Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 03, 2015 | Nov. 10, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 3, 2015 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 896,264 | |
Entity Registrant Name | USANA HEALTH SCIENCES INC | |
Current Fiscal Year End Date | --01-02 | |
Document Fiscal Year Focus | 2,015 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,769,551 | |
Trading Symbol | usna |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Current assets | ||
Cash and cash equivalents | $ 174,195 | $ 111,126 |
Inventories | 61,580 | 45,248 |
Prepaid expenses and other current assets | 34,049 | 34,553 |
Total current assets | 269,824 | 190,927 |
Property and equipment, net | 78,525 | 71,164 |
Goodwill | 17,675 | 17,941 |
Intangible assets, net | 39,506 | 40,952 |
Deferred tax assets | 8,352 | 5,933 |
Other assets | 25,046 | 23,667 |
Total assets | 438,928 | 350,584 |
Current liabilities | ||
Accounts payable | 9,498 | 7,779 |
Other current liabilities | 104,967 | 100,926 |
Total current liabilities | 114,465 | 108,705 |
Deferred tax liabilities | 10,030 | 10,601 |
Other long-term liabilities | 1,044 | 1,114 |
Stockholders' equity | ||
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 12,633 as of January 3, 2015 and 12,886 as of October 3, 2015 | 13 | 13 |
Additional paid-in capital | 78,152 | 61,613 |
Retained earnings | 237,111 | 166,406 |
Accumulated other comprehensive income | (1,887) | 2,132 |
Total stockholders' equity | 313,389 | 230,164 |
Total liabilities and stockholder's equity | $ 438,928 | $ 350,584 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 12,886 | 12,633 |
Common stock, shares outstanding | 12,886 | 12,633 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net sales | $ 233,292 | $ 191,944 | $ 685,914 | $ 562,601 |
Cost of sales | 41,048 | 34,585 | 119,501 | 103,278 |
Gross profit | 192,244 | 157,359 | 566,413 | 459,323 |
Operating expenses: | ||||
Associate incentives | 101,521 | 82,605 | 304,751 | 242,577 |
Selling, general and administrative | 52,757 | 45,499 | 155,137 | 133,282 |
Total operating expenses | 154,278 | 128,104 | 459,888 | 375,859 |
Earnings from operations | 37,966 | 29,255 | 106,525 | 83,464 |
Other income (expense): | ||||
Interest income | 367 | 8 | 753 | 435 |
Interest expense | (4) | (5) | (11) | (11) |
Other, net | 78 | (300) | (219) | (299) |
Other income (expense), net | 441 | (297) | 523 | 125 |
Earnings before income taxes | 38,407 | 28,958 | 107,048 | 83,589 |
Income taxes | 12,798 | 9,460 | 36,343 | 28,253 |
Net earnings | $ 25,609 | $ 19,498 | $ 70,705 | $ 55,336 |
Earnings per common share | ||||
Basic | $ 1.99 | $ 1.51 | $ 5.55 | $ 4.09 |
Diluted | $ 1.92 | $ 1.47 | $ 5.35 | $ 3.96 |
Weighted average common shares outstanding | ||||
Basic | 12,852 | 12,873 | 12,747 | 13,520 |
Diluted | 13,317 | 13,263 | 13,209 | 13,964 |
Comprehensive income: | ||||
Net earnings | $ 25,609 | $ 19,498 | $ 70,705 | $ 55,336 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (4,990) | (198) | (6,374) | (1,058) |
Tax benefit (expense) related to foreign currency translation adjustment | 1,831 | 57 | 2,355 | 447 |
Other comprehensive income (loss), net of tax | (3,159) | (141) | (4,019) | (611) |
Comprehensive income | $ 22,450 | $ 19,357 | $ 66,686 | $ 54,725 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement Of Stockholders' Equity - 9 months ended Oct. 03, 2015 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance, shares at Jan. 03, 2015 | 12,633 | 12,633 | |||
Balance, value at Jan. 03, 2015 | $ 13 | $ 61,613 | $ 166,406 | $ 2,132 | $ 230,164 |
Net earnings | 70,705 | 70,705 | |||
Other comprehensive income (loss), net of tax | (4,019) | (4,019) | |||
Equity-based compensation expense | 6,952 | 6,952 | |||
Common stock issued under equity award plans, shares | 253 | ||||
Tax benefit from equity award activity | 9,587 | $ 9,587 | |||
Balance, shares at Oct. 03, 2015 | 12,886 | 12,886 | |||
Balance, value at Oct. 03, 2015 | $ 13 | $ 78,152 | $ 237,111 | $ (1,887) | $ 313,389 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Cash flows from operating activities | ||
Net earnings | $ 70,705 | $ 55,336 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 7,284 | 6,685 |
(Gain) loss on sale of property and equipment | 1 | 31 |
Equity-based compensation expense | 6,952 | 5,929 |
Excess tax benefits from equity-based payment arrangements | (9,739) | (3,996) |
Deferred income taxes | (1,993) | (849) |
Changes in operating assets and liabilities: | ||
Inventories | (18,432) | 4,956 |
Prepaid expenses and other assets | (565) | (524) |
Income tax payable related to tax benefit from equity award activity | 9,587 | 3,926 |
Accounts payable | 1,868 | (3,249) |
Other liabilities | 8,849 | (850) |
Net cash provided by (used in) operating activities | 74,517 | 67,395 |
Cash flows from investing activities | ||
Additions to notes receivable | (1,579) | (3,159) |
Purchases of investment securities held-to-maturity | (3,871) | |
Maturities of investment securities | 12,511 | |
Proceeds from sale of property and equipment | 182 | 10 |
Purchases of property and equipment | (16,468) | (13,266) |
Net cash provided by (used in) investing activities | (17,865) | (7,775) |
Cash flows from financing activities | ||
Excess tax benefits from equity-based payment arrangements | 9,739 | 3,996 |
Repurchase of common stock | (122,662) | |
Borrowings on line of credit | 10,000 | |
Net cash provided by (used in) financing activities | 9,739 | (108,666) |
Effect of exchange rate changes on cash and cash equivalents | (3,322) | (559) |
Net increase (decrease) in cash and cash equivalents | 63,069 | (49,605) |
Cash and cash equivalents, beginning of period | 111,126 | 137,343 |
Cash and cash equivalents, end of period | 174,195 | 87,738 |
Cash paid during the period for: | ||
Interest | 11 | 11 |
Income taxes | 18,918 | 11,716 |
Non-cash investing activities: | ||
Credits on notes receivable | 466 | 600 |
Accrued purchases of property and equipment | $ 1,906 | |
Non-cash financing activities: | ||
Unsettled trades for repurchase of common stock | $ (2,990) |
Organization, Consolidation, An
Organization, Consolidation, And Basis Of Presentation | 9 Months Ended |
Oct. 03, 2015 | |
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: Asia Pacific , and Americas and Europe. Asia Pacific is further divided into three sub-regions : Greater China, Southeast Asia Pacific, and North Asia. Greater China includes Hong Kong, Taiwan and China; Southeast Asia Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand ; North Asia includes Japan , and South Korea. A mericas and Europe includes the United States, Canada, Mexico, Colombia, the United Kingdom, France , Belgium, and the Netherlands. All intercompany accounts and transactions have been eliminated in this consolidation. The condensed consolidated balance sheet as of January 3, 2015, derived from audited consolidated 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 (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of any contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting only of normal recurring adjustments that are necessary to state fairly the Company’s financial position as of October 3 , 2015 and results of operations for the quarters and nine months ended September 27 , 2014 and October 3 , 2015. The interim consolidated 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 January 3 , 201 5 . The results of operations for the quarter and nine months ended October 3 , 201 5 , may not be indicative of the results that may be expected for the fiscal year 201 5 ending January 2 , 201 6 . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ( “ FASB ” ) issued an Accounting Standard Update ( “ ASU ” ) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606). ” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB announced a decision to defer the effective date of this ASU. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 201 7 , with early adoption permitted for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory ” . For entities that do not measure inventory using the last-in, first-out or retail inventory method, ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The ASU is effective for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2015-11 will have on its consolidated financial statements. |
Fair Value Measures
Fair Value Measures | 9 Months Ended |
Oct. 03, 2015 | |
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 the dates indicated , 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 Inputs January 3, 2015 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 4,833 $ 4,833 $ - $ - Fair Value Measurements Using Inputs October 3, 2015 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 20,462 $ 20,462 $ - $ - 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 charge is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At January 3 , 201 5 and October 3 , 201 5 , there were no non-financial assets measured at fair value on a non-recurring basis. T he Company's financial instruments include cash equivalents , accounts receivable, restricted cash, notes receivable , and accounts payable . The recorded values of cash equivalents , accounts receivable, restricted cash, and accounts payable 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. |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 2015 | |
Inventories [Abstract] | |
Inventories | NOTE C – INVENTORIES Inventories consist of the following: January 3, October 3, 2015 2015 Raw materials $ 15,127 $ 19,722 Work in progress Finished goods $ 45,248 $ 61,580 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 03, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | NOTE D — INTANGIBLE ASSETS The Company performed its annual goodwill impairment test during the third quarter of 2015. The Company performed a qualitative assessment of each reporting unit and determined that it was not more-likely-than-not that the fair value of each reporting unit was less than its carrying amount. As a result, the two-step goodwill impairment test was not required and no impairments of goodwill were recognized. The Company performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2015. The Company performed a qualitative assessment of the indefinite-lived intangible asset and determined that is was not more-likely-than-not that the fair value of the in definite-lived intangible asset was less than the carrying amount. As a result, the quantitative impairment test was not required and no impairment was recognized. Historically, the indefinite-lived intangible assets included the BabyCare direct sales license and BabyCare product formulas. The Company evaluates the remaining useful life of the indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. During the third quarter of 2015, a process was initiated in China to approve additional USANA products, which will limit the life of certain of the acquired BabyCare product formulas. As a result, the product formulas intangible asset was determined to no longer have an indefinite life. Accordingly, the product formulas intangible asset of $ 9,208 as of October 3, 2015 will be amortized prospectively on a straight-line basis over its estimated remaining useful life of 8 years. Upon determining that the product formulas intangible asset no longer has an indefinite life, it was tested for impairment and no impairment was noted. |
Other Assets
Other Assets | 9 Months Ended |
Oct. 03, 2015 | |
Other Assets [Abstract] | |
Other Assets | NOTE E – OTHER ASSETS Other assets consist s primarily of a secured loan to a third-party supplier of the Company ’ s nutrition bars and land use rights related to a production facility under development in China. The Company has extended non-revolving credit to its supplier of nutrition bars to allow them to acquire equipment that is necessary to manufacture the USANA nutrition bars. This relationship provides improved supply chain stability for USANA and creates a mutually beneficial relationship between the parties. 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 of January 3, 2015, and October 3 , 2015 were $8,519 and $8,735 , respectively . Th is third-party supplier is considered to be a variable interest entity; however, the Company is not the primary beneficiary due to the inability to direct the activities that most significantly affect the third-party supplier's economic performance. Additionally, t he Company does not absorb a majority of the third-party supplier's expected losses or returns. Consequentially, the financial information of the third-party supplier is not consolidated. The maximum exposure to loss as a NOTE E – OTHER ASSETS -CONTINUED result of the Company's involvement with the third-party supplier is limited to the carrying value of the note receivable due from the third-party supplier. The Company is building a state-of-the-art manufacturing and production facility in China, which is expected to become operational in early 2016 . As part of this project, land use rights totaling $7,378 , and $ 7 , 208 as of January 3, 2015 and October 3 , 2015, respectively, have been purchased and are being amortized over 50 year s. |
Line Of Credit
Line Of Credit | 9 Months Ended |
Oct. 03, 2015 | |
Line Of Credit [Abstract] | |
Line Of Credit | NOTE F – LINE OF CREDIT The Company has a $75,000 line of credit with Bank of America. Interest is computed at the bank's Prime Rate or LIBOR, adjusted by features specified in the Credit Agreement. The collateral for this line of credit is the pledge of the capital stock of certain subsidiaries of the Company, set forth in a separate pledge agreement with the bank. Part of the credit agreement is that any existing bank guarantees are considered a reduction of the overall availability of credit and part of the covenant calculation. This resulted in a $4,575 , and $ 4 , 279 reduction in the available borrowing limit as of January 3, 2015 and October 3 , 2015, respectively, due to existing normal course of business guarantees in certain markets. The Credit Agreement contains restrictive covenants based on adjusted EBITDA and a debt coverage ratio. There was no outstanding debt on this line of credit at January 3, 2015 or at October 3 , 2015. The Company will be required to pay any balance on this line of credit in full at the time of maturity in April 2016 unless the line of credit is replaced or terms are renegotiated. |
Contingencies
Contingencies | 9 Months Ended |
Oct. 03, 2015 | |
Contingencies [Abstract] | |
Contingencies | NOTE G – 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. The Company records a liability when a particular contingency is probable and estimable. The Company has not accrued for any contingency at October 3 , 2015 as the Company does not consider any contingency to be probable nor estimable. The Company faces contingencies that are reasonably possible to occur; however, they cannot currently be estimated. 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 the Company’s financial condition, liquidity or results of operations. |
Equity Based Compensation
Equity Based Compensation | 9 Months Ended |
Oct. 03, 2015 | |
Equity Based Compensation [Abstract] | |
Equity Based Compensation | NOTE H — 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 January 3, 2015. The description provided applies to the Company’s 2006 Plan (“2006 Plan”), as well as its recently adopted 2015 Equity Incentive Award Plan (the “2015 Plan”). The Company adopted the 2015 Plan to replace the 2006 Plan, which is set to expire in April of 2016 . The maximum number of shares of common stock available for issuance under the 2015 Plan is 5,000 . The Company began issuing awards under the 2015 Plan in the third quarter of 2015. Equity-based compensation expense for the quarters ended September 27, 2014, and October 3, 2015 , was $1,858 , and $2,564 respectively. The related tax benefit for these periods was $613 , and $857 , respectively. Expense for the nine months ended September 27 , 2014 and October 3 , 2015, was $5,929 and $6,952 , respectively. The related tax benefit for these periods was $1,973 and $2,340 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 October 3, 2015 . This table does not include an estimate for future grants that may be issued. 2015 $ 4,223 2016 2017 2018 2019+ $ 59,819 The cost above is expected to be recognized over a weighted-average period of 3.6 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 nine months ended September 27, 2014, and October 3, 2015 , was $17.92 and $47.43 , 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. Nine Months Ended September 27, October 3, 2014 2015 Expected volatility (1) Risk-free interest rate (2) Expected life (3) 3.55 yrs. 3.82 yrs. Expected dividend yield (4) Weighted-average exercise price (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, one of two methods will be used to calculate expected life: (i) a weighted-average that includes historical settlement data of the Company’s equity awards and a hypothetical holding period, or (ii) the simplified method. (4) The Company historically has not paid and currently has no plan to pay dividends. (5) Exercise price is the closing price of the Company's common stock on the date of grant. NOTE H — 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 January 3, 2015 $ 49.20 $ 82,564 Granted Exercised Forfeited Expired - - Outstanding at October 3, 2015 $ 91.39 $ 101,795 Exercisable at October 3, 2015 $ 40.26 $ 12,380 *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 January 3 , 201 5 , and October 3 , 2015, was $102.28 and $135.38 , respectively. The total intrinsic value of stock-settled stock appreciation rights exercised during the nine months ended September 27, 2014, and October 3, 2015 , was $17,125 and $33,764 , respectively. The total fair value of equity awards that vested during the nine months ended September 27, 2014, and October 3, 2015 , was $6,559 and $5,662 , respectively . This total fair value includes equity-based awards issued in the form of stock-settled stock appreciation rights. |
Common Stock And Earnings Per S
Common Stock And Earnings Per Share | 9 Months Ended |
Oct. 03, 2015 | |
Common Stock And Earnings Per Share [Abstract] | |
Common Stock And Earnings Per Share | NOTE I — 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 Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 Net earnings available to common shareholders $ 19,498 $ 25,609 $ 55,336 $ 70,705 Weighted average common shares outstanding - basic Dilutive effect of in-the-money equity awards Weighted average common shares outstanding - diluted Earnings per common share from net earnings - basic $ 1.51 $ 1.99 $ 4.09 $ 5.55 Earnings per common share from net earnings - diluted $ 1.47 $ 1.92 $ 3.96 $ 5.35 Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that their effect would be anti-dilutive: Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 |
Segment Information
Segment Information | 9 Months Ended |
Oct. 03, 2015 | |
Segment Information [Abstract] | |
Segment Information | NOTE J – 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. Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 USANA ® Nutritionals USANA Foods Sensé – beautiful science ® Selected financial information for the Company is presented for two geographic regions: Asia Pacific, with three sub-regions under Asia Pacific, and Americas and Europe. Individual markets are categorized into these regions as follows: · Asia Pacific – · Greater China – Hong Kong, Taiwan and China (1) · Southeast Asia Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand · North Asia – Japan and South Korea · Americas and Europe – United States, Canada, Mexico, Colombia, the United Kingdom, France , Belgium, and the Netherlands. (1) The Company’s business in China is that of BabyCare, its wholly-owned subsidiary. NOTE J – SEGMENT INFORMATION - CONTINUED Selected Financial Information Financial information by geographic region is presented for the periods indicated below: Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 Net Sales to External Customers Asia Pacific Greater China $ 77,206 $ 112,323 $ 222,144 $ 325,942 Southeast Asia Pacific North Asia Asia Pacific Total Americas and Europe Consolidated Total $ 191,944 $ 233,292 $ 562,601 $ 685,914 The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively: Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 Net sales: China $ 50,385 $ 95,147 $ 140,368 $ 273,433 United States $ 34,389 $ 37,485 $ 105,938 $ 108,629 Hong Kong N/A N/A $ 57,686 N/A As of January 3, October 3, 2015 2015 Long-lived Assets: China $ 81,704 $ 85,269 United States $ 53,322 $ 58,328 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 03, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE K – S UBSEQUENT EVENTS Subsequent to October 3 , 201 5 , and through November 10 , 201 5 , the Company repurchased and retired 133 shares of common stock for a total investment of $17,588 , at an average market price of $131.84 per share. |
Organization, Consolidation, 18
Organization, Consolidation, And Basis Of Presentation (Policy) | 9 Months Ended |
Oct. 03, 2015 | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ( “ FASB ” ) issued an Accounting Standard Update ( “ ASU ” ) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606). ” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB announced a decision to defer the effective date of this ASU. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 201 7 , with early adoption permitted for annual and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements. |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Fair Value Measures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value | Fair Value Measurements Using Inputs January 3, 2015 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 4,833 $ 4,833 $ - $ - Fair Value Measurements Using Inputs October 3, 2015 Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 20,462 $ 20,462 $ - $ - |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Inventories [Abstract] | |
Schedule Of Inventories | Inventories consist of the following: January 3, October 3, 2015 2015 Raw materials $ 15,127 $ 19,722 Work in progress Finished goods $ 45,248 $ 61,580 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Equity Based Compensation [Abstract] | |
Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards | 2015 $ 4,223 2016 2017 2018 2019+ $ 59,819 The cost above is expected to be recognized over a weighted-average period of 3.6 years. |
Schedule Of Fair Value Assumptions | Nine Months Ended September 27, October 3, 2014 2015 Expected volatility (1) Risk-free interest rate (2) Expected life (3) 3.55 yrs. 3.82 yrs. Expected dividend yield (4) Weighted-average exercise price (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, one of two methods will be used to calculate expected life: (i) a weighted-average that includes historical settlement data of the Company’s equity awards and a hypothetical holding period, or (ii) the simplified method. (4) The Company historically has not paid and currently has no plan to pay 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 January 3, 2015 $ 49.20 $ 82,564 Granted Exercised Forfeited Expired - - Outstanding at October 3, 2015 $ 91.39 $ 101,795 Exercisable at October 3, 2015 $ 40.26 $ 12,380 |
Common Stock And Earnings Per22
Common Stock And Earnings Per Share (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Common Stock And Earnings Per Share [Abstract] | |
Schedule Of Common Stock And Earnings Per Share | Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 Net earnings available to common shareholders $ 19,498 $ 25,609 $ 55,336 $ 70,705 Weighted average common shares outstanding - basic Dilutive effect of in-the-money equity awards Weighted average common shares outstanding - diluted Earnings per common share from net earnings - basic $ 1.51 $ 1.99 $ 4.09 $ 5.55 Earnings per common share from net earnings - diluted $ 1.47 $ 1.92 $ 3.96 $ 5.35 Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that their effect would be anti-dilutive: Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Segment Information [Abstract] | |
Schedule Of Revenue Percentage By Product | Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 USANA ® Nutritionals USANA Foods Sensé – beautiful science ® |
Schedule Of Revenues From External Customers By Geographical Areas | Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 Net Sales to External Customers Asia Pacific Greater China $ 77,206 $ 112,323 $ 222,144 $ 325,942 Southeast Asia Pacific North Asia Asia Pacific Total Americas and Europe Consolidated Total $ 191,944 $ 233,292 $ 562,601 $ 685,914 |
Consolidated Net Sales And Long Lived Assets | Quarter Ended Nine Months Ended September 27, October 3, September 27, October 3, 2014 2015 2014 2015 Net sales: China $ 50,385 $ 95,147 $ 140,368 $ 273,433 United States $ 34,389 $ 37,485 $ 105,938 $ 108,629 Hong Kong N/A N/A $ 57,686 N/A As of January 3, October 3, 2015 2015 Long-lived Assets: China $ 81,704 $ 85,269 United States $ 53,322 $ 58,328 |
Organization, Consolidation, 24
Organization, Consolidation, And Basis Of Presentation (Details) | 9 Months Ended |
Oct. 03, 2015item | |
Organization, Consolidation, And Basis Of Presentation [Abstract] | |
Geographic regions | 2 |
Sub-geographical regions | 3 |
Fair Value Measures (Narrative)
Fair Value Measures (Narrative) (Details) - USD ($) | Oct. 03, 2015 | Jan. 03, 2015 |
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 ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds included in cash equivalents | $ 20,462 | $ 4,833 |
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 | $ 20,462 | $ 4,833 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Inventories [Abstract] | ||
Raw materials | $ 19,722 | $ 15,127 |
Work in progress | 8,785 | 7,545 |
Finished goods | 33,073 | 22,576 |
Inventories | $ 61,580 | $ 45,248 |
Intangible Assets (Details)
Intangible Assets (Details) | 3 Months Ended |
Oct. 03, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill impairment | $ 0 |
Impairment of indefinite-lived intangible assets | 0 |
Product Formulas [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill impairment | 0 |
Amortized intangible assets, Gross carrying amount | $ 9,208,000 |
Estimated remaining useful life | 8 years |
Other Assets (Details)
Other Assets (Details) - Non-revolving Credit Facility [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 03, 2015 | Jan. 03, 2015 | |
Other Assets [Line Items] | ||
Receivable | $ 8,735 | $ 8,519 |
Land-use rights | $ 7,208 | $ 7,378 |
Amortization period | 50 years | |
Maturity date | Feb. 1, 2024 | |
LIBOR [Member] | ||
Other Assets [Line Items] | ||
Variable rate | 4.00% |
Line Of Credit (Details)
Line Of Credit (Details) - Line of Credit [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 03, 2015 | Jan. 03, 2015 | |
Line of Credit Facility [Line Items] | ||
Credit facility | $ 75,000 | |
Reduction in available borrowing limit | 4,279 | $ 4,575 |
Outstanding debt | $ 0 | $ 0 |
Maturity date | Apr. 1, 2016 |
Equity-Based Compensation (Narr
Equity-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 2,564 | $ 1,858 | $ 6,952 | $ 5,929 | |
Equity-based compensation related tax benefit | $ 857 | $ 613 | $ 2,340 | $ 1,973 | |
Weighted-average grant date fair value | $ 47.43 | $ 17.92 | |||
Total intrinsic value of stock options and stock-settled stock appreciation rights exercised | $ 33,764 | $ 17,125 | |||
Closing Price Of Common Stock | $ 135.38 | $ 135.38 | $ 102.28 | ||
Total fair value of equity awards vested | $ 5,662 | $ 6,559 | |||
2015 Incentive Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration date | Apr. 1, 2016 | ||||
Total shares authorized under the plan | 5,000 | 5,000 |
Equity-Based Compensation (Sche
Equity-Based Compensation (Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards) (Details) $ in Thousands | 9 Months Ended |
Oct. 03, 2015USD ($) | |
Equity Based Compensation [Abstract] | |
2,015 | $ 4,223 |
2,016 | 17,316 |
2,017 | 16,187 |
2,018 | 13,423 |
2019+ | 8,670 |
Total | $ 59,819 |
Unrecognized compensation expense weighted average period of recognition | 3 years 7 months 6 days |
Equity-Based Compensation (Sc33
Equity-Based Compensation (Schedule Of Fair Value Assumptions) (Details) - $ / shares | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Equity Based Compensation [Abstract] | ||
Expected volatility | 43.60% | 40.00% |
Risk-free interest rate | 1.30% | 1.20% |
Expected life | 3 years 9 months 26 days | 3 years 6 months 18 days |
Expected dividend yield | 0.00% | 0.00% |
Weighted-average grant price | $ 135.97 | $ 58.04 |
Equity-Based Compensation (Sc34
Equity-Based Compensation (Schedule Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 03, 2015 | Jan. 03, 2015 | |
Equity Based Compensation [Abstract] | ||
Shares, Outstanding | 1,555 | |
Shares, Granted | 1,018 | |
Shares, Exercised | (353) | |
Shares, Forfeited | (19) | |
Shares, Outstanding | 2,201 | 1,555 |
Shares, Exercisable | 130 | |
Weighted-average grant price, Outstanding | $ 49.20 | |
Weighted-average grant price, Granted | 135.97 | |
Weighted-average grant price, Exercised | 36.57 | |
Weighted-average grant price, Forfeited | 43.83 | |
Weighted-average grant price, Outstanding | 91.39 | $ 49.20 |
Weighted-average grant price, Exercisable | $ 40.26 | |
Weighted-average remaining contractual term, Outstanding | 3 years 4 months 24 days | 2 years 10 months 24 days |
Weighted-average remaining contractual term, Exercisable | 1 year 4 months 24 days | |
Aggregate intrinsic value, Outstanding | $ 82,564 | |
Aggregate intrinsic value, Outstanding | 101,795 | $ 82,564 |
Aggregate intrinsic value, Exercisable | $ 12,380 |
Common Stock And Earnings Per35
Common Stock And Earnings Per Share (Schedule Of Common Stock And Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Common Stock And Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders | $ 25,609 | $ 19,498 | $ 70,705 | $ 55,336 |
Weighted average common shares outstanding during period - basic | 12,852 | 12,873 | 12,747 | 13,520 |
Dilutive effect of in-the-money equity awards | 465 | 390 | 462 | 444 |
Weighted average common shares outstanding during period - diluted | 13,317 | 13,263 | 13,209 | 13,964 |
Earnings per common share from net earnings - basic | $ 1.99 | $ 1.51 | $ 5.55 | $ 4.09 |
Earnings per common share from net earnings - diluted | $ 1.92 | $ 1.47 | $ 5.35 | $ 3.96 |
Equity awards for the following shares were not included in the their effect would be anti-dilutive: | 361 | 414 | 196 | 357 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Oct. 03, 2015itemsegment | |
Segment Information [Abstract] | |
Number of reportable segments | segment | 1 |
Percentage of revenue from major customers, maximum | 10.00% |
Geographic regions | 2 |
Sub-geographical regions | 3 |
Segment Information (Percentage
Segment Information (Percentage Of Total Product Revenue Contributed By Company's Nutritional And Care Products) (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
USANA Nutritionals [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of product revenue | 80.00% | 78.00% | 81.00% | 79.00% |
USANA Foods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of product revenue | 12.00% | 13.00% | 12.00% | 13.00% |
Sense - Beautiful Science [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of product revenue | 7.00% | 7.00% | 6.00% | 7.00% |
Segment Information (Schedule O
Segment Information (Schedule Of Revenues From External Customers And Assets By Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | $ 233,292 | $ 191,944 | $ 685,914 | $ 562,601 |
Greater China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 112,323 | 77,206 | 325,942 | 222,144 |
Southeast Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 45,936 | 44,488 | 137,308 | 127,625 |
North Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 9,920 | 8,527 | 29,495 | 23,633 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | 168,179 | 130,221 | 492,745 | 373,402 |
Americas And Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net Sales to External Customers | $ 65,113 | $ 61,723 | $ 193,169 | $ 189,199 |
Segment Information (Consolidat
Segment Information (Consolidated Net Sales And Long Lived Assets By Percent) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 233,292 | $ 191,944 | $ 685,914 | $ 562,601 |
China [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 95,147 | 50,385 | 273,433 | 140,368 |
Long-lived Assets | 85,269 | 81,704 | 85,269 | 81,704 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 37,485 | 34,389 | 108,629 | 105,938 |
Long-lived Assets | $ 58,328 | $ 53,322 | $ 58,328 | 53,322 |
Hong Kong [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 57,686 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands | 1 Months Ended |
Nov. 10, 2015USD ($)$ / sharesshares | |
Subsequent Event [Line Items] | |
Shares repurchased and retired | shares | 133 |
Value of shares repurchased and retired | $ 17,588 |
Average market price | $ / shares | $ 131.84 |