax benefit was approximately $1,251, $850 and $222, respectively. As of December 31, 2013, 2012 and 2011, the unrecognized share-based compensation cost related to grants described above was $3,294, $2,715 and $607, respectively. As of December 31, 2013, the remaining compensation cost is expected to be recognized over the weighted-average period of approximately 1.9 years. | ||||||||||||||||
Shared-based compensation expense from operating income performance-based stock options for the years ended December 31, 2013, 2012 and 2011 was $0, $653 and $2,921, respectively; the related tax benefit of approximately $0, $255 and $1,168, respectively. As of December 31, 2012, there was no remaining compensation expense to be recognized for the operating income performance-based stock options. | ||||||||||||||||
The Company has not recognized any share-based compensation expense related to the net sales revenue performance-based stock options for the year ended December 31, 2013. Should the Company attain all of the net sales revenue metrics related to the net sales revenue performance-based stock option grants, the Company would recognize up to $800 of potential share-based compensation expense. | ||||||||||||||||
The following table summarizes information about options outstanding and exercisable at December 31, 2013. | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Option | Options | Weighted-Avg. | Weighted-Avg. | Options | Weighted-Avg. | Weighted-Avg. | ||||||||||
Prices Per Share | Outstanding | Remaining | Exercise Price | Exercisable | Remaining | Exercise Price | ||||||||||
Contractual Life | Per Share | Contractual Life | Per Share | |||||||||||||
$3.85 to $9.99 | 456 | 6.5 | $ | 6.93 | 456 | 6.5 | $ | 6.93 | ||||||||
$10.00 to $13.99 | 986 | 8.6 | 13.41 | 285 | 7.8 | 13.39 | ||||||||||
$14.00 to $19.20 | 484 | 9 | 16.06 | 97 | 6 | 15.26 | ||||||||||
1,926 | 8.2 | $ | 12.59 | 838 | 7.2 | $ | 10.09 | |||||||||
At December 31, 2013, the aggregate intrinsic value of outstanding options to purchase 1,926 shares of common stock, the exercisable options to purchase 838 shares of common stock, and options to purchase 905 shares of common stock expected to vest was $9,415, $6,069 and $3,179, respectively. At December 31, 2012, the aggregate intrinsic value of outstanding options to purchase 1,784 shares of common stock, the exercisable options to purchase 1,011 shares of common stock, and options to purchase 644 shares of common stock expected to vest was $5,315, $5,016 and $281, respectively. | ||||||||||||||||
Restricted stock unit activity for the period ended December 31, 2013 and 2012, is as follows: | ||||||||||||||||
Number of | Weighted Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Units outstanding at January 1, 2012 | — | $ | — | |||||||||||||
Granted | 18 | 12.07 | ||||||||||||||
Issued | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Units outstanding at December 31, 2012 | 18 | 12.07 | ||||||||||||||
Granted | 17 | 12.9 | ||||||||||||||
Issued | (3 | ) | 12.07 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Units outstanding at December 31, 2013 | 32 | 12.47 | ||||||||||||||
During the period ended December 31, 2013, the Company issued 17 restricted stock units (RSUs) of common stock under the 2012 Incentive Plan to the Board of Directors. The RSUs were issued with a weighted average grant date fair value of $12.90 per share and vest in 12 monthly installments over a one year period from the grant date. | ||||||||||||||||
During the period ended December 31, 2012, the Company issued 18 restricted stock units (RSUs) of common stock under the 2012 Incentive Plan to the Board of Directors. The RSUs were issued with a weighted average grant date fair value of $12.07 per share and vest in 12 monthly installments over a one year period from the grant date. | ||||||||||||||||
RSUs are valued at the market value on the date of grant. Due to post-vesting restrictions, a Finnerty Model was utilized to calculate a valuation discount from the market value of common shares reflecting the restriction embedded in the RSUs preventing the sale of the underlying shares over a certain period of time. The Finnerty Model proposes to estimate a discount for lack of marketability such as transfer restrictions by using an option pricing theory. This model has gained recognition through its ability to address the magnitude of the discount by considering the volatility of a company’s stock price and the length of restriction. The concept underpinning the Finnerty Model is that restricted stock cannot be sold over a certain period of time. Using assumptions previously determined for the application of the option pricing model at the valuation date, the Finnerty Model discount for lack of marketability is approximately 17.5 percent for a common share. | ||||||||||||||||
Share-based compensation expense from RSUs for the period ended December 31, 2013 and 2012 was approximately $223 and $124, respectively; and the related tax benefit was approximately $88 and $49, respectively. As of December 31, 2013 and 2012, the unrecognized share-based compensation expense related to the grants described above was $62 and $99, respectively. As of December 30, 2013, the remaining compensation expense is expected to be recognized over the weighted average period of approximately 0.4 years. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFIT PLANS | ' |
EMPLOYEE BENEFIT PLANS | ' |
NOTE 11: EMPLOYEE BENEFIT PLANS | |
Deferred Compensation Plans | |
The Company sponsors a qualified deferred compensation plan which qualifies under Section 401(k) of the Internal Revenue Code. During 2013, the Company made matching contributions of 60 percent of employee contributions up to a maximum of five percent of the employee’s compensation (the match was increased from 50 percent to 60 percent of employee contributions up to a maximum of five percent beginning in 2013). The Company’s contributions to the plan vest after a period of three years. During 2013, 2012 and 2011, the Company contributed to the plan approximately $832, $551 and $438, respectively. | |
The Company provides a nonqualified deferred compensation plan for its officers and certain key employees. Under this plan, participants may defer up to 100 percent of their annual salary and bonus. Although participants direct the investment of these funds, they are classified as trading securities and are included in long-term investment securities on the consolidated balance sheets because they remain assets of the Company until they are actually paid out to the participants. The Company has established a trust to finance obligations under the plan. At the end of each year and at other times provided under the plan, the Company adjusts its obligation to a participant by the investment return or loss on the funds selected by the participant under rules established in the plan. Upon separation of employment of the participant with the Company, the obligation owed to the participant under the plan will be paid as a lump sum or over a period of either three or five years (and will continue to be adjusted by the applicable investment return or loss during the period of pay-out). The Company had deferred compensation plan assets of approximately $971 and $1,276 as of December 31, 2013 and 2012, respectively. The change in the liability associated with the deferred compensation plan is recorded in the deferred compensation payable. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 12: COMMITMENTS AND CONTINGENCIES | |||||
Contractual Obligations | |||||
The Company leases certain facilities and equipment used in its operations and accounts for leases with escalating payments using the straight-line method. The Company incurred expenses of approximately $6,125, $6,096 and $6,177 in connection with operating leases during 2013, 2012 and 2011, respectively. The approximate aggregate commitments under non-cancelable operating leases in effect at December 31, 2013 were as follows: | |||||
Year Ending December 31, | |||||
2014 | $ | 4,841 | |||
2015 | 3,427 | ||||
2016 | 2,678 | ||||
2017 | 2,575 | ||||
2018 | 1,460 | ||||
Thereafter | 453 | ||||
Total | $ | 15,434 | |||
The Company enters into contracts with suppliers to ensure the availability of both botanical and non-botanical raw materials, as well as packing materials, in advance of its annual requirements. As of December 31, 2013, the Company has entered into non-cancelable purchase agreements for $43 related to fiscal year 2014 production needs. | |||||
The Company has entered into long-term agreements with third-parties in the ordinary course of business, in which it has agreed to pay a percentage of net sales in certain regions in which it operates, or royalties on certain products. In 2013, 2012 and 2011, the aggregate amounts of these payments were $1,468, $1,270 and $8,360, respectively. | |||||
In 2013, the Company began to significantly reinvest in its information technology systems. Included within this plan is an Oracle ERP implementation program to provide the Company with a single integrated software solution that will integrate the Company’s business process on a worldwide basis. The Company has committed to invest an additional $6,478 over the course of the project and anticipates completion of this project by mid-2016. This amount is expected to be paid in future years as follows: $3,134 in 2014, $3,001 in 2015, and $343 in 2016, respectively. | |||||
Legal Proceedings | |||||
The Company is party to various legal proceedings. Management cannot predict the ultimate outcome of these proceedings, individually or in the aggregate, or their resulting effect on the Company’s business, financial position, results of operations or cash flows as litigation and related matters are subject to inherent uncertainties, and unfavorable rulings could occur. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on the business, financial position, results of operations, or cash flows for the period in which the ruling occurs and/or future periods. The Company maintains product liability, general liability and excess liability insurance coverage. However, no assurances can be given that such insurance will continue to be available at an acceptable cost to the Company, that such coverage will be sufficient to cover one or more large claims, or that the insurers will not successfully disclaim coverage as to a pending or future claim. | |||||
Since late 2007, the Company has administered its sales in Belarus, Georgia, Kazakhstan, Moldova, Mongolia, Russia and Ukraine (the “Territories”) through an International Reseller Agreement (“Reseller Agreement”) with a third party general dealer (the “General Dealer”) based in Russia. The General Dealer administers the marketing and distribution of the Company’s products in the Territories. The Reseller Agreement has a one-year term, which has been renewed annually by the parties, and is set to expire on November 1, 2014. As a part of its services, the General Dealer provides certain discounts (the “Discounts”) to its network of dealers related to the costs associated with transporting the Company’s products from the General Dealer to the dealers. In July 2013, the General Dealer began to withhold the amount of these Discounts from the funds remitted each month to the Company for the sale of the products, claiming that it is entitled to reimbursement for these costs under the Reseller Agreement. These withholdings have averaged approximately $330 per month and totaled approximately $2,000 at December 31, 2013. The Company disagrees with the General Dealer’s interpretation of the Reseller Agreement and disputes any and all of the General Dealer’s reimbursement claims. While the parties have attempted to negotiate a resolution to the dispute, they have been unable to resolve the matter and the Company now plans to submit a claim for payment of the withheld funds to binding arbitration in the United Kingdom, pursuant to the terms of the Reseller Agreement. Not withstanding the annual renewal of the Reseller Agreement, the General Dealer may seek reimbursement of Discounts with respect to the periods prior to July 2013, which would total approximately $22,000. The Company believes the General Dealer’s claims are meritless and the Company intends to pursue its claims against the General Dealer. | |||||
The General Dealer is the Company’s sole general dealer in the Territories and the Company currently does not have in place any other third party or Company infrastructure capable of immediately assuming the General Dealer’s marketing and distribution obligations. Although the Company plans to continue to operate under the Reseller Agreement through the expiration of its term and is currently negotiating an extension, if the Company’s relationship with the General Dealer deteriorates or if the General Dealer ceases to provide such services in the Territories, the Company will need to identify, engage and train a new general dealer, establish its own marketing and distribution operations in the Territories, or create a hybrid model. Any such cessation of service and subsequent transition to another third party provider, or the establishment of its own distribution operations, could result in disruption to the Company’s business in the Territories, which could have an adverse effect on the Company’s business and results of operations. The Company is committed to its Managers and Distributors in the Territories and is actively working to ensure that they will supported going forward. | |||||
Other Litigation | |||||
The Company is party to various other legal proceedings in several foreign jurisdictions related to value-added tax assessments and other civil litigation. While there is a reasonable possibility that a material loss may be incurred, either the losses are not considered to be probable or the Company cannot at this time estimate the loss, if any; therefore, no provision for losses has been provided. The Company believes future payments related to these matters could range from $0 to approximately $900. | |||||
Non-Income Tax Contingencies | |||||
The Company has reserved for certain state sales and use tax and foreign non-income tax contingencies based on the likelihood of an obligation in accordance with accounting guidance for probable loss contingencies. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount is recorded. The Company provides provisions for potential payments of tax to various tax authorities for contingencies related to non-income tax matters, including value-added taxes and sales tax. The Company provides provisions for U.S. state sales taxes in each of the states where the Company has nexus. As of December 31, 2013 and 2012, accrued liabilities include $6,312 and $6,207, respectively, related to non-income tax contingencies. While management believes that the assumptions and estimates used to determine this liability are reasonable, the ultimate outcome of those matters cannot presently be determined. The Company is not able at this time to predict the ultimate outcomes of those matters or to estimate the effect of the ultimate outcomes, if greater than the amounts accrued, would have on the financial condition, results of operations or cash flows of the Company. | |||||
Self-Insurance Liabilities | |||||
Similar to other manufacturers and Distributors of products that are ingested, the Company faces an inherent risk of exposure to product liability claims in the event that, among other things, the use of its products results in injury. The Company carries insurance in the types and amounts it considers reasonably adequate to cover the risks associated with its business. The Company has a wholly owned captive insurance company to provide it with product liability insurance coverage. The Company has accrued an amount that it believes is sufficient to cover probable and reasonably estimable liabilities related to product liability claims based on the Company’s history of such claims. However, there can be no assurance that these estimates will prove to be sufficient, nor can there be any assurance that the ultimate outcome of any litigation for product liability will not have a material negative impact on the Company’s business prospects, financial position, results of operations or cash flows. | |||||
The Company self-insures for certain employee medical benefits. The recorded liabilities for self-insured risks are calculated using actuarial methods and are not discounted. The liabilities include amounts for actual claims and claims incurred but not reported. Actual experience, including claim frequency and severity as well as health care inflation, could result in actual liabilities being more or less than the amounts currently recorded. | |||||
The Company reviews its self-insurance accruals on a quarterly basis and determines, based upon a review of its recent claims history and other factors, which portions of its self-insurance accruals should be considered short-term and long-term. The Company has accrued $2,811 and $2,990 for product liability and employee medical claims at December 31, 2013 and 2012, respectively, of which $526 and $532 was classified as short-term. Such amounts are included in accrued liabilities and other long-term liabilities on the Company’s consolidated balance sheets. | |||||
Government Regulations | |||||
The Company is subject to governmental regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and to the Company’s direct selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determinations that either the Company or the Company’s Distributors are not in compliance with existing statutes, laws, rules or regulations could potentially have a material adverse effect on the Company’s operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations, or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. Although management believes that the Company is in compliance, in all material respects, with the statutes, laws, rules and regulations of every jurisdiction in which it operates, no assurance can be given that the Company’s compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
OPERATING_BUSINESS_SEGMENT_AND
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | ' | ||||||||||
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | ' | ||||||||||
NOTE 13: OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | |||||||||||
The Company has three business segments. These business segments are components of the Company for which separate information is available that is evaluated regularly by the chief executive officer in deciding how to allocate resources and in assessing relative performance. | |||||||||||
The Company has two business segments that operate under the Nature’s Sunshine Products brand and are divided based on the characteristics of their Distributor base, similarities in compensation plans, as well as the internal organization of NSP’s officers and their responsibilities (NSP Americas, Asia Pacific and Europe; and NSP Russia, Central and Eastern Europe). The Company’s third business segment operates under the Synergy WorldWide brand, which distributes its products through different selling and Distributor compensation plans and products with formulations that are sufficiently different from those of the NSP Americas, Asia Pacific and Europe; and NSP Russia, Central and Eastern Europe to warrant accounting for these operations as a separate business segment. Net sales revenues for each segment have been reduced by intercompany sales as they are not included in the measure of segment profit or loss reviewed by the chief executive officer. The Company evaluates performance based on contribution margin (loss) by segment before consideration of certain inter-segment transfers and expenses. | |||||||||||
Reportable business segment information for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Net sales revenue: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 207,059 | $ | 208,945 | $ | 216,912 | |||||
NSP Russia, Central and Eastern Europe | 62,747 | 57,853 | 56,986 | ||||||||
Synergy WorldWide | 108,290 | 100,670 | 93,915 | ||||||||
Total net sales revenue | 378,096 | 367,468 | 367,813 | ||||||||
Contribution margin (1): | |||||||||||
NSP Americas, Asia Pacific and Europe | 84,247 | 82,778 | 86,004 | ||||||||
NSP Russia, Central and Eastern Europe | 22,542 | 21,957 | 22,374 | ||||||||
Synergy WorldWide | 38,011 | 36,142 | 36,143 | ||||||||
Total contribution margin | 144,800 | 140,877 | 144,521 | ||||||||
Selling, general and administrative | 120,743 | 106,861 | 109,606 | ||||||||
Contract termination costs | — | — | 14,750 | ||||||||
Operating income | 24,057 | 34,016 | 20,165 | ||||||||
Other income, net | 1,596 | 1,480 | 1,847 | ||||||||
Income before provision for income taxes | $ | 25,653 | $ | 35,496 | $ | 22,012 | |||||
(1) Contribution margin consists of net sales revenue less cost of sales and volume incentives expense. | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Capital expenditures: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 8,018 | $ | 5,684 | $ | 993 | |||||
NSP Russia, Central and Eastern Europe | 4 | 44 | 66 | ||||||||
Synergy WorldWide | 534 | 1,051 | 1,183 | ||||||||
Total capital expenditures | $ | 8,556 | $ | 6,779 | $ | 2,242 | |||||
Depreciation and amortization: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 3,568 | $ | 3,339 | $ | 3,827 | |||||
NSP Russia, Central and Eastern Europe | 27 | 36 | 43 | ||||||||
Synergy WorldWide | 871 | 703 | 492 | ||||||||
Total depreciation and amortization | $ | 4,466 | $ | 4,078 | $ | 4,362 | |||||
As of December 31, | 2013 | 2012 | |||||||||
Assets: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 148,278 | $ | 136,237 | |||||||
NSP Russia, Central and Eastern Europe | 11,233 | 8,558 | |||||||||
Synergy WorldWide | 40,101 | 49,124 | |||||||||
Total assets | $ | 199,612 | $ | 193,919 | |||||||
From an individual country perspective, only the United States comprises approximately 10 percent or more of consolidated net sales revenue for any of the years ended December 31, 2013, 2012 and 2011 as follows: | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Net sales revenue: | |||||||||||
United States | $ | 152,209 | $ | 154,716 | $ | 159,471 | |||||
Other | 225,887 | 212,752 | 208,342 | ||||||||
Total net sales revenue | $ | 378,096 | $ | 367,468 | $ | 367,813 | |||||
Revenue generated by each of the Company’s product lines is set forth below (U.S. dollars in thousands): | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
NSP Americas, Asia Pacific and Europe: | |||||||||||
General health | $ | 88,239 | $ | 91,994 | $ | 95,342 | |||||
Immunity | 25,187 | 25,331 | 26,099 | ||||||||
Cardiovascular | 14,004 | 13,897 | 15,095 | ||||||||
Digestive | 59,877 | 58,127 | 62,175 | ||||||||
Personal care | 5,543 | 6,400 | 5,908 | ||||||||
Weight management | 14,209 | 13,196 | 12,293 | ||||||||
207,059 | 208,945 | 216,912 | |||||||||
NSP Russia, Central and Eastern Europe: | |||||||||||
General health | $ | 22,690 | $ | 20,540 | $ | 19,448 | |||||
Immunity | 7,902 | 7,365 | 7,558 | ||||||||
Cardiovascular | 4,324 | 4,367 | 5,342 | ||||||||
Digestive | 15,693 | 14,501 | 14,857 | ||||||||
Personal care | 8,817 | 8,908 | 7,848 | ||||||||
Weight management | 3,321 | 2,172 | 1,933 | ||||||||
62,747 | 57,853 | 56,986 | |||||||||
Synergy WorldWide: | |||||||||||
General health | $ | 36,723 | $ | 33,969 | $ | 29,592 | |||||
Immunity | 1,394 | 1,104 | 802 | ||||||||
Cardiovascular | 42,154 | 42,696 | 41,163 | ||||||||
Digestive | 16,897 | 14,904 | 13,606 | ||||||||
Personal care | 7,097 | 5,631 | 6,674 | ||||||||
Weight management | 4,025 | 2,366 | 2,078 | ||||||||
108,290 | 100,670 | 93,915 | |||||||||
Total net sales revenue | $ | 378,096 | $ | 367,468 | $ | 367,813 | |||||
From an individual country perspective, only the United States and Venezuela comprise 10 percent or more of consolidated property, plant and equipment as follows: | |||||||||||
As of December 31 | 2013 | 2012 | |||||||||
Property, plant and equipment | |||||||||||
United States | $ | 25,713 | $ | 20,923 | |||||||
Venezuela | 3,207 | 3,535 | |||||||||
Other | 3,102 | 3,492 | |||||||||
Total property, plant and equipment | $ | 32,022 | $ | 27,950 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 14: RELATED PARTY TRANSACTIONS | |
The Company maintains split-dollar life insurance policies on certain executives. The cash surrender value of $48 and $49 related to such policies is recorded in other assets as of December 31, 2013 and 2012, respectively. | |
Mr. Eugene Hughes, a former member of the Company’s Board of Directors and a shareholder, retired as an employee of the Company effective as of December 22, 2008. Prior to his retirement, the Company and Mr. Hughes entered into a Retirement and Consulting Agreement, dated as of December 9, 2008, pursuant to which Mr. Hughes provides consulting services to the Company for an initial term of eight years following his retirement. In exchange for such consulting services, Mr. Hughes will receive (i) annual compensation of $215 for the first two years of service, (ii) annual compensation of $100 for the remainder of the initial term, (iii) annual compensation of $50 after the initial term, and (iv) certain medical and life insurance benefits. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE | ' | |||||||||||||
FAIR VALUE | ' | |||||||||||||
NOTE 15: FAIR VALUE | ||||||||||||||
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values of each financial instrument. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: | ||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | ||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | ||||||||||||||
The following table presents the Company’s hierarchy for its asset measured at fair value on a recurring basis as of December 31, 2013: | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | |||||||||||||
Investments available-for-sale | ||||||||||||||
Municipal obligations | $ | — | $ | 415 | $ | — | $ | 415 | ||||||
U.S. government security funds | 983 | — | — | 983 | ||||||||||
Equity securities | 608 | — | — | 608 | ||||||||||
Investment securities | 971 | — | — | 971 | ||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,562 | $ | 415 | $ | — | $ | 2,977 | ||||||
The following table presents the Company’s hierarchy for its asset measured at fair value on a recurring basis as of December 31, 2012: | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | |||||||||||||
Investments available-for-sale | ||||||||||||||
Municipal obligations | $ | — | $ | 638 | $ | — | $ | 638 | ||||||
U.S. government security funds | 986 | — | — | 986 | ||||||||||
Equity securities | 447 | — | — | 447 | ||||||||||
Investment securities | 1,276 | — | — | 1,276 | ||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,709 | $ | 638 | $ | — | $ | 3,347 | ||||||
Investments available-for-sale — The majority of the Company’s investment portfolio consist of various securities such as state and municipal obligations, U.S. government security funds, short-term deposits and various equity securities. The Level 1 securities are valued using quoted prices for identical assets in active markets including equity securities and U.S. government treasuries. The Level 2 securities include investments in state and municipal obligations whereby all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset. | ||||||||||||||
Investment securities — The majority of the Company’s trading portfolio consists of various marketable securities that are valued using quoted prices in active markets. | ||||||||||||||
For the years ended December 31, 2013 and 2012, there were no fair value measurements using significant unobservable inputs (Level 3). |
SUMMARY_OF_QUARTERLY_OPERATION
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | ' | |||||||||||||
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | ' | |||||||||||||
NOTE 16: SUMMARY OF QUARTERLY OPERATIONS — UNAUDITED | ||||||||||||||
The following tables presents the Company’s unaudited summary of quarterly operations during 2013 and 2012 for each of three month periods ended March 31, June 30, September 30, and December 31. | ||||||||||||||
For the Quarter Ended | ||||||||||||||
March 31, | June 30, | September | December | |||||||||||
2013 | 2013 | 30, 2013 | 31, 2013 | |||||||||||
Net sales revenue | $ | 96,479 | $ | 93,675 | $ | 92,458 | $ | 95,484 | ||||||
Cost of sales | (24,445 | ) | (22,630 | ) | (23,655 | ) | (24,084 | ) | ||||||
Gross profit | 72,034 | 71,045 | 68,803 | 71,400 | ||||||||||
Volume incentives | 34,975 | 34,525 | 33,920 | 35,062 | ||||||||||
Selling, general and administrative | 30,117 | 28,709 | 28,170 | 33,747 | ||||||||||
Operating income | 6,942 | 7,811 | 6,713 | 2,591 | ||||||||||
Other income (expense) | 330 | 1,482 | (269 | ) | 53 | |||||||||
Income before income taxes | 7,272 | 9,293 | 6,444 | 2,644 | ||||||||||
Tax provision | 2,408 | 3,241 | 1,594 | 801 | ||||||||||
Net income | $ | 4,864 | $ | 6,052 | $ | 4,850 | $ | 1,843 | ||||||
Basic and diluted net income per common share | ||||||||||||||
Basic: | ||||||||||||||
Net income per common share | $ | 0.31 | $ | 0.38 | $ | 0.3 | $ | 0.11 | ||||||
Diluted: | ||||||||||||||
Net income per common share | $ | 0.3 | $ | 0.38 | $ | 0.29 | $ | 0.11 | ||||||
Dividends declared per common share | $ | 0.1 | $ | 0.1 | $ | 1.6 | $ | 0.1 | ||||||
For the Quarter Ended | ||||||||||||||
March 31, | June 30, | September | December | |||||||||||
2012 | 2012 | 30, 2012 | 31, 2012 | |||||||||||
Net sales revenue | $ | 92,868 | $ | 92,991 | $ | 91,232 | $ | 90,377 | ||||||
Cost of sales | (23,729 | ) | (22,610 | ) | (23,144 | ) | (23,841 | ) | ||||||
Gross profit | 69,139 | 70,381 | 68,088 | 66,536 | ||||||||||
Volume incentives | 33,581 | 33,540 | 33,155 | 32,991 | ||||||||||
Selling, general and administrative | 26,384 | 26,530 | 26,228 | 27,719 | ||||||||||
Operating income | 9,174 | 10,311 | 8,705 | 5,826 | ||||||||||
Other income (expense) | (110 | ) | 165 | (214 | ) | 1,639 | ||||||||
Income before income taxes | 9,064 | 10,476 | 8,491 | 7,465 | ||||||||||
Tax provision | 1,836 | 3,190 | 2,121 | 2,969 | ||||||||||
Net income | $ | 7,228 | $ | 7,286 | $ | 6,370 | $ | 4,496 | ||||||
Basic and diluted net income per common share | ||||||||||||||
Basic: | ||||||||||||||
Net income per common share | $ | 0.46 | $ | 0.47 | $ | 0.41 | $ | 0.28 | ||||||
Diluted: | ||||||||||||||
Net income per common share | $ | 0.46 | $ | 0.46 | $ | 0.4 | $ | 0.28 | ||||||
Dividends declared per common share | $ | — | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||
Basic and diluted income per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly net loss per share may not equal the total computed for the year. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||||||||
NATURE’S SUNSHINE PRODUCTS, INC. | ||||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012, AND 2011 | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Description | Balance at | Provisions | Amounts | Amounts | Effect of | Balance at | ||||||||||||||
Beginning | Written Off | Recovered | Currency | End of Year | ||||||||||||||||
of Year | Translation | |||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 631 | $ | 535 | $ | (18 | ) | $ | 1 | $ | (62 | ) | $ | 1,087 | ||||||
Allowance for sales returns | 154 | 1,435 | (1,454 | ) | — | — | 135 | |||||||||||||
Allowance for obsolete inventory | 2,254 | 1,600 | (1,577 | ) | 41 | 89 | 2,407 | |||||||||||||
Tax valuation allowance | 8,149 | 3,191 | — | — | — | 11,340 | ||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 647 | $ | 45 | $ | (86 | ) | $ | (1 | ) | $ | 26 | $ | 631 | ||||||
Allowance for sales returns | 109 | 2,296 | (2,249 | ) | — | (2 | ) | 154 | ||||||||||||
Allowance for obsolete inventory | 2,083 | 985 | (809 | ) | — | (5 | ) | 2,254 | ||||||||||||
Tax valuation allowance | 9,836 | (1,687 | ) | — | — | — | 8,149 | |||||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 918 | $ | (133 | ) | $ | (174 | ) | $ | 12 | $ | 24 | $ | 647 | ||||||
Allowance for sales returns | 90 | 625 | (606 | ) | — | — | 109 | |||||||||||||
Allowance for obsolete inventory | 2,397 | 732 | (1,057 | ) | 10 | 1 | 2,083 | |||||||||||||
Tax valuation allowance | 12,282 | (2,390 | ) | (56 | ) | — | — | 9,836 | ||||||||||||
NATURE_OF_OPERATIONS_AND_SIGNI1
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
Nature of Operations | ' | ||||||||||
Nature of Operations | |||||||||||
Nature’s Sunshine Products, Inc., together with its subsidiaries (hereinafter referred to collectively as the “Company”), is a natural health and wellness company primarily engaged in the manufacturing and direct selling of nutritional and personal care products. The Company is a Utah corporation with its principal place of business in Lehi, Utah and sells its products to a sales force of Managers and Distributors who use the products themselves or resell them to other Distributors or consumers. The formulation, manufacturing, packaging, labeling, advertising, distribution and sale of each of the Company’s major product groups are subject to regulation by one or more governmental agencies. | |||||||||||
The Company markets its products in Australia, Austria, Belarus, Canada, Colombia, Costa Rica, the Czech Republic, Denmark, the Dominican Republic, Ecuador, El Salvador, Finland, Germany, Guatemala, Honduras, Hong Kong, Iceland, Indonesia, Ireland, Italy, Japan, Kazakhstan, Latvia, Lithuania, Malaysia, Mexico, Moldova, Mongolia, the Netherlands, Nicaragua, Norway, Panama, Peru, the Philippines, Poland, Russia, Singapore, Slovenia, South Korea, Spain, Sweden, Taiwan, Thailand, the Ukraine, the United Kingdom, the United States, Venezuela and Vietnam. The Company also exports its products to Argentina, Australia, Chile, Israel, New Zealand and Norway. | |||||||||||
Principles of Consolidation | ' | ||||||||||
Principles of Consolidation | |||||||||||
The accompanying consolidated financial statements include the accounts and transactions of the Company and its subsidiaries. At December 31, 2013 and 2012, substantially all of the Company’s subsidiaries were wholly owned. The Company operates a limited number of markets in jurisdictions where local laws require the formation of a partnership with an entity domiciled in that market. These partners have no rights to participate in the sharing of revenues, profits, losses or distribution of assets upon liquidation of these partnerships. | |||||||||||
Intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
Use of Estimates | ' | ||||||||||
Use of Estimates | |||||||||||
The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities, in these financial statements and accompanying notes. Actual results could differ from these estimates and those differences could have a material effect on the Company’s financial position and results of operations. | |||||||||||
The significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with its evaluation of impairment of long-lived assets, the determination of liabilities related to Manager and Distributor incentives, the determination of income tax assets and liabilities, certain other non-income tax and value-added tax contingencies, legal contingencies, share-based compensation and the valuation of investments. In addition, significant estimates form the basis for allowances with respect to the collection of accounts receivable, inventory valuations and self-insurance liabilities associated with product liability and medical claims. Various assumptions and other factors enter into the determination of these significant estimates. The process of determining significant estimates takes into account historical experience and current and expected economic conditions. | |||||||||||
Classification of Venezuela as a Highly Inflationary Economy and Devaluation of Its Currency | ' | ||||||||||
Classification of Venezuela as a Highly Inflationary Economy and Devaluation of Its Currency | |||||||||||
Since January 1, 2010, Venezuela has been designated as a highly inflationary economy. Accordingly, the U.S. dollar became the functional currency for the Company’s subsidiary in Venezuela. All gains and losses resulting from the re-measurement of its financial statements are determined using official rates. On February 11, 2013, the Venezuelan government announced the further devaluation of the bolivar to 6.3 bolivars per U.S. dollar. | |||||||||||
Currency restrictions enacted by the government of Venezuela require approval from the government’s currency control agency (“CADIVI”) in order for the Company’s subsidiary in Venezuela to obtain U.S. dollars at the official exchange rate to pay for imported products or to repatriate dividends back to the Company. Prior to January 1, 2010, the market rate, which is substantially lower than the official rate, was available to obtain U.S. dollars or other currencies without approval of the CADIVI. In 2013, the CADIVI established a new official exchange rate of 6.3 bolivars per U.S. dollar, and mandated that entities domiciled in Venezuela must formerly apply and be approved by the CADIVI to obtain U.S. dollars or U.S. dollar denominated securities through banking institutions approved by the government at the official CADIVI exchange rate of 6.3. On a daily basis, the CADIVI will determine how many U.S. dollars will be sold and which previously approved companies are authorized to buy. Subsequently, the Venezuela Central Bank will pay the foreign entities directly to limit the amount of U.S. dollars available within Venezuela. | |||||||||||
The Company re-measures its results in Venezuela at the official CADIVI rate, which was approximately 6.3 bolivars per U.S. dollar as of December 31, 2013. However, since the further devaluation of the bolivar to 6.3, the Company has been unsuccessful in obtaining U.S. dollars at the official CADIVI exchange rate and it remains uncertain when the Company’s applications will be approved to complete exchange transactions in the future. | |||||||||||
In addition to the further devaluation of the bolivar in 2013, the CADIVI enacted a new currency exchange mechanism, the Complementary System for Foreign Currency Administration (“SICAD”), to replace the System for Foreign Currency Denominated Securities (“SITME”) which was enacted in 2010 to end the trading of currency at the market rate. Under SICAD, the Company will be able to obtain U.S. dollars at a higher unofficial exchange rate determined by the CADIVI. The Company is currently monitoring the SICAD exchange mechanism and the potential for exchange transactions should the Company’s applications to exchange at the official CADIVI rate of 6.3 be unsuccessful. | |||||||||||
During 2013, 2012 and 2011, the Company’s Venezuelan subsidiary’s net sales revenue represented approximately 2.2 percent, 1.8 percent and 1.4 percent of consolidated net sales revenue, respectively. As of December 31, 2013 and 2012, the Company’s Venezuelan subsidiary held cash and cash equivalents of $3,922 and $1,748, respectively. At this time, the Company is not able to reasonably estimate the future state of exchange controls in Venezuela and its availability of U.S. dollars at the official CADIVI exchange rate. | |||||||||||
Classification of Belarus as a Highly Inflationary Economy and Devaluation of Its Currency | ' | ||||||||||
Classification of Belarus as a Highly Inflationary Economy and Devaluation of Its Currency | |||||||||||
Since June 30, 2012, Belarus has been designated as a highly inflationary economy. The U.S. dollar is the Company’s functional currency for this market. As a result, there were no resulting gains or losses from a re-measurement of the financial statements using official rates of the Company’s Belarusian subsidiary. However, as a result of the weakening of the Belarusian ruble, the purchasing power of the Company’s Distributors in this market has diminished. During the periods ended December 31, 2013, 2012 and 2011, the Company’s Belarusian subsidiary’s net sales revenue represented approximately 2.1 percent, 1.8 percent and 1.6 percent of consolidated net sales revenue, respectively. | |||||||||||
Cash and Cash Equivalents | ' | ||||||||||
Cash and Cash Equivalents | |||||||||||
The Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. Substantially all of the Company’s cash deposits either exceed the United States federally insured limit or are located in countries that do not have government insured accounts or are subject to tax withholdings when repatriating earnings. | |||||||||||
Accounts Receivable | ' | ||||||||||
Accounts Receivable | |||||||||||
Accounts receivable consist principally of receivables from credit card companies, arising from the sale of products to the Company’s Distributors, and receivables from Distributors in foreign markets. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. However, due to the geographic dispersion of credit card and Distributor receivables, the collection risk is not considered to be significant. Substantially all of the receivables from credit card companies were current as of December 31, 2013 and 2012. Although receivables from Distributors can be significant, the Company performs ongoing credit evaluations of its importers and maintains an allowance for potential credit losses. This estimated allowance is based primarily on the aging category, historical trends and management’s evaluation of the financial condition of the customer. This reserve is adjusted periodically as information about specific accounts becomes available. | |||||||||||
Investment Securities | ' | ||||||||||
Investment Securities | |||||||||||
The Company’s available-for-sale investment portfolio is recorded at fair value and consists of various securities such as state and municipal obligations, U.S. government security funds, short-term deposits and various equity securities. These investments are valued using (a) quoted prices for identical assets in active markets or (b) from significant inputs that are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset. The Company’s trading portfolio is recorded at fair value and consists of various marketable securities that are valued using quoted prices in active markets. | |||||||||||
For available-for-sale debt securities with unrealized losses, the Company performs an analysis to assess whether it intends to sell or whether it would be more likely than not required to sell the security before the expected recovery of the amortized cost basis. Where the Company intends to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary, and the full amount of the unrealized loss is recorded within earnings as an impairment loss. | |||||||||||
For all other debt securities that experience a decline in fair value that is determined to be other-than-temporary and not related to credit loss, the Company records a loss, net of any tax, in accumulated other comprehensive income (loss). The credit loss is recorded within earnings as an impairment loss when sold. Management judgment is involved in evaluating whether a decline in an investment’s fair value is other-than-temporary. | |||||||||||
Regardless of the Company’s intent to sell a security, the Company performs additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where the Company does not expect to receive cash flows sufficient to recover the amortized cost basis of a security. | |||||||||||
For equity securities, when assessing whether a decline in fair value below the Company's cost basis is other-than-temporary, the Company considers the fair market value of the security, the length of time and extent to which market value has been less than cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer, and the Company’s intent and ability to hold the investment for a sufficient time in order to enable recovery of the cost. New information and the passage of time can change these judgments. Where the Company has determined that it lacks the intent and ability to hold an equity security to its expected recovery, the security’s decline in fair value is deemed to be other-than-temporary and is recorded within earnings as an impairment loss. | |||||||||||
The Company also has certain investment securities classified as trading securities. The Company maintains its trading securities portfolio to generate returns that are offset by corresponding changes in certain liabilities related to the Company’s deferred compensation plans (see Note 11). The trading securities portfolio consists of marketable securities, which are recorded at fair value and are included in long-term investment securities on the consolidated balance sheets because they remain assets of the Company until they are actually paid out to the participants. These investment securities are not available to the Company to fund its operations as they are restricted for the payment of the deferred compensation payable. The Company has established a rabbi trust to finance obligations under the plan. Both realized and unrealized gains and losses on trading securities are included in interest and other income. | |||||||||||
Fair Value of Financial Instruments | ' | ||||||||||
Fair Value of Financial Instruments | |||||||||||
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable and long-term debt. Other than investments, which are carried at fair value, and long-term debt, the carrying values of these financial instruments approximate their fair values due to their short-term nature. The carrying amount reflected in the consolidated balance sheet for long-term debt approximates fair value due to the interest rate on the debt being variable based on current market rates. During the year ended December 31, 2013 and 2012, the Company did not have any write-offs related to the re-measurement of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. | |||||||||||
Inventories | ' | ||||||||||
Inventories | |||||||||||
Inventories are stated at the lower-of-cost-or-market, using the first-in, first-out method. The components of inventory cost include raw materials, labor and overhead. To estimate any necessary obsolescence or lower-of-cost-or-market adjustments, various assumptions are made in regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning and market conditions. | |||||||||||
Property, Plant and Equipment | ' | ||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives for buildings range from 20 to 50 years; building improvements range from 7 to 10 years; machinery and equipment range from 2 to 10 years; computer software and hardware range from 3 to 10 years; and furniture and fixtures range from 2 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs are expensed as incurred and major improvements are capitalized. | |||||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | |||||||||||
Intangible assets consist of purchased product formulations. Such intangible assets are amortized using the straight-line method over the estimated economic lives of the assets of 9 to 15 years. Intangible assets, net of accumulated amortization, totaled $853 and $1,002 at December 31, 2013 and 2012, respectively. | |||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||
Impairment of Long-Lived Assets | |||||||||||
The Company reviews its long-lived assets, such as property, plant and equipment and intangible assets for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company uses an estimate of future undiscounted net cash flows of the related assets or groups of assets over their remaining lives in measuring whether the assets are recoverable. An impairment loss is calculated by determining the difference between the carrying values and the fair values of these assets. The Company did not consider any of its long-lived assets to be impaired during the years ended December 31, 2013, 2012 or 2011. | |||||||||||
Incentive Trip Accrual | ' | ||||||||||
Incentive Trip Accrual | |||||||||||
The Company accrues for expenses associated with its direct sales program, which rewards Managers and Distributors with paid attendance for incentive trips, including Company conventions and meetings. Expenses associated with incentive trips are accrued over qualification periods as they are earned. The Company specifically analyzes incentive trip accruals based on historical and current sales trends as well as contractual obligations when evaluating the adequacy of the incentive trip accrual. Actual results could generate liabilities more or less than the amounts recorded. The Company has accrued convention and meeting costs of $5,784 and $4,624 at December 31, 2013 and 2012, respectively, which are included in accrued liabilities in the consolidated balance sheets. | |||||||||||
Foreign Currency Translation | ' | ||||||||||
Foreign Currency Translation | |||||||||||
The local currency of the foreign subsidiaries is used as the functional currency, except for subsidiaries operating in highly inflationary economies or where the Company’s operations are served by a U.S. based subsidiary (for example Belarus, Russia and the Ukraine). The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at year end for assets and liabilities and average exchange rates during each year for the results of operations. Adjustments resulting from translation of financial statements are reflected in accumulated other comprehensive loss, net of income taxes. Foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations. | |||||||||||
The functional currency in highly inflationary economies is the U.S. dollar and transactions denominated in the local currency are re-measured as if the functional currency were the U.S. dollar. The re-measurement of local currencies into U.S. dollars creates translation adjustments, which are included in the consolidated statements of operations. A country is considered to have a highly inflationary economy if it has a cumulative inflation rate of approximately 100 percent or more over a three year period as well as other qualitative factors including historical inflation rate trends (increasing and decreasing), the capital intensiveness of the operation, and other pertinent economic factors. Belarus and Venezuela were considered to be highly inflationary as noted above. With the exception of Belarus and Venezuela, there were no countries considered to have a highly inflationary economy during 2013, 2012 or 2011. | |||||||||||
Revenue Recognition | ' | ||||||||||
Revenue Recognition | |||||||||||
Net sales revenue and related volume incentive expenses are recorded when persuasive evidence of an arrangement exists, collectability is reasonably assured, the amount is fixed and determinable, and title and risk of loss have passed. The amount of the volume incentive is determined based upon the amount of qualifying purchases in a given month. It is necessary for the Company to make estimates about the timing of when merchandise has been delivered. These estimates are based upon the Company’s historical experience related to time in transit, timing of when shipments occurred and shipping volumes. Amounts received for undelivered merchandise are recorded as deferred revenue. | |||||||||||
From time to time, the Company’s U.S. operations extend short-term credit associated with product promotions. In addition for certain of the Company’s international operations, the Company offers credit terms consistent with industry standards within the country of operation. Payments to Managers and Distributors for sales incentives or rebates are recorded as a reduction of revenue. Payments for sales incentives and rebates are calculated monthly based upon qualifying sales. Membership fees are deferred and amortized as revenue over the life of the membership, primarily one year. Prepaid event registration fees are deferred and recognized as revenues when the related event is held. | |||||||||||
A reserve for product returns is recorded based upon historical experience. The Company allows Managers or Distributors to return the unused portion of products within ninety days of purchase if they are not satisfied with the product. In some of the Company's markets, the requirements to return product are more restrictive. Sales returns for the years 2013, 2012 and 2011, were $1,454, $2,249 and $606, respectively. The increase in sales returns for year ended December 31, 2012 was due to unusually high product returns during the first quarter of 2012 related to a specific promotion in the Synergy Japan market. Product returns were not related to product quality and have since returned to lower return rates. | |||||||||||
Amounts billed to customers for shipping and handling are reported as a component of net sales revenue. Shipping and handling revenues of approximately $10,868, $11,264 and $11,615 were reported as net sales revenue for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
Taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales, use, value-added, and some excise taxes, are presented on a net basis (excluded from net sales). | |||||||||||
Advertising Costs | ' | ||||||||||
Advertising Costs | |||||||||||
Advertising costs are expensed as incurred and classified in selling, general and administrative expenses. Advertising expense incurred for the years ended December 31, 2013, 2012 and 2011 totaled approximately $2,194, $1,418 and $1,191, respectively. | |||||||||||
Research and Development | ' | ||||||||||
Research and Development | |||||||||||
All research and development costs are expensed as incurred and classified in selling, general and administrative expense. Total research and development expenses were approximately $2,039, $1,464 and $1,552 in 2013, 2012 and 2011, respectively. | |||||||||||
Contingencies | ' | ||||||||||
Contingencies | |||||||||||
The Company is involved in certain legal proceedings. When a loss is considered probable in connection with litigation or non-income tax contingencies and when such loss can be reasonably estimated with a range, the Company records its best estimate within the range related to the contingency. If there is no best estimate, the Company records the minimum of the range. As additional information becomes available, it assesses the potential liability related to the contingency and revises the estimates. The Company’s contingencies are discussed in further detail in Note 12. | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | |||||||||||
The Company’s income tax expense, deferred tax assets and liabilities and contingent reserves reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. | |||||||||||
Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating the Company’s ability to recover its deferred tax assets, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, the Company develops assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income, and are consistent with the plans and estimates that the Company is using to manage the underlying businesses. | |||||||||||
Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. | |||||||||||
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. | |||||||||||
Net Income (Loss) Per Common Share | ' | ||||||||||
Net Income (Loss) Per Common Share | |||||||||||
Basic net income per common share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. | |||||||||||
Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for all years: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net income available to common stockholders | |||||||||||
Net income | $ | 17,609 | $ | 25,380 | $ | 17,601 | |||||
Basic weighted-average shares outstanding | 15,997 | 15,648 | 15,550 | ||||||||
Basic net income per common share: | |||||||||||
Net income | $ | 1.1 | $ | 1.62 | $ | 1.13 | |||||
Diluted Shares Outstanding | |||||||||||
Basic weighted-average shares outstanding | 15,997 | 15,648 | 15,550 | ||||||||
Stock-based awards | 393 | 339 | 145 | ||||||||
Diluted weighted-average shares outstanding | 16,390 | 15,987 | 15,695 | ||||||||
Diluted net income per common share: | |||||||||||
Net income | $ | 1.07 | $ | 1.59 | $ | 1.12 | |||||
Potentially dilutive shares excluded from diluted-per-share amounts: | |||||||||||
Stock options | 135 | 88 | 219 | ||||||||
Potentially anti-dilutive shares excluded from diluted-per-share amounts: | |||||||||||
Stock options | 210 | 254 | 200 | ||||||||
Potentially dilutive shares excluded from diluted-per-share amounts include performance-based options to purchase shares of common stock for which certain earnings metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income per share for each of the years presented. | |||||||||||
Share-Based Compensation | ' | ||||||||||
Share-Based Compensation | |||||||||||
The Company’s outstanding stock options include time-based stock options which vest over differing periods ranging from the date of issuance up to 48 months from the option grant date, performance-based stock options which already vested upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options, performance-based stock options which vest upon achieving cumulative annual net sales revenue growth targets over a rolling two-year period subject to the Company maintaining at least an eight percent operating income margin during the applicable period, and performance-based stock options which vest upon achieving annual net sales targets over a rolling one-year period. | |||||||||||
The Company recognizes all share-based payments to Directors and employees, including grants of stock options and restricted stock units, to be recognized in the statement of operations based on their grant-date fair values. We record compensation expense, net of an estimated forfeiture rate, over the vesting period of the stock options based on the fair value of the stock options on the date of grant. The Company’s estimated forfeiture rate is based upon historical experience. | |||||||||||
Comprehensive Income (Loss) | ' | ||||||||||
Comprehensive Income (Loss) | |||||||||||
Comprehensive income (loss) includes all changes in shareholders’ equity except those resulting from investments by, and distributions to, shareholders. Accordingly, the Company’s comprehensive income (loss) includes net income (loss), net unrealized gains (losses) on investment securities, reclassifications of realized gains, and foreign currency adjustments that arise from the translation of the financial statements of the Company’s foreign subsidiaries. | |||||||||||
Recent Accounting Pronouncements | ' | ||||||||||
Recent Accounting Pronouncements | |||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11 Income Taxes (Topic 740): “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This update provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The amendments in this update are effective for interim and annual periods beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. |
NATURE_OF_OPERATIONS_AND_SIGNI2
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
Schedule of reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Net income available to common stockholders | |||||||||||
Net income | $ | 17,609 | $ | 25,380 | $ | 17,601 | |||||
Basic weighted-average shares outstanding | 15,997 | 15,648 | 15,550 | ||||||||
Basic net income per common share: | |||||||||||
Net income | $ | 1.1 | $ | 1.62 | $ | 1.13 | |||||
Diluted Shares Outstanding | |||||||||||
Basic weighted-average shares outstanding | 15,997 | 15,648 | 15,550 | ||||||||
Stock-based awards | 393 | 339 | 145 | ||||||||
Diluted weighted-average shares outstanding | 16,390 | 15,987 | 15,695 | ||||||||
Diluted net income per common share: | |||||||||||
Net income | $ | 1.07 | $ | 1.59 | $ | 1.12 | |||||
Potentially dilutive shares excluded from diluted-per-share amounts: | |||||||||||
Stock options | 135 | 88 | 219 | ||||||||
Potentially anti-dilutive shares excluded from diluted-per-share amounts: | |||||||||||
Stock options | 210 | 254 | 200 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVENTORIES | ' | |||||||
Schedule of composition of inventories | ' | |||||||
As of December 31, | 2013 | 2012 | ||||||
Raw materials | $ | 10,848 | $ | 13,287 | ||||
Work in process | 740 | 742 | ||||||
Finished goods | 30,322 | 29,251 | ||||||
Total inventory | $ | 41,910 | $ | 43,280 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
Schedule of composition of property, plant and equipment | ' | |||||||
As of December 31, | 2013 | 2012 | ||||||
Land and improvements | $ | 3,800 | $ | 3,800 | ||||
Buildings and improvements | 33,655 | 33,309 | ||||||
Machinery and equipment | 18,209 | 17,919 | ||||||
Furniture and fixtures | 17,884 | 16,956 | ||||||
Computer software and hardware | 8,255 | 4,226 | ||||||
81,803 | 76,210 | |||||||
Accumulated depreciation and amortization | (49,781 | ) | (48,260 | ) | ||||
Total property, plant and equipment | $ | 32,022 | $ | 27,950 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
INTANGIBLE ASSETS | ' | ||||
Schedule of estimated amortization expense for the five succeeding fiscal years and thereafter | ' | ||||
Year Ending December 31, | |||||
2014 | $ | 149 | |||
2015 | 149 | ||||
2016 | 91 | ||||
2017 | 91 | ||||
2018 | 91 | ||||
Thereafter | 282 | ||||
Total | $ | 853 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||
Schedule of amortized cost and estimated fair values of available-for-sale securities by balance sheet classification | ' | |||||||||||||
As of December 31, 2013 | Amortized | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||
Gains | Losses | |||||||||||||
Municipal obligations | $ | 403 | $ | 12 | $ | — | $ | 415 | ||||||
U.S. government securities funds | 997 | — | (14 | ) | 983 | |||||||||
Equity securities | 227 | 386 | (5 | ) | 608 | |||||||||
Total short-term investment securities | $ | 1,627 | $ | 398 | $ | (19 | ) | $ | 2,006 | |||||
As of December 31, 2012 | Amortized | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||
Gains | Losses | |||||||||||||
Municipal obligations | $ | 608 | $ | 30 | $ | — | $ | 638 | ||||||
U.S. government securities funds | 995 | — | (9 | ) | 986 | |||||||||
Equity securities | 227 | 228 | (8 | ) | 447 | |||||||||
Total short-term investment securities | $ | 1,830 | $ | 258 | $ | (17 | ) | $ | 2,071 |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
Schedule of composition of accrued liabilities | ' | |||||||
As of December 31, | 2013 | 2012 | ||||||
Foreign non-income tax contingencies (See Note 12) | $ | 5,363 | $ | 5,358 | ||||
Sales, use and property tax (See Note 12) | 4,498 | 3,690 | ||||||
Salaries and employee benefits | 11,749 | 8,217 | ||||||
Convention and meeting costs | 5,784 | 4,624 | ||||||
Other | 7,499 | 5,413 | ||||||
Total | $ | 34,893 | $ | 27,302 |
LONGTERM_DEBT_AND_REVOLVING_CR1
LONG-TERM DEBT AND REVOLVING CREDIT FACILITY (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT AND REVOLVING CREDIT FACILITY | ' | |||||||
Schedule of Long-term debt | ' | |||||||
As of December 31, | 2013 | 2012 | ||||||
Term loan in monthly installments of approximately $284, including interest | $ | 2,267 | $ | 5,620 | ||||
Less current installments | (2,267 | ) | (3,350 | ) | ||||
— | 2,270 | |||||||
Revolving credit agreement | 10,000 | — | ||||||
Long-term debt less current installments | $ | 10,000 | $ | 2,270 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||
Schedule of components of accumulated other comprehensive income (loss), net of tax | ' | ||||||||||
Foreign Currency | Net Unrealized | Total | |||||||||
Translation | Gains (Losses) On | Accumulated Other | |||||||||
Adjustments | Available-For-Sale | Comprehensive Loss | |||||||||
Securities | |||||||||||
Balance as of January 1, 2011 | $ | (7,794 | ) | $ | 146 | $ | (7,648 | ) | |||
Activity, net of tax | (2,397 | ) | (24 | ) | (2,421 | ) | |||||
Balance as of December 31, 2011 | (10,191 | ) | 122 | (10,069 | ) | ||||||
Activity, net of tax | (522 | ) | 25 | (497 | ) | ||||||
Balance as of December 31, 2012 | (10,713 | ) | 147 | (10,566 | ) | ||||||
Activity, net of tax | (3,480 | ) | 83 | (3,397 | ) | ||||||
Balance as of December 31, 2013 | $ | (14,193 | ) | 230 | $ | (13,963 | ) | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of income from before provision for income taxes | ' | ||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Domestic | $ | 6,111 | $ | 17,625 | $ | 2,338 | |||||
Foreign | 19,542 | 17,871 | 19,674 | ||||||||
Total | $ | 25,653 | $ | 35,496 | $ | 22,012 | |||||
Schedule of components of the provision (benefit) for income taxes | ' | ||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Current: | |||||||||||
Federal | $ | (773 | ) | $ | 1,901 | $ | 4,094 | ||||
State | 399 | 248 | 961 | ||||||||
Foreign | 7,326 | 3,835 | 4,429 | ||||||||
Subtotal | 6,952 | 5,984 | 9,484 | ||||||||
Deferred: | |||||||||||
Federal | 1,654 | 2,303 | (4,408 | ) | |||||||
State | 186 | 1,207 | (719 | ) | |||||||
Foreign | (748 | ) | 622 | 54 | |||||||
Subtotal | 1,092 | 4,132 | (5,073 | ) | |||||||
Total provision for income taxes | $ | 8,044 | $ | 10,116 | $ | 4,411 | |||||
Schedule of differences between the statutory U.S. federal income tax rate and the provision for income taxes, as a percentage of income before provision for income taxes | ' | ||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Statutory U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of U.S. federal income tax benefit | 1.4 | 2.7 | 0.7 | ||||||||
U.S. tax impact of foreign operations | (15.9 | ) | (2.1 | ) | (20.3 | ) | |||||
Valuation allowance change | 9.3 | (3.9 | ) | (0.3 | ) | ||||||
Unrecognized tax benefits | 8.4 | 0.4 | 8.2 | ||||||||
Domestic manufacturing deduction | (1.3 | ) | (0.4 | ) | (1.1 | ) | |||||
Nondeductible foreign expenses | (4.4 | ) | (0.9 | ) | (1.3 | ) | |||||
Other | (1.1 | ) | (2.3 | ) | (0.9 | ) | |||||
Effective income tax rate | 31.4 | % | 28.5 | % | 20 | % | |||||
Schedule of components of U.S. tax impact of foreign operations | ' | ||||||||||
Components of U.S. tax impact of foreign operations | 2013 | 2012 | 2011 | ||||||||
Dividends received from foreign subsidiaries | 29.2 | % | 4.5 | % | 26.2 | % | |||||
Foreign tax credits | (34.1 | ) | (4.0 | ) | (33.1 | ) | |||||
Foreign tax rate differentials | (10.6 | ) | (2.3 | ) | (5.2 | ) | |||||
Unremitted earnings | (0.4 | ) | (0.3 | ) | (8.2 | ) | |||||
Total | (15.9 | )% | (2.1 | )% | (20.3 | )% | |||||
Schedule of significant components of the deferred tax assets (liabilities) | ' | ||||||||||
As of December 31, | 2013 | 2012 | |||||||||
Inventory | $ | 1,502 | $ | 1,718 | |||||||
Accrued liabilities | 4,380 | 3,464 | |||||||||
Impaired investments | — | 727 | |||||||||
Deferred compensation | 364 | 483 | |||||||||
Equity-based compensation | 2,993 | 2,592 | |||||||||
Intangibles assets | 389 | 2,308 | |||||||||
Bad debts | 225 | 49 | |||||||||
Net operating losses | 5,593 | 4,152 | |||||||||
Foreign tax and withholding credits | 4,066 | 4,406 | |||||||||
Non-income tax accruals | 397 | 452 | |||||||||
Health insurance accruals | 184 | 186 | |||||||||
Undistributed foreign earnings | 4,008 | 2,704 | |||||||||
Other deferred tax assets | 2,260 | 2,357 | |||||||||
Capital loss carryforward | 721 | — | |||||||||
Valuation allowance | (11,340 | ) | (8,149 | ) | |||||||
Total deferred tax assets | 15,742 | 17,449 | |||||||||
Other deferred tax liabilities | (231 | ) | (720 | ) | |||||||
Total deferred tax liabilities | (231 | ) | (720 | ) | |||||||
Total deferred taxes, net | $ | 15,511 | $ | 16,729 | |||||||
Schedule of components of deferred tax assets (liabilities), net | ' | ||||||||||
As of December 31, | 2013 | 2012 | |||||||||
Net current deferred tax assets | $ | 5,711 | $ | 5,307 | |||||||
Net non-current deferred tax assets | 9,928 | 11,516 | |||||||||
Total net deferred tax assets | 15,639 | 16,823 | |||||||||
Net current deferred tax liabilities | (2 | ) | (1 | ) | |||||||
Net non-current deferred tax liabilities | (126 | ) | (93 | ) | |||||||
Total net deferred tax liabilities | (128 | ) | (94 | ) | |||||||
Total deferred taxes, net | $ | 15,511 | $ | 16,729 | |||||||
Schedule of reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties | ' | ||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Unrecognized tax benefits, opening balance | $ | 9,519 | $ | 8,966 | $ | 15,058 | |||||
Settlement of liability reclassified as income tax payable | (10 | ) | — | (4,479 | ) | ||||||
Payments on liability | — | (15 | ) | (2,590 | ) | ||||||
Tax positions taken in a prior period | |||||||||||
Gross increases | — | 1,120 | 541 | ||||||||
Gross decreases | (184 | ) | (504 | ) | — | ||||||
Tax positions taken in the current period | |||||||||||
Gross increases | 2,356 | 2,011 | 1,347 | ||||||||
Gross decreases | — | — | — | ||||||||
Lapse of applicable statute of limitations | (323 | ) | (2,068 | ) | (914 | ) | |||||
Currency translation adjustments | (308 | ) | 9 | 3 | |||||||
Unrecognized tax benefits, ending balance | $ | 11,050 | $ | 9,519 | $ | 8,966 |
CAPITAL_TRANSACTIONS_Tables
CAPITAL TRANSACTIONS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
CAPITAL TRANSACTIONS | ' | |||||||||||||||
Summary of repurchases of common shares | ' | |||||||||||||||
The following is a summary of our repurchases of common shares during the year ended December 31, 2013: | ||||||||||||||||
Period | Number of | Average | Program Balance Used | |||||||||||||
Shares | Price Paid per Share | for Repurchases | ||||||||||||||
July 1 — September 30, 2013 | 108 | $ | 18.06 | $ | 1,945 | |||||||||||
October 1 — December 31, 2013 | 32 | 18.44 | 601 | |||||||||||||
140 | $ | 18.14 | $ | 2,546 | ||||||||||||
Schedule of stock option activity | ' | |||||||||||||||
Number of | Weighted Average Exercise | |||||||||||||||
Shares (in | Price Per Share | |||||||||||||||
thousands) | ||||||||||||||||
Options outstanding at January 1, 2011 | 859 | $ | 9.2 | |||||||||||||
Granted | 630 | 10.84 | ||||||||||||||
Forfeited or canceled | (79 | ) | 9.64 | |||||||||||||
Exercised | (36 | ) | 11.08 | |||||||||||||
Options outstanding at December 31, 2011 | 1,374 | 9.88 | ||||||||||||||
Granted | 686 | 15.11 | ||||||||||||||
Forfeited or canceled | (35 | ) | 13.6 | |||||||||||||
Exercised | (241 | ) | 9.95 | |||||||||||||
Options outstanding at December 31, 2012 | 1,784 | 11.81 | ||||||||||||||
Granted | 832 | 15.85 | ||||||||||||||
Forfeited or canceled | (184 | ) | 13.65 | |||||||||||||
Exercised | (506 | ) | 8.56 | |||||||||||||
Options outstanding at December 31, 2013 | 1,926 | $ | 12.54 | |||||||||||||
Schedule of weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | ' | |||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Weighted average grant date fair value of grants | $ | 6.55 | $ | 7.21 | $ | 5.13 | ||||||||||
Expected life (in years) | 5.0 to 6.0 | 4.0 to 6.0 | 3.0 to 4.0 | |||||||||||||
Risk-free interest rate | 0.6 to 1.5 | 0.3 to 0.9 | 0.7 to 1.2 | |||||||||||||
Expected volatility | 55.9 to 58.2 | 58.5 to 66.0 | 49.0 to 67.7 | |||||||||||||
Dividend yield | 2.1 to 2.7 | 0.0 to 1.3 | 0 | |||||||||||||
Summary of options outstanding and exercisable | ' | |||||||||||||||
The following table summarizes information about options outstanding and exercisable at December 31, 2013. | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Option | Options | Weighted-Avg. | Weighted-Avg. | Options | Weighted-Avg. | Weighted-Avg. | ||||||||||
Prices Per Share | Outstanding | Remaining | Exercise Price | Exercisable | Remaining | Exercise Price | ||||||||||
Contractual Life | Per Share | Contractual Life | Per Share | |||||||||||||
$3.85 to $9.99 | 456 | 6.5 | $ | 6.93 | 456 | 6.5 | $ | 6.93 | ||||||||
$10.00 to $13.99 | 986 | 8.6 | 13.41 | 285 | 7.8 | 13.39 | ||||||||||
$14.00 to $19.20 | 484 | 9 | 16.06 | 97 | 6 | 15.26 | ||||||||||
1,926 | 8.2 | $ | 12.59 | 838 | 7.2 | $ | 10.09 | |||||||||
Schedule of restricted stock unit activity | ' | |||||||||||||||
Number of | Weighted Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Units outstanding at January 1, 2012 | — | $ | — | |||||||||||||
Granted | 18 | 12.07 | ||||||||||||||
Issued | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Units outstanding at December 31, 2012 | 18 | 12.07 | ||||||||||||||
Granted | 17 | 12.9 | ||||||||||||||
Issued | (3 | ) | 12.07 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Units outstanding at December 31, 2013 | 32 | 12.47 | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
Schedule of approximate aggregate commitments under non-cancelable operating leases | ' | ||||
Year Ending December 31, | |||||
2014 | $ | 4,841 | |||
2015 | 3,427 | ||||
2016 | 2,678 | ||||
2017 | 2,575 | ||||
2018 | 1,460 | ||||
Thereafter | 453 | ||||
Total | $ | 15,434 |
OPERATING_BUSINESS_SEGMENT_AND1
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | ' | ||||||||||
Schedule of reportable business segment information | ' | ||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Net sales revenue: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 207,059 | $ | 208,945 | $ | 216,912 | |||||
NSP Russia, Central and Eastern Europe | 62,747 | 57,853 | 56,986 | ||||||||
Synergy WorldWide | 108,290 | 100,670 | 93,915 | ||||||||
Total net sales revenue | 378,096 | 367,468 | 367,813 | ||||||||
Contribution margin (1): | |||||||||||
NSP Americas, Asia Pacific and Europe | 84,247 | 82,778 | 86,004 | ||||||||
NSP Russia, Central and Eastern Europe | 22,542 | 21,957 | 22,374 | ||||||||
Synergy WorldWide | 38,011 | 36,142 | 36,143 | ||||||||
Total contribution margin | 144,800 | 140,877 | 144,521 | ||||||||
Selling, general and administrative | 120,743 | 106,861 | 109,606 | ||||||||
Contract termination costs | — | — | 14,750 | ||||||||
Operating income | 24,057 | 34,016 | 20,165 | ||||||||
Other income, net | 1,596 | 1,480 | 1,847 | ||||||||
Income before provision for income taxes | $ | 25,653 | $ | 35,496 | $ | 22,012 | |||||
(1) Contribution margin consists of net sales revenue less cost of sales and volume incentives expense. | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Capital expenditures: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 8,018 | $ | 5,684 | $ | 993 | |||||
NSP Russia, Central and Eastern Europe | 4 | 44 | 66 | ||||||||
Synergy WorldWide | 534 | 1,051 | 1,183 | ||||||||
Total capital expenditures | $ | 8,556 | $ | 6,779 | $ | 2,242 | |||||
Depreciation and amortization: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 3,568 | $ | 3,339 | $ | 3,827 | |||||
NSP Russia, Central and Eastern Europe | 27 | 36 | 43 | ||||||||
Synergy WorldWide | 871 | 703 | 492 | ||||||||
Total depreciation and amortization | $ | 4,466 | $ | 4,078 | $ | 4,362 | |||||
As of December 31, | 2013 | 2012 | |||||||||
Assets: | |||||||||||
NSP Americas, Asia Pacific and Europe | $ | 148,278 | $ | 136,237 | |||||||
NSP Russia, Central and Eastern Europe | 11,233 | 8,558 | |||||||||
Synergy WorldWide | 40,101 | 49,124 | |||||||||
Total assets | $ | 199,612 | $ | 193,919 | |||||||
Schedule of consolidated net sales revenue by geographical locations | ' | ||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Net sales revenue: | |||||||||||
United States | $ | 152,209 | $ | 154,716 | $ | 159,471 | |||||
Other | 225,887 | 212,752 | 208,342 | ||||||||
Total net sales revenue | $ | 378,096 | $ | 367,468 | $ | 367,813 | |||||
Schedule of revenue generated by each of the Company's product lines | ' | ||||||||||
Revenue generated by each of the Company’s product lines is set forth below (U.S. dollars in thousands): | |||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
NSP Americas, Asia Pacific and Europe: | |||||||||||
General health | $ | 88,239 | $ | 91,994 | $ | 95,342 | |||||
Immunity | 25,187 | 25,331 | 26,099 | ||||||||
Cardiovascular | 14,004 | 13,897 | 15,095 | ||||||||
Digestive | 59,877 | 58,127 | 62,175 | ||||||||
Personal care | 5,543 | 6,400 | 5,908 | ||||||||
Weight management | 14,209 | 13,196 | 12,293 | ||||||||
207,059 | 208,945 | 216,912 | |||||||||
NSP Russia, Central and Eastern Europe: | |||||||||||
General health | $ | 22,690 | $ | 20,540 | $ | 19,448 | |||||
Immunity | 7,902 | 7,365 | 7,558 | ||||||||
Cardiovascular | 4,324 | 4,367 | 5,342 | ||||||||
Digestive | 15,693 | 14,501 | 14,857 | ||||||||
Personal care | 8,817 | 8,908 | 7,848 | ||||||||
Weight management | 3,321 | 2,172 | 1,933 | ||||||||
62,747 | 57,853 | 56,986 | |||||||||
Synergy WorldWide: | |||||||||||
General health | $ | 36,723 | $ | 33,969 | $ | 29,592 | |||||
Immunity | 1,394 | 1,104 | 802 | ||||||||
Cardiovascular | 42,154 | 42,696 | 41,163 | ||||||||
Digestive | 16,897 | 14,904 | 13,606 | ||||||||
Personal care | 7,097 | 5,631 | 6,674 | ||||||||
Weight management | 4,025 | 2,366 | 2,078 | ||||||||
108,290 | 100,670 | 93,915 | |||||||||
Total net sales revenue | $ | 378,096 | $ | 367,468 | $ | 367,813 | |||||
Schedule of consolidated property, plant and equipment by geographical locations | ' | ||||||||||
As of December 31 | 2013 | 2012 | |||||||||
Property, plant and equipment | |||||||||||
United States | $ | 25,713 | $ | 20,923 | |||||||
Venezuela | 3,207 | 3,535 | |||||||||
Other | 3,102 | 3,492 | |||||||||
Total property, plant and equipment | $ | 32,022 | $ | 27,950 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE | ' | |||||||||||||
Schedule of the Company's hierarchy for assets measured at fair value on a recurring basis | ' | |||||||||||||
The following table presents the Company’s hierarchy for its asset measured at fair value on a recurring basis as of December 31, 2013: | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | |||||||||||||
Investments available-for-sale | ||||||||||||||
Municipal obligations | $ | — | $ | 415 | $ | — | $ | 415 | ||||||
U.S. government security funds | 983 | — | — | 983 | ||||||||||
Equity securities | 608 | — | — | 608 | ||||||||||
Investment securities | 971 | — | — | 971 | ||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,562 | $ | 415 | $ | — | $ | 2,977 | ||||||
The following table presents the Company’s hierarchy for its asset measured at fair value on a recurring basis as of December 31, 2012: | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | |||||||||||||
Investments available-for-sale | ||||||||||||||
Municipal obligations | $ | — | $ | 638 | $ | — | $ | 638 | ||||||
U.S. government security funds | 986 | — | — | 986 | ||||||||||
Equity securities | 447 | — | — | 447 | ||||||||||
Investment securities | 1,276 | — | — | 1,276 | ||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,709 | $ | 638 | $ | — | $ | 3,347 |
SUMMARY_OF_QUARTERLY_OPERATION1
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | ' | |||||||||||||
Schedule of the Company's unaudited summary of quarterly operations | ' | |||||||||||||
For the Quarter Ended | ||||||||||||||
March 31, | June 30, | September | December | |||||||||||
2013 | 2013 | 30, 2013 | 31, 2013 | |||||||||||
Net sales revenue | $ | 96,479 | $ | 93,675 | $ | 92,458 | $ | 95,484 | ||||||
Cost of sales | (24,445 | ) | (22,630 | ) | (23,655 | ) | (24,084 | ) | ||||||
Gross profit | 72,034 | 71,045 | 68,803 | 71,400 | ||||||||||
Volume incentives | 34,975 | 34,525 | 33,920 | 35,062 | ||||||||||
Selling, general and administrative | 30,117 | 28,709 | 28,170 | 33,747 | ||||||||||
Operating income | 6,942 | 7,811 | 6,713 | 2,591 | ||||||||||
Other income (expense) | 330 | 1,482 | (269 | ) | 53 | |||||||||
Income before income taxes | 7,272 | 9,293 | 6,444 | 2,644 | ||||||||||
Tax provision | 2,408 | 3,241 | 1,594 | 801 | ||||||||||
Net income | $ | 4,864 | $ | 6,052 | $ | 4,850 | $ | 1,843 | ||||||
Basic and diluted net income per common share | ||||||||||||||
Basic: | ||||||||||||||
Net income per common share | $ | 0.31 | $ | 0.38 | $ | 0.3 | $ | 0.11 | ||||||
Diluted: | ||||||||||||||
Net income per common share | $ | 0.3 | $ | 0.38 | $ | 0.29 | $ | 0.11 | ||||||
Dividends declared per common share | $ | 0.1 | $ | 0.1 | $ | 1.6 | $ | 0.1 | ||||||
For the Quarter Ended | ||||||||||||||
March 31, | June 30, | September | December | |||||||||||
2012 | 2012 | 30, 2012 | 31, 2012 | |||||||||||
Net sales revenue | $ | 92,868 | $ | 92,991 | $ | 91,232 | $ | 90,377 | ||||||
Cost of sales | (23,729 | ) | (22,610 | ) | (23,144 | ) | (23,841 | ) | ||||||
Gross profit | 69,139 | 70,381 | 68,088 | 66,536 | ||||||||||
Volume incentives | 33,581 | 33,540 | 33,155 | 32,991 | ||||||||||
Selling, general and administrative | 26,384 | 26,530 | 26,228 | 27,719 | ||||||||||
Operating income | 9,174 | 10,311 | 8,705 | 5,826 | ||||||||||
Other income (expense) | (110 | ) | 165 | (214 | ) | 1,639 | ||||||||
Income before income taxes | 9,064 | 10,476 | 8,491 | 7,465 | ||||||||||
Tax provision | 1,836 | 3,190 | 2,121 | 2,969 | ||||||||||
Net income | $ | 7,228 | $ | 7,286 | $ | 6,370 | $ | 4,496 | ||||||
Basic and diluted net income per common share | ||||||||||||||
Basic: | ||||||||||||||
Net income per common share | $ | 0.46 | $ | 0.47 | $ | 0.41 | $ | 0.28 | ||||||
Diluted: | ||||||||||||||
Net income per common share | $ | 0.46 | $ | 0.46 | $ | 0.4 | $ | 0.28 | ||||||
Dividends declared per common share | $ | — | $ | 0.05 | $ | 0.05 | $ | 0.05 |
NATURE_OF_OPERATIONS_AND_SIGNI3
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | Subsidiary in Venezuela | Subsidiary in Venezuela | Subsidiary in Venezuela | Subsidiary in Venezuela | Belarusian subsidiary | Belarusian subsidiary | Belarusian subsidiary | ||||
Classification of Venezuela and Belarus as a Highly Inflationary Economy and Devaluation of Its Currencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CADIVI rate | ' | ' | ' | ' | 6.3 | ' | ' | 6.3 | ' | ' | ' |
Net sales revenue as a percent of consolidated net sales revenue | ' | ' | ' | ' | 2.20% | 1.80% | 1.40% | ' | 2.10% | 1.80% | 1.60% |
Gains or losses from a re-measurement of the financial statements using official exchange rates | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' |
Cash and cash equivalents | $77,247 | $79,241 | $58,969 | $47,604 | $3,922 | $1,748 | ' | ' | ' | ' | ' |
NATURE_OF_OPERATIONS_AND_SIGNI4
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '20 years |
Buildings | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '50 years |
Building improvements | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '7 years |
Building improvements | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '10 years |
Machinery and equipment | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '2 years |
Machinery and equipment | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '10 years |
Furniture and fixtures | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '2 years |
Furniture and fixtures | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '5 years |
Computer software and hardware | Minimum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '3 years |
Computer software and hardware | Maximum | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | '10 years |
NATURE_OF_OPERATIONS_AND_SIGNI5
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Product formulations | Product formulations | Product formulations | Product formulations | ||
Minimum | Maximum | |||||
Intangible Assets | ' | ' | ' | ' | ' | ' |
Estimated economic lives | ' | ' | ' | ' | '9 years | '15 years |
Intangible assets, net of accumulated amortization | $853 | $1,002 | $853 | $1,002 | ' | ' |
NATURE_OF_OPERATIONS_AND_SIGNI6
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Incentive Trip Accrual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convention and meeting costs | $5,784 | ' | ' | ' | $4,624 | ' | ' | ' | $5,784 | $4,624 | ' |
Foreign Currency Translation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum cumulative inflation rate for considering a country to have a highly inflationary economy (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Period of cumulative inflation rate for considering a country to have a highly inflationary economy | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Revenue Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for amortization membership fees | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Period for sales return from date of purchase | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' |
Sales return | ' | ' | ' | ' | ' | ' | ' | ' | 1,454 | 2,249 | 606 |
Shipping and handling revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,868 | 11,264 | 11,615 |
Advertising Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | ' | ' | ' | ' | ' | ' | ' | ' | 2,194 | 1,418 | 1,191 |
Research and Development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development expenses | ' | ' | ' | ' | ' | ' | ' | ' | 2,039 | 1,464 | 1,552 |
Net income available to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $1,843 | $4,850 | $6,052 | $4,864 | $4,496 | $6,370 | $7,286 | $7,228 | $17,609 | $25,380 | $17,601 |
Basic weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 15,997 | 15,648 | 15,550 |
Basic net income per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (in dollars per share) | $0.11 | $0.30 | $0.38 | $0.31 | $0.28 | $0.41 | $0.47 | $0.46 | $1.10 | $1.62 | $1.13 |
Diluted Shares Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 15,997 | 15,648 | 15,550 |
Stock-based awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 393 | 339 | 145 |
Diluted weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 16,390 | 15,987 | 15,695 |
Diluted net income per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (in dollars per share) | $0.11 | $0.29 | $0.38 | $0.30 | $0.28 | $0.40 | $0.46 | $0.46 | $1.07 | $1.59 | $1.12 |
Potentially dilutive shares excluded from diluted per share amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 135 | 88 | 219 |
Potentially anti-dilutive shares excluded from diluted per share amounts: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 210 | 254 | 200 |
NATURE_OF_OPERATIONS_AND_SIGNI7
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details 5) | 12 Months Ended |
Dec. 31, 2013 | |
Time-based stock options | Maximum | ' |
Share Based Compensation | ' |
Vesting period | '48 months |
Performance based stock options operating income margins | ' |
Share Based Compensation | ' |
Operating income margin, one (as a percent) | 6.00% |
Operating income margin, two (as a percent) | 8.00% |
Operating income margin, three (as a percent) | 10.00% |
Period of time during which operating income margins must be achieved in order to vest in performance based stock options | '12 months |
Consecutive period of time used to assess operating income margins which determine vesting | '15 months |
Performance based stock options sales and operating income margins | ' |
Share Based Compensation | ' |
Vesting period | '2 years |
Operating income margin, two (as a percent) | 8.00% |
Performance based stock options sales | ' |
Share Based Compensation | ' |
Vesting period based on achieving annual net sales targets | '1 year |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Raw materials | $10,848 | $13,287 |
Work in process | 740 | 742 |
Finished goods | 30,322 | 29,251 |
Total inventory | $41,910 | $43,280 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, gross | $81,803 | $76,210 | ' |
Accumulated depreciation and amortization | -49,781 | -48,260 | ' |
Total property, plant and equipment | 32,022 | 27,950 | ' |
Depreciation expense | 4,317 | 3,929 | 4,210 |
Land and improvements | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, gross | 3,800 | 3,800 | ' |
Buildings and improvements | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, gross | 33,655 | 33,309 | ' |
Machinery and equipment | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, gross | 18,209 | 17,919 | ' |
Furniture and fixtures | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, gross | 17,884 | 16,956 | ' |
Computer software and hardware | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant and equipment, gross | $8,255 | $4,226 | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible assets | ' | ' | ' |
Net amount | $853 | $1,002 | ' |
Product formulations | ' | ' | ' |
Intangible assets | ' | ' | ' |
Gross carrying amount | 1,763 | 1,763 | ' |
Accumulated amortization | 910 | 761 | ' |
Net amount | 853 | 1,002 | ' |
Amortization expense for intangible assets | 149 | 149 | 152 |
Estimated Amortization Expense | ' | ' | ' |
2014 | 149 | ' | ' |
2015 | 149 | ' | ' |
2016 | 91 | ' | ' |
2017 | 91 | ' | ' |
2018 | 91 | ' | ' |
Thereafter | 282 | ' | ' |
Total | $853 | ' | ' |
Product formulations | Minimum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives | '9 years | ' | ' |
Product formulations | Maximum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment securities | ' | ' | ' |
Amortized Cost | $1,627 | $1,830 | ' |
Gross Unrealized Gains | 398 | 258 | ' |
Gross Unrealized Losses | -19 | -17 | ' |
Fair value | 2,006 | 2,071 | ' |
Proceeds from the sales of available-for-sale securities | 200 | 3,789 | 7,697 |
Gross realized gains (losses) on sales of available-for-sale securities (net of tax) | 0 | 0 | 0 |
Municipal obligations | ' | ' | ' |
Investment securities | ' | ' | ' |
Amortized Cost | 403 | 608 | ' |
Gross Unrealized Gains | 12 | 30 | ' |
Fair value | 415 | 638 | ' |
Municipal obligations | Maximum | ' | ' | ' |
Investment securities | ' | ' | ' |
Maturity period | '2 years | ' | ' |
U.S. government securities funds | ' | ' | ' |
Investment securities | ' | ' | ' |
Amortized Cost | 997 | 995 | ' |
Gross Unrealized Losses | -14 | -9 | ' |
Fair value | 983 | 986 | ' |
Equity securities | ' | ' | ' |
Investment securities | ' | ' | ' |
Amortized Cost | 227 | 227 | ' |
Gross Unrealized Gains | 386 | 228 | ' |
Gross Unrealized Losses | -5 | -8 | ' |
Fair value | $608 | $447 | ' |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Trading securities portfolio | ' | ' | ' |
Trading securities portfolio | $971 | $1,276 | ' |
Gains | 122 | 116 | 16 |
U.S. government security funds | ' | ' | ' |
Trading securities portfolio | ' | ' | ' |
Net Unrealized Losses | $14 | $9 | ' |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ACCRUED LIABILITIES | ' | ' |
Foreign non-income tax contingencies | $5,363 | $5,358 |
Sales, use and property tax | 4,498 | 3,690 |
Salaries and employee benefits | 11,749 | 8,217 |
Convention and meeting costs | 5,784 | 4,624 |
Other | 7,499 | 5,413 |
Total | $34,893 | $27,302 |
LONGTERM_DEBT_AND_REVOLVING_CR2
LONG-TERM DEBT AND REVOLVING CREDIT FACILITY (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 09, 2011 | Dec. 31, 2013 | Aug. 08, 2013 | Aug. 09, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Term loan | Term loan | Term loan | ||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | $15,000 | ' | $25,000 | ' | ' | ' |
Variable rate basis | ' | ' | 'LIBOR | 'LIBOR | ' | 'LIBOR | 'LIBOR | 'LIBOR |
Margin on variable rate (as a percent) | ' | ' | 1.25% | 1.50% | ' | 1.25% | 1.50% | 1.50% |
Annual commitment fee (as a percent) | ' | ' | 0.25% | 0.25% | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | 10,000 | 10,000 | 10,000 |
Monthly installments, including interest | ' | ' | ' | ' | ' | ' | 284 | 284 |
Total long-term debt | ' | ' | ' | ' | ' | ' | 2,267 | 5,620 |
Outstanding balance under the revolving credit agreement | ' | ' | ' | 10,000 | ' | ' | ' | ' |
Less current installments | -2,267 | -3,350 | ' | ' | ' | ' | -2,267 | -3,350 |
Long-term debt less current installments | $10,000 | $2,270 | ' | ' | ' | ' | ' | $2,270 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | ($10,566) | ($10,069) | ($7,648) |
Activity, net of tax | -3,397 | -497 | -2,421 |
Balance at the end of the period | -13,963 | -10,566 | -10,069 |
Foreign Currency Translation Adjustments | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | -10,713 | -10,191 | -7,794 |
Activity, net of tax | -3,480 | -522 | -2,397 |
Balance at the end of the period | -14,193 | -10,713 | -10,191 |
Net Unrealized Gains (Losses) On Available-For-Sale Securities | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | 147 | 122 | 146 |
Activity, net of tax | 83 | 25 | -24 |
Balance at the end of the period | $230 | $147 | $122 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income from continuing operations before provision (benefit) for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $6,111 | $17,625 | $2,338 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 19,542 | 17,871 | 19,674 |
Income before provision for income taxes | 2,644 | 6,444 | 9,293 | 7,272 | 7,465 | 8,491 | 10,476 | 9,064 | 25,653 | 35,496 | 22,012 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -773 | 1,901 | 4,094 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 399 | 248 | 961 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 7,326 | 3,835 | 4,429 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 6,952 | 5,984 | 9,484 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 1,654 | 2,303 | -4,408 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 186 | 1,207 | -719 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -748 | 622 | 54 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 1,092 | 4,132 | -5,073 |
Total provision for income taxes | $801 | $1,594 | $3,241 | $2,408 | $2,969 | $2,121 | $3,190 | $1,836 | $8,044 | $10,116 | $4,411 |
Differences between the statutory U.S. federal income tax rate and the provision for income taxes from continuing operations, as a percentage of income before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory U.S. federal income tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
State income taxes, net of U.S. federal income tax benefit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.40% | 2.70% | 0.70% |
U.S. tax impact of foreign operations (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -15.90% | -2.10% | -20.30% |
Valuation allowance change (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 9.30% | -3.90% | -0.30% |
Unrecognized tax benefits (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 8.40% | 0.40% | 8.20% |
Domestic manufacturing deduction (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -1.30% | -0.40% | -1.10% |
Nondeductible foreign expenses (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -4.40% | -0.90% | -1.30% |
Other (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -1.10% | -2.30% | -0.90% |
Effective income tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 31.40% | 28.50% | 20.00% |
Components of U.S. tax impact of foreign operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends received from foreign subsidiaries (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 29.20% | 4.50% | 26.20% |
Foreign tax credits (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -34.10% | -4.00% | -33.10% |
Foreign tax rate differential (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -10.60% | -2.30% | -5.20% |
Unremitted earnings (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.40% | -0.30% | -8.20% |
Total (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -15.90% | -2.10% | -20.30% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Significant components of the deferred tax assets (liabilities) | ' | ' |
Inventory | $1,502 | $1,718 |
Accrued liabilities | 4,380 | 3,464 |
Impaired investments | ' | 727 |
Deferred compensation | 364 | 483 |
Equity-based compensation | 2,993 | 2,592 |
Intangibles assets | 389 | 2,308 |
Bad debts | 225 | 49 |
Net operating losses | 5,593 | 4,152 |
Foreign tax and withholding credits | 4,066 | 4,406 |
Non-income tax accruals | 397 | 452 |
Health insurance accruals | 184 | 186 |
Undistributed foreign earnings | 4,008 | 2,704 |
Other deferred tax assets | 2,260 | 2,357 |
Capital loss carryforward | 721 | ' |
Valuation allowance | -11,340 | -8,149 |
Total deferred tax assets | 15,742 | 17,449 |
Other deferred tax liabilities | -231 | -720 |
Total deferred tax liabilities | -231 | -720 |
Total deferred taxes, net | 15,511 | 16,729 |
Components of deferred tax assets (liabilities), net | ' | ' |
Net current deferred tax assets | 5,711 | 5,307 |
Net non-current deferred tax assets | 9,928 | 11,516 |
Total net deferred tax assets | 15,639 | 16,823 |
Net current deferred tax liabilities | -2 | -1 |
Net non-current deferred tax liabilities | -126 | -93 |
Total net deferred tax liabilities | -128 | -94 |
Total deferred taxes, net | 15,511 | 16,729 |
Valuation allowance | ' | ' |
Change in valuation allowance | 3,191 | ' |
Domestic | ' | ' |
Valuation allowance | ' | ' |
Change in valuation allowance | 1,965 | ' |
Foreign | ' | ' |
Valuation allowance | ' | ' |
Change in valuation allowance | $1,226 | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES | ' | ' | ' |
Unused operating loss carryovers of foreign subsidiaries for tax purposes | $5,593 | $4,152 | ' |
Foreign tax and withholding credits | 4,066 | 4,406 | ' |
Unrecognized tax benefits | ' | ' | ' |
Outstanding balance for liabilities related to unrecognized tax benefits, which if recognized, would affect the effective tax rate | 12,402 | 10,571 | ' |
Interest and penalties included in the outstanding balance for liabilities related to unrecognized tax benefits | 1,352 | 1,052 | ' |
Increase (decrease) in interest and penalties | 300 | -408 | ' |
Increase in liability for unrecognized tax benefits | 2,656 | 3,471 | 2,379 |
Interest expense and penalties included in increase in liability for unrecognized tax benefits | 300 | 339 | 491 |
Benefit related to the lapse of applicable statute of limitations | 323 | 2,815 | 1,728 |
Reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties | ' | ' | ' |
Unrecognized tax benefits, opening balance | 9,519 | 8,966 | 15,058 |
Settlement of liability reclassified as income tax payable | -10 | ' | -4,479 |
Payments on liability | ' | -15 | -2,590 |
Tax positions taken in a prior period | ' | ' | ' |
Gross increases | ' | 1,120 | 541 |
Gross decreases | -184 | -504 | ' |
Tax positions taken in the current period | ' | ' | ' |
Gross increases | 2,356 | 2,011 | 1,347 |
Lapse of applicable statute of limitations | -323 | -2,068 | -914 |
Currency translation adjustments | -308 | 9 | 3 |
Unrecognized tax benefits, ending balance | $11,050 | $9,519 | $8,966 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commissions and transfer pricing | ' |
Anticipated change in unrecognized tax benefits | ' |
Change in unrecognized tax benefits within the next twelve months, minimum | $1,200 |
Change in unrecognized tax benefits within the next twelve months, maximum | 1,700 |
Audits or the expiration of statutes of limitations in various foreign jurisdictions | ' |
Anticipated change in unrecognized tax benefits | ' |
Change in unrecognized tax benefits within the next twelve months, minimum | 0 |
Change in unrecognized tax benefits within the next twelve months, maximum | $500 |
CAPITAL_TRANSACTIONS_Details
CAPITAL TRANSACTIONS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Nov. 29, 2013 | Nov. 06, 2013 | Aug. 29, 2013 | Aug. 08, 2013 | 30-May-13 | 8-May-13 | Mar. 28, 2013 | Mar. 06, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend paid | $1,622 | ' | ' | $25,627 | $1,587 | ' | $1,583 | ' | ' | ' | ' | ' | ' | ' | ' | $30,419 | $2,349 |
Cash dividend per common share (in dollars per share) | ' | $0.10 | $0.10 | ' | ' | $0.10 | ' | $0.10 | $0.10 | $1.60 | $0.10 | $0.10 | $0.05 | $0.05 | $0.05 | $1.90 | $0.15 |
Special one-time cash dividend per common share (in dollars per share) | ' | ' | ' | $1.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which stock repurchase program to be implemented | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 108 | ' | ' | ' | ' | ' | 140 | ' |
Average Price Paid per Share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $18.44 | $18.06 | ' | ' | ' | ' | ' | $18.14 | ' |
Program Balance Used for Repurchases | ' | ' | ' | ' | ' | ' | ' | ' | $601 | $1,945 | ' | ' | ' | ' | ' | $2,546 | ' |
CAPITAL_TRANSACTIONS_Details_2
CAPITAL TRANSACTIONS (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Special one-time cash dividend paid per common share (in dollars per share) | $1.50 | ' | ' | ' |
Stock options | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in shares) | ' | 1,784 | 1,374 | 859 |
Granted (in shares) | ' | 832 | 686 | 630 |
Forfeited or canceled (in shares) | ' | -184 | -35 | -79 |
Exercised (in shares) | ' | -506 | -241 | -36 |
Options outstanding at the end of the period (in shares) | ' | 1,926 | 1,784 | 1,374 |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in dollars per share) | ' | $11.81 | $9.88 | $9.20 |
Granted (in dollars per share) | ' | $15.85 | $15.11 | $10.84 |
Forfeited or canceled (in dollars per share) | ' | $13.65 | $13.60 | $9.64 |
Exercised (in dollars per share) | ' | $8.56 | $9.95 | $11.08 |
Options outstanding at the end of the period (in dollars per share) | ' | $12.54 | $11.81 | $9.88 |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Special one-time cash dividend paid per common share (in dollars per share) | $1.50 | ' | ' | ' |
Decrease in exercise price of all outstanding stock options (in dollars per share) | ' | $1.50 | ' | ' |
Aggregate intrinsic values of options exercised | ' | $4,576 | $1,427 | $211 |
Weighted-average assumptions used to calculate fair value of options granted | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | $6.55 | $7.21 | $5.13 |
Dividend yield (as a percent) | ' | ' | ' | 0.00% |
Share-based compensation, related information | ' | ' | ' | ' |
Share-based compensation expense | ' | 0 | ' | ' |
Related tax benefits | ' | 653 | 378 | ' |
Stock options | Maximum | ' | ' | ' | ' |
Weighted-average assumptions used to calculate fair value of options granted | ' | ' | ' | ' |
Expected life | ' | '6 years | '6 years | '4 years |
Risk-free interest rate (as a percent) | ' | 1.50% | 0.90% | 1.20% |
Expected volatility (as a percent) | ' | 58.20% | 66.00% | 67.70% |
Dividend yield (as a percent) | ' | 2.70% | 1.30% | ' |
Stock options | Minimum | ' | ' | ' | ' |
Weighted-average assumptions used to calculate fair value of options granted | ' | ' | ' | ' |
Expected life | ' | '5 years | '4 years | '3 years |
Risk-free interest rate (as a percent) | ' | 0.60% | 0.30% | 0.70% |
Expected volatility (as a percent) | ' | 55.90% | 58.50% | 49.00% |
Dividend yield (as a percent) | ' | 2.10% | 0.00% | ' |
Time-based stock options | ' | ' | ' | ' |
Share-based compensation, related information | ' | ' | ' | ' |
Share-based compensation expense | ' | 3,166 | 2,101 | 557 |
Related tax benefits | ' | 1,251 | 850 | 222 |
Unrecognized share-based compensation expense | ' | 3,294 | 2,715 | 607 |
Weighted-average period over which the remaining compensation expense is expected to be recognized | ' | '1 year 10 months 24 days | ' | ' |
Time-based stock options | Maximum | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Vesting period | ' | '48 months | ' | ' |
Performance based stock options operating income margins | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Operating income margin, one (as a percent) | ' | 6.00% | ' | ' |
Operating income margin, two (as a percent) | ' | 8.00% | ' | ' |
Operating income margin, three (as a percent) | ' | 10.00% | ' | ' |
Period of time during which operating income margins must be achieved in order to vest in performance based stock options | ' | '12 months | ' | ' |
Consecutive period of time used to assess operating income margins which determine vesting | ' | '15 months | ' | ' |
Share-based compensation, related information | ' | ' | ' | ' |
Share-based compensation expense | ' | 0 | 653 | 2,921 |
Related tax benefits | ' | 0 | 255 | 1,168 |
Unrecognized share-based compensation expense | ' | ' | $0 | ' |
Performance based stock options sales and operating income margins | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Vesting period | ' | '2 years | ' | ' |
Operating income margin, two (as a percent) | ' | 8.00% | ' | ' |
Performance based stock options sales | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Vesting period based on achieving annual net sales targets | ' | '1 year | ' | ' |
2012 Incentive Plan | ' | ' | ' | ' |
Share Based Compensation | ' | ' | ' | ' |
Number of shares authorized under the plan | ' | 1,500 | ' | ' |
2012 Incentive Plan | Stock options | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' |
Granted (in shares) | ' | 832 | 469 | ' |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $15.85 | $14.86 | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Expiration period | ' | '10 years | '10 years | ' |
Weighted-average assumptions used to calculate fair value of options granted | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | $6.55 | $7 | ' |
2009 Incentive Plan | ' | ' | ' | ' |
Share Based Compensation | ' | ' | ' | ' |
Number of shares authorized under the plan | ' | 400 | ' | ' |
2009 Incentive Plan | Stock options | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | 630 |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | $10.84 |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Expiration period | ' | ' | ' | '10 years |
Weighted-average assumptions used to calculate fair value of options granted | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | ' | $5.13 |
2009 Incentive Plan | Time-based stock options | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 217 | ' |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $15.65 | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Expiration period | ' | ' | '10 years | ' |
Weighted-average assumptions used to calculate fair value of options granted | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | $7.66 | ' |
CAPITAL_TRANSACTIONS_Details_3
CAPITAL TRANSACTIONS (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Stock options | ' |
Options Outstanding | ' |
Options Outstanding (in shares) | 1,926 |
Weighted-Avg. Remaining Contractual Life | '8 years 2 months 12 days |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $12.59 |
Options Exercisable | ' |
Options Exercisable (in shares) | 838 |
Weighted-Avg. Remaining Contractual Life | '7 years 2 months 12 days |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $10.09 |
Stock options | $3.85 to $9.99 | ' |
Share-based Compensation | ' |
Range of option prices per share, lower limit (in dollars per share) | $3.85 |
Range of option prices per share, upper limit (in dollars per share) | $9.99 |
Options Outstanding | ' |
Options Outstanding (in shares) | 456 |
Weighted-Avg. Remaining Contractual Life | '6 years 6 months |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $6.93 |
Options Exercisable | ' |
Options Exercisable (in shares) | 456 |
Weighted-Avg. Remaining Contractual Life | '6 years 6 months |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $6.93 |
Stock options | $10.00 to $13.99 | ' |
Share-based Compensation | ' |
Range of option prices per share, lower limit (in dollars per share) | $10 |
Range of option prices per share, upper limit (in dollars per share) | $13.99 |
Options Outstanding | ' |
Options Outstanding (in shares) | 986 |
Weighted-Avg. Remaining Contractual Life | '8 years 7 months 6 days |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $13.41 |
Options Exercisable | ' |
Options Exercisable (in shares) | 285 |
Weighted-Avg. Remaining Contractual Life | '7 years 9 months 18 days |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $13.39 |
Stock options | $14.00 to $19.20 | ' |
Share-based Compensation | ' |
Range of option prices per share, lower limit (in dollars per share) | $14 |
Range of option prices per share, upper limit (in dollars per share) | $19.20 |
Options Outstanding | ' |
Options Outstanding (in shares) | 484 |
Weighted-Avg. Remaining Contractual Life | '9 years |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $16.06 |
Options Exercisable | ' |
Options Exercisable (in shares) | 97 |
Weighted-Avg. Remaining Contractual Life | '6 years |
Weighted-Avg. Exercise Price Per Share (in dollars per share) | $15.26 |
Performance based stock options sales | Maximum | ' |
Share-based Compensation | ' |
Potential compensation expense | $800 |
CAPITAL_TRANSACTIONS_Details_4
CAPITAL TRANSACTIONS (Details 4) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Stock options | ' | ' | ' | ' |
Share Based Compensation | ' | ' | ' | ' |
Outstanding options to purchase (in shares) | 1,926 | 1,784 | 1,374 | 859 |
Exercisable (in shares) | 838 | 1,011 | ' | ' |
Expected to vest (in shares) | 905 | 644 | ' | ' |
Aggregate Intrinsic value, outstanding | $9,415 | $5,315 | ' | ' |
Aggregate Intrinsic value, exercisable | 6,069 | 5,016 | ' | ' |
Aggregate Intrinsic value, expected to vest | 3,179 | 281 | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Share-based compensation expense | 0 | ' | ' | ' |
Related tax benefits | 653 | 378 | ' | ' |
RSUs | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Share-based compensation expense | 223 | 124 | ' | ' |
Related tax benefits | 88 | 49 | ' | ' |
Unrecognized share-based compensation expense | $62 | $99 | ' | ' |
Weighted-average period over which the remaining compensation expense is expected to be recognized | '4 months 24 days | ' | ' | ' |
2012 Stock Incentive Plan | RSUs | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' |
Units outstanding at the beginning of the period (in shares) | 18 | ' | ' | ' |
Granted (in shares) | 17 | 18 | ' | ' |
Issued (in shares) | -3 | ' | ' | ' |
Units outstanding at the end of the period (in shares) | 32 | 18 | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' |
Units outstanding at the beginning of the period (in dollars per share) | $12.07 | ' | ' | ' |
Granted (in dollars per share) | $12.90 | $12.07 | ' | ' |
Issued (in dollars per share) | $12.07 | ' | ' | ' |
Units outstanding at the end of the period (in dollars per share) | $12.47 | $12.07 | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' |
Vesting period | '1 year | '1 year | ' | ' |
Number of monthly installments for vesting of stock awards | 12 | 12 | ' | ' |
Discount for lack of marketability ( as a percent) | 17.50% | ' | ' | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
401(k) plans | ' | ' | ' |
Employer's matching contribution (as a percent) | 60.00% | ' | ' |
Maximum contribution by employer as a percentage of employee's compensation | 5.00% | ' | ' |
Employer's matching contribution before change (as a percent) | 50.00% | ' | ' |
Vesting period of employer's contributions | '3 years | ' | ' |
Contributions by employer | $832 | $551 | $438 |
Nonqualified deferred compensation plan | ' | ' | ' |
Maximum percentage of annual salary and bonus that may be deferred | 100.00% | ' | ' |
Period for payment of obligation upon separation, one | '3 years | ' | ' |
Period for payment of obligation upon separation, two | '5 years | ' | ' |
Deferred compensation plan assets | $971 | $1,276 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
COMMITMENTS AND CONTINGENCIES | ' | ' | ' |
Expenses incurred under operating leases | $6,125 | $6,096 | $6,177 |
Aggregate commitments under non-cancelable operating leases | ' | ' | ' |
2014 | 4,841 | ' | ' |
2015 | 3,427 | ' | ' |
2016 | 2,678 | ' | ' |
2017 | 2,575 | ' | ' |
2018 | 1,460 | ' | ' |
Thereafter | 453 | ' | ' |
Total | 15,434 | ' | ' |
Purchase commitment for raw materials and packing material | ' | ' | ' |
Contractual obligations | ' | ' | ' |
Non-cancelable purchase agreements | $43 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Long-term agreements | ' | ' | ' |
Payment made to third party | $1,468,000 | $1,270,000 | $8,360,000 |
Additional investment committed on Oracle ERP implementation program | 6,478,000 | ' | ' |
Additional investment committed on Oracle ERP implementation program expected to be paid in 2014 | 3,134,000 | ' | ' |
Additional investment committed on Oracle ERP implementation program expected to be paid in 2015 | 3,001,000 | ' | ' |
Additional investment committed on Oracle ERP implementation program expected to be paid in 2016 | 343,000 | ' | ' |
Value-added tax assessments and other civil litigation | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Minimum number of claims that the Company's insurance coverage may not be sufficient to cover | 1 | ' | ' |
Provision for losses | 0 | ' | ' |
Future payments related to value-added tax assessments and other civil litigation, minimum | 0 | ' | ' |
Future payments related to value-added tax assessments and other civil litigation, maximum | 900,000 | ' | ' |
Non-income Tax Contingencies | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Accrued liabilities | 6,312,000 | 6,207,000 | ' |
Product liability and employee medical claims | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Accrued liabilities | 2,811,000 | 2,990,000 | ' |
Accrued liabilities classified as short-term | 526,000 | 532,000 | ' |
Reseller Agreement | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Term of the agreement | '1 year | ' | ' |
Reseller Agreement | General Dealer | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Average amount of withholding of discounts per month by the third party from the funds remitted to the Company for the sale of the products under the agreement | 330 | ' | ' |
Aggregate amount of withholding of discounts by the third party from the funds remitted to the Company for the sale of the products under the agreement | 2,000,000 | ' | ' |
Possible reimbursement of Discounts to the third party for the periods prior to July 2013 | $22,000,000 | ' | ' |
OPERATING_BUSINESS_SEGMENT_AND2
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | $95,484 | $92,458 | $93,675 | $96,479 | $90,377 | $91,232 | $92,991 | $92,868 | $378,096 | $367,468 | $367,813 |
Contribution margin: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | 144,800 | 140,877 | 144,521 |
Selling, general and administrative | 33,747 | 28,170 | 28,709 | 30,117 | 27,719 | 26,228 | 26,530 | 26,384 | 120,743 | 106,861 | 109,606 |
Contract termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,750 |
Operating income | 2,591 | 6,713 | 7,811 | 6,942 | 5,826 | 8,705 | 10,311 | 9,174 | 24,057 | 34,016 | 20,165 |
Other income, net | 53 | -269 | 1,482 | 330 | 1,639 | -214 | 165 | -110 | 1,596 | 1,480 | 1,847 |
Income before provision for income taxes | 2,644 | 6,444 | 9,293 | 7,272 | 7,465 | 8,491 | 10,476 | 9,064 | 25,653 | 35,496 | 22,012 |
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 8,556 | 6,779 | 2,242 |
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,466 | 4,078 | 4,362 |
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | 199,612 | ' | ' | ' | 193,919 | ' | ' | ' | 199,612 | 193,919 | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment | 32,022 | ' | ' | ' | 27,950 | ' | ' | ' | 32,022 | 27,950 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 152,209 | 154,716 | 159,471 |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment | 25,713 | ' | ' | ' | 20,923 | ' | ' | ' | 25,713 | 20,923 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 225,887 | 212,752 | 208,342 |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment | 3,102 | ' | ' | ' | 3,492 | ' | ' | ' | 3,102 | 3,492 | ' |
Venezuela | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment | 3,207 | ' | ' | ' | 3,535 | ' | ' | ' | 3,207 | 3,535 | ' |
NSP Americas, Asia Pacific and Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 207,059 | 208,945 | 216,912 |
Contribution margin: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | 84,247 | 82,778 | 86,004 |
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 8,018 | 5,684 | 993 |
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,568 | 3,339 | 3,827 |
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | 148,278 | ' | ' | ' | 136,237 | ' | ' | ' | 148,278 | 136,237 | ' |
NSP Americas, Asia Pacific and Europe | General health | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 88,239 | 91,994 | 95,342 |
NSP Americas, Asia Pacific and Europe | Immunity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 25,187 | 25,331 | 26,099 |
NSP Americas, Asia Pacific and Europe | Cardiovascular | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 14,004 | 13,897 | 15,095 |
NSP Americas, Asia Pacific and Europe | Digestive | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 59,877 | 58,127 | 62,175 |
NSP Americas, Asia Pacific and Europe | Personal care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,543 | 6,400 | 5,908 |
NSP Americas, Asia Pacific and Europe | Weight management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 14,209 | 13,196 | 12,293 |
NSP Russia, Central and Eastern Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 62,747 | 57,853 | 56,986 |
Contribution margin: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | 22,542 | 21,957 | 22,374 |
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 44 | 66 |
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 27 | 36 | 43 |
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | 11,233 | ' | ' | ' | 8,558 | ' | ' | ' | 11,233 | 8,558 | ' |
NSP Russia, Central and Eastern Europe | General health | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 22,690 | 20,540 | 19,448 |
NSP Russia, Central and Eastern Europe | Immunity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 7,902 | 7,365 | 7,558 |
NSP Russia, Central and Eastern Europe | Cardiovascular | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4,324 | 4,367 | 5,342 |
NSP Russia, Central and Eastern Europe | Digestive | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 15,693 | 14,501 | 14,857 |
NSP Russia, Central and Eastern Europe | Personal care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 8,817 | 8,908 | 7,848 |
NSP Russia, Central and Eastern Europe | Weight management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,321 | 2,172 | 1,933 |
Synergy WorldWide | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 108,290 | 100,670 | 93,915 |
Contribution margin: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total contribution margin | ' | ' | ' | ' | ' | ' | ' | ' | 38,011 | 36,142 | 36,143 |
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 534 | 1,051 | 1,183 |
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 871 | 703 | 492 |
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | 40,101 | ' | ' | ' | 49,124 | ' | ' | ' | 40,101 | 49,124 | ' |
Synergy WorldWide | General health | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 36,723 | 33,969 | 29,592 |
Synergy WorldWide | Immunity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,394 | 1,104 | 802 |
Synergy WorldWide | Cardiovascular | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 42,154 | 42,696 | 41,163 |
Synergy WorldWide | Digestive | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 16,897 | 14,904 | 13,606 |
Synergy WorldWide | Personal care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | 7,097 | 5,631 | 6,674 |
Synergy WorldWide | Weight management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales revenue | ' | ' | ' | ' | ' | ' | ' | ' | $4,025 | $2,366 | $2,078 |
Nature's Sunshine Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 09, 2008 |
In Thousands, unless otherwise specified | Executives | Executives | Mr. Eugene Hughes |
Retirement and Consulting Agreement | |||
Related Party Transactions | ' | ' | ' |
Cash surrender value of split-dollar life insurance policies | $48 | $49 | ' |
Initial term of agreement | ' | ' | '8 years |
Annual compensation for the first two years of service | ' | ' | 215 |
Specified service period for annual compensation | ' | ' | '2 years |
Annual compensation for remainder of the initial term | ' | ' | 100 |
Annual compensation after the initial term | ' | ' | $50 |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value | ' | ' |
Investments available-for-sale | $2,006 | $2,071 |
Municipal obligations | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 415 | 638 |
U.S. government security funds | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 983 | 986 |
Equity securities | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 608 | 447 |
Recurring basis | Level 1 - Quoted Prices in Active Markets for Identical Assets | ' | ' |
Fair value | ' | ' |
Investment securities | 971 | 1,276 |
Total assets measured at fair value on a recurring basis | 2,562 | 2,709 |
Recurring basis | Level 1 - Quoted Prices in Active Markets for Identical Assets | U.S. government security funds | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 983 | 986 |
Recurring basis | Level 1 - Quoted Prices in Active Markets for Identical Assets | Equity securities | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 608 | 447 |
Recurring basis | Level 2 - Significant Other Observable Inputs | ' | ' |
Fair value | ' | ' |
Total assets measured at fair value on a recurring basis | 415 | 638 |
Recurring basis | Level 2 - Significant Other Observable Inputs | Municipal obligations | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 415 | 638 |
Recurring basis | Total | ' | ' |
Fair value | ' | ' |
Investment securities | 971 | 1,276 |
Total assets measured at fair value on a recurring basis | 2,977 | 3,347 |
Recurring basis | Total | Municipal obligations | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 415 | 638 |
Recurring basis | Total | U.S. government security funds | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 983 | 986 |
Recurring basis | Total | Equity securities | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | $608 | $447 |
SUMMARY_OF_QUARTERLY_OPERATION2
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Nov. 06, 2013 | Aug. 29, 2013 | 8-May-13 | Mar. 06, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue | ' | ' | ' | ' | $95,484 | $92,458 | $93,675 | $96,479 | $90,377 | $91,232 | $92,991 | $92,868 | $378,096 | $367,468 | $367,813 |
Cost of sales | ' | ' | ' | ' | -24,084 | -23,655 | -22,630 | -24,445 | -23,841 | -23,144 | -22,610 | -23,729 | -94,814 | -93,324 | -89,409 |
Gross profit | ' | ' | ' | ' | 71,400 | 68,803 | 71,045 | 72,034 | 66,536 | 68,088 | 70,381 | 69,139 | 283,282 | 274,144 | 278,404 |
Volume incentives | ' | ' | ' | ' | 35,062 | 33,920 | 34,525 | 34,975 | 32,991 | 33,155 | 33,540 | 33,581 | 138,482 | 133,267 | 133,883 |
Selling, general and administrative | ' | ' | ' | ' | 33,747 | 28,170 | 28,709 | 30,117 | 27,719 | 26,228 | 26,530 | 26,384 | 120,743 | 106,861 | 109,606 |
Operating income | ' | ' | ' | ' | 2,591 | 6,713 | 7,811 | 6,942 | 5,826 | 8,705 | 10,311 | 9,174 | 24,057 | 34,016 | 20,165 |
Other income (expense) | ' | ' | ' | ' | 53 | -269 | 1,482 | 330 | 1,639 | -214 | 165 | -110 | 1,596 | 1,480 | 1,847 |
Income before provision for income taxes | ' | ' | ' | ' | 2,644 | 6,444 | 9,293 | 7,272 | 7,465 | 8,491 | 10,476 | 9,064 | 25,653 | 35,496 | 22,012 |
Tax provision | ' | ' | ' | ' | 801 | 1,594 | 3,241 | 2,408 | 2,969 | 2,121 | 3,190 | 1,836 | 8,044 | 10,116 | 4,411 |
Net income | ' | ' | ' | ' | $1,843 | $4,850 | $6,052 | $4,864 | $4,496 | $6,370 | $7,286 | $7,228 | $17,609 | $25,380 | $17,601 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income per common share (in dollars per share) | ' | ' | ' | ' | $0.11 | $0.30 | $0.38 | $0.31 | $0.28 | $0.41 | $0.47 | $0.46 | $1.10 | $1.62 | $1.13 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income per common share (in dollars per share) | ' | ' | ' | ' | $0.11 | $0.29 | $0.38 | $0.30 | $0.28 | $0.40 | $0.46 | $0.46 | $1.07 | $1.59 | $1.12 |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $1.60 | $0.10 | $0.10 | $0.05 | $0.05 | $0.05 | ' | $1.90 | $0.15 | ' |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts receivable | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Year | $631 | $647 | $918 |
Provisions | 535 | 45 | -133 |
Amounts Written Off | -18 | -86 | -174 |
Amounts Recovered | 1 | -1 | 12 |
Effect of Currency Translation | -62 | 26 | 24 |
Balance at End of Year | 1,087 | 631 | 647 |
Allowance for sales returns | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Year | 154 | 109 | 90 |
Provisions | 1,435 | 2,296 | 625 |
Amounts Written Off | -1,454 | -2,249 | -606 |
Effect of Currency Translation | ' | -2 | ' |
Balance at End of Year | 135 | 154 | 109 |
Allowance for obsolete inventory | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Year | 2,254 | 2,083 | 2,397 |
Provisions | 1,600 | 985 | 732 |
Amounts Written Off | -1,577 | -809 | -1,057 |
Amounts Recovered | 41 | ' | 10 |
Effect of Currency Translation | 89 | -5 | 1 |
Balance at End of Year | 2,407 | 2,254 | 2,083 |
Tax valuation allowance | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Year | 8,149 | 9,836 | 12,282 |
Provisions | 3,191 | -1,687 | -2,390 |
Amounts Written Off | ' | ' | -56 |
Balance at End of Year | $11,340 | $8,149 | $9,836 |