Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2014 | 5-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Central Index Key | '0000896264 | ' |
Entity Registrant Name | 'USANA HEALTH SCIENCES INC | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 13,922,660 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $142,733 | $137,343 |
Securities held-to-maturity, net | 4,428 | 8,642 |
Inventories | 46,890 | 47,242 |
Prepaid expenses and other current assets | 32,308 | 35,818 |
Total current assets | 226,359 | 229,045 |
Property and equipment, net | 58,843 | 59,180 |
Goodwill | 17,933 | 18,243 |
Intangible assets, net | 41,210 | 42,329 |
Deferred tax assets | 5,695 | 5,519 |
Other assets | 21,426 | 14,154 |
Total assets | 371,466 | 368,470 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 6,083 | 9,502 |
Other current liabilities | 73,861 | 86,369 |
Total current liabilities | 79,944 | 95,871 |
Deferred tax liabilities | 10,577 | 10,866 |
Other long-term liabilities | 1,204 | 1,211 |
Stockholders' equity | ' | ' |
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 13,886 as of December 28, 2013 and 13,981 as of March 29, 2014 | 14 | 14 |
Additional paid-in capital | 58,383 | 54,691 |
Retained earnings | 216,560 | 200,023 |
Accumulated other comprehensive income | 4,784 | 5,794 |
Total stockholders' equity | 279,741 | 260,522 |
Total liabilities and stockholder's equity | $371,466 | $368,470 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 13,981 | 13,886 |
Common stock, shares outstanding | 13,981 | 13,886 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' |
Net sales | $182,401 | $169,082 |
Cost of sales | 33,828 | 30,261 |
Gross profit | 148,573 | 138,821 |
Operating expenses: | ' | ' |
Associate incentives | 78,874 | 69,855 |
Selling, general and administrative | 44,577 | 42,404 |
Total operating expenses | 123,451 | 112,259 |
Earnings from operations | 25,122 | 26,562 |
Other income (expense): | ' | ' |
Interest income | 212 | 78 |
Interest expense | -6 | ' |
Other, net | -81 | -104 |
Other income (expense), net | 125 | -26 |
Earnings before income taxes | 25,247 | 26,536 |
Income taxes | 8,710 | 8,757 |
Net earnings | 16,537 | 17,779 |
Earnings per common share | ' | ' |
Basic | $1.19 | $1.30 |
Diluted | $1.15 | $1.28 |
Weighted average common shares outstanding | ' | ' |
Basic | 13,919 | 13,643 |
Diluted | 14,395 | 13,903 |
Comprehensive income: | ' | ' |
Net earnings | 16,537 | 17,779 |
Other comprehensive income (loss), net of tax: | ' | ' |
Foreign currency translation adjustment | 652 | -66 |
Tax benefit (expense) related to foreign currency translation adjustment | -1,662 | 31 |
Other comprehensive income (loss), net of tax | -1,010 | -35 |
Comprehensive income | $15,527 | $17,744 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement Of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands | |||||
Balance, value at Dec. 28, 2013 | $14 | $54,691 | $200,023 | $5,794 | $260,522 |
Balance, shares at Dec. 28, 2013 | 13,886 | ' | ' | ' | 13,886 |
Net earnings | ' | ' | 16,537 | ' | 16,537 |
Other comprehensive income (loss), net of tax | ' | ' | ' | -1,010 | -1,010 |
Equity-based compensation expense | ' | 1,836 | ' | ' | 1,836 |
Common stock issued under equity award plans, including tax benefit, shares | 95 | ' | ' | ' | ' |
Common stock issued under equity award plans, including tax benefit, value | ' | 1,856 | ' | ' | 1,856 |
Balance, value at Mar. 29, 2014 | $14 | $58,383 | $216,560 | $4,784 | $279,741 |
Balance, shares at Mar. 29, 2014 | 13,981 | ' | ' | ' | 13,981 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement Of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 |
Condensed Consolidated Statement Of Stockholders' Equity [Abstract] | ' |
Common stock issued under equity award plans, including tax benefit (expense) | $1,856 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net earnings | $16,537 | $17,779 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 2,211 | 2,303 |
(Gain) loss on sale of property and equipment | 4 | -3 |
Equity-based compensation expense | 1,836 | 2,369 |
Excess tax benefits from equity-based payment arrangements | -1,856 | -185 |
Deferred income taxes | -146 | -819 |
Changes in operating assets and liabilities: | ' | ' |
Inventories | 45 | -6,522 |
Prepaid expenses and other assets | -3,339 | 6,136 |
Accounts payable | -3,704 | 1,097 |
Other liabilities | -9,119 | -1,850 |
Net cash provided by operating activities | 2,469 | 20,305 |
Cash flows from investing activities | ' | ' |
Additions to notes receivable | -1,429 | -1,142 |
Purchases of investment securities held-to-maturity | -1,488 | ' |
Maturities of investment securities | 5,701 | ' |
Proceeds from sale of property and equipment | 6 | 3 |
Purchases of property and equipment | -979 | -872 |
Net cash provided by (used in) investing activities | 1,811 | -2,011 |
Cash flows from financing activities | ' | ' |
Excess tax benefits from equity-based payment arrangements | 1,856 | 185 |
Repurchase of common stock | ' | -18,085 |
Net cash provided by (used in) financing activities | 1,856 | -17,900 |
Effect of exchange rate changes on cash and cash equivalents | -746 | -186 |
Net increase in cash and cash equivalents | 5,390 | 208 |
Cash and cash equivalents, beginning of period | 137,343 | 70,839 |
Cash and cash equivalents, end of period | 142,733 | 71,047 |
Supplemental disclosures of cash flow information | ' | ' |
Interest | 6 | ' |
Income taxes | $787 | $1,101 |
Organization_Consolidation_And
Organization, Consolidation, And Basis Of Presentation | 3 Months Ended |
Mar. 30, 2013 | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | ' |
Organization, Consolidation, And Basis Of Presentation | ' |
NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION | |
USANA Health Sciences, Inc. develops and manufactures high-quality nutritional and personal care products that are sold internationally through a global network marketing system, which is a form of direct selling. The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the “Company” or “USANA”) in two geographic regions: Americas and Europe and Asia Pacific, which is further divided into three sub-regions; Southeast Asia Pacific, Greater China, and North Asia. Americas and Europe includes the United States, Canada, Mexico, Colombia, the United Kingdom, France, Belgium, and the Netherlands. Southeast Asia Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand; Greater China includes Hong Kong, Taiwan and China; and North Asia includes Japan and South Korea. All significant intercompany accounts and transactions have been eliminated in this consolidation. | |
The condensed balance sheet as of December 28, 2013, derived from audited financial statements, and the unaudited interim consolidated financial information of the Company have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission. Certain information and footnote disclosures that are normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting of normal recurring adjustments that are necessary to state fairly the Company’s financial position as of March 29, 2014 and results of operations for the three months ended March 30, 2013 and March 29, 2014. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2013. The results of operations for the three months ended March 29, 2014, may not be indicative of the results that may be expected for the fiscal year 2014 ending January 3, 2015. | |
Fair_Value_Measures
Fair Value Measures | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Fair Value Measures [Abstract] | ' | |||||||||
Fair Value Measures | ' | |||||||||
NOTE B – FAIR VALUE MEASURES | ||||||||||
The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: | ||||||||||
· | Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. | |||||||||
· | Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||
· | Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date. | |||||||||
As of December 28, 2013 and March 29, 2014, the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown: | ||||||||||
Fair Value Measurements Using: | ||||||||||
28-Dec-13 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||
Money market funds included in cash equivalents | $ 9,249 | $ 9,249 | $ - | $ - | ||||||
Term deposits included in cash equivalents | 348 | - | 348 | - | ||||||
Fair Value Measurements Using: | ||||||||||
29-Mar-14 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||
Money market funds included in cash equivalents | $ 14,603 | $ 14,603 | $ - | $ - | ||||||
Term deposits included in cash equivalents | 1,440 | - | 1,440 | - | ||||||
NOTE B – FAIR VALUE MEASURES - CONTINUED | ||||||||||
There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the periods indicated. | ||||||||||
The majority of the Company's non-financial assets, which include goodwill, intangible assets, and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill and indefinite-lived intangibles) such that a non-financial asset is required to be evaluated for impairment, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At December 28, 2013 and March 29, 2014, there were no non-financial assets measured at fair value on a non-recurring basis. | ||||||||||
At December 28, 2013 and March 29, 2014, the Company's financial instruments include cash equivalents, restricted cash, securities held-to-maturity, and notes receivable. The recorded values of cash equivalents and restricted cash approximate their fair values, based on their short-term nature. The carrying value of the notes receivable approximate fair value because the variable interest rates in the notes reflect current market rates. Securities held-to-maturity consist of certificates of deposits. The fair value of a certificate of deposit is determined based on the pervasive interest rates in the market, which is considered to be a Level 2 input. The carrying values of these certificates of deposit approximate their fair values due to their short-term maturities. | ||||||||||
Investments
Investments | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Investments [Abstract] | ' | |||||||||
Investments | ' | |||||||||
NOTE C – INVESTMENTS | ||||||||||
The carrying amount, gross unrealized holding gains, gross unrealized holding losses, and fair value of held-to-maturity securities by major security type and class of security were as follows: | ||||||||||
As of December 28, 2013 | ||||||||||
Amortized Cost | Unrecognized Holding Gains | Unrecognized Holding Losses | Estimated Fair Value | |||||||
Certificates of Deposit | $ 8,642 | $ - | $ - | $ 8,642 | ||||||
Total Held-to-Maturity Securities | $ 8,642 | $ - | $ - | $ 8,642 | ||||||
As of March 29, 2014 | ||||||||||
Amortized Cost | Unrecognized Holding Gains | Unrecognized Holding Losses | Estimated Fair Value | |||||||
Certificates of Deposit | $ 4,428 | $ - | $ - | $ 4,428 | ||||||
Total Held-to-Maturity Securities | $ 4,428 | $ - | $ - | $ 4,428 | ||||||
Inventories
Inventories | 3 Months Ended | |||||
Mar. 30, 2013 | ||||||
Inventories [Abstract] | ' | |||||
Inventories | ' | |||||
NOTE D – INVENTORIES | ||||||
Inventories consist of the following: | ||||||
December 28, | March 29, | |||||
2013 | 2014 | |||||
Raw materials | $ 13,824 | $ 12,975 | ||||
Work in progress | 8,147 | 8,585 | ||||
Finished goods | 25,271 | 25,330 | ||||
$ 47,242 | $ 46,890 | |||||
Other_Assets
Other Assets | 3 Months Ended |
Mar. 29, 2014 | |
Other Assets [Abstract] | ' |
Other Assets | ' |
NOTE E – OTHER ASSETS | |
The Company has extended non-revolving credit to its supplier of nutrition bars of up to $7,000 to allow this supplier to acquire the necessary equipment to manufacture the USANA nutrition bars. Notes receivable are valued at their unpaid principal balance plus any accrued but unpaid interest, which approximates fair value. Interest accrues at an annual interest rate of LIBOR plus 400 basis points. The note has a maturity date of February 1, 2024 and will be repaid by a combination of cash payments and credits for the manufacture of USANA’s nutrition bars. There is no prepayment penalty. Notes receivable from this supplier as December 28, 2013, and March 29, 2014 were $4,942 and $6,421, respectively. | |
The Company is building a state-of-the-art manufacturing and production facility in China, which is expected to become operational during the latter-half of 2015. As part of this project, land-use rights totaling $7,158 have been purchased and will be amortized over 50 years. Land-use rights are classified in “Other assets” line item in the Company’s consolidated balance sheets. | |
Contingencies
Contingencies | 3 Months Ended |
Mar. 29, 2014 | |
Contingencies [Abstract] | ' |
Contingencies | ' |
NOTE F – CONTINGENCIES | |
The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. While complete assurance cannot be given to the outcome of these proceedings, management does not currently believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations. | |
The Company has previously disclosed that the Securities and Exchange Commission is conducting a formal investigation, which involve possible issues regarding trading in the Company’s stock during late 2012 by certain of the Company’s directors, including the Chairman. In the opinion of management, based upon advice of counsel, the likelihood of an adverse outcome against the Company in this matter is remote. As such, management believes that the ultimate outcome of the SEC investigation will not have a material impact on the Company’s financial position or results of operations. | |
EquityBased_Compensation
Equity-Based Compensation | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Equity-Based Compensation [Abstract] | ' | |||||||||
Equity-Based Compensation | ' | |||||||||
NOTE G — EQUITY BASED COMPENSATION | ||||||||||
The Company utilizes a share-based compensation plan, which is more fully described in Note K to the Consolidated Financial Statements in Form 10-K for the year ended December 28, 2013. | ||||||||||
Equity-based compensation expense for the three months ended March 30, 2013 and March 29, 2014, was $2,396, and $1,836 respectively. The related tax benefit for these periods was $812, and $617, respectively. | ||||||||||
The following table shows the remaining unrecognized compensation expense on a pre-tax basis for all types of unvested equity awards outstanding as of March 29, 2014. This table does not include an estimate for future grants that may be issued. | ||||||||||
2014 | $ 6,784 | |||||||||
2015 | 7,299 | |||||||||
2016 | 5,420 | |||||||||
2017 | 3,348 | |||||||||
2018 | 541 | |||||||||
$ 23,392 | ||||||||||
The cost above is expected to be recognized over a weighted-average | ||||||||||
period of 2.2 years. | ||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of its equity awards. The weighted-average fair value of stock-settled stock appreciation rights that were granted during the three months ended March 30, 2013, and March 29, 2014, was $13.34 and $17.73, respectively. Following is a table that includes the weighted-average assumptions that the Company used to calculate fair value of equity awards that were granted during the periods indicated. | ||||||||||
Three Months Ended | ||||||||||
March 30, | March 29, | |||||||||
2013 | 2014 | |||||||||
Expected volatility (1) . | 43.7% | 39.9% | ||||||||
Risk-free interest rate (2) . | 0.6% | 1.2% | ||||||||
Expected life (3) . | 3.97 yrs | 3.54 yrs | ||||||||
Expected dividend yield (4) . | 0.0% | 0.0% | ||||||||
Weighted-average exercise price (5) . | $ | $ | ||||||||
38.69 | 57.62 | |||||||||
(1) The Company utilizes historical volatility of the trading price of its common stock. | ||||||||||
(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of | ||||||||||
the award. | ||||||||||
(3) Depending upon the terms of the award, expected life may be a weighted-average that includes | ||||||||||
historical settlement data of the Company's equity awards and a hypothetical holding | ||||||||||
period for outstanding awards, or it may be calculated under the simplified method. | ||||||||||
(4) The Company historically has not paid dividends. | ||||||||||
(5) Exercise price is the closing price of the Company's common stock on the date of grant. | ||||||||||
NOTE G – EQUITY-BASED COMPENSATION – CONTINUED | ||||||||||
A summary of the Company’s stock option and stock-settled stock appreciation right activity is as follows: | ||||||||||
Shares | Weighted-average exercise price | Weighted-average remaining contractual term | Aggregate intrinsic value* | |||||||
Outstanding at December 28, 2013 | 1,827 | $ 37.37 | 2.6 | $ 74,160 | ||||||
Granted | 669 | 57.62 | ||||||||
Exercised | -160 | 28.83 | ||||||||
Forfeited | -20 | 27.33 | ||||||||
Expired | - | - | ||||||||
Outstanding at March 29, 2014 | 2,316 | $ 43.90 | 3.0 | $ 70,387 | ||||||
Exercisable at March 29, 2014 | 424 | $ 37.96 | 1.9 | $ 15,280 | ||||||
* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the | ||||||||||
Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money. The | ||||||||||
closing price of the Company's common stock at December 28, 2013, and March 29, 2014, was $77.72 and $74.02, respectively. | ||||||||||
The total intrinsic value of stock options and stock-settled stock appreciation rights exercised during the three months ended March 30, 2013, and March 29, 2014, was $1,150 and $6,800, respectively. The Company currently has no deferred stock units that are considered nonvested. | ||||||||||
The total fair value of equity awards that vested during the three months ended March 30, 2013, and March 29, 2014, was $270 and $496, respectively. This total fair value includes equity-based awards issued in the form of stock options and stock-settled stock appreciation rights. | ||||||||||
Common_Stock_And_Earnings_Per_
Common Stock And Earnings Per Share | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Common Stock And Earnings Per Share [Abstract] | ' | |||||
Common Stock And Earnings Per Share | ' | |||||
NOTE H — COMMON STOCK AND EARNINGS PER SHARE | ||||||
Basic earnings per share are based on the weighted-average number of shares outstanding for each period. Shares that have been repurchased and retired during the periods specified below have been included in the calculation of the number of weighted-average shares that are outstanding for the calculation of basic earnings per share based on the time they were outstanding in any period. Diluted earnings per common share are based on shares that are outstanding (computed under basic EPS) and on potentially dilutive shares. Shares that are included in the diluted earnings per share calculations under the treasury stock method include equity awards that are in-the-money but have not yet been exercised. | ||||||
The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the periods indicated: | ||||||
Quarter Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
Net earnings available to common shareholders | $ 17,779 | $ 16,537 | ||||
Basic EPS | ||||||
Shares | ||||||
Common shares outstanding entire period | 13,821 | 13,886 | ||||
Weighted average common shares: | ||||||
Issued during period | 10 | 33 | ||||
Canceled during period | -188 | - | ||||
Weighted average common shares outstanding during | ||||||
period | 13,643 | 13,919 | ||||
Earnings per common share from net earnings - basic | $ 1.30 | $ 1.19 | ||||
Diluted EPS | ||||||
Shares | ||||||
Weighted average common shares outstanding during | ||||||
period - basic | 13,643 | 13,919 | ||||
Dilutive effect of in-the-money equity awards | 260 | 476 | ||||
Weighted average common shares outstanding during | ||||||
period - diluted | 13,903 | 14,395 | ||||
Earnings per common share from net earnings - diluted | $ 1.28 | $ 1.15 | ||||
Equity awards for 1,085 and 273 shares of stock were not included in the computation of diluted EPS for the quarters ended March 30, 2013, and March 29, 2014, respectively, due to the fact that their effect would be anti-dilutive. | ||||||
Segment_Information
Segment Information | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Segment Information [Abstract] | ' | |||||
Segment Information | ' | |||||
NOTE I – SEGMENT INFORMATION | ||||||
USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care products that are sold through a global network marketing system of independent distributors (“Associates”). As such, management aggregates its operating segments into one reportable segment as management believes that the Company’s segments exhibit similar long-term financial performance and have similar economic characteristics. Performance for a region or market is evaluated based on sales. No single Associate accounted for 10% or more of net sales for the periods presented. The table below summarizes the approximate percentage of total product revenue that has been contributed by the Company’s nutritional and personal care products for the periods indicated. | ||||||
Three Months Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
USANA® Nutritionals | 80% | 79% | ||||
USANA Foods | 12% | 13% | ||||
Sensé – beautiful science® | 6% | 6% | ||||
Selected financial information for the Company is presented for two geographic regions: Americas and Europe and Asia Pacific, with three sub-regions under Asia Pacific. Individual markets are categorized into these regions as follows: | ||||||
· | Americas and Europe – United States, Canada, Mexico, Colombia (1), the United Kingdom, France, Belgium, and the Netherlands. | |||||
· | Asia Pacific – | |||||
· | Southeast Asia Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand | |||||
· | Greater China – Hong Kong, Taiwan and China(2) | |||||
· | North Asia – Japan and South Korea | |||||
(1) The Company commenced operations in Colombia in the third quarter of 2013. | ||||||
(2)The Company’s business in China is that of BabyCare, its wholly-owned subsidiary. | ||||||
NOTE I – SEGMENT INFORMATION - CONTINUED | ||||||
Selected Financial Information | ||||||
Financial information by geographic region is presented for the periods indicated below: | ||||||
Three Months Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
Net Sales to External Customers | ||||||
Americas and Europe | $ 64,152 | $ 63,815 | ||||
Asia Pacific | ||||||
Southeast Asia Pacific | 35,309 | 40,448 | ||||
Greater China | 62,985 | 70,847 | ||||
North Asia | 6,636 | 7,291 | ||||
Asia Pacific Total | 104,930 | 118,586 | ||||
Consolidated Total | $ 169,082 | $ 182,401 | ||||
The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively: | ||||||
Three Months Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
Net sales: | ||||||
United States | $ 40,238 | $ 37,613 | ||||
China | N/A | 38,760 | ||||
Hong Kong | 41,597 | 23,524 | ||||
As of | ||||||
December 28, | March 29, | |||||
2013 | 2014 | |||||
Long-lived Assets: | ||||||
China | $ 61,716 | $ 66,587 | ||||
United States | 51,260 | 51,652 | ||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 29, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
NOTE J – SUBSEQUENT EVENTS | |
On April 28, 2014, the Company’s Board of Directors authorized an increase in the amount available under its share repurchase plan to a total of $200,000. Subsequent to March 29, 2014, and through May 5, 2014, the Company repurchased and retired 58 shares of common stock for a total investment of $4,047, at an average market price of $69.51 per share. | |
Fair_Value_Measures_Tables
Fair Value Measures (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Fair Value Measures [Abstract] | ' | |||||||||
Schedule Of Assets And Liabilities Measured At Fair Value | ' | |||||||||
Fair Value Measurements Using: | ||||||||||
28-Dec-13 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||
Money market funds included in cash equivalents | $ 9,249 | $ 9,249 | $ - | $ - | ||||||
Term deposits included in cash equivalents | 348 | - | 348 | - | ||||||
Fair Value Measurements Using: | ||||||||||
29-Mar-14 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||
Money market funds included in cash equivalents | $ 14,603 | $ 14,603 | $ - | $ - | ||||||
Term deposits included in cash equivalents | 1,440 | - | 1,440 | - | ||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Investments [Abstract] | ' | |||||||||
Schedule Of Held-To-Maturity Securities | ' | |||||||||
As of December 28, 2013 | ||||||||||
Amortized Cost | Unrecognized Holding Gains | Unrecognized Holding Losses | Estimated Fair Value | |||||||
Certificates of Deposit | $ 8,642 | $ - | $ - | $ 8,642 | ||||||
Total Held-to-Maturity Securities | $ 8,642 | $ - | $ - | $ 8,642 | ||||||
As of March 29, 2014 | ||||||||||
Amortized Cost | Unrecognized Holding Gains | Unrecognized Holding Losses | Estimated Fair Value | |||||||
Certificates of Deposit | $ 4,428 | $ - | $ - | $ 4,428 | ||||||
Total Held-to-Maturity Securities | $ 4,428 | $ - | $ - | $ 4,428 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Inventories [Abstract] | ' | |||||
Schedule Of Inventories | ' | |||||
Inventories consist of the following: | ||||||
December 28, | March 29, | |||||
2013 | 2014 | |||||
Raw materials | $ 13,824 | $ 12,975 | ||||
Work in progress | 8,147 | 8,585 | ||||
Finished goods | 25,271 | 25,330 | ||||
$ 47,242 | $ 46,890 | |||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Equity-Based Compensation [Abstract] | ' | |||||||||
Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards | ' | |||||||||
2014 | $ 6,784 | |||||||||
2015 | 7,299 | |||||||||
2016 | 5,420 | |||||||||
2017 | 3,348 | |||||||||
2018 | 541 | |||||||||
$ 23,392 | ||||||||||
The cost above is expected to be recognized over a weighted-average | ||||||||||
period of 2.2 years. | ||||||||||
Schedule Of Fair Value Assumptions | ' | |||||||||
Three Months Ended | ||||||||||
March 30, | March 29, | |||||||||
2013 | 2014 | |||||||||
Expected volatility (1) . | 43.7% | 39.9% | ||||||||
Risk-free interest rate (2) . | 0.6% | 1.2% | ||||||||
Expected life (3) . | 3.97 yrs | 3.54 yrs | ||||||||
Expected dividend yield (4) . | 0.0% | 0.0% | ||||||||
Weighted-average exercise price (5) . | $ | $ | ||||||||
38.69 | 57.62 | |||||||||
(1) The Company utilizes historical volatility of the trading price of its common stock. | ||||||||||
(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of | ||||||||||
the award. | ||||||||||
(3) Depending upon the terms of the award, expected life may be a weighted-average that includes | ||||||||||
historical settlement data of the Company's equity awards and a hypothetical holding | ||||||||||
period for outstanding awards, or it may be calculated under the simplified method. | ||||||||||
(4) The Company historically has not paid dividends. | ||||||||||
(5) Exercise price is the closing price of the Company's common stock on the date of grant. | ||||||||||
Schedule Of Stock Option Activity | ' | |||||||||
Shares | Weighted-average exercise price | Weighted-average remaining contractual term | Aggregate intrinsic value* | |||||||
Outstanding at December 28, 2013 | 1,827 | $ 37.37 | 2.6 | $ 74,160 | ||||||
Granted | 669 | 57.62 | ||||||||
Exercised | -160 | 28.83 | ||||||||
Forfeited | -20 | 27.33 | ||||||||
Expired | - | - | ||||||||
Outstanding at March 29, 2014 | 2,316 | $ 43.90 | 3.0 | $ 70,387 | ||||||
Exercisable at March 29, 2014 | 424 | $ 37.96 | 1.9 | $ 15,280 | ||||||
* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the | ||||||||||
Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money. The | ||||||||||
closing price of the Company's common stock at December 28, 2013, and March 29, 2014, was $77.72 and $74.02, respectively. | ||||||||||
Common_Stock_And_Earnings_Per_1
Common Stock And Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Common Stock And Earnings Per Share [Abstract] | ' | |||||
Schedule Of Common Stock And Earnings Per Share | ' | |||||
Quarter Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
Net earnings available to common shareholders | $ 17,779 | $ 16,537 | ||||
Basic EPS | ||||||
Shares | ||||||
Common shares outstanding entire period | 13,821 | 13,886 | ||||
Weighted average common shares: | ||||||
Issued during period | 10 | 33 | ||||
Canceled during period | -188 | - | ||||
Weighted average common shares outstanding during | ||||||
period | 13,643 | 13,919 | ||||
Earnings per common share from net earnings - basic | $ 1.30 | $ 1.19 | ||||
Diluted EPS | ||||||
Shares | ||||||
Weighted average common shares outstanding during | ||||||
period - basic | 13,643 | 13,919 | ||||
Dilutive effect of in-the-money equity awards | 260 | 476 | ||||
Weighted average common shares outstanding during | ||||||
period - diluted | 13,903 | 14,395 | ||||
Earnings per common share from net earnings - diluted | $ 1.28 | $ 1.15 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||
Mar. 29, 2014 | ||||||
Segment Information [Abstract] | ' | |||||
Schedule Of Revenue Percentage By Product | ' | |||||
Three Months Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
USANA® Nutritionals | 80% | 79% | ||||
USANA Foods | 12% | 13% | ||||
Sensé – beautiful science® | 6% | 6% | ||||
Schedule Of Revenues From External Customers By Geographical Areas | ' | |||||
Three Months Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
Net Sales to External Customers | ||||||
Americas and Europe | $ 64,152 | $ 63,815 | ||||
Asia Pacific | ||||||
Southeast Asia Pacific | 35,309 | 40,448 | ||||
Greater China | 62,985 | 70,847 | ||||
North Asia | 6,636 | 7,291 | ||||
Asia Pacific Total | 104,930 | 118,586 | ||||
Consolidated Total | $ 169,082 | $ 182,401 | ||||
Consolidated Net Sales And Long Lived Assets | ' | |||||
Three Months Ended | ||||||
March 30, | March 29, | |||||
2013 | 2014 | |||||
Net sales: | ||||||
United States | $ 40,238 | $ 37,613 | ||||
China | N/A | 38,760 | ||||
Hong Kong | 41,597 | 23,524 | ||||
As of | ||||||
December 28, | March 29, | |||||
2013 | 2014 | |||||
Long-lived Assets: | ||||||
China | $ 61,716 | $ 66,587 | ||||
United States | 51,260 | 51,652 | ||||
Organization_Consolidation_And1
Organization, Consolidation, And Basis Of Presentation (Details) | 3 Months Ended |
Mar. 29, 2014 | |
item | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | ' |
Geographic regions | 2 |
Sub-geographical regions | 3 |
Fair_Value_Measures_Narrative_
Fair Value Measures (Narrative) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Fair Value Measures [Abstract] | ' | ' |
Transfers of financial assets or liabilities | $0 | $0 |
Non-financial assets | $0 | $0 |
Fair_Value_Measures_Schedule_O
Fair Value Measures (Schedule Of Assets And Liabilities Measured At Fair Value) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds included in cash equivalents | $14,603 | $9,249 |
Term deposits included in cash | 1,440 | 348 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds included in cash equivalents | 14,603 | 9,249 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Term deposits included in cash | $1,440 | $348 |
Investments_Details
Investments (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | $4,428 | $8,642 |
Estimated Fair Value | 4,428 | 8,642 |
Certificates of Deposit [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 4,428 | 8,642 |
Estimated Fair Value | $4,428 | $8,642 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $12,975 | $13,824 |
Work in progress | 8,585 | 8,147 |
Finished goods | 25,330 | 25,271 |
Inventories | $46,890 | $47,242 |
Other_Assets_Details
Other Assets (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 |
Other Assets [Line Items] | ' | ' |
Credit facility issued | $7,000 | ' |
Receivable | 6,421 | 4,942 |
Land-use rights | $7,158 | ' |
Amortization period | '50 years | ' |
London Interbank Offered Rate (LIBOR) [Member] | ' | ' |
Other Assets [Line Items] | ' | ' |
Variable rate | 4.00% | ' |
EquityBased_Compensation_Narra
Equity-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Equity-Based Compensation [Abstract] | ' | ' |
Equity-based compensation expense | $1,836 | $2,396 |
Equity-based compensation related tax benefit | 617 | 812 |
Weighted-average grant date fair value | $17.73 | $13.34 |
Total intrinsic value of stock options and stock-settled stock appreciation rights exercised | 6,800 | 1,150 |
Total fair value of equity awards vested | $496 | $270 |
EquityBased_Compensation_Sched
Equity-Based Compensation (Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards) (Details) (USD $) | Mar. 29, 2014 |
In Thousands, unless otherwise specified | |
Equity-Based Compensation [Abstract] | ' |
2014 | $6,784 |
2015 | 7,299 |
2016 | 5,420 |
2017 | 3,348 |
2018 | 541 |
Total | $23,392 |
EquityBased_Compensation_Sched1
Equity-Based Compensation (Schedule Of Fair Value Assumptions) (Details) (USD $) | 3 Months Ended | |||
Mar. 29, 2014 | Mar. 30, 2013 | |||
Equity-Based Compensation [Abstract] | ' | ' | ||
Expected volatility | 39.90% | [1] | 43.70% | [1] |
Risk-free interest rate | 1.20% | [2] | 0.60% | [2] |
Expected life | '3 years 6 months 15 days | [3] | '3 years 11 months 19 days | [3] |
Expected dividend yield | 0.00% | [4] | 0.00% | [4] |
Weighted-average grant price | $57.62 | [5] | $38.69 | [5] |
[1] | The Company utilizes historical volatility of the trading price of its common stock. | |||
[2] | Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award. | |||
[3] | Depending upon the terms of the award, expected life may be a weighted-average that includes historical settlement data of the Company's equity awards and a hypothetical holding period for outstanding awards, or it may be calculated under the simplified method. | |||
[4] | The Company historically has not paid dividends. | |||
[5] | Exercise price is the closing price of the Company's common stock on the date of grant.Equity Based Compensation - Table 3 FootnotesAggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.B B The closing price of the Company's common stock at December 28, 2013, and March 29, 2014, was $77.72 and $74.02, respectively. |
EquityBased_Compensation_Sched2
Equity-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | ||
Equity-Based Compensation [Abstract] | ' | ' | ||
Shares, Outstanding | 1,827 | ' | ||
Shares, Granted | 669 | ' | ||
Shares, Exercised | -160 | ' | ||
Shares, Forfeited | -20 | ' | ||
Shares, Outstanding | 2,316 | 1,827 | ||
Shares, Exercisable | 424 | ' | ||
Weighted-average grant price, Outstanding | $37.37 | ' | ||
Weighted-average grant price, Granted | $57.62 | ' | ||
Weighted-average grant price, Exercised | $28.83 | ' | ||
Weighted-average grant price, Forfeited | $27.33 | ' | ||
Weighted-average grant price, Outstanding | $43.90 | $37.37 | ||
Weighted-average grant price, Exercisable | $37.96 | ' | ||
Weighted-average remaining contractual term, Outstanding | '3 years | '2 years 7 months 6 days | ||
Weighted-average remaining contractual term, Exercisable | '1 year 10 months 24 days | ' | ||
Aggregate intrinsic value, Outstanding | $74,160 | [1] | ' | |
Aggregate intrinsic value, Outstanding | 70,387 | [1] | 74,160 | [1] |
Aggregate intrinsic value, Exercisable | $15,280 | [1] | ' | |
Closing price of common stock | $74.02 | $77.72 | ||
[1] | Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.B B The closing price of the Company's common stock at December 28, 2013, and March 29, 2014, was $77.72 and $74.02, respectively. |
Common_Stock_And_Earnings_Per_2
Common Stock And Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Common Stock And Earnings Per Share [Abstract] | ' | ' |
Equity awards of stock excluded in computation of diluted EPS | 273 | 1,085 |
Common_Stock_And_Earnings_Per_3
Common Stock And Earnings Per Share (Schedule Of Common Stock And Earnings Per Share) (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
Common Stock And Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net earnings available to common shareholders | $16,537 | $17,779 | ' | ' |
Common shares outstanding entire period | 13,981 | ' | 13,886 | 13,821 |
Weighted average common shares issued during period | 33 | 10 | ' | ' |
Weighted average common shares cancelled during period | ' | -188 | ' | ' |
Weighted average common shares outstanding during period | 13,919 | 13,643 | ' | ' |
Earnings per common share from net earnings - basic | $1.19 | $1.30 | ' | ' |
Weighted average common shares outstanding during period - basic | 13,919 | 13,643 | ' | ' |
Dilutive effect of in-the-money equity awards | 476 | 260 | ' | ' |
Weighted average common shares outstanding during period - diluted | 14,395 | 13,903 | ' | ' |
Earnings per common share from net earnings - diluted | $1.15 | $1.28 | ' | ' |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 29, 2014 | |
Segment Information [Abstract] | ' |
Percentage of revenue from major customers, maximum | 10.00% |
Segment_Information_Percentage
Segment Information (Percentage Of Total Product Revenue Contributed By Company's Nutritional And Care Products) (Details) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
USANA Nutritionals [Member] | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Percentage of product revenue | 79.00% | 80.00% |
USANA Foods [Member] | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Percentage of product revenue | 13.00% | 12.00% |
Sense - Beautiful Science [Member] | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Percentage of product revenue | 6.00% | 6.00% |
Segment_Information_Schedule_O
Segment Information (Schedule Of Revenues From External Customers And Assets By Geographic Region) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Revenues From External Customers By Geographic Area [Line Items] | ' | ' |
Net Sales to External Customers | $182,401 | $169,082 |
Americas And Europe [Member] | ' | ' |
Revenues From External Customers By Geographic Area [Line Items] | ' | ' |
Net Sales to External Customers | 63,815 | 64,152 |
Southeast Asia/Pacific [Member] | ' | ' |
Revenues From External Customers By Geographic Area [Line Items] | ' | ' |
Net Sales to External Customers | 40,448 | 35,309 |
Greater China [Member] | ' | ' |
Revenues From External Customers By Geographic Area [Line Items] | ' | ' |
Net Sales to External Customers | 70,847 | 62,985 |
North Asia [Member] | ' | ' |
Revenues From External Customers By Geographic Area [Line Items] | ' | ' |
Net Sales to External Customers | 7,291 | 6,636 |
Asia Pacific [Member] | ' | ' |
Revenues From External Customers By Geographic Area [Line Items] | ' | ' |
Net Sales to External Customers | $118,586 | $104,930 |
Segment_Information_Consolidat
Segment Information (Consolidated Net Sales And Long Lived Assets By Percent) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | $182,401 | $169,082 | ' |
United States [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 37,613 | 40,238 | ' |
Long-lived Assets | 51,652 | ' | 51,260 |
China [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 38,760 | ' | ' |
Long-lived Assets | 66,587 | ' | 61,716 |
Hong Kong [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | $23,524 | $41,597 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2013 | 5-May-14 | Apr. 28, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ' | ' | ' |
Amount available | ' | ' | $200,000 |
Retired shares investment | $18,085 | $4,047 | ' |
Average market price | ' | $69.51 | ' |