Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | NATURES SUNSHINE PRODUCTS INC | |
Entity Central Index Key | 0000275053 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 19,273,275 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 45,404 | $ 50,638 |
Accounts receivable, net of allowance for doubtful accounts of $485 and $460, respectively | 8,259 | 7,751 |
Inventories | 42,937 | 42,048 |
Prepaid expenses and other | 6,697 | 6,388 |
Total current assets | 103,297 | 106,825 |
Property, plant and equipment, net | 61,961 | 64,061 |
Operating lease right-of-use assets | 21,777 | |
Investment securities - trading | 1,405 | 1,308 |
Intangible assets, net | 609 | 618 |
Deferred income tax assets | 8,786 | 9,056 |
Other assets | 10,944 | 11,148 |
Total assets | 208,779 | 193,016 |
Current liabilities: | ||
Accounts payable | 4,911 | 5,219 |
Accrued volume incentives and service fees | 20,772 | 20,562 |
Accrued liabilities | 28,520 | 34,801 |
Deferred revenue | 1,232 | 1,197 |
Related party note | 1,530 | 1,530 |
Income taxes payable | 1,286 | 3,378 |
Current portion of operating lease liabilities | 4,088 | |
Total current liabilities | 62,339 | 66,687 |
Liability related to unrecognized tax benefits | 2,128 | 2,192 |
Long-term portion of operating lease liabilities | 18,818 | |
Deferred compensation payable | 1,405 | 1,308 |
Long-term deferred income tax liabilities | 1,548 | 1,556 |
Other liabilities | 519 | 705 |
Total liabilities | 86,757 | 72,448 |
Shareholders’ equity: | ||
Common stock, no par value, 50,000 shares authorized, 19,273 and 19,204 shares issued and outstanding, respectively | 133,725 | 133,684 |
Accumulated deficit | (315) | (2,072) |
Noncontrolling interests | 35 | 63 |
Accumulated other comprehensive loss | (11,423) | (11,107) |
Total shareholders’ equity | 122,022 | 120,568 |
Total liabilities and shareholders' equity | $ 208,779 | $ 193,016 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 485 | $ 460 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 19,273,000 | 19,204,000 |
Common stock, shares outstanding (in shares) | 19,273,000 | 19,204,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 91,272 | $ 87,342 |
Cost of sales | (23,429) | (22,713) |
Gross profit | 67,843 | 64,629 |
Operating expenses: | ||
Volume incentives | 31,013 | 31,362 |
Selling, general and administrative | 33,852 | 32,386 |
Operating income | 2,978 | 881 |
Other income (expense), net | (48) | 740 |
Income before provision for income taxes | 2,930 | 1,621 |
Provision for income taxes | 1,201 | 1,288 |
Net income | 1,729 | 333 |
Net loss attributable to noncontrolling interests | (28) | (165) |
Net income attributable to common shareholders | $ 1,757 | $ 498 |
Basic and diluted net income per common share: | ||
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.09 | $ 0.03 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.09 | $ 0.03 |
Weighted average basic common shares outstanding (in shares) | 19,268 | 19,010 |
Weighted average diluted common shares outstanding (in shares) | 19,585 | 19,353 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,729 | $ 333 |
Foreign currency translation loss (net of tax) | (316) | (213) |
Total comprehensive income | $ 1,413 | $ 120 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - 3 months ended Mar. 31, 2019 - USD ($) $ in Thousands | Total | Common Stock | Accumulated Deficit | Noncontrolling Interests | Accumulated Other Comprehensive Loss |
Balance beginning (in shares) at Dec. 31, 2018 | 19,204,000 | 19,204,000 | |||
Beginning balance at Dec. 31, 2018 | $ 120,568 | $ 133,684 | $ (2,072) | $ 63 | $ (11,107) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 230 | $ 230 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 69,000 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (189) | $ (189) | |||
Net income (loss) | 1,729 | 1,757 | (28) | ||
Other comprehensive loss | $ (316) | (316) | |||
Balance ending (in shares) at Mar. 31, 2019 | 19,273,000 | 19,273,000 | |||
Ending balance at Mar. 31, 2019 | $ 122,022 | $ 133,725 | $ (315) | $ 35 | $ (11,423) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,729 | $ 333 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for doubtful accounts | 31 | 46 |
Depreciation and amortization | 2,496 | 2,601 |
Noncash lease expense | 1,394 | |
Share-based compensation expense | 230 | 543 |
Gain on sale of property and equipment | 45 | 0 |
Deferred income taxes | 258 | (46) |
Purchase of trading investment securities | (40) | (50) |
Proceeds from sale of trading investment securities | 76 | 265 |
Realized and unrealized (gains) losses on investments | (133) | 23 |
Foreign exchange (gains) losses | 64 | (967) |
Changes in assets and liabilities: | ||
Accounts receivable | (546) | 683 |
Inventories | (1,038) | 856 |
Prepaid expenses and other current assets | (357) | 18 |
Other assets | 117 | 27 |
Accounts payable | (281) | 957 |
Accrued volume incentives and service fees | 164 | 1,062 |
Accrued liabilities | (5,683) | (1,148) |
Deferred revenue | 35 | (1,069) |
Lease liabilities | (1,086) | |
Income taxes payable | (2,112) | (261) |
Liability related to unrecognized tax benefits | (69) | 68 |
Deferred compensation payable | 97 | (227) |
Net cash provided by (used in) operating activities | (4,609) | 3,714 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (387) | (489) |
Net cash used in investing activities | (387) | (489) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments of revolving credit facility | (1,517) | (5,456) |
Proceeds from revolving credit facility | 1,517 | 0 |
Proceeds from borrowings on related party note | 0 | 500 |
Proceeds from the exercise of stock awards | 0 | 228 |
Tax benefit from stock awards | (189) | (466) |
Net cash used in financing activities | (189) | (5,194) |
Effect of exchange rates on cash and cash equivalents | (49) | 1,362 |
Net decrease in cash and cash equivalents | (5,234) | (607) |
Cash and cash equivalents at the beginning of the period | 50,638 | 42,910 |
Cash and cash equivalents at the end of the period | 45,404 | 42,303 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 3,346 | 1,519 |
Cash paid for interest | $ 24 | $ 103 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We are a natural health and wellness company primarily engaged in the manufacturing and direct selling of nutritional and personal care products. We are a Utah corporation with our principal place of business in Lehi, Utah, and sell our products to a sales force of independent distributors who uses the products themselves or resells them to consumers. 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 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 our financial information as of March 31, 2019 , and for the three-month periods ended March 31, 2019 and 2018 . The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2019 . It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Noncontrolling Interests Noncontrolling interest decreased as a result of the net loss attributable to the noncontrolling interests by $28,000 and $0.2 million during the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 and December 31, 2018 , noncontrolling interests were $35,000 and $0.1 million , respectively. Restructuring related accruals and expenses We recorded $1.6 million and $0 of restructuring related expenses during the three months ended March 31, 2019 and 2018 , respectively, related to severance costs which were recorded in selling, general and administrative expenses. Accrued severance and rent costs were $1.6 million and $0.3 million as of March 31, 2019 and December 31, 2018 , respectively. Recent Accounting Pronouncements We adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842): Accounting for Leases effective January 1, 2019. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. See Note 8 - Leases for additional disclosure of the adoption of Topic 842. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Effects from Accumulated Other Comprehensive Income. This update allows a reclassification of stranded tax effects, resulting from the Tax Cuts and Jobs Act 2017, from accumulated other comprehensive income to retained earnings. This ASU will be effective for annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of ASU 2018-02 did not have a material effect on our results of operations, consolidated financial statements and footnote disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements in Topic 820 based on the consideration of costs and benefits to promote the appropriate exercise and discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. The amendments in this update are effective for reporting periods beginning after December 15, 2019, with early adoption permitted. We are evaluating the potential impact of this adoption on our condensed consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The composition of inventories is as follows (dollar amounts in thousands): March 31, December 31, Raw materials $ 11,353 $ 10,410 Work in progress 1,241 1,524 Finished goods 30,343 30,114 Total inventory $ 42,937 $ 42,048 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Our trading securities portfolio totaled $1.4 million at March 31, 2019 , and $1.3 million at December 31, 2018 , and generated realized gains of $0.1 million and $0 for the three months ended March 31, 2019 and 2018 , respectively. |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On July 11, 2017, we entered into a revolving credit agreement with Bank of America, N.A., with a borrowing limit of $25.0 million , that matures on July 11, 2020 (the “Credit Agreement”). We pay interest on any borrowings under the Bank of America Credit Agreement at LIBOR plus 1.25 percent ( 3.74 percent and 3.73 percent as of March 31, 2019 and December 31, 2018 , respectively), and an annual commitment fee of 0.20 percent on the unused portion of the commitment. We are required to settle our net borrowings under the Credit Agreement only upon maturity, and as a result, have classified our outstanding borrowings as non-current on our condensed consolidated balance sheet as of March 31, 2019 . At March 31, 2019 and December 31, 2018 , the outstanding balance under the revolving credit facility was $0 . The Credit Agreement contains customary financial covenants, including financial covenants relating to our solvency, leverage, and minimum EBITDA. In addition, the Credit Agreement restricts certain capital expenditures, lease expenditures, other indebtedness, liens on assets, guarantees, loans and advances, dividends, and merger, consolidation and the transfer of assets except as permitted in the Credit Agreement. The Credit Agreement is collateralized by our manufacturing facility, accounts receivable balance, inventory balance and other assets. We were in compliance with the debt covenants set forth in the Credit Agreement as of March 31, 2019 . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 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 months ended March 31, 2019 and 2018 (dollar and share amounts in thousands, except for per share information): Three Months Ended 2019 2018 Net income attributable to common shareholders: $ 1,757 $ 498 Basic weighted average shares outstanding 19,268 19,010 Basic earnings per share attributable to common shareholders: $ 0.09 $ 0.03 Diluted shares outstanding Basic weighted-average shares outstanding 19,268 19,010 Stock-based awards 317 343 Diluted weighted-average shares outstanding 19,585 19,353 Diluted earnings per share attributable to common shareholders: $ 0.09 $ 0.03 Potentially dilutive shares excluded from diluted-per-share amounts: Stock-based awards 511 155 Potentially anti-dilutive shares excluded from diluted-per-share amounts: Stock-based awards 1,032 1,148 Potentially dilutive shares excluded from diluted-per-share amounts include performance-based options to purchase shares of common stock for which certain performance measures 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 periods presented. |
Capital Transactions
Capital Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Capital Transactions | |
Capital Transactions | Capital Transactions Share-Based Compensation During the year ended December 31, 2012, our shareholders adopted and approved the 2012 Incentive Plan. The 2012 Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. The Compensation Committee of the Board of Directors has authority and discretion to determine the type of award as well as the amount, terms and conditions of each award under the 2012 Incentive Plan, subject to the limitations of the 2012 Incentive Plan. A total of 1,500,000 shares of common stock were originally authorized for the granting of awards under the 2012 Stock Incentive Plan. In January 2015, our shareholders approved an amendment to the 2012 Incentive Plan, to increase the number of shares of Common Stock reserved for issuance by 1,500,000 shares. The number of shares available for awards, as well as the terms of outstanding awards, are subject to adjustment as provided in the 2012 Incentive Plan for stock splits, stock dividends, recapitalizations and other similar events. We also maintain a stock incentive plan, which was approved by shareholders in 2009 (the “2009 Incentive Plan”). The 2009 Incentive Plan also provided for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. Under the 2012 Incentive Plan, any shares subject to award, or awards forfeited or reacquired by the Company issued under the 2009 Incentive Plan are available for award up to a maximum of 400,000 shares. Stock Options Our 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. Stock option activity for the three-month period ended March 31, 2019 , is as follows (amounts in thousands, except per share information): Number of Shares Weighted Average Exercise Price Per Share Options outstanding at December 31, 2018 1,114 $ 12.23 Granted — — Forfeited or canceled (4 ) 12.07 Exercised — — Options outstanding at March 31, 2019 1,110 12.23 Share-based compensation expense from time-based stock options for the three -month periods ended March 31, 2019 and 2018 , was approximately $0 and $13,000 , respectively. As of March 31, 2019 and December 31, 2018 , the unrecognized share-based compensation expense related to the grants described above was $0 . At March 31, 2019 , the aggregate intrinsic value of outstanding and exercisable stock options to purchase 1,110,000 shares of common stock was $0.3 million . At December 31, 2018 , the aggregate intrinsic value of outstanding and exercisable stock options to purchase 1,114,000 shares of common stock shares of common stock was $0.2 million . For the three-month period ended March 31, 2019 , we did no t grant any stock options to purchase shares of the common stock under the 2012 Stock Incentive Plan to our board members, executive officers or other employees. For the three-month period ended March 31, 2018, we issued 30,000 shares of common stock upon the exercise of stock options at an average exercise price of $5.88 per share. The aggregate intrinsic values of options exercised during the three -month period ended March 31, 2018 was $0.2 million and we recognized $32,000 of tax benefits from the exercise of stock options during the period. As of March 31, 2019 and December 31, 2018, we did no t have any unvested performance-based stock options outstanding. Restricted Stock Units Our outstanding RSUs include time-based RSUs, which vest over differing periods ranging from 12 months up to 36 months from the RSU grant date, as well as performance-based RSUs, which vest upon achieving targets relating to sales growth, earnings-per-share, and/or stock price levels. RSUs given to the Board of Directors contain a restriction period in which the shares are not issued until two years after vesting. At March 31, 2019 and December 31, 2018 , there were 93,000 and 80,000 , respectively, vested RSUs given to the Board of Directors that had a restriction period. Restricted stock unit activity for the three-month period ended March 31, 2019 , is as follows (share amounts in thousands, except per share information): Number of Shares Weighted Average Grant Date Fair Value Restricted Stock Units outstanding at December 31, 2018 1,058 $ 8.87 Granted 281 6.98 Forfeited (288 ) 10.57 Issued (82 ) 11.56 Restricted Stock Units outstanding at March 31, 2019 969 7.59 During the three-month period ended March 31, 2019 , we granted 281,000 RSUs under the 2012 Incentive Plan to our executive officers and other employees, which were composed of both time-based RSUs and share-price performance-based RSUs. The time-based RSUs were issued with a weighted-average grant date fair value of $8.61 per share and vest in annual installments over a three -year period from the grant date. The share-price performance-based RSUs were issued with a weighted-average grant date fair value of $4.38 per share and vest upon achieving share-price targets over a three -year period from the grant date. Except for share-priced performance RSUs, RSUs are valued at 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. 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 11.9 percent for a common share. Share-price performance-based RSUs were estimated using the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved. Our assumptions included performance periods of three years , expected volatility of 50 percent , and a range of risk free rates between 2.1 percent and 2.9 percent . Share-based compensation expense from RSUs for the three-month periods ended March 31, 2019 and 2018 , was approximately $0.1 million and $0.5 million , respectively. As of March 31, 2019 and December 31, 2018 , the unrecognized share-based compensation expense related to the grants described above was $2.3 million and $1.8 million , respectively. As of March 31, 2019 , the remaining compensation expense is expected to be recognized over the weighted average period of approximately 1.7 years . Share-based compensation expense related to performance-based RSUs for the three-month period ended March 31, 2019 and 2018 was $0.1 million and $0 , respectively. Should we attain all of the metrics related to the performance-based RSU grant, we would recognize up to $2.7 million of potential share-based compensation expense. The number of shares issued upon vesting of RSUs granted pursuant to our share-based compensation plans is net of the minimum statutory withholding requirements that we pay on behalf of our employees, which was 11,000 and 40,000 shares for the three-month period ended March 31, 2019 and 2018 , respectively. Although shares withheld are not issued, they are treated as common share repurchases for accounting purposes, as they reduce the number of shares that would have been issued upon vesting. These shares do not count against the authorized capacity under the repurchase program described above. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have 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. Our four business segments are divided based on the different characteristics of their distributor and customer bases, distributor compensation plans and product formulations, as well as the internal organization of our 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 NSP China), and one business segment operates under the Synergy® WorldWide brand. The NSP Russia, Central and Eastern Europe segment also includes our wholesale business, in which we sell our products to various locally-managed entities independent of the Company that we have granted distribution rights for the relevant market. Net sales 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. We evaluate performance based on contribution margin (loss) by segment before consideration of certain inter-segment transfers and expenses. Reportable business segment information is as follows (dollar amounts in thousands): Three Months Ended 2019 2018 Net sales: NSP Americas $ 38,667 $ 41,872 NSP Russia, Central and Eastern Europe 11,358 9,551 Synergy WorldWide 34,994 31,817 NSP China 6,253 4,102 Total net sales 91,272 87,342 Contribution margin (1): NSP Americas 17,351 17,335 NSP Russia, Central and Eastern Europe 3,795 3,204 Synergy WorldWide 10,731 9,508 NSP China 4,953 3,220 Total contribution margin 36,830 33,267 Selling, general and administrative (2) 33,852 32,386 Operating income 2,978 881 Other income, net (48 ) 740 Income before provision for income taxes $ 2,930 $ 1,621 _________________________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. (2) Service fees in the NSP China segment related to sales in China totaled $2.2 million and $1.5 million for the three-month periods ended March 31, 2019 and 2018 , respectively. These service fees are included in our selling, general and administrative expenses. From an individual country perspective, only the United States and South Korea comprised 10 percent or more of consolidated net sales for the three-month periods ended March 31, 2019 and 2018 , as follows (dollar amounts in thousands): Three Months Ended 2019 2018 Net sales: United States $ 33,961 $ 35,227 South Korea 18,528 14,584 Other 38,783 37,531 $ 91,272 $ 87,342 Revenue generated by each of the Company’s product lines is set forth below (dollar amounts in thousands): Three Months Ended 2019 2018 NSP Americas: General health $ 16,918 $ 17,746 Immune 4,760 5,544 Cardiovascular 2,853 3,100 Digestive 11,051 11,712 Personal care 1,556 1,825 Weight management 1,529 1,945 38,667 41,872 NSP Russia, Eastern and Central Europe: General health $ 4,599 $ 4,131 Immune 1,335 1,029 Cardiovascular 903 695 Digestive 2,854 2,431 Personal care 1,414 960 Weight management 253 305 11,358 9,551 Synergy WorldWide: General health $ 10,932 $ 8,640 Immune 80 149 Cardiovascular 14,616 13,330 Digestive 3,929 3,825 Personal care 1,841 2,140 Weight management 3,596 3,733 34,994 31,817 NSP China: General health $ 342 $ 343 Immune 77 146 Cardiovascular 750 561 Digestive 1,567 2,456 Personal care 2,465 253 Weight management 1,052 343 6,253 4,102 $ 91,272 $ 87,342 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): March 31, December 31, Property, plant and equipment: United States $ 58,969 $ 60,606 Other 2,992 3,455 Total property, plant and equipment $ 61,961 $ 64,061 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of ASU Topic 842 We adopted ASU No. 2016-02, Leases (Topic 842): Accounting for Leases, as of January 1, 2019. This update requires lessees to recognize right-of-use assets and lease liabilities arising from leases. We elected certain practical expedients permitted under the transition guidance. We elected the optional transition method that allows for a cumulative-effect adjustment and will not restate prior periods. Under the new guidance, all leases will continue to be classified as operating. Adoption of the new standard resulted in recording of additional net operating lease right-of-use assets and lease liabilities of approximately $23.1 million and $24.0 million , respectively, as of January 1, 2019. The difference between the operating lease right-of-use assets and lease liabilities reflects deferred rent balances at the time of adoption. The standard did not materially impact consolidated net earnings and cash flows. We lease certain retail stores, warehouses, distribution centers, and office spaces. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning in 2019 and later, we account for lease components including rent, real estate taxes and insurance costs separately from non-lease components like common-area maintenance fees. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term for one or more years. The exercise of the lease option to renew is solely at our discretion. Operating lease right-of-use assets and lease liabilities are as follows (dollar amounts in thousands): March 31, January 1, Assets Operating lease right-of-use assets $ 21,777 $ 23,143 Liabilities Current 4,088 4,426 Long-term 18,818 19,566 Total operating lease liabilities $ 22,906 $ 23,992 We had operating lease costs of approximately $1.6 million for the three-months ended March 31, 2019 . We had short-term lease costs of approximately $46,000 for the three-months ended March 31, 2019 . Short-term lease costs represent our costs with respect to leases with a duration of 12 months or less and are not reflected on our Condensed Consolidated Balance Sheets. Supplemental cash flow information related to operating leases for the three-months ended March 31, 2019 was as follows: • Payments of $1.1 million against amounts included in the measurement of lease liabilities. • Lease assets obtained in exchange for lease liabilities totaled $23.1 million . The weighted-average remaining lease term for operating leases was 7.6 years . The weight-average discount rate for operating leases was 4.23% . There were no material operating leases that we have entered into and that were yet to commence as of March 31, 2019 . The approximate aggregate commitments under non-cancelable operating leases in effect at March 31, 2019 and December 31, 2018 , were as follows (dollar amounts in thousands): March 31, December 31, 2019 $ 4,155 $ 5,646 2020 4,671 4,692 2021 3,792 3,864 2022 2,326 2,367 2023 1,985 2,162 Thereafter 10,167 10,296 Total lease payments $ 27,096 $ 29,027 Less: Imputed interest (1) 4,190 Present value of lease liabilities $ 22,906 (1) Calculated using our corporate borrowing rate based on the term of each lease ranging from 4.09% to 4.29% . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2019 and 2018 , our provision for income taxes, as a percentage of income before income taxes was 41.0 percent and 79.5 percent , respectively, compared with U.S. federal statutory rates of 21.0 percent . The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended March 31, 2019 , was primarily attributed to current year foreign losses that presently do not provide future tax benefit, as well as net unfavorable foreign items. The difference between the effective tax rate and the U.S. federal statutory tax rate for the three months ended March 31, 2018 , was primarily attributed to foreign losses in the period, primarily related to China, that did not provide future tax benefit as well as net unfavorable foreign items. As the U.S. Department of the Treasury is working on finalizing Treasury Regulations with respect to the Tax Cuts and Jobs Act (Tax Reform Act), future changes could likewise affect recorded deferred tax assets and liabilities in later periods. Management is not aware of any such additional changes that would have a material effect on our results of operations, cash flows or financial position. Our U.S. federal income tax returns for 2015 through 2017, are open to examination for federal tax purposes. We have several foreign tax jurisdictions that have open tax years from 2012 through 2018. As of March 31, 2019 and December 31, 2018 , we had accrued $2.1 million and $2.2 million , respectively, related to unrecognized tax positions. This net decrease was primarily attributed to decreases in foreign tax contingencies. 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. Although we believe our tax estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results in the period in which we make such determination. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are party to various legal proceedings. Management cannot predict the ultimate outcome of these proceedings, individually or in the aggregate, or their resulting effect on our 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 our business, financial position, results of operations, or cash flows for the period in which the ruling occurs and/or future periods. We maintain 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 us, 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. Non-Income Tax Contingencies We have 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. We provide 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. We provide provisions for U.S. state sales taxes in each of the states where we have nexus. As of March 31, 2019 and December 31, 2018 , accrued liabilities were $0.3 million and $0.3 million , respectively, related to non-income tax contingencies. While we believe that the assumptions and estimates used to determine this liability are reasonable, the ultimate outcome of those matters cannot presently be determined. We believe future payments related to these matters could range from $0 to approximately $3.4 million . Other Litigation We are party to various other legal proceedings in the United States and several foreign jurisdictions related to value-added tax assessments and other civil litigation. As of March 31, 2019 and December 31, 2018 , accrued liabilities were $1.9 million and $1.7 million , respectively, related to the estimated outcome of these proceedings. In addition, we are party to other litigation where there is a reasonable possibility that a loss may be incurred, either the losses are not considered to be probable or we cannot at this time estimate the loss, if any; therefore, no provision for losses has been provided. We believe future payments related to these matters could range from $0 to approximately $0.4 million . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the three months ended March 31, 2019 and 2018 , our joint venture in China borrowed $0 and $2.0 million from the Company, respectively. These notes are payable in one year and bear interest of 3.0 percent . As of March 31, 2019 and December 31, 2018 outstanding borrowings by the joint venture from the Company were $6.1 million and $6.0 million , respectively. These notes eliminate in consolidation. During the three months ended March 31, 2019 and 2018 , our joint venture in China borrowed $0 and $0.5 million from our joint venture partner, respectively. These notes are payable in one year and bear interest of 3.0 percent . As of March 31, 2019 and December 31, 2018 outstanding borrowings by the joint venture from our JV partner were $1.5 million and $1.5 million , respectively. These notes are presented as current liabilities on the Condensed Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 March 31, 2019 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Investment securities - trading $ 1,405 — — $ 1,405 Total assets measured at fair value on a recurring basis $ 1,405 $ — $ — $ 1,405 The following table presents the Company’s hierarchy for its assets, measured at fair value on a recurring basis, as of December 31, 2018 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Investment securities - trading $ 1,308 — — $ 1,308 Total assets measured at fair value on a recurring basis $ 1,308 $ — $ — $ 1,308 Trading investment securities — The Company’s trading portfolio consists of various marketable securities that are valued using quoted prices in active markets. For the three months ended March 31, 2019 , and for the year ended December 31, 2018 , there were no fair value measurements using significant other observable inputs (Level 2) or 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 on the consolidated balance sheet for the revolving credit facility approximate fair value due to it being variable-rate debt. During the three months ended March 31, 2019 and 2018 , the Company did not have any re-measurements of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives or rebates based upon historical information and current trends. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer, with revenue recognized at shipping point, the point in time the customer obtains control of the products. The majority of the Company’s contracts have a single performance obligation and are short term in nature. Contracts with multiple performance obligations are insignificant. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Amounts received for unshipped merchandise are recorded as deferred revenue. A reserve for product returns is recorded based upon historical experience and current trends. The Company allows independent Managers or Distributors to return the unused portion of products within ninety days of purchase if they are not satisfied with the product. In some of the Company’s markets, the requirements to return product are more restrictive. From time to time, the Company’s U.S. operations extend short-term credit associated with product promotions. In addition, for certain of the Company’s international operations, the Company offers credit terms consistent with industry standards within the country of operation. Volume incentives, and other sales incentives or rebates are a significant part of the Company’s direct sales marketing program, and represent commission payments made to independent distributors. These payments are designed to provide incentives for reaching higher sales levels. The amount of volume incentive recognized is determined based upon the amount of qualifying purchases in a given month and recorded as volume incentive expense. Payments to independent Managers and Distributors for sales incentives or rebates related to their own purchases are recorded as a reduction of revenue. Payments for sales incentives and rebates are calculated monthly based upon qualifying sales. Contract Liabilities - Customer Loyalty Programs We record contract liabilities for loyalty point program in deferred revenue. These programs are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products. The following table presents changes in these contract liability balances for the three-month period ended March 31, 2019 (U.S. dollars in thousands): Outstanding at December 31, 2018 $ 1,079 Increase (decrease) attributed to: Customer loyalty net deferrals 1,935 Customer loyalty redemptions (1,891 ) Outstanding at March 31, 2019 $ 1,123 The table above excludes liability for sales returns, as they are insignificant. Disaggregation of Revenue Our products are grouped into six principal categories: general health, immune, cardiovascular, digestive, personal care and weight management. We have four business segments that are divided based on the different characteristics of their distributor and customer bases, distributor compensation plans and product formulations. Three business segments operate under the Nature’s Sunshine Products brand and one business segment operates under the Synergy® WorldWide brand. See Note 7, Segment Information, for further information on our reportable segments and our presentation of disaggregated revenue by reportable segment and product category. Practical Expedients and Exemptions We have made the accounting policy election to treat shipping and handling as a fulfillment activity rather than a promised service under Topic 606. We generally expense volume incentives when incurred because the amortization period would have been one year or less. All of our contracts with customers have a duration of less than one year, the value of any unsatisfied performance obligations is insignificant. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We are a natural health and wellness company primarily engaged in the manufacturing and direct selling of nutritional and personal care products. We are a Utah corporation with our principal place of business in Lehi, Utah, and sell our products to a sales force of independent distributors who uses the products themselves or resells them to consumers |
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 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 our financial information as of March 31, 2019 , and for the three-month periods ended March 31, 2019 and 2018 . The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2019 . It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842): Accounting for Leases effective January 1, 2019. This update requires that lessees recognize right-of-use assets and lease liabilities that are measured at the present value of the future lease payments at lease commencement date. See Note 8 - Leases for additional disclosure of the adoption of Topic 842. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Effects from Accumulated Other Comprehensive Income. This update allows a reclassification of stranded tax effects, resulting from the Tax Cuts and Jobs Act 2017, from accumulated other comprehensive income to retained earnings. This ASU will be effective for annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of ASU 2018-02 did not have a material effect on our results of operations, consolidated financial statements and footnote disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements in Topic 820 based on the consideration of costs and benefits to promote the appropriate exercise and discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. The amendments in this update are effective for reporting periods beginning after December 15, 2019, with early adoption permitted. We are evaluating the potential impact of this adoption on our condensed consolidated financial statements. |
Revenue from Contract with Customer | Revenue Recognition Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives or rebates based upon historical information and current trends. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer, with revenue recognized at shipping point, the point in time the customer obtains control of the products. The majority of the Company’s contracts have a single performance obligation and are short term in nature. Contracts with multiple performance obligations are insignificant. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Amounts received for unshipped merchandise are recorded as deferred revenue. A reserve for product returns is recorded based upon historical experience and current trends. The Company allows independent Managers or Distributors to return the unused portion of products within ninety days of purchase if they are not satisfied with the product. In some of the Company’s markets, the requirements to return product are more restrictive. From time to time, the Company’s U.S. operations extend short-term credit associated with product promotions. In addition, for certain of the Company’s international operations, the Company offers credit terms consistent with industry standards within the country of operation. Volume incentives, and other sales incentives or rebates are a significant part of the Company’s direct sales marketing program, and represent commission payments made to independent distributors. These payments are designed to provide incentives for reaching higher sales levels. The amount of volume incentive recognized is determined based upon the amount of qualifying purchases in a given month and recorded as volume incentive expense. Payments to independent Managers and Distributors for sales incentives or rebates related to their own purchases are recorded as a reduction of revenue. Payments for sales incentives and rebates are calculated monthly based upon qualifying sales. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of composition of inventories | The composition of inventories is as follows (dollar amounts in thousands): March 31, December 31, Raw materials $ 11,353 $ 10,410 Work in progress 1,241 1,524 Finished goods 30,343 30,114 Total inventory $ 42,937 $ 42,048 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS | Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for the three months ended March 31, 2019 and 2018 (dollar and share amounts in thousands, except for per share information): Three Months Ended 2019 2018 Net income attributable to common shareholders: $ 1,757 $ 498 Basic weighted average shares outstanding 19,268 19,010 Basic earnings per share attributable to common shareholders: $ 0.09 $ 0.03 Diluted shares outstanding Basic weighted-average shares outstanding 19,268 19,010 Stock-based awards 317 343 Diluted weighted-average shares outstanding 19,585 19,353 Diluted earnings per share attributable to common shareholders: $ 0.09 $ 0.03 Potentially dilutive shares excluded from diluted-per-share amounts: Stock-based awards 511 155 Potentially anti-dilutive shares excluded from diluted-per-share amounts: Stock-based awards 1,032 1,148 |
Capital Transactions (Tables)
Capital Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Capital Transactions | |
Schedule of share-based compensation, stock options, activity | Stock option activity for the three-month period ended March 31, 2019 , is as follows (amounts in thousands, except per share information): Number of Shares Weighted Average Exercise Price Per Share Options outstanding at December 31, 2018 1,114 $ 12.23 Granted — — Forfeited or canceled (4 ) 12.07 Exercised — — Options outstanding at March 31, 2019 1,110 12.23 |
Schedule of restricted stock unit activity | Restricted stock unit activity for the three-month period ended March 31, 2019 , is as follows (share amounts in thousands, except per share information): Number of Shares Weighted Average Grant Date Fair Value Restricted Stock Units outstanding at December 31, 2018 1,058 $ 8.87 Granted 281 6.98 Forfeited (288 ) 10.57 Issued (82 ) 11.56 Restricted Stock Units outstanding at March 31, 2019 969 7.59 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of reportable business segment information | Reportable business segment information is as follows (dollar amounts in thousands): Three Months Ended 2019 2018 Net sales: NSP Americas $ 38,667 $ 41,872 NSP Russia, Central and Eastern Europe 11,358 9,551 Synergy WorldWide 34,994 31,817 NSP China 6,253 4,102 Total net sales 91,272 87,342 Contribution margin (1): NSP Americas 17,351 17,335 NSP Russia, Central and Eastern Europe 3,795 3,204 Synergy WorldWide 10,731 9,508 NSP China 4,953 3,220 Total contribution margin 36,830 33,267 Selling, general and administrative (2) 33,852 32,386 Operating income 2,978 881 Other income, net (48 ) 740 Income before provision for income taxes $ 2,930 $ 1,621 _________________________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. (2) Service fees in the NSP China segment related to sales in China totaled $2.2 million and $1.5 million for the three-month periods ended March 31, 2019 and 2018 , respectively. These service fees are included in our selling, general and administrative expenses. |
Schedule of consolidated net sales revenue by geographical locations | From an individual country perspective, only the United States and South Korea comprised 10 percent or more of consolidated net sales for the three-month periods ended March 31, 2019 and 2018 , as follows (dollar amounts in thousands): Three Months Ended 2019 2018 Net sales: United States $ 33,961 $ 35,227 South Korea 18,528 14,584 Other 38,783 37,531 $ 91,272 $ 87,342 |
Schedule of revenue generated by each product line | Revenue generated by each of the Company’s product lines is set forth below (dollar amounts in thousands): Three Months Ended 2019 2018 NSP Americas: General health $ 16,918 $ 17,746 Immune 4,760 5,544 Cardiovascular 2,853 3,100 Digestive 11,051 11,712 Personal care 1,556 1,825 Weight management 1,529 1,945 38,667 41,872 NSP Russia, Eastern and Central Europe: General health $ 4,599 $ 4,131 Immune 1,335 1,029 Cardiovascular 903 695 Digestive 2,854 2,431 Personal care 1,414 960 Weight management 253 305 11,358 9,551 Synergy WorldWide: General health $ 10,932 $ 8,640 Immune 80 149 Cardiovascular 14,616 13,330 Digestive 3,929 3,825 Personal care 1,841 2,140 Weight management 3,596 3,733 34,994 31,817 NSP China: General health $ 342 $ 343 Immune 77 146 Cardiovascular 750 561 Digestive 1,567 2,456 Personal care 2,465 253 Weight management 1,052 343 6,253 4,102 $ 91,272 $ 87,342 |
Schedule of consolidated property, plant and equipment by geographical locations | 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): March 31, December 31, Property, plant and equipment: United States $ 58,969 $ 60,606 Other 2,992 3,455 Total property, plant and equipment $ 61,961 $ 64,061 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Assets and liabilities, lease | March 31, January 1, Assets Operating lease right-of-use assets $ 21,777 $ 23,143 Liabilities Current 4,088 4,426 Long-term 18,818 19,566 Total operating lease liabilities $ 22,906 $ 23,992 |
Lessee, operating lease, liability, maturity | The approximate aggregate commitments under non-cancelable operating leases in effect at March 31, 2019 and December 31, 2018 , were as follows (dollar amounts in thousands): March 31, December 31, 2019 $ 4,155 $ 5,646 2020 4,671 4,692 2021 3,792 3,864 2022 2,326 2,367 2023 1,985 2,162 Thereafter 10,167 10,296 Total lease payments $ 27,096 $ 29,027 Less: Imputed interest (1) 4,190 Present value of lease liabilities $ 22,906 (1) Calculated using our corporate borrowing rate based on the term of each lease ranging from 4.09% to 4.29% . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
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 March 31, 2019 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Investment securities - trading $ 1,405 — — $ 1,405 Total assets measured at fair value on a recurring basis $ 1,405 $ — $ — $ 1,405 The following table presents the Company’s hierarchy for its assets, measured at fair value on a recurring basis, as of December 31, 2018 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Investment securities - trading $ 1,308 — — $ 1,308 Total assets measured at fair value on a recurring basis $ 1,308 $ — $ — $ 1,308 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table presents changes in these contract liability balances for the three-month period ended March 31, 2019 (U.S. dollars in thousands): Outstanding at December 31, 2018 $ 1,079 Increase (decrease) attributed to: Customer loyalty net deferrals 1,935 Customer loyalty redemptions (1,891 ) Outstanding at March 31, 2019 $ 1,123 The table above excludes liability for sales returns, as they are insignificant. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss attributable to noncontrolling interest | $ 28,000 | $ 165,000 | |
Noncontrolling interests | 35,000 | $ 63,000 | |
Restructuring expense | 1,600,000 | 0 | |
Restructuring and related cost, incurred cost | $ 1,600,000 | $ 300,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 11,353 | $ 10,410 |
Work in progress | 1,241 | 1,524 |
Finished goods | 30,343 | 30,114 |
Total inventory | $ 42,937 | $ 42,048 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Debt securities, trading | $ 1,405,000 | $ 1,308,000 | |
Realized gain (loss) on trading securities | $ 100,000 | $ 0 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Revolving credit agreement - USD ($) | Jul. 11, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Long-term debt | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Annual commitment fee | 0.20% | |||
Long-term debt less current installments | $ 0 | $ 0 | ||
LIBOR | ||||
Long-term debt | ||||
Margin on variable rate | 1.25% | |||
Effective interest rate | 3.74% | 3.73% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common shareholders: | $ 1,757 | $ 498 |
Basic weighted-average shares outstanding (in shares) | 19,268 | 19,010 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.09 | $ 0.03 |
Diluted shares outstanding | ||
Basic weighted-average shares outstanding (in shares) | 19,268 | 19,010 |
Stock-based awards (in shares) | 317 | 343 |
Diluted weighted-average shares outstanding (in shares) | 19,585 | 19,353 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.09 | $ 0.03 |
Potentially dilutive shares excluded from diluted-per-share amounts: | ||
Stock-based awards (in shares) | 511 | 155 |
Potentially anti-dilutive shares excluded from diluted-per-share amounts: | ||
Stock-based awards (in shares) | 1,032 | 1,148 |
Capital Transactions - Incentiv
Capital Transactions - Incentive Plans and Stock Options Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options to purchase (in shares) | 1,110,000 | 1,114,000 | |||
Granted (in shares) | 0 | ||||
Exercised (in shares) | 0 | ||||
Exercised (in dollars per share) | $ 0 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options to purchase (in shares) | 1,110,000 | 1,114,000 | |||
Aggregate Intrinsic value, outstanding | $ 300,000 | $ 200,000 | |||
Granted (in shares) | 0 | ||||
Exercised (in shares) | 30,000 | ||||
Exercised (in dollars per share) | $ 5.88 | ||||
Aggregate intrinsic values of options exercised | $ 200,000 | ||||
Tax benefit from the exercise of stock options | 32,000 | ||||
Time-based stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 0 | $ 13,000 | |||
Unrecognized share-based compensation expense | $ 0 | $ 0 | |||
Time-based stock options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 48 months | ||||
Performance based stock options operating income margins | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Operating income margin, one (as a percent) | 6.00% | ||||
Operating income margin, two (as a percent) | 8.00% | ||||
Operating income margin, three (as a percent) | 10.00% | ||||
Performance based stock options operating income margins | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award performance period | 1 year | ||||
Performance based stock options operating income margins | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award performance period | 1 year 3 months | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested options outstanding (in shares) | 0 | 0 | |||
2012 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized under the plan (in shares) | 1,500,000 | ||||
Additional number of shares authorized under the plan (in shares) | 1,500,000 | ||||
2009 Incentive Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized under the plan (in shares) | 400,000 |
Capital Transactions - Summary
Capital Transactions - Summary of Stock Option Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning balance (in shares) | shares | 1,114 |
Granted (in shares) | shares | 0 |
Forfeited or canceled (in shares) | shares | (4) |
Exercised (in shares) | shares | 0 |
Options outstanding, ending balance (in shares) | shares | 1,110 |
Weighted Average Exercise Price Per Share | |
Options outstanding, beginning balance (in dollars per share) | $ / shares | $ 12.23 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited or canceled (in dollars per share) | $ / shares | 12.07 |
Exercised (in dollars per share) | $ / shares | 0 |
Options outstanding, ending balance (in dollars per share) | $ / shares | $ 12.23 |
Capital Transactions - Summar_2
Capital Transactions - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - 2012 Stock Incentive Plan | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Restricted Stock Units outstanding, beginning of the period (in shares) | shares | 1,058,000 |
Granted (in shares) | shares | 281,000 |
Forfeited (in shares) | shares | (288,000) |
Issued (in shares) | shares | (82,000) |
Restricted Stock Units outstanding, end of the period (in shares) | shares | 969,000 |
Weighted Average Grant Date Fair Value | |
Restricted Stock Units outstanding, beginning of the period (in dollars per share) | $ / shares | $ 8.87 |
Granted (in dollars per share) | $ / shares | 6.98 |
Forfeited (in dollars per share) | $ / shares | 10.57 |
Issued (in dollars per share) | $ / shares | 11.56 |
Restricted Stock Units outstanding, end of the period (in dollars per share) | $ / shares | $ 7.59 |
Capital Transactions - Restrict
Capital Transactions - Restricted Stock Units Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount for lack of marketability ( as a percent) | 11.90% | ||
Award performance period | 3 years | ||
Expected volatility (as a percent) | 50.00% | ||
Risk free interest rate, minimum | 2.10% | ||
Risk free interest rate, maximum | 2.90% | ||
Share-based compensation expense | $ 100,000 | $ 500,000 | |
Unrecognized share-based compensation expense | $ 2,300,000 | $ 1,800,000 | |
Weighted-average period over which the remaining compensation expense is expected to be recognized | 1 year 8 months | ||
Minimum statutory withholding requirement paid on behalf of employees (in shares) | 11,000 | 40,000 | |
Performance-Based Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 100,000 | $ 0 | |
Performance-Based Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential compensation expense | $ 2,700,000 | ||
2012 Stock Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 281,000 | ||
2012 Stock Incentive Plan | Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 12 months | ||
2012 Stock Incentive Plan | Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 36 months | ||
2012 Stock Incentive Plan | Time-Based Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Weighted-average grant date fair value (in dollars per share) | $ 8.61 | ||
2012 Stock Incentive Plan | Performance-Based Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Weighted-average grant date fair value (in dollars per share) | $ 4.38 | ||
Director | 2012 Stock Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period | 2 years | ||
Number of shares subject to restriction period | 93,000 | 80,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 4 | |
Number of operating segments | 4 | |
NSP Americas; NSP Russia, Central and Eastern Europe; and NSP China | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 3 | |
Synergy WorldWide | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 1 | |
Selling, General and Administrative Expenses | NSP China | ||
Segment Reporting Information [Line Items] | ||
Selling expense | $ | $ 2.2 | $ 1.5 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total net sales | $ 91,272 | $ 87,342 | |
Total contribution margin | 36,830 | 33,267 | |
Selling, general and administrative | 33,852 | 32,386 | |
Operating income | 2,978 | 881 | |
Other income, net | (48) | 740 | |
Income before provision for income taxes | 2,930 | 1,621 | |
Total property, plant and equipment | 61,961 | $ 64,061 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 33,961 | 35,227 | |
Total property, plant and equipment | 58,969 | 60,606 | |
South Korea | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 18,528 | 14,584 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total property, plant and equipment | 2,992 | $ 3,455 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 38,783 | 37,531 | |
NSP Americas | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 38,667 | 41,872 | |
Total contribution margin | 17,351 | 17,335 | |
NSP Americas | General health | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 16,918 | 17,746 | |
NSP Americas | Immune | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 4,760 | 5,544 | |
NSP Americas | Cardiovascular | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 2,853 | 3,100 | |
NSP Americas | Digestive | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 11,051 | 11,712 | |
NSP Americas | Personal care | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,556 | 1,825 | |
NSP Americas | Weight management | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,529 | 1,945 | |
NSP Russia, Central and Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 11,358 | 9,551 | |
Total contribution margin | 3,795 | 3,204 | |
NSP Russia, Central and Eastern Europe | General health | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 4,599 | 4,131 | |
NSP Russia, Central and Eastern Europe | Immune | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,335 | 1,029 | |
NSP Russia, Central and Eastern Europe | Cardiovascular | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 903 | 695 | |
NSP Russia, Central and Eastern Europe | Digestive | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 2,854 | 2,431 | |
NSP Russia, Central and Eastern Europe | Personal care | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,414 | 960 | |
NSP Russia, Central and Eastern Europe | Weight management | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 253 | 305 | |
Synergy WorldWide | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 34,994 | 31,817 | |
Total contribution margin | 10,731 | 9,508 | |
Synergy WorldWide | General health | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 10,932 | 8,640 | |
Synergy WorldWide | Immune | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 80 | 149 | |
Synergy WorldWide | Cardiovascular | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 14,616 | 13,330 | |
Synergy WorldWide | Digestive | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 3,929 | 3,825 | |
Synergy WorldWide | Personal care | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,841 | 2,140 | |
Synergy WorldWide | Weight management | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 3,596 | 3,733 | |
NSP China | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 6,253 | 4,102 | |
Total contribution margin | 4,953 | 3,220 | |
NSP China | General health | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 342 | 343 | |
NSP China | Immune | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 77 | 146 | |
NSP China | Cardiovascular | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 750 | 561 | |
NSP China | Digestive | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,567 | 2,456 | |
NSP China | Personal care | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 2,465 | 253 | |
NSP China | Weight management | |||
Segment Reporting Information [Line Items] | |||
Total net sales | $ 1,052 | $ 343 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 21,777 | |
Operating lease liability | 22,906 | |
Operating lease cost | 1,600 | |
Short-term lease cost | 46 | |
Operating cash flows from operating leases | 1,100 | |
Leased assets obtained in exchange for new finance liabilities | $ 23,100 | |
Weighted-average remaining lease term (years) | 7 years 7 months 6 days | |
Weighted-average discount rate | 4.23% | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 23,143 | |
Operating lease liability | $ 23,992 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Assets | ||
Operating lease right-of-use assets | $ 21,777 | |
Liabilities | ||
Current | 4,088 | |
Long-term | 18,818 | |
Total operating lease liabilities | $ 22,906 | |
Accounting Standards Update 2016-02 | ||
Assets | ||
Operating lease right-of-use assets | $ 23,143 | |
Liabilities | ||
Current | 4,426 | |
Long-term | 19,566 | |
Total operating lease liabilities | $ 23,992 |
Leases - Commitments Under Non-
Leases - Commitments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842 | ||
2019 | $ 4,155 | |
2020 | 4,671 | |
2021 | 3,792 | |
2022 | 2,326 | |
2023 | 1,985 | |
Thereafter | 10,167 | |
Total lease payments | 27,096 | |
Less: Imputed interest | 4,190 | |
Present value of lease liabilities | $ 22,906 | |
Operating Leases, Before Adoption of 842 | ||
2019 | $ 5,646 | |
2020 | 4,692 | |
2021 | 3,864 | |
2022 | 2,367 | |
2023 | 2,162 | |
Thereafter | 10,296 | |
Total lease payments | $ 29,027 | |
Lessee, Lease, Description [Line Items] | ||
Weighted-average discount rate | 4.23% | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Weighted-average discount rate | 4.09% | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Weighted-average discount rate | 4.29% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate reconciliation, percent | 41.00% | 79.50% | |
Liability related to unrecognized tax benefits | $ 2,128 | $ 2,192 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | |
Non-Income Tax Contingencies | ||
Commitments and contingencies | ||
Accrued liabilities | $ 300,000 | $ 300,000 |
Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Minimum number of claims that insurance coverage may not cover | claim | 1 | |
Accrued liabilities | $ 1,900,000 | $ 1,700,000 |
Provision for losses | 0 | |
Minimum | Non-Income Tax Contingencies | ||
Commitments and contingencies | ||
Estimate of possible loss | 0 | |
Minimum | Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Estimate of possible loss | 0 | |
Maximum | Non-Income Tax Contingencies | ||
Commitments and contingencies | ||
Estimate of possible loss | 3,400,000 | |
Maximum | Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Estimate of possible loss | $ 400,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - CHINA - Company's Joint Venture Partner - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Payments for advance to affiliate | $ 0 | $ 2,000,000 | |
Payments for advance to affiliate by co-venturer | $ 0 | 500,000 | |
Debt instrument, term | 1 year | ||
Debt instrument, interest rate, stated percentage | 3.00% | ||
Due from related parties | $ 6,100,000 | $ 6,000,000 | |
Due to co-venturer from related party | $ 1,500,000 | $ 1,500,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair value | ||
Investment securities - trading | $ 1,405 | $ 1,308 |
Recurring basis | ||
Fair value | ||
Investment securities - trading | 1,405 | 1,308 |
Total assets measured at fair value on a recurring basis | 1,405 | 1,308 |
Recurring basis | Level 1 - Quoted Prices in Active Markets for Identical Assets | ||
Fair value | ||
Investment securities - trading | 1,405 | 1,308 |
Total assets measured at fair value on a recurring basis | 1,405 | 1,308 |
Recurring basis | Level 2 - Significant Other Observable Inputs | ||
Fair value | ||
Investment securities - trading | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Recurring basis | Level 3 - Significant Unobservable Inputs | ||
Fair value | ||
Investment securities - trading | 0 | 0 |
Total assets measured at fair value on a recurring basis | $ 0 | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segmentcategory | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of product categories | category | 6 |
Number of operating segments | 4 |
Revenue, performance obligation, description of timing | We generally expense volume incentives when incurred because the amortization period would have been one year or less. All of our contracts with customers have a duration of less than one year, the value of any unsatisfied performance obligations is insignificant. |
NSP Americas; NSP Russia, Central and Eastern Europe; and NSP China | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of operating segments | 3 |
Synergy WorldWide | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of operating segments | 1 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities - Customer Loyalty Programs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Outstanding at December 31, 2018 | $ 1,079 |
Increase (decrease) attributed to: | |
Customer loyalty net deferrals | 1,935 |
Customer loyalty redemptions | (1,891) |
Outstanding at March 31, 2019 | $ 1,123 |