Segment Information | Segment Information The Company has four 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's four business segments are divided based on the different characteristics of their distributor bases, selling and distributor compensation plans and product formulations, as well as the internal organization of its officers and their responsibilities and business operations. Three business segments operate under the Nature’s Sunshine Products brand (NSP Americas; NSP Russia, Central and Eastern Europe; and China and New Markets). The Company’s China and New Markets segment anticipates deploying a multi-channel go-to-market strategy that offers select Nature’s Sunshine branded products through a direct selling model across China as well as through e-commerce channels. The time to market will be dependent upon regulatory processes including product registration and permit approvals. The China and New Markets segment also includes the Company’s wholesale business, in which the Company sells its products to various locally managed entities independent of the Company that have distribution rights for the relevant market. All of the net sales revenue to date in the China and New Markets segment is through the Company’s wholesale business to foreign markets, and beginning in the second quarter of 2016, pre-opening product sales through Hong Kong. The fourth business segment operates under the Synergy® WorldWide brand. Reportable business segment information is as follows (dollar amounts in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net sales revenue: NSP Americas $ 44,725 $ 45,050 $ 89,908 $ 91,560 NSP Russia, Central and Eastern Europe 6,269 6,815 12,621 14,258 Synergy WorldWide 33,013 28,480 62,861 57,248 China and New Markets 5,359 902 6,378 2,059 Total net sales revenue 89,366 81,247 171,768 165,125 Contribution margin (1): NSP Americas 19,103 19,027 38,020 38,547 NSP Russia, Central and Eastern Europe 2,065 2,314 4,246 4,910 Synergy WorldWide 10,245 8,820 19,184 17,868 China and New Markets 4,084 415 4,552 911 Total contribution margin 35,497 30,576 66,002 62,236 Selling, general and administrative (2) 31,249 27,392 59,634 53,722 Operating income 4,248 3,184 6,368 8,514 Other income (expense), net (622 ) (2 ) 937 (320 ) Income from continuing operations before provision for income taxes $ 3,626 $ 3,182 $ 7,305 $ 8,194 _________________________________________ (1) Contribution margin consists of net sales revenue less cost of sales and volume incentives expense. For the China and New Markets segment, contribution margin does not includes services fees related to pre-opening product sales through Hong Kong. (2) Service fees in the China and New Markets segment related to pre-opening product sales through Hong Kong totaled $2.0 million for the three and six month periods ended June 30, 2016, and $0.0 million for the three and six month periods ended June 30, 2015. These service fees are included in selling, general and administrative 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, 2016 and 2015 , as follows (dollar amounts in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net sales revenue: United States $ 37,598 $ 37,054 $ 75,893 $ 75,576 South Korea 15,473 12,070 28,671 24,150 Other 36,295 32,123 67,204 65,399 $ 89,366 $ 81,247 $ 171,768 $ 165,125 Revenue generated by each of the Company’s product lines is set forth below (dollar amounts in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 NSP Americas: General health $ 20,234 $ 19,456 $ 39,851 $ 39,488 Immune 3,738 5,038 9,314 11,255 Cardiovascular 3,418 3,543 6,530 6,644 Digestive 11,845 13,263 24,924 26,628 Personal care 2,853 870 3,783 1,840 Weight management 2,637 2,880 5,506 5,705 44,725 45,050 89,908 91,560 NSP Russia, Eastern and Central Europe: General health $ 2,501 $ 2,799 $ 5,224 $ 5,678 Immune 857 763 1,397 1,676 Cardiovascular 493 446 970 899 Digestive 1,407 1,852 3,528 3,822 Personal care 853 627 1,102 1,509 Weight management 158 328 400 674 6,269 6,815 12,621 14,258 Synergy WorldWide: General health $ 9,694 $ 7,645 $ 18,334 $ 15,347 Immune 41 84 250 277 Cardiovascular 13,505 12,411 26,198 25,067 Digestive 3,442 2,374 5,929 4,668 Personal care 1,948 1,732 3,887 3,562 Weight management 4,383 4,234 8,263 8,327 33,013 28,480 62,861 57,248 China and New Markets: General health $ 1,537 $ 426 $ 2,008 $ 957 Immune 216 103 347 261 Cardiovascular 1,450 73 1,523 154 Digestive 1,262 225 1,522 515 Personal care 439 19 461 46 Weight management 455 56 517 126 5,359 902 6,378 2,059 $ 89,366 $ 81,247 $ 171,768 $ 165,125 Beginning in 2016, for the Synergy WorldWide segment, the Company changed its allocation of products sold within promotional product kits from the category associated with the predominant product, to each individual product being included in its respective category. Prior periods have been reclassified to conform to the current period’s presentation. From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands): June 30, December 31, Property, plant and equipment: United States $ 68,089 $ 66,044 Other 2,334 2,684 Total property, plant and equipment $ 70,423 $ 68,728 |