Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'NATURES SUNSHINE PRODUCTS INC | ' |
Entity Central Index Key | '0000275053 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,202,840 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $68,555 | $77,247 |
Accounts receivable, net of allowance for doubtful accounts of $663 and $1,087, respectively | 9,010 | 10,206 |
Investments available for sale | 2,024 | 2,006 |
Inventories | 40,477 | 41,910 |
Deferred income tax assets | 5,596 | 5,711 |
Income tax receivable | 8,447 | 6,665 |
Prepaid expenses and other | 5,330 | 4,849 |
Total current assets | 139,439 | 148,594 |
Property, plant and equipment, net | 41,066 | 32,022 |
Investment securities | 1,022 | 971 |
Intangible assets, net | 779 | 853 |
Deferred income tax assets | 13,930 | 9,928 |
Other assets | 8,943 | 7,244 |
Total Assets | 205,179 | 199,612 |
Current liabilities: | ' | ' |
Accounts payable | 5,800 | 5,664 |
Accrued volume incentives | 19,322 | 19,206 |
Accrued liabilities | 29,087 | 34,893 |
Deferred revenue | 3,745 | 4,173 |
Current installments of long-term debt and revolving credit facility | 572 | 2,267 |
Income taxes payable | 1,575 | 2,366 |
Total current liabilities | 60,101 | 68,569 |
Liability related to unrecognized tax benefits | 13,223 | 12,402 |
Long-term debt and revolving credit facility | 10,000 | 10,000 |
Deferred compensation payable | 1,022 | 971 |
Other liabilities | 2,638 | 2,411 |
Total liabilities | 86,984 | 94,353 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value, 50,000 shares authorized, 16,203 and 16,179 shares issued and outstanding as of June 30, 2014, and December 31, 2013, respectively | 85,414 | 83,122 |
Retained earnings | 45,762 | 36,100 |
Accumulated other comprehensive loss | -12,981 | -13,963 |
Total shareholders' equity | 118,195 | 105,259 |
Total Liabilities and Shareholders' Equity | $205,179 | $199,612 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $663 | $1,087 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 16,203 | 16,179 |
Common stock, shares outstanding | 16,203 | 16,179 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Net sales revenue | $94,325 | $93,675 | $190,078 | $190,154 |
Cost of sales | -23,372 | -22,630 | -46,478 | -47,075 |
Gross profit | 70,953 | 71,045 | 143,600 | 143,079 |
Operating expenses: | ' | ' | ' | ' |
Volume incentives | 34,834 | 34,525 | 70,551 | 69,500 |
Selling, general and administrative | 30,305 | 28,709 | 60,063 | 58,826 |
Operating income | 5,814 | 7,811 | 12,986 | 14,753 |
Other income (loss), net | -378 | 1,482 | -1,493 | 1,812 |
Income before provision for income taxes | 5,436 | 9,293 | 11,493 | 16,565 |
Provision (benefit) for income taxes | 2,202 | 3,241 | -1,406 | 5,649 |
Net income | $3,234 | $6,052 | $12,899 | $10,916 |
Basic: | ' | ' | ' | ' |
Net income (in dollars per share) | $0.20 | $0.38 | $0.80 | $0.69 |
Diluted: | ' | ' | ' | ' |
Net income (in dollars per share) | $0.20 | $0.38 | $0.79 | $0.68 |
Weighted average basic common shares outstanding (in shares) | 16,187 | 15,896 | 16,183 | 15,860 |
Weighted average diluted common shares outstanding (in shares) | 16,224 | 16,112 | 16,392 | 16,079 |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 | $0.20 | $0.20 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $3,234 | $6,052 | $12,899 | $10,916 |
Foreign currency translation gain (loss) (net of tax) | 793 | -2,040 | 971 | -3,926 |
Net unrealized gains on investment securities (net of tax) | 8 | 6 | 11 | 30 |
Total comprehensive income | $4,035 | $4,018 | $13,881 | $7,020 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $12,899 | $10,916 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for doubtful accounts | 110 | 19 |
Depreciation and amortization | 2,375 | 2,181 |
Share-based compensation expense | 2,082 | 1,930 |
Loss on sale of property and equipment | 19 | 25 |
Deferred income taxes | -3,887 | 183 |
Amortization of bond discount | 1 | 1 |
Purchase of trading investment securities | -98 | -36 |
Proceeds from sale of trading investment securities | 93 | 193 |
Realized and unrealized gains on investments | -44 | -33 |
Foreign exchange losses (gains) | 1,390 | -1,583 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 1,165 | 229 |
Inventories | 1,384 | 1,163 |
Prepaid expenses and other current assets | -2,331 | -642 |
Other assets | -1,467 | 103 |
Accounts payable | 410 | -1,296 |
Accrued volume incentives | 19 | 1,643 |
Accrued liabilities | -5,568 | 699 |
Deferred revenue | -428 | -901 |
Income taxes payable | -858 | 401 |
Liability related to unrecognized tax benefits | 821 | 216 |
Deferred compensation payable | 51 | -125 |
Net cash provided by operating activities | 8,138 | 15,286 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property, plant and equipment | -11,568 | -2,332 |
Proceeds from sale of property, plant and equipment | 3 | 46 |
Purchase of investments available for sale | -18 | -75 |
Proceeds from investments available for sale | 51 | 0 |
Net cash used in investing activities | -11,532 | -2,361 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payments of cash dividends | -3,237 | -3,170 |
Principal payments of long-term debt and revolving credit facility | -1,695 | -1,391 |
Proceeds from the exercise of stock options | 210 | 1,356 |
Net cash used in financing activities | -4,722 | -3,205 |
Effect of exchange rates on cash and cash equivalents | -576 | -1,666 |
Net increase (decrease) in cash and cash equivalents | -8,692 | 8,054 |
Cash and cash equivalents at the beginning of the period | 77,247 | 79,241 |
Cash and cash equivalents at the end of the period | 68,555 | 87,295 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | 4,062 | 5,407 |
Cash paid for interest | $106 | $32 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
(1)Basis of Presentation | |
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, Ukraine, the United Kingdom, the United States, Venezuela and Vietnam. The Company also exports its products to Argentina, Australia, Chile, Israel, New Zealand, Norway, and the United Kingdom. | |
Principles of Consolidation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals), considered necessary for a fair presentation of the Company’s financial information as of June 30, 2014, and for the three- and six-month periods ended June 30, 2014 and 2013. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year ending December 31, 2014. | |
It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
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. On February 11, 2013, the Venezuelan government’s currency control agency (“CADIVI”), announced the further devaluation of the bolivar to 6.3 bolivars per U.S. dollar. In addition, the CADIVI enacted a new currency exchange mechanism, the First Complementary System for Foreign Currency Administration (“SICAD 1”), and mandated foreign entities domiciled in Venezuela to formally apply and be approved by the CADIVI to obtain U.S. dollars through banking institutions approved by the Venezuelan government at the official CADIVI exchange rate of 6.3 bolivars per U.S. dollar or at the official SICAD 1 exchange rate of 11.3 bolivars per U.S. dollar. On a weekly basis, the CADIVI determined how many U.S. dollars would be sold and which previously approved companies would be authorized to obtain them. Companies were approved to obtain U.S. dollars based on the individual products that they imported and sold in Venezuela. Products that are considered to be more beneficial to consumers in Venezuela, such as medicinal products, were approved for payment at the official CADIVI exchange rate of 6.3, while other beneficial products, such as dietary supplements, were approved for payment at the official SICAD 1 exchange rate of 11.3. Foreign entities domiciled in Venezuela pay bolivars to the Venezuela Central Bank, which then pays U.S. dollars directly to the foreign entities to limit the amount of U.S. dollars available within Venezuela. The Company is currently in the process of registering its products in order to obtain U.S. dollars at the official CADAVI exchange rate of 6.3 or the official SICAD 1 exchange rate of 11.3. The Company has not successfully obtained U.S. dollars at the CADIVI exchange rate since the establishment of the SICAD 1 currency exchange mechanism. | |
Effective January 24, 2014, additional changes to the country’s foreign exchange system were enacted by the Venezuelan government that expanded the types of products that could be subject to the weekly SICAD 1 auction process. In addition, a new currency control agency (“CENCOEX”) was established to replace the CADIVI. The CENCOEX official exchange rate was maintained at the CADIVI official exchange rate 6.3 bolivars per U.S. dollar. The CENCOEX also enacted a new currency exchange mechanism, the Second Complementary System for Foreign Currency Administration (“SICAD 2”) that will supplement and coexist with the SICAD 1 currency exchange mechanism. The SICAD 2 is expected to provide a greater supply of U.S. dollars from sources other than the Venezuelan government and to allow all sectors and companies to participate. The SICAD 2 is intended to more closely resemble a market-driven exchange rate than the official CENCOEX and SICAD 1 exchange rates of 6.3 and 11.3, respectively. As of June 30, 2014, the SICAD 2 exchange rate was approximately 50.0 bolivars per U.S. dollar. | |
The Company does not intend to apply for exchange or register any products at the SICAD 2 exchange rate. The Company is currently monitoring the currency exchange mechanisms in place and the potential for currency exchange transactions should the Company’s applications for currency exchange be unsuccessful. At this time, the Company is uncertain of the process or exchange rate for obtaining U.S. dollars for previously shipped products dating back to the establishment of the SICAD 1 currency exchange mechanism in February 2013. | |
Due to these circumstances, the Company has re-measured its assets and liabilities in Venezuela at the official SICAD 1 exchange rate of 11.3, effective March 31, 2014. This re-measurement resulted in a foreign exchange loss of $845. Going forward the Company will report its results at the higher official exchange rate of 11.3 bolivars to the U.S. dollar. | |
During the three months ended June 30, 2014 and 2013, the Company’s Venezuelan subsidiary’s net sales revenue represented approximately 1.6 percent and 2.0 percent of consolidated net sales revenue, respectively. During the six months ended June 30, 2014 and 2013, the Company’s Venezuelan subsidiary’s net sales revenue represented approximately 2.0 percent and 2.1 percent of consolidated net sales revenue, respectively. As of June 30, 2014 and December 31, 2013, the Company’s Venezuelan subsidiary held cash and cash equivalents of $2,906 and $3,922, respectively. As of June 30, 2014 and December 31, 2013, the Company’s Venezuelan subsidiary held net assets of $4,884 and $5,721, respectively, of which was property, plant and equipment of $3,016 and $3,207, respectively. | |
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 three months ended June 30, 2014 and 2013, the Company’s Belarusian subsidiary’s net sales revenue represented approximately 2.3 percent and 1.9 percent of consolidated net sales revenue, respectively. During the six months ended June 30, 2014 and 2013, the Company’s Belarusian subsidiary’s net sales revenue represented approximately 2.4 percent and 2.1 percent of consolidated net sales revenue, respectively. | |
Strategic Alliance with Fosun Pharma | |
On June 26, 2014, the Company and Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”), a leading healthcare company in the People’s Republic of China (“China”), announced the signing of definitive agreements with respect to the formation of a China joint venture to market and distribute Nature’s Sunshine and Synergy products in China and a concurrent investment by Fosun Pharma of approximately $46,300 in Nature’s Sunshine common stock to be issued pursuant to a private placement transaction. Nature’s Sunshine intends to use the net proceeds of the private placement transaction to fund its share of the China joint venture and pay a cash dividend of $1.50 per share contingent upon transaction closing. The amount of the cash dividend paid to shareholders is expected to be approximately $29,000. The parties anticipate closing the joint venture and private placement transaction in the third quarter of 2014, subject to customary closing conditions including the receipt of required regulatory approvals. | |
Nature’s Sunshine and Fosun Pharma have agreed to enter into a joint venture in China which will be owned 80 percent by Nature’s Sunshine and 20 percent by a wholly-owned subsidiary of Fosun Pharma. The joint venture will be capitalized initially with $16,000 from Nature’s Sunshine and $4,000 from Fosun Pharma. The launch of the joint venture is subject to customary conditions, including regulatory approvals by the Chinese government. The Company will consolidate the joint venture in its consolidated financial statements, with the 20 percent Fosun Pharma interest presented as a noncontrolling interest. | |
The joint venture, known as Nature’s Sunshine Hong Kong Limited, expects to market and distribute Nature’s Sunshine products in China. Nature’s Sunshine Hong Kong Limited currently anticipates deploying a multi-brand, multi-channel go-to-market strategy that offers select Nature’s Sunshine-branded products through certain of Fosun Pharma’s existing retail locations across China, and select Synergy-branded products through a direct selling model. The time to market will be dependent upon regulatory processes, including product registration, permit and license approvals. | |
Pursuant to a concurrent private placement transaction, Nature’s Sunshine has agreed to issue approximately 2,860 shares of unregistered common stock to Fosun Pharma at a price of $16.19 per share, representing aggregate proceeds to Nature’s Sunshine of approximately $46,300. The purchase price represents a 10 percent premium to Nature’s Sunshine’s average stock price over the trailing 30 business day period as of June 26, 2014. Upon the closing of the sale, Fosun Pharma will own approximately 15% of Nature’s Sunshine outstanding common shares. Nature’s Sunshine has granted Fosun Pharma certain registration rights with respect to the private placement shares. In addition, Nature’s Sunshine has agreed to initially appoint one director designated by Fosun Pharma to its board of directors. The issuance and sale of the shares is subject to customary closing conditions, including the consummation of the joint venture transaction and is expected to close concurrently with the joint venture transaction. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08 Presentation of Financial Statements (Topic 740) and Property, Plant, and Equipment (Topic 360): “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. This update changes the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in this update are effective for interim and annual periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 Revenue from Contracts with Customers (Topic 606). This update requires an entity to recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. As such, this update affects an entity that either enters into contracts with customers or transfers goods and services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This update will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606. The amendments in this update are effective for interim and annual periods beginning after December 15, 2015. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12 Compensation — Stock Compensation (Topic 718): “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. This update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this update are effective for interim and annual periods beginning after December 15, 2015. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. | |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
(2)Inventories | ||||||||
The composition of inventories is as follows: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 11,887 | $ | 10,848 | ||||
Work in progress | 800 | 740 | ||||||
Finished goods | 27,790 | 30,322 | ||||||
Total inventory | $ | 40,477 | $ | 41,910 | ||||
Intangible_Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2014 | |
Intangible Assets | ' |
Intangible Assets | ' |
(3)Intangible Assets | |
At June 30, 2014, and December 31, 2013, intangibles for product formulations had a gross carrying amount of $1,763 and $1,763, accumulated amortization of $984 and $910, and a net amount of $779 and $853, respectively. The estimated useful lives of the product formulations range from 9 to 15 years. | |
Amortization expense for intangible assets for the three months ended June 30, 2014 and 2013, was $37 and $37, respectively. Amortization expense for intangible assets for the six months ended June 30, 2014 and 2013 was $74 and $74, respectively. Estimated amortization expense for the next succeeding fiscal year thereafter is $149 followed by four fiscal years with estimated amortization expense of $91. | |
Investments
Investments | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Investments | ' | |||||||||||||
Investments | ' | |||||||||||||
(4)Investments | ||||||||||||||
The amortized cost and estimated fair values of available-for-sale securities by balance sheet classification are as follows: | ||||||||||||||
As of June 30, 2014 | Amortized | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||
Gains | Losses | |||||||||||||
Municipal obligations | $ | 401 | $ | 5 | $ | — | $ | 406 | ||||||
U.S. government securities funds | 998 | — | (11 | ) | 987 | |||||||||
Equity securities | 227 | 412 | (8 | ) | 631 | |||||||||
Total short-term investment securities | $ | 1,626 | $ | 417 | $ | (19 | ) | $ | 2,024 | |||||
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 | |||||
The municipal obligations held at a fair value of $406 at June 30, 2014, all mature in less than two years. | ||||||||||||||
During the six-month periods ended June 30, 2014 and 2013, the proceeds from the sales of available-for-sale securities were $51 and $0, respectively. There were no gross realized gains (losses) on sales of available-for-sale securities (net of tax) for the six-month periods ended June 30, 2014 and 2013, respectively. | ||||||||||||||
The Company’s trading securities portfolio totaled $1,022 at June 30, 2014, and $971 at December 31, 2013, and generated gains of $44 and $33 for the six months ended June 30, 2014 and 2013. | ||||||||||||||
As of June 30, 2014 and December 31, 2013, the Company had unrealized losses of $11 and $14, 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. | ||||||||||||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2014 | |
Long-Term Debt | ' |
Long-Term Debt | ' |
(5)Long-Term Debt | |
The Company’s revolving credit agreement with Wells Fargo Bank, N.A., permits the Company to borrow up to $25,000 through August 9, 2014, bearing interest at LIBOR plus 1.25 percent (1.50 percent as of June 30, 2014 and December 31, 2013). The Company must pay an annual commitment fee of 0.25 percent on the unused portion of the commitment. Currently, the revolving credit agreement matures on September 1, 2015. At June 30, 2014 and 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 each of June 30, 2014 and December 31, 2013). The outstanding balance under the term loan was $572 and $2,267 as of June 30, 2014 and December 31, 2013, respectively. The term loan is collateralized by the Company’s manufacturing facility in Spanish Fork, Utah. | |
The various debt agreements contain restrictions on liquidity, leverage, 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 June 30, 2014. | |
Net_Income_Per_Share
Net Income Per Share | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Net Income Per Share | ' | |||||||||||||
Net Income Per Share | ' | |||||||||||||
(6)Net Income Per 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 the three and six months ended June 30, 2014 and 2013: | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income | $ | 3,234 | $ | 6,052 | $ | 12,899 | $ | 10,916 | ||||||
Basic weighted average shares outstanding | 16,187 | 15,896 | 16,183 | 15,860 | ||||||||||
Basic net income per common share | $ | 0.20 | $ | 0.38 | $ | 0.80 | $ | 0.69 | ||||||
Diluted weighted average shares outstanding | ||||||||||||||
Basic weighted average shares outstanding | 16,187 | 15,896 | 16,183 | 15,860 | ||||||||||
Weighted average stock options outstanding | 37 | 216 | 209 | 219 | ||||||||||
Diluted weighted average shares outstanding | 16,224 | 16,112 | 16,392 | 16,079 | ||||||||||
Diluted net income per common share | $ | 0.20 | $ | 0.38 | $ | 0.79 | $ | 0.68 | ||||||
Potentially dilutive shares excluded from diluted per share amounts: | ||||||||||||||
Stock options | 133 | 146 | 133 | 163 | ||||||||||
Potentially anti-dilutive shares excluded from diluted per share amounts: | ||||||||||||||
Stock options | 653 | 306 | 468 | 428 | ||||||||||
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. | ||||||||||||||
Capital_Transactions
Capital Transactions | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Capital Transactions | ' | ||||||
Capital Transactions | ' | ||||||
(7)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 17, 2014, the Company announced a cash dividend of $0.10 per common share in an aggregate amount of $1,618 that was paid on April 7, 2014, to shareholders of record on March 28, 2014. On May 7, 2014, the Company announced a cash dividend of $0.10 per common share in an aggregate amount of $1,619 that was paid on June 2, 2014, to shareholders of record on May 21, 2014. | |||||||
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. Due to a blackout period beginning in mid-December 2013 and the subsequent negotiations with Fosun Pharma for a strategic alliance, the Company has not repurchased any shares of its common stock under the share repurchase program in 2014. At June 30, 2014, the remaining balance available for repurchases under the program was $7,454. | |||||||
Share-Based Compensation | |||||||
Stock option activity for the six months ended June 30, 2014, is as follows: | |||||||
Number of | Weighted Average | ||||||
Shares | Exercise | ||||||
Price Per Share | |||||||
Options outstanding at December 31, 2013 | 1,926 | $ | 12.54 | ||||
Granted | 258 | 15.38 | |||||
Expired | (16 | ) | 13.55 | ||||
Exercised | (24 | ) | 8.84 | ||||
Options outstanding at June 30, 2014 | 2,144 | 12.92 | |||||
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 have 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 six-month period ended June 30, 2014, the Company issued options to purchase 258 shares of common stock under the 2012 Stock Incentive Plan to the Company’s executive officers and other employees, which are composed of time-based stock options. These options were issued with a weighted-average exercise price of $15.38 per share and a weighted-average grant date fair value of $6.53 per share. All of the options issued have an option termination date of ten years from the option grant date. | |||||||
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 six-month period ended June 30, 2014: | |||||||
2014 | |||||||
Expected life (in years) | 6.0 | ||||||
Risk-free interest rate | 1.5 | ||||||
Expected volatility | 56.7 | ||||||
Dividend yield | 2.6 | ||||||
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 to be declared by the Company. | |||||||
Share-based compensation expense from time-based stock options for the three-month periods ended June 30, 2014 and 2013, was approximately $719 and $729, respectively; the related tax benefit was approximately $284 and $288, respectively. Share-based compensation expense from time-based stock options for the six-month periods ended June 30, 2014 and 2013, was approximately $1,616 and $1,803, respectively; the related tax benefit was approximately $638 and $712, respectively. As of June 30, 2014 and December 31, 2013, the unrecognized share-based compensation expense related to the grants described above was $3,293 and $3,294, respectively. As of June 30, 2014, the remaining compensation cost is expected to be recognized over the weighted-average period of approximately 1.9 years. | |||||||
The Company has not recognized any share-based compensation expense related to the net sales revenue performance-based stock options for the six-month period ended June 30, 2014. 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. | |||||||
At June 30, 2014, the aggregate intrinsic value of outstanding stock options to purchase 2,144 shares of common stock, exercisable stock options to purchase 1,096 shares of common stock and stock options to purchase 869 shares of common stock that are expected to vest was $8,975, $6,498 and $2,353, respectively. 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. | |||||||
Restricted stock unit activity for the period ended June 30, 2014 is as follows: | |||||||
Number of | Weighted Average | ||||||
Shares | Grant Date | ||||||
Fair Value | |||||||
Units outstanding at December 31, 2013 | 32 | $ | 12.47 | ||||
Granted | 140 | 13.85 | |||||
Issued | — | — | |||||
Forfeited | (3 | ) | 14.38 | ||||
Units outstanding at June 30, 2014 | 169 | 13.39 | |||||
During the six-month period ended June 30, 2014, the Company issued 140 restricted stock units (RSUs) of common stock under the 2012 Incentive Plan to the Company’s Board, executive officers and other employees. The RSUs were issued with a weighted average grant date fair value of $13.85 per share and vest in annual installments over a four year period from the grant date. | |||||||
RSUs are valued at the market value on the date of grant, which is the grant date share price discounted for expected dividend payments during the vesting period. For RSUs with 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 three-month periods ended June 30, 2014 and 2013, was approximately $269 and $52, respectively; the related tax benefit was approximately $106 and $18, respectively. Share-based compensation expense from RSUs for the six-month periods ended June 30, 2014 and 2013, was approximately $466 and $127, respectively; the related tax benefit was approximately $184 and $44, respectively. As of June 30, 2014 and December 31, 2013, the unrecognized share-based compensation expense related to the grants described above was $1,533 and $62, respectively. As of June 30, 2014, the remaining compensation expense is expected to be recognized over the weighted average period of approximately 2.1 years. | |||||||
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
(8)Segment 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 has 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 is as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net sales revenue: | ||||||||||||||
NSP Americas, Asia Pacific and Europe | $ | 49,000 | $ | 53,416 | $ | 99,673 | $ | 106,553 | ||||||
NSP Russia, Central and Eastern Europe | 12,838 | 14,978 | 27,875 | 31,118 | ||||||||||
Synergy WorldWide | 32,487 | 25,281 | 62,530 | 52,483 | ||||||||||
Total net sales revenue | 94,325 | 93,675 | 190,078 | 190,154 | ||||||||||
Contribution margin (1): | ||||||||||||||
NSP Americas, Asia Pacific and Europe | 19,725 | 22,305 | 40,646 | 44,261 | ||||||||||
NSP Russia, Central and Eastern Europe | 4,563 | 5,523 | 9,959 | 11,506 | ||||||||||
Synergy WorldWide | 11,831 | 8,692 | 22,444 | 17,812 | ||||||||||
Total contribution margin | 36,119 | 36,520 | 73,049 | 73,579 | ||||||||||
Selling, general and administrative | 30,305 | 28,709 | 60,063 | 58,826 | ||||||||||
Total operating income | 5,814 | 7,811 | 12,986 | 14,753 | ||||||||||
Other income (expense), net | (378 | ) | 1,482 | (1,493 | ) | 1,812 | ||||||||
Income before provision for income taxes | $ | 5,436 | $ | 9,293 | $ | 11,493 | $ | 16,565 | ||||||
-1 | Contribution margin consists of net sales revenue less cost of sales and volume incentives expense. | |||||||||||||
From an individual country perspective, only the United States and South Korea comprise 10 percent or more of consolidated net sales revenue for the three and six-month periods ended June 30, 2014 and 2013, as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net sales revenue: | ||||||||||||||
United States | $ | 37,932 | $ | 40,195 | $ | 75,547 | $ | 79,343 | ||||||
South Korea | 14,336 | 6,894 | 26,707 | 13,615 | ||||||||||
Other | 42,057 | 46,586 | 87,824 | 97,196 | ||||||||||
$ | 94,325 | $ | 93,675 | $ | 190,078 | $ | 190,154 | |||||||
Revenue generated by each of the Company’s product lines is set forth below: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
NSP Americas, Asia Pacific and Europe: | ||||||||||||||
General health | $ | 22,091 | $ | 22,312 | $ | 43,402 | $ | 44,784 | ||||||
Immune | 5,388 | 5,934 | 11,970 | 12,920 | ||||||||||
Cardiovascular | 3,272 | 3,812 | 6,763 | 7,247 | ||||||||||
Digestive | 14,156 | 15,572 | 29,067 | 31,018 | ||||||||||
Personal care | 1,058 | 1,381 | 2,110 | 2,862 | ||||||||||
Weight management | 3,035 | 4,405 | 6,361 | 7,722 | ||||||||||
49,000 | 53,416 | 99,673 | 106,553 | |||||||||||
NSP Russia, Central and Eastern Europe: | ||||||||||||||
General health | $ | 4,831 | $ | 5,499 | $ | 10,376 | $ | 11,259 | ||||||
Immune | 1,500 | 1,734 | 3,468 | 3,835 | ||||||||||
Cardiovascular | 789 | 1,102 | 1,727 | 2,240 | ||||||||||
Digestive | 3,451 | 4,020 | 7,398 | 8,066 | ||||||||||
Personal care | 1,468 | 1,754 | 3,336 | 4,113 | ||||||||||
Weight management | 799 | 869 | 1,570 | 1,605 | ||||||||||
12,838 | 14,978 | 27,875 | 31,118 | |||||||||||
Synergy WorldWide: | ||||||||||||||
General health | $ | 11,689 | $ | 9,108 | $ | 22,442 | $ | 17,776 | ||||||
Immune | 256 | 416 | 467 | 808 | ||||||||||
Cardiovascular | 11,652 | 9,580 | 22,096 | 20,669 | ||||||||||
Digestive | 4,953 | 3,958 | 9,970 | 8,822 | ||||||||||
Personal care | 1,734 | 1,531 | 3,470 | 3,273 | ||||||||||
Weight management | 2,203 | 688 | 4,085 | 1,135 | ||||||||||
32,487 | 25,281 | 62,530 | 52,483 | |||||||||||
$ | 94,325 | $ | 93,675 | $ | 190,078 | $ | 190,154 | |||||||
From an individual country perspective, only the United States and Venezuela comprise 10 percent or more of consolidated property, plant and equipment as follows: | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Property, plant and equipment: | ||||||||||||||
United States | $ | 35,271 | $ | 25,713 | ||||||||||
Venezuela | 3,016 | 3,207 | ||||||||||||
Other | 2,779 | 3,102 | ||||||||||||
Total property, plant and equipment | $ | 41,066 | $ | 32,022 | ||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
(9)Income Taxes | |
Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. For the three months ended June 30, 2014 and 2013, the Company’s provision (benefit) for income taxes, as a percentage of income before income taxes was 40.5 percent and 34.9 percent, respectively, compared with a U.S. federal statutory rate of 35.0 percent. For the six months ended June 30, 2014 and 2013, the Company’s provision (benefit) for income taxes, as a percentage of income before income taxes was (12.2) percent and 34.1 percent, respectively, compared with a U.S. federal statutory rate of 35.0 percent. | |
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended June 30, 2014, was primarily attributed to state taxes and an increase in tax liabilities associated with uncertain tax positions, offset by a favorable domestic manufacturing deduction and net favorable foreign items related to tax rate differences and adjustments to foreign valuation allowances. | |
The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended June 30, 2013, was primarily attributed to an increase in tax liabilities associated with uncertain tax positions, in addition to net favorable foreign items related to foreign tax rate differences, the impact of unremitted earnings, and adjustments to foreign valuation allowances. | |
The difference between the effective tax rate and the U.S. federal statutory tax rate for the six months ended June 30, 2014, was primarily attributed to foreign tax credits arising from intercompany dividends of $21,500 paid by foreign subsidiaries to the U.S. corporation. This discrete item resulted in an income tax benefit of $6,720 for the six months ended June 30, 2014. | |
The difference between the effective tax rate and the U.S. federal statutory tax rate for the six months ended June 30, 2013, was primarily attributed to an increase in tax liabilities associated with uncertain tax positions, in addition to net favorable foreign items related to foreign tax rate differences, the impact of unremitted earnings, and adjustments to foreign valuation allowances . | |
Changes to the effective rate due to dividends received from foreign subsidiaries, impact of foreign tax credits and the unremitted earnings calculation are expected to be recurring, although it is unlikely that these items will again have an impact as large as what occurred in the six months ended June 30, 2014. Depending on various factors, changes from the foregoing items may be favorable or unfavorable in a particular period. | |
The Company’s U.S. federal income tax returns for 2009 through 2012 are open to examination for federal tax purposes. 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 Company has several foreign tax jurisdictions that have open tax years from 2007 through 2013. | |
As of June 30, 2014, the Company had accrued $13,223 of liabilities related to unrecognized tax benefits compared with $12,402, as of December 31, 2013. This net increase was primarily attributed to transfer pricing contingencies, including increases in penalties and interest. | |
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. | |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
(10)Commitments and Contingencies | |
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. 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 averaged approximately $330 per month and totaled approximately $3,000 at March 31, 2014. | |
The parties negotiated a resolution to the dispute, whereby the General Dealer paid the Company the $3,000 of Discounts withheld and relinquished all claims to the reimbursement of Discounts with respect to periods prior to July 2013, and the parties agreed to a new three-year international reseller agreement, effective April 1, 2014. | |
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 June 30, 2014 and December 31, 2013, accrued liabilities include $4,759 and $6,312, 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. | |
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 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 $800. | |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
(11)Fair Value Measurements | ||||||||||||||
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 assets, measured at fair value on a recurring basis, as of June 30, 2014: | ||||||||||||||
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 | $ | — | $ | 406 | $ | — | $ | 406 | ||||||
U.S. government security funds | 987 | — | — | 987 | ||||||||||
Equity securities | 631 | — | — | 631 | ||||||||||
Investment securities | 1,022 | — | — | 1,022 | ||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,640 | $ | 406 | $ | — | $ | 3,046 | ||||||
The following table presents the Company’s hierarchy for its assets, 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 | ||||||
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 six months ended June 30, 2014, and for the year ended December 31, 2013, there were no fair value measurements using the significant unobservable inputs (Level 3). | ||||||||||||||
The carrying amounts reflected on the consolidated balance sheet for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value 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 three and six months ended June 30, 2014 and 2013, the Company did not have any re-measurements of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. | ||||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
Basis of Presentation | |
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, Ukraine, the United Kingdom, the United States, Venezuela and Vietnam. The Company also exports its products to Argentina, Australia, Chile, Israel, New Zealand, Norway, and the United Kingdom. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals), considered necessary for a fair presentation of the Company’s financial information as of June 30, 2014, and for the three- and six-month periods ended June 30, 2014 and 2013. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year ending December 31, 2014. | |
It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 | |
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. On February 11, 2013, the Venezuelan government’s currency control agency (“CADIVI”), announced the further devaluation of the bolivar to 6.3 bolivars per U.S. dollar. In addition, the CADIVI enacted a new currency exchange mechanism, the First Complementary System for Foreign Currency Administration (“SICAD 1”), and mandated foreign entities domiciled in Venezuela to formally apply and be approved by the CADIVI to obtain U.S. dollars through banking institutions approved by the Venezuelan government at the official CADIVI exchange rate of 6.3 bolivars per U.S. dollar or at the official SICAD 1 exchange rate of 11.3 bolivars per U.S. dollar. On a weekly basis, the CADIVI determined how many U.S. dollars would be sold and which previously approved companies would be authorized to obtain them. Companies were approved to obtain U.S. dollars based on the individual products that they imported and sold in Venezuela. Products that are considered to be more beneficial to consumers in Venezuela, such as medicinal products, were approved for payment at the official CADIVI exchange rate of 6.3, while other beneficial products, such as dietary supplements, were approved for payment at the official SICAD 1 exchange rate of 11.3. Foreign entities domiciled in Venezuela pay bolivars to the Venezuela Central Bank, which then pays U.S. dollars directly to the foreign entities to limit the amount of U.S. dollars available within Venezuela. The Company is currently in the process of registering its products in order to obtain U.S. dollars at the official CADAVI exchange rate of 6.3 or the official SICAD 1 exchange rate of 11.3. The Company has not successfully obtained U.S. dollars at the CADIVI exchange rate since the establishment of the SICAD 1 currency exchange mechanism. | |
Effective January 24, 2014, additional changes to the country’s foreign exchange system were enacted by the Venezuelan government that expanded the types of products that could be subject to the weekly SICAD 1 auction process. In addition, a new currency control agency (“CENCOEX”) was established to replace the CADIVI. The CENCOEX official exchange rate was maintained at the CADIVI official exchange rate 6.3 bolivars per U.S. dollar. The CENCOEX also enacted a new currency exchange mechanism, the Second Complementary System for Foreign Currency Administration (“SICAD 2”) that will supplement and coexist with the SICAD 1 currency exchange mechanism. The SICAD 2 is expected to provide a greater supply of U.S. dollars from sources other than the Venezuelan government and to allow all sectors and companies to participate. The SICAD 2 is intended to more closely resemble a market-driven exchange rate than the official CENCOEX and SICAD 1 exchange rates of 6.3 and 11.3, respectively. As of June 30, 2014, the SICAD 2 exchange rate was approximately 50.0 bolivars per U.S. dollar. | |
The Company does not intend to apply for exchange or register any products at the SICAD 2 exchange rate. The Company is currently monitoring the currency exchange mechanisms in place and the potential for currency exchange transactions should the Company’s applications for currency exchange be unsuccessful. At this time, the Company is uncertain of the process or exchange rate for obtaining U.S. dollars for previously shipped products dating back to the establishment of the SICAD 1 currency exchange mechanism in February 2013. | |
Due to these circumstances, the Company has re-measured its assets and liabilities in Venezuela at the official SICAD 1 exchange rate of 11.3, effective March 31, 2014. This re-measurement resulted in a foreign exchange loss of $845. Going forward the Company will report its results at the higher official exchange rate of 11.3 bolivars to the U.S. dollar. | |
During the three months ended June 30, 2014 and 2013, the Company’s Venezuelan subsidiary’s net sales revenue represented approximately 1.6 percent and 2.0 percent of consolidated net sales revenue, respectively. During the six months ended June 30, 2014 and 2013, the Company’s Venezuelan subsidiary’s net sales revenue represented approximately 2.0 percent and 2.1 percent of consolidated net sales revenue, respectively. As of June 30, 2014 and December 31, 2013, the Company’s Venezuelan subsidiary held cash and cash equivalents of $2,906 and $3,922, respectively. As of June 30, 2014 and December 31, 2013, the Company’s Venezuelan subsidiary held net assets of $4,884 and $5,721, respectively, of which was property, plant and equipment of $3,016 and $3,207, respectively. | |
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 three months ended June 30, 2014 and 2013, the Company’s Belarusian subsidiary’s net sales revenue represented approximately 2.3 percent and 1.9 percent of consolidated net sales revenue, respectively. During the six months ended June 30, 2014 and 2013, the Company’s Belarusian subsidiary’s net sales revenue represented approximately 2.4 percent and 2.1 percent of consolidated net sales revenue, respectively. | |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of composition of inventories | ' | |||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 11,887 | $ | 10,848 | ||||
Work in progress | 800 | 740 | ||||||
Finished goods | 27,790 | 30,322 | ||||||
Total inventory | $ | 40,477 | $ | 41,910 | ||||
Investments_Tables
Investments (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Investments | ' | |||||||||||||
Schedule of amortized cost and estimated fair values of available-for-sale securities by balance sheet classification | ' | |||||||||||||
As of June 30, 2014 | Amortized | Gross | Gross | Fair | ||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||
Gains | Losses | |||||||||||||
Municipal obligations | $ | 401 | $ | 5 | $ | — | $ | 406 | ||||||
U.S. government securities funds | 998 | — | (11 | ) | 987 | |||||||||
Equity securities | 227 | 412 | (8 | ) | 631 | |||||||||
Total short-term investment securities | $ | 1,626 | $ | 417 | $ | (19 | ) | $ | 2,024 | |||||
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 | |||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Net Income Per Share | ' | |||||||||||||
Schedule of reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS | ' | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income | $ | 3,234 | $ | 6,052 | $ | 12,899 | $ | 10,916 | ||||||
Basic weighted average shares outstanding | 16,187 | 15,896 | 16,183 | 15,860 | ||||||||||
Basic net income per common share | $ | 0.20 | $ | 0.38 | $ | 0.80 | $ | 0.69 | ||||||
Diluted weighted average shares outstanding | ||||||||||||||
Basic weighted average shares outstanding | 16,187 | 15,896 | 16,183 | 15,860 | ||||||||||
Weighted average stock options outstanding | 37 | 216 | 209 | 219 | ||||||||||
Diluted weighted average shares outstanding | 16,224 | 16,112 | 16,392 | 16,079 | ||||||||||
Diluted net income per common share | $ | 0.20 | $ | 0.38 | $ | 0.79 | $ | 0.68 | ||||||
Potentially dilutive shares excluded from diluted per share amounts: | ||||||||||||||
Stock options | 133 | 146 | 133 | 163 | ||||||||||
Potentially anti-dilutive shares excluded from diluted per share amounts: | ||||||||||||||
Stock options | 653 | 306 | 468 | 428 | ||||||||||
Capital_Transactions_Tables
Capital Transactions (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Capital Transactions | ' | ||||||
Schedule of stock option activity | ' | ||||||
Number of | Weighted Average | ||||||
Shares | Exercise | ||||||
Price Per Share | |||||||
Options outstanding at December 31, 2013 | 1,926 | $ | 12.54 | ||||
Granted | 258 | 15.38 | |||||
Expired | (16 | ) | 13.55 | ||||
Exercised | (24 | ) | 8.84 | ||||
Options outstanding at June 30, 2014 | 2,144 | 12.92 | |||||
Schedule of weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | ' | ||||||
2014 | |||||||
Expected life (in years) | 6.0 | ||||||
Risk-free interest rate | 1.5 | ||||||
Expected volatility | 56.7 | ||||||
Dividend yield | 2.6 | ||||||
Schedule of restricted stock unit activity | ' | ||||||
Number of | Weighted Average | ||||||
Shares | Grant Date | ||||||
Fair Value | |||||||
Units outstanding at December 31, 2013 | 32 | $ | 12.47 | ||||
Granted | 140 | 13.85 | |||||
Issued | — | — | |||||
Forfeited | (3 | ) | 14.38 | ||||
Units outstanding at June 30, 2014 | 169 | 13.39 | |||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Schedule of reportable business segment information | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net sales revenue: | ||||||||||||||
NSP Americas, Asia Pacific and Europe | $ | 49,000 | $ | 53,416 | $ | 99,673 | $ | 106,553 | ||||||
NSP Russia, Central and Eastern Europe | 12,838 | 14,978 | 27,875 | 31,118 | ||||||||||
Synergy WorldWide | 32,487 | 25,281 | 62,530 | 52,483 | ||||||||||
Total net sales revenue | 94,325 | 93,675 | 190,078 | 190,154 | ||||||||||
Contribution margin (1): | ||||||||||||||
NSP Americas, Asia Pacific and Europe | 19,725 | 22,305 | 40,646 | 44,261 | ||||||||||
NSP Russia, Central and Eastern Europe | 4,563 | 5,523 | 9,959 | 11,506 | ||||||||||
Synergy WorldWide | 11,831 | 8,692 | 22,444 | 17,812 | ||||||||||
Total contribution margin | 36,119 | 36,520 | 73,049 | 73,579 | ||||||||||
Selling, general and administrative | 30,305 | 28,709 | 60,063 | 58,826 | ||||||||||
Total operating income | 5,814 | 7,811 | 12,986 | 14,753 | ||||||||||
Other income (expense), net | (378 | ) | 1,482 | (1,493 | ) | 1,812 | ||||||||
Income before provision for income taxes | $ | 5,436 | $ | 9,293 | $ | 11,493 | $ | 16,565 | ||||||
-1 | Contribution margin consists of net sales revenue less cost of sales and volume incentives expense. | |||||||||||||
Schedule of consolidated net sales revenue by geographical locations | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net sales revenue: | ||||||||||||||
United States | $ | 37,932 | $ | 40,195 | $ | 75,547 | $ | 79,343 | ||||||
South Korea | 14,336 | 6,894 | 26,707 | 13,615 | ||||||||||
Other | 42,057 | 46,586 | 87,824 | 97,196 | ||||||||||
$ | 94,325 | $ | 93,675 | $ | 190,078 | $ | 190,154 | |||||||
Schedule of revenue generated by each of the Company's product lines | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
NSP Americas, Asia Pacific and Europe: | ||||||||||||||
General health | $ | 22,091 | $ | 22,312 | $ | 43,402 | $ | 44,784 | ||||||
Immune | 5,388 | 5,934 | 11,970 | 12,920 | ||||||||||
Cardiovascular | 3,272 | 3,812 | 6,763 | 7,247 | ||||||||||
Digestive | 14,156 | 15,572 | 29,067 | 31,018 | ||||||||||
Personal care | 1,058 | 1,381 | 2,110 | 2,862 | ||||||||||
Weight management | 3,035 | 4,405 | 6,361 | 7,722 | ||||||||||
49,000 | 53,416 | 99,673 | 106,553 | |||||||||||
NSP Russia, Central and Eastern Europe: | ||||||||||||||
General health | $ | 4,831 | $ | 5,499 | $ | 10,376 | $ | 11,259 | ||||||
Immune | 1,500 | 1,734 | 3,468 | 3,835 | ||||||||||
Cardiovascular | 789 | 1,102 | 1,727 | 2,240 | ||||||||||
Digestive | 3,451 | 4,020 | 7,398 | 8,066 | ||||||||||
Personal care | 1,468 | 1,754 | 3,336 | 4,113 | ||||||||||
Weight management | 799 | 869 | 1,570 | 1,605 | ||||||||||
12,838 | 14,978 | 27,875 | 31,118 | |||||||||||
Synergy WorldWide: | ||||||||||||||
General health | $ | 11,689 | $ | 9,108 | $ | 22,442 | $ | 17,776 | ||||||
Immune | 256 | 416 | 467 | 808 | ||||||||||
Cardiovascular | 11,652 | 9,580 | 22,096 | 20,669 | ||||||||||
Digestive | 4,953 | 3,958 | 9,970 | 8,822 | ||||||||||
Personal care | 1,734 | 1,531 | 3,470 | 3,273 | ||||||||||
Weight management | 2,203 | 688 | 4,085 | 1,135 | ||||||||||
32,487 | 25,281 | 62,530 | 52,483 | |||||||||||
$ | 94,325 | $ | 93,675 | $ | 190,078 | $ | 190,154 | |||||||
Schedule of consolidated property, plant and equipment by geographical locations | ' | |||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Property, plant and equipment: | ||||||||||||||
United States | $ | 35,271 | $ | 25,713 | ||||||||||
Venezuela | 3,016 | 3,207 | ||||||||||||
Other | 2,779 | 3,102 | ||||||||||||
Total property, plant and equipment | $ | 41,066 | $ | 32,022 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
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 assets, measured at fair value on a recurring basis, as of June 30, 2014: | ||||||||||||||
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 | $ | — | $ | 406 | $ | — | $ | 406 | ||||||
U.S. government security funds | 987 | — | — | 987 | ||||||||||
Equity securities | 631 | — | — | 631 | ||||||||||
Investment securities | 1,022 | — | — | 1,022 | ||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,640 | $ | 406 | $ | — | $ | 3,046 | ||||||
The following table presents the Company’s hierarchy for its assets, 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 | ||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 11, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 24, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 24, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Subsidiary in Venezuela [Member] | Belarusian Subsidiaries [Member] | Belarusian Subsidiaries [Member] | Belarusian Subsidiaries [Member] | Belarusian Subsidiaries [Member] | ||||
Currency Control Agency [Member] | Currency Control Agency [Member] | Currency Control Agency [Member] | Currency Control Agency [Member] | First Complementary System for Foreign Currency Administration [Member] | First Complementary System for Foreign Currency Administration [Member] | First Complementary System for Foreign Currency Administration [Member] | First Complementary System for Foreign Currency Administration [Member] | New Currency Control Agency [Member] | Second Complementary System for Foreign Currency Administration [Member] | ||||||||||||||
Medicinal Products [Member] | Medicinal Products [Member] | Other Beneficial Products [Member] | |||||||||||||||||||||
Classification of Venezuela and Belarus as a Highly Inflationary Economy and Devaluation of Its Currencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.3 | 6.3 | 6.3 | 6.3 | 11.3 | 11.3 | 11.3 | 11.3 | 6.3 | 50 | ' | ' | ' | ' |
Foreign exchange loss from a re-measurement of assets and liabilities using official exchange rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $845 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales revenue as a percent of consolidated net sales revenue | ' | ' | ' | ' | 1.60% | 2.00% | 2.00% | 2.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.30% | 1.90% | 2.40% | 2.10% |
Cash and cash equivalents | 68,555 | 77,247 | 87,295 | 79,241 | 2,906 | ' | 2,906 | ' | 3,922 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets | ' | ' | ' | ' | 4,884 | ' | 4,884 | ' | 5,721 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $41,066 | $32,022 | ' | ' | $3,016 | ' | $3,016 | ' | $3,207 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis_of_Presentation_Details_
Basis of Presentation (Details 2) (USD $) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 02, 2014 | Apr. 07, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 26, 2014 | Jun. 30, 2014 | Jun. 26, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 26, 2014 |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | China Joint Venture [Member] | China Joint Venture [Member] | China Joint Venture [Member] | ||||||
Fosun Pharma [Member] | Fosun Pharma [Member] | Fosun Pharma [Member] | Fosun Pharma [Member] | ||||||||
item | |||||||||||
Strategic Allliance and Formation of China Joint Venture [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement | ' | ' | ' | ' | ' | ' | $46,300 | ' | ' | ' | ' |
Dividends Payable, Amount Per Share | ' | ' | ' | ' | ' | $1.50 | ' | ' | ' | ' | ' |
Dividends payable to shareholders | ' | ' | ' | ' | ' | 29,000 | ' | ' | ' | ' | ' |
Payments of Dividends | 1,619 | 1,618 | ' | 3,237 | 3,170 | ' | ' | ' | ' | ' | ' |
Shares, Issued | ' | ' | ' | ' | ' | ' | ' | 2,860 | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | $16.19 | ' | ' | ' |
Premium to Entity Average Stock Price for the Trailing Thirty Day Period | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Period of Time to Measure Premium of Entity Common Stock | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' |
Related Party Ownership Percentage After Common Stock Purchase | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 20.00% | ' |
Initial Capitalization Amount | ' | ' | ' | ' | ' | ' | ' | ' | $16,000 | $4,000 | ' |
Number of Board of Directors Initially Appointed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $11,887 | $10,848 |
Work in progress | 800 | 740 |
Finished goods | 27,790 | 30,322 |
Total inventory | $40,477 | $41,910 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Intangible assets | ' | ' | ' | ' | ' |
Net amount | $779 | ' | $779 | ' | $853 |
Product Formulations [Member] | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' |
Gross carrying amount | 1,763 | ' | 1,763 | ' | 1,763 |
Accumulated amortization | 984 | ' | 984 | ' | 910 |
Net amount | 779 | ' | 779 | ' | 853 |
Amortization expense for intangible assets | 37 | 37 | 74 | 74 | ' |
Estimated Amortization Expense | ' | ' | ' | ' | ' |
2015 | 149 | ' | 149 | ' | ' |
2016 | 91 | ' | 91 | ' | ' |
2017 | 91 | ' | 91 | ' | ' |
2018 | 91 | ' | 91 | ' | ' |
2019 | $91 | ' | $91 | ' | ' |
Product Formulations [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '9 years | ' | ' |
Product Formulations [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '15 years | ' | ' |
Investments_Details
Investments (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Investment securities | ' | ' | ' |
Amortized Cost | $1,626 | ' | $1,627 |
Gross Unrealized Gains | 417 | ' | 398 |
Gross Unrealized Losses | -19 | ' | -19 |
Fair Value | 2,024 | ' | 2,006 |
Proceeds from the sales of available-for-sale securities | 51 | 0 | ' |
Gross realized gains (losses) on sales of available-for-sale securities (net of tax) | 0 | 0 | ' |
Municipal Bonds [Member] | ' | ' | ' |
Investment securities | ' | ' | ' |
Amortized Cost | 401 | ' | 403 |
Gross Unrealized Gains | 5 | ' | 12 |
Fair Value | 406 | ' | 415 |
Municipal Bonds [Member] | Maximum [Member] | ' | ' | ' |
Investment securities | ' | ' | ' |
Maturity period | '2 years | ' | ' |
US Government Debt Securities [Member] | ' | ' | ' |
Investment securities | ' | ' | ' |
Amortized Cost | 998 | ' | 997 |
Gross Unrealized Losses | -11 | ' | -14 |
Fair Value | 987 | ' | 983 |
Equity Securities [Member] | ' | ' | ' |
Investment securities | ' | ' | ' |
Amortized Cost | 227 | ' | 227 |
Gross Unrealized Gains | 412 | ' | 386 |
Gross Unrealized Losses | -8 | ' | -5 |
Fair Value | $631 | ' | $608 |
Investments_Details_2
Investments (Details 2) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Trading securities portfolio | ' | ' | ' |
Trading securities portfolio | $1,022 | ' | $971 |
Gains | 44 | 33 | ' |
US Government Debt Securities [Member] | ' | ' | ' |
Trading securities portfolio | ' | ' | ' |
Net Unrealized Losses | $11 | ' | $14 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 09, 2011 | Jun. 30, 2014 | Dec. 31, 2013 |
Long-term debt | ' | ' | ' |
Less current installments | ' | ($572) | ($2,267) |
Long-term debt less current installments | ' | 10,000 | 10,000 |
Revolving Credit Facility [Member] | ' | ' | ' |
Long-term debt | ' | ' | ' |
Maximum borrowing capacity | 25,000 | 25,000 | ' |
Variable rate basis | 'LIBOR | 'LIBOR | 'LIBOR |
Margin on variable rate (as a percent) | 1.25% | 1.50% | 1.50% |
Annual commitment fee (as a percent) | 0.25% | ' | ' |
Long-term debt less current installments | ' | 10,000 | 10,000 |
Secured Debt [Member] | ' | ' | ' |
Long-term debt | ' | ' | ' |
Variable rate basis | 'LIBOR | 'LIBOR | 'LIBOR |
Margin on variable rate (as a percent) | 1.25% | 1.50% | 1.50% |
Face amount | $10,000 | $10,000 | $10,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Income Per Share | ' | ' | ' | ' |
Net income | $3,234 | $6,052 | $12,899 | $10,916 |
Basic weighted average shares outstanding | 16,187 | 15,896 | 16,183 | 15,860 |
Basic net income per common share (in dollars per share) | $0.20 | $0.38 | $0.80 | $0.69 |
Diluted weighted average shares outstanding | ' | ' | ' | ' |
Basic weighted average shares outstanding | 16,187 | 15,896 | 16,183 | 15,860 |
Weighted average stock options outstanding (in shares) | 37 | 216 | 209 | 219 |
Diluted weighted average shares outstanding | 16,224 | 16,112 | 16,392 | 16,079 |
Diluted net income per common share (in dollars per share) | $0.20 | $0.38 | $0.79 | $0.68 |
Potentially dilutive shares excluded from diluted per share amounts: | ' | ' | ' | ' |
Stock options (in shares) | 133 | 146 | 133 | 163 |
Potentially anti-dilutive shares excluded from diluted per share amounts: | ' | ' | ' | ' |
Stock options (in shares) | 653 | 306 | 468 | 428 |
Capital_Transactions_Details
Capital Transactions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 02, 2014 | Apr. 07, 2014 | Aug. 08, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Dividends | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend per common share (in dollars per share) | ' | ' | ' | $0.10 | $0.10 | $0.10 | $0.20 | $0.20 |
Dividend paid | $1,619 | $1,618 | ' | ' | ' | ' | $3,237 | $3,170 |
Share Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | 10,000 | ' | ' | ' | ' | ' |
Period over which stock repurchase program to be implemented | ' | ' | '2 years | ' | ' | ' | ' | ' |
Remaining balance available for repurchases | ' | ' | ' | ' | ' | ' | $7,454 | ' |
Capital_Transactions_Details_2
Capital Transactions (Details 2) (USD $) | 0 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 29, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Employee Stock Option [Member] | Employee Stock Option [Member] | Time Based Stock Options [Member] | Time Based Stock Options [Member] | Time Based Stock Options [Member] | Time Based Stock Options [Member] | Time Based Stock Options [Member] | Time Based Stock Options [Member] | Performance Based Stock Options Vesting upon Achieving Operating Income Margins [Member] | Performance Based Stock Options Vesting upon Achieving Sales and Operating Income Margins [Member] | Performance Based Stock Options Vesting upon Achieving Sales and Operating Income Margins [Member] | Performance Based Stock Options Vesting upon Achieving Sales [Member] | Performance Based Stock Options Vesting upon Achieving Sales [Member] | Incentive Plan 2012 [Member] | |
Maximum [Member] | Minimum [Member] | Maximum [Member] | Time Based Stock Options [Member] | |||||||||||
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in shares) | ' | 1,926 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 258 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 258 |
Expired (in shares) | ' | -16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | -24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in shares) | ' | 2,144 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the beginning of the period (in dollars per share) | ' | $12.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $15.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15.38 |
Expired (in dollars per share) | ' | $13.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | $8.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at the end of the period (in dollars per share) | ' | $12.92 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | '48 months | ' | '2 years | ' | ' | ' | ' |
Operating income margin, one (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' |
Operating income margin, two (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | 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 | ' | ' | ' | ' | ' |
Vesting period based on achieving annual net sales targets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.53 |
Expected life | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | 56.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (as a percent) | ' | 2.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, related information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special one-time cash dividend paid per common share (in dollars per share) | $1.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | $719 | $729 | $1,618 | $1,803 | ' | ' | ' | ' | ' | ' | ' | ' |
Related tax benefit | ' | ' | 284 | 288 | 638 | 712 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share-based compensation expense | ' | ' | 3,293 | ' | 3,293 | ' | 3,294 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period over which the remaining compensation cost is expected to be recognized | ' | ' | ' | ' | '1 year 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800 | ' |
Capital_Transactions_Details_3
Capital Transactions (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Employee Stock Option [Member] | ' | ' | ' | ' | ' |
Share Based Compensation | ' | ' | ' | ' | ' |
Outstanding options to purchase (in shares) | 2,144 | ' | 2,144 | ' | 1,926 |
Exercisable (in shares) | 1,096 | ' | 1,096 | ' | 838 |
Expected to vest (in shares) | 869 | ' | 869 | ' | 905 |
Aggregate Intrinsic value, outstanding | $8,975 | ' | $8,975 | ' | $9,415 |
Aggregate Intrinsic value, exercisable | 6,498 | ' | 6,498 | ' | 6,069 |
Aggregate Intrinsic value, expected to vest | 2,353 | ' | 2,353 | ' | 3,179 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' | ' |
Share-based compensation expense | 269 | 52 | 466 | 127 | ' |
Related tax benefits | 106 | 18 | 184 | 44 | ' |
Unrecognized share-based compensation expense | $1,533 | ' | $1,533 | ' | $62 |
Weighted-average period over which the remaining compensation expense is expected to be recognized | ' | ' | '2 years 1 month 6 days | ' | ' |
Incentive Plan 2012 [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' |
Units outstanding at the beginning of the period (in shares) | ' | ' | 32 | ' | ' |
Granted (in shares) | ' | ' | 140 | ' | ' |
Units outstanding at the end of the period (in shares) | 169 | ' | 169 | ' | ' |
Forfeited (in shares) | ' | ' | -3 | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' |
Units outstanding at the beginning of the period (in dollars per share) | ' | ' | $12.47 | ' | ' |
Granted (in dollars per share) | ' | ' | $13.85 | ' | ' |
Units outstanding at the end of the period (in dollars per share) | $13.39 | ' | $13.39 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $14.38 | ' | ' |
Share-based compensation, additional disclosures | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' | ' |
Discount for lack of marketability ( as a percent) | ' | ' | 17.50% | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
item | |||||
Segment information | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | 3 | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | $94,325 | $93,675 | $190,078 | $190,154 | ' |
Contribution margin: | ' | ' | ' | ' | ' |
Total contribution margin | 36,119 | 36,520 | 73,049 | 73,579 | ' |
Selling, general and administrative | 30,305 | 28,709 | 60,063 | 58,826 | ' |
Operating income | 5,814 | 7,811 | 12,986 | 14,753 | ' |
Other income (expense), net | -378 | 1,482 | -1,493 | 1,812 | ' |
Income before provision for income taxes | 5,436 | 9,293 | 11,493 | 16,565 | ' |
Property, plant and equipment | ' | ' | ' | ' | ' |
Total property, plant and equipment | 41,066 | ' | 41,066 | ' | 32,022 |
UNITED STATES | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 37,932 | 40,195 | 75,547 | 79,343 | ' |
Property, plant and equipment | ' | ' | ' | ' | ' |
Total property, plant and equipment | 35,271 | ' | 35,271 | ' | 25,713 |
VENEZUELA | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' |
Total property, plant and equipment | 3,016 | ' | 3,016 | ' | 3,207 |
KOREA, REPUBLIC OF | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 14,336 | 6,894 | 26,707 | 13,615 | ' |
Other Countries [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 42,057 | 46,586 | 87,824 | 97,196 | ' |
Property, plant and equipment | ' | ' | ' | ' | ' |
Total property, plant and equipment | 2,779 | ' | 2,779 | ' | 3,102 |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 49,000 | 53,416 | 99,673 | 106,553 | ' |
Contribution margin: | ' | ' | ' | ' | ' |
Total contribution margin | 19,725 | 22,305 | 40,646 | 44,261 | ' |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | General Health Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 22,091 | 22,312 | 43,402 | 44,784 | ' |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | Immunity Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 5,388 | 5,934 | 11,970 | 12,920 | ' |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | Cardiovascular Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 3,272 | 3,812 | 6,763 | 7,247 | ' |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | Digestive Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 14,156 | 15,572 | 29,067 | 31,018 | ' |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | Personal Care Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 1,058 | 1,381 | 2,110 | 2,862 | ' |
Natures Sunshine Products Americas, Asia Pacific and Europe [Member] | Weight Management Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 3,035 | 4,405 | 6,361 | 7,722 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 12,838 | 14,978 | 27,875 | 31,118 | ' |
Contribution margin: | ' | ' | ' | ' | ' |
Total contribution margin | 4,563 | 5,523 | 9,959 | 11,506 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | General Health Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 4,831 | 5,499 | 10,376 | 11,259 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | Immunity Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 1,500 | 1,734 | 3,468 | 3,835 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | Cardiovascular Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 789 | 1,102 | 1,727 | 2,240 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | Digestive Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 3,451 | 4,020 | 7,398 | 8,066 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | Personal Care Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 1,468 | 1,754 | 3,336 | 4,113 | ' |
Natures Sunshine Products Russia, Central and Eastern Europe [Member] | Weight Management Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 799 | 869 | 1,570 | 1,605 | ' |
Synergy World Wide Brand [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 32,487 | 25,281 | 62,530 | 52,483 | ' |
Contribution margin: | ' | ' | ' | ' | ' |
Total contribution margin | 11,831 | 8,692 | 22,444 | 17,812 | ' |
Synergy World Wide Brand [Member] | General Health Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 11,689 | 9,108 | 22,442 | 17,776 | ' |
Synergy World Wide Brand [Member] | Immunity Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 256 | 416 | 467 | 808 | ' |
Synergy World Wide Brand [Member] | Cardiovascular Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 11,652 | 9,580 | 22,096 | 20,669 | ' |
Synergy World Wide Brand [Member] | Digestive Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 4,953 | 3,958 | 9,970 | 8,822 | ' |
Synergy World Wide Brand [Member] | Personal Care Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | 1,734 | 1,531 | 3,470 | 3,273 | ' |
Synergy World Wide Brand [Member] | Weight Management Products [Member] | ' | ' | ' | ' | ' |
Net sales revenue: | ' | ' | ' | ' | ' |
Total net sales revenue | $2,203 | $688 | $4,085 | $1,135 | ' |
Natures Sunshine Products Brand [Member] | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | 2 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Income Taxes | ' | ' | ' | ' | ' |
Provision (benefit) for income taxes, as a percentage of income before income taxes | 40.50% | 34.90% | 12.20% | 34.10% | ' |
Statutory U.S. federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Intercompany dividends paid by foreign subsidiaries to the U.S. corporation. | ' | ' | $21,500 | ' | ' |
Income tax benefit | ' | ' | 6,720 | ' | ' |
Accrued amount related to unrecognized tax positions | $13,223 | ' | $13,223 | ' | $12,402 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 6 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Value Added Tax Assessments and Other Civil Litigation [Member] | Non Income Tax [Member] | Non Income Tax [Member] | Reseller Agreement [Member] | New Reseller Agreement [Member] | |
item | General Dealer [Member] | ||||
Commitments and contingencies | ' | ' | ' | ' | ' |
Minimum number of claims that the Company's insurance coverage may not be sufficient to cover | 1 | ' | ' | ' | ' |
Term of the agreement | ' | ' | ' | ' | '3 years |
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 | ' | ' | ' | 3,000 | ' |
Aggregate amount paid for discounts withheld by third party from funds remitted to entity | ' | ' | ' | 3,000 | ' |
Accrued liabilities | ' | 4,759 | 6,312 | ' | ' |
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 | $800 | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value | ' | ' |
Investments available-for-sale | $2,024 | $2,006 |
Municipal Bonds [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 406 | 415 |
US Government Debt Securities [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 987 | 983 |
Equity Securities [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 631 | 608 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair value | ' | ' |
Investment securities | 1,022 | 971 |
Total assets measured at fair value on a recurring basis | 2,640 | 2,562 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government Debt Securities [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 987 | 983 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 631 | 608 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair value | ' | ' |
Total assets measured at fair value on a recurring basis | 406 | 415 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 406 | 415 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair value | ' | ' |
Investment securities | 1,022 | 971 |
Total assets measured at fair value on a recurring basis | 3,046 | 2,977 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Municipal Bonds [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 406 | 415 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | US Government Debt Securities [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | 987 | 983 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Equity Securities [Member] | ' | ' |
Fair value | ' | ' |
Investments available-for-sale | $631 | $608 |