0001140361-20-024586 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 01, 2020
Cover [Abstract]
Entity Registrant Name	NU SKIN ENTERPRISES, INC.
Entity Central Index Key	0001021561
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	001-12421
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0565309
Entity Address, Address Line One	75 West Center Street
Entity Address, City or Town	Provo
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84601
City Area Code	801
Local Phone Number	345-1000
Title of 12(b) Security	Class A Common Stock, $.001 par value
Trading Symbol	NUS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		51,030,963

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 366,710	$ 335,630
Current investments	11,301	8,413
Accounts receivable, net	60,016	50,378
Inventories, net	270,319	275,891
Prepaid expenses and other	63,916	69,854
Total current assets	772,262	740,166
Property and equipment, net	456,083	453,604
Right-of-use assets	165,749	144,326
Goodwill	196,573	196,573
Other intangible assets, net	74,391	80,321
Other assets	151,653	154,016
Total assets	1,816,711	1,769,006
Current liabilities:
Accounts payable	55,298	38,979
Accrued expenses	381,052	290,281
Current portion of long-term debt	30,000	27,500
Total current liabilities	466,350	356,760
Operating lease liabilities	121,439	105,701
Long-term debt	312,664	334,461
Other liabilities	88,785	96,795
Total liabilities	989,238	893,717
Commitments and contingencies (Note 11)
Stockholders' equity:
Class A common stock - 500 million shares authorized, $0.001 par value, 90.6 million shares issued	91	91
Additional paid-in capital	570,491	557,544
Treasury stock, at cost - 39.5 million and 35.0 million shares	(1,446,374)	(1,324,826)
Accumulated other comprehensive loss	(83,108)	(85,292)
Retained earnings	1,786,373	1,727,772
Total stockholders' equity	827,473	875,289
Total liabilities and stockholders' equity	$ 1,816,711	$ 1,769,006

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions	Sep. 30, 2020	Dec. 31, 2019
Stockholders' equity:
Common stock, shares authorized (in shares)	500.0	500.0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued (in shares)	90.6	90.6
Treasury stock (in shares)	39.5	35.0

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Income (Unaudited) [Abstract]
Revenue	$ 703,347	$ 589,934	$ 1,833,741	$ 1,837,057
Cost of sales	183,374	140,162	463,277	440,854
Gross profit	519,973	449,772	1,370,464	1,396,203
Operating expenses:
Selling expenses	280,695	231,937	735,365	727,473
General and administrative expenses	165,050	147,943	466,232	455,983
Total operating expenses	445,745	379,880	1,201,597	1,183,456
Operating income	74,228	69,892	168,867	212,747
Other income (expense), net	525	(4,979)	(4,068)	(11,153)
Income before provision for income taxes	74,753	64,913	164,799	201,594
Provision for income taxes	18,446	20,823	46,911	68,153
Net income	$ 56,307	$ 44,090	$ 117,888	$ 133,441
Net income per share (Note 6):
Basic (in dollars per share)	$ 1.10	$ 0.79	$ 2.24	$ 2.40
Diluted (in dollars per share)	$ 1.08	$ 0.79	$ 2.23	$ 2.39
Weighted-average common shares outstanding:
Basic (in shares)	51,308	55,548	52,741	55,507
Diluted (in shares)	52,243	55,788	52,906	55,950

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net income	$ 56,307	$ 44,090	$ 117,888	$ 133,441
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of taxes of $(8) and $(31) for the three months ended September 30, 2020 and 2019, respectively, and $(3) and $186 for the nine months ended September 30, 2020 and 2019, respectively	10,022	(13,685)	1,873	(15,027)
Net unrealized gains/(losses) on cash flow hedge, net of tax benefit of $(83) and zero for the three months ended September 30, 2020 and 2019, respectively and $(83) and zero for the nine months ended September 30, 2020 and 2019, respectively.	305	0	305	0
Reclassification adjustment for realized losses/(gains) in current earnings on cash flow hedge, net of taxes of $(2) and zero for the three months ended September 30, 2020 and 2019, respectively and $(2) and zero for the nine months ended September 30, 2020 and 2019, respectively	6	0	6	0
Other comprehensive income, net of tax	10,333	(13,685)	2,184	(15,027)
Comprehensive income	$ 66,640	$ 30,405	$ 120,072	$ 118,414

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other comprehensive income, net of tax:
Foreign currency translation adjustment, tax	$ (8)	$ (31)	$ (3)	$ 186
Net unrealized gains/(losses) on cash flow hedge, tax	(83)	0	(83)	0
Reclassification adjustment for realized losses/(gains) in current earnings on cash flow hedge, tax	$ (2)	$ 0	$ (2)	$ 0

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member] Class A [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Total	Cumulative Effect Adjustment [Member] Common Stock [Member] Class A [Member]	Cumulative Effect Adjustment [Member] Additional Paid-in Capital [Member]	Cumulative Effect Adjustment [Member] Treasury Stock [Member]	Cumulative Effect Adjustment [Member] Accumulated Other Comprehensive Loss [Member]	Cumulative Effect Adjustment [Member] Retained Earnings [Member]	Cumulative Effect Adjustment [Member]
Balance at beginning of period at Dec. 31, 2018	$ 91	$ 552,564	$ (1,326,605)	$ (79,934)	$ 1,635,751	$ 781,867
Balance at beginning of period (ASC 842 [Member]) at Dec. 31, 2018							$ 0	$ 0	$ 0	$ 0	$ 657	$ 657
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	133,441	133,441
Other comprehensive (loss) income, net of tax	0	0	0	(15,027)	0	(15,027)
Repurchase of Class A common stock (Note 6)	0	0	(825)	0	0	(825)
Exercise of employee stock options/vesting of stock awards	0	(4,930)	2,604	0	0	(2,326)
Stock-based compensation	0	9,649	0	0	0	9,649
Cash dividends	0	0	0	0	(61,636)	(61,636)
Balance at end of period at Sep. 30, 2019	91	557,283	(1,324,826)	(94,961)	1,708,213	845,800
Balance at beginning of period at Jun. 30, 2019	91	556,294	(1,324,834)	(81,276)	1,684,675	834,950
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	44,090	44,090
Other comprehensive (loss) income, net of tax	0	0	0	(13,685)	0	(13,685)
Repurchase of Class A common stock (Note 6)	0	0	0	0	0	0
Exercise of employee stock options/vesting of stock awards	0	(26)	8	0	0	(18)
Stock-based compensation	0	1,015	0	0	0	1,015
Cash dividends	0	0	0	0	(20,552)	(20,552)
Balance at end of period at Sep. 30, 2019	91	557,283	(1,324,826)	(94,961)	1,708,213	845,800
Balance at beginning of period at Dec. 31, 2019	91	557,544	(1,324,826)	(85,292)	1,727,772	875,289
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	117,888	117,888
Other comprehensive (loss) income, net of tax	0	0	0	2,184	0	2,184
Repurchase of Class A common stock (Note 6)	0	0	(127,361)	0	0	(127,361)
Exercise of employee stock options/vesting of stock awards	0	(2,492)	5,813	0	0	3,321
Stock-based compensation	0	15,439	0	0	0	15,439
Cash dividends	0	0	0	0	(59,287)	(59,287)
Balance at end of period at Sep. 30, 2020	91	570,491	(1,446,374)	(83,108)	1,786,373	827,473
Balance at beginning of period at Jun. 30, 2020	91	563,115	(1,427,064)	(93,441)	1,749,311	792,012
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	56,307	56,307
Other comprehensive (loss) income, net of tax	0	0	0	10,333	0	10,333
Repurchase of Class A common stock (Note 6)	0	0	(19,994)	0	0	(19,994)
Exercise of employee stock options/vesting of stock awards	0	261	684	0	0	945
Stock-based compensation	0	7,115	0	0	0	7,115
Cash dividends	0	0	0	0	(19,245)	(19,245)
Balance at end of period at Sep. 30, 2020	$ 91	$ 570,491	$ (1,446,374)	$ (83,108)	$ 1,786,373	$ 827,473

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stockholders' Equity [Roll Forward]
Exercise of employee stock options (in shares)	0.0	0.0	0.3	0.2

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 117,888	$ 133,441
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	55,279	57,964
Non-cash lease expense	34,087	33,494
Stock-based compensation	15,439	9,649
Foreign currency losses	1,203	4,145
Loss on disposal of assets	2,516	0
Deferred taxes	(7,931)	1,945
Changes in operating assets and liabilities:
Accounts receivable	(9,273)	(3,981)
Inventories, net	4,882	6,775
Prepaid expenses and other	4,180	(21,097)
Other assets	(76,487)	(27,101)
Accounts payable	15,884	(6,609)
Accrued expenses	99,438	(62,679)
Other liabilities	27,343	2,082
Net cash provided by operating activities	284,448	128,028
Cash flows from investing activities:
Purchases of property and equipment	(48,810)	(52,784)
Proceeds on investment sales	7,630	11,160
Purchases of investments	(8,759)	(8,432)
Acquisitions and investments in equity investees	0	(8,073)
Net cash used in investing activities	(49,939)	(58,129)
Cash flows from financing activities:
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards	3,321	(2,326)
Payment of cash dividends	(59,287)	(61,636)
Repurchases of shares of common stock	(127,361)	(825)
Payments of debt	(135,000)	(209,455)
Proceeds from debt	115,000	145,000
Net cash used in financing activities	(203,327)	(129,242)
Effect of exchange rate changes on cash	(102)	(7,534)
Net increase (decrease) in cash and cash equivalents	31,080	(66,877)
Cash and cash equivalents, beginning of period	335,630	386,911
Cash and cash equivalents, end of period	$ 366,710	$ 320,034

The Company

9 Months Ended

Sep. 30, 2020

The Company [Abstract]

The Company

1.	The Company

Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin, a leading global direct selling company, being the primary operating unit. Nu Skin develops and distributes premium-quality, innovative personal care products and wellness products that are sold worldwide under the Nu Skin, Pharmanex and ageLOC brands and a small number of other products and services. The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China; South Korea; Southeast Asia, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam; Americas/Pacific, which includes Australia, Canada, Latin America, New Zealand and the United States; Japan; Hong Kong/Taiwan, which also includes Macau; and Europe, Middle East and Africa (“EMEA”), which includes several markets in Europe as well as Israel, Russia and South Africa—its Manufacturing segment, which includes manufacturing and packaging subsidiaries; and its Grow Tech segment, which focuses on developing controlled-environment agriculture technologies (the Company’s subsidiaries operating within each segment are collectively referred to as the “Subsidiaries”).

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information as of September 30, 2020, and for the three- and nine-month periods ended September 30, 2020 and 2019. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. The consolidated balance sheet as of December 31, 2019 has been prepared using information from the audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Additionally, based on the duration and severity of the novel coronavirus (“COVID-19”) pandemic, including but not limited to limitations of holding sales meetings, supply chain disruptions, reduced travel and closed walk-in locations, the Company remains uncertain of the ultimate impact COVID-19 could have on the business. To date, the pandemic has not increased the Company’s costs of or access to capital under the revolving credit facility, and at this time the Company cannot provide assurance it will not in the future. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the third quarter financial results, including, but not limited to, impairment of goodwill and other long-lived assets, income tax provision and recoverability of inventory.

Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance modifies the measurement of expected credit losses of certain financial instruments. This ASU is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods and should be applied on a modified retrospective basis to all periods presented. This ASU was effective for the Company beginning on January 1, 2020. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance modifies, removes, and adds certain disclosure requirements on fair value measurements. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods therein, and early adoption is permitted. This ASU was effective for the Company beginning on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for interim and annual reporting periods beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. This ASU was effective for the Company beginning on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In March 2020, the FASB issued, ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited time to ease the potential burden in accounting for the effects of reference rate reform on financial reporting. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in ASU 2020-04 are elective and are effective upon issuance for all entities. The Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Inventory

Inventories consist of the following (U.S. dollars in thousands):

	September 30, 2020		December 31, 2019
Raw materials	$	92,911	$	87,942
Finished goods		177,408		187,949
Total Inventory, net	$	270,319	$	275,891

Revenue Recognition

Contract Liabilities – Customer Loyalty Programs

Contract liabilities, recorded as deferred revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products.

The balance of deferred revenue related to contract liabilities as of September 30, 2020 and December 31, 2019 was $17.8 million and $12.5 million, respectively. The contract liabilities impact to revenue for the three-month periods ended September 30, 2020, and 2019 was a decrease of $1.8 million and zero, respectively. The impact to revenue for the nine-month periods ended September 30, 2020, and 2019 was a decrease of $5.3 million and an increase $1.1 million.

Derivative instruments and hedging activities

FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Goodwill

9 Months Ended

Sep. 30, 2020

Goodwill [Abstract]

Goodwill

The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments.

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended September 30, 2020 and December 31, 2019 (U.S. dollars in thousands):

	September 30, 2020		December 31, 2019
Nu Skin
Mainland China	$	32,179	$	32,179
Americas/Pacific		9,449		9,449
South Korea		29,261		29,261
Southeast Asia		18,537		18,537
Japan		16,019		16,019
EMEA		2,875		2,875
Hong Kong/Taiwan		6,634		6,634
Manufacturing		72,469		72,469
Grow Tech		9,150		9,150
Total	$	196,573	$	196,573

Debt

9 Months Ended

Sep. 30, 2020

Debt [Abstract]

Debt

Credit Agreement

On April 18, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $400 million term loan facility and a $350 million revolving credit facility, each with a term of five years. Both facilities bear interest at the London Interbank Offered Rate (“LIBOR”), plus a margin based on the consolidated leverage ratio. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year after the closing date of the Credit Agreement, with the remainder payable at final maturity. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of September 30, 2020, the Company was in compliance with all covenants under the Credit Agreement.

The following table summarizes the Company’s debt facilities as of September 30, 2020 and December 31, 2019:

Facility or Arrangement

Original

Principal Amount

Balance as of

September 30, 2020⁽¹⁾⁽²⁾

Balance as of

December 31, 2019⁽²⁾

Interest Rate

Repayment Terms

Credit Agreement term loan facility

400.0 million

345.0 million

365.0 million

Variable 30 day: 2.40%

35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.

Credit Agreement revolving credit facility

—

Variable 30 day: —

Revolving line of credit expires April 18, 2023.

(1)	As of September 30, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $30.0 million of the balance of its term loan under the Credit Agreement.

(2)	The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $2.3 million and $3.0 million as of September 30, 2020 and December 31, 2019, respectively, related to the Credit Agreement, which are not reflected in this table.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 24 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year.

As of September 30, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.3 years and 4.3%.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Operating lease cost	$	13,038		$	12,399		$	39,043		$	37,677
Variable lease cost		678			732			2,062			2,889
Short-term lease cost		118			41			258			145
Sublease income		(1,075	)		(1,395	)		(3,264	)		(4,563	)
Total lease expense	$	12,759		$	11,777		$	38,099		$	36,148

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Nine Months Ended September 30,
	2020		2019
Operating cash outflow from operating leases	$	40,865	$	39,885
Right-of-use assets obtained in exchange for lease obligations	$	62,514	$	150,127

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating Leases
2020	$	15,631
2021		53,303
2022		36,529
2023		26,418
2024		21,389
Thereafter		41,468
Total		194,738
Less: Finance charges		26,820
Total principal liability	$	167,918

During the third quarter of 2020, the Company recognized $31.3 million of right-of-use assets, primarily in connection with building and warehouse lease renewals. The Company has additional lease liabilities of $1.2 million which have not yet commenced as of September 30, 2020, and as such, have not been recognized on the consolidated balance sheets.

Capital Stock

9 Months Ended

Sep. 30, 2020

Capital Stock [Abstract]

Capital Stock

6.	Capital Stock

Net income per share

Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented. For the three-month periods ended September 30, 2020 and 2019, stock options of 0.2 million and 1.3 million, respectively, and for the nine-month periods ended September 30, 2020 and 2019, stock options of 0.6 million and 1.2 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive.

Dividends

In February, April and July 2020, the Company’s board of directors declared quarterly cash dividends of $0.375 per share. These quarterly cash dividends of $20.7 million, $19.4 million and $19.2 million were paid on March 11, 2020, June 10, 2020 and September 9, 2020 to stockholders of record on February 28, 2020, May 29, 2020 and August 28, 2020. In October 2020, the Company’s board of directors declared a quarterly cash dividend of $0.375 per share to be paid on December 9, 2020 to stockholders of record on November 27, 2020.

Repurchase of common stock

During the three-month periods ended September 30, 2020 and 2019, the Company repurchased 0.4 million shares and zero shares of its Class A common stock under its stock repurchase plan for $20.0 million and zero, respectively. During the nine-month periods ended September 30, 2020 and 2019, the Company repurchased 4.8 million shares and 14,000 shares of its Class A common stock under its stock repurchase plan for $127.4 million and $0.8 million, respectively. As of September 30, 2020, $342.8 million was available for repurchases under the Company’s stock repurchase plan.

Fair Value

9 Months Ended

Sep. 30, 2020

Fair Value [Abstract]

Fair Value

7.	Fair Value

The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximates fair values due to the short-term nature of these instruments. Fair value estimates are made at a specific point in time, based on relevant market information.

The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy:

◾

Level 1 – quoted prices in active markets for identical assets or liabilities;

◾

Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

◾

Level 3 – unobservable inputs based on the Company’s own assumptions.

Accounting standards permit companies, at their option, to measure certain financial instruments and other eligible items at fair value. The Company has elected not to apply the fair value option to existing eligible items beyond what is required by US GAAP.

The following tables present the fair value hierarchy for those assets measured at fair value on a recurring basis (U.S. dollars in thousands):

	Fair Value at September 30, 2020
	Level 1		Level 2			Level 3		Total
Financial assets (liabilities):
Cash equivalents and current investments	$	45,552	$	—		$	—	$	45,552
Other long-term assets		1,344		—			—		1,344
Derivative financial instruments asset		—		472			—		472
Life insurance contracts		—		—			41,328		41,328
Derivative financial instruments liability		—		(76	)		—		(76	)
Total	$	46,896	$	396		$	41,328	$	88,620

	Fair Value at December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents and current investments	$	54,642	$	—	$	—	$	54,642
Other long-term assets		3,216		—		—		3,216
Life insurance contracts		—		—		41,707		41,707
Total	$	57,858	$	—	$	41,707	$	99,565

See Note 9 - Derivatives and Hedging Activities, for more information on derivative financial instruments.

The following table provides a summary of changes in fair value of the Company’s Level 3 marketable securities (U.S. dollars in thousands):

Beginning balance at January 1, 2020	$	41,707
Actual return on plan assets		(379	)
Purchase and issuances		—
Sales and settlements		—
Transfers into Level 3		—
Ending balance at September 30, 2020	$	41,328

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes

9 Months Ended

Sep. 30, 2020

Income Taxes [Abstract]

Income Taxes

8.	Income Taxes

Provision for income taxes for the three- and nine-month periods of 2020 was $18.4 million and $46.9 million, compared to $20.8 million and $68.2 million for the prior-year periods. The effective tax rates for the three- and nine-month periods were 24.7% and 28.5% of pre-tax income compared to 32.1% and 33.8% in the prior-year periods.

The Company accounts for income taxes in accordance with ASC Topic 740 “Income Taxes.” These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company had net deferred tax assets of $27.1 million and $20.0 million as of September 30, 2020 and December 31, 2019, respectively.

The Company evaluates its indefinite reinvestment assertions with respect to foreign earnings for each quarter. For all foreign earnings, the Company accrues the applicable foreign income taxes. For the earnings that have been indefinitely reinvested, the Company does not accrue foreign withholding taxes. Undistributed earnings that the Company has indefinitely reinvested, for which no foreign withholding taxes have been provided, aggregate to $60.0 million as of December 31, 2019. If the amount designated as indefinitely reinvested as of December 31, 2019 was repatriated to the United States, the amount of incremental taxes would be approximately $6.0 million. The Company intends to utilize the indefinitely reinvested offshore earnings to fund foreign investments, specifically capital expenditures.

The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company is no longer subject to tax examinations from the IRS for all years for which tax returns have been filed before 2019. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2016. In 2009, the Company entered into a voluntary program with the IRS called Compliance Assurance Process (“CAP”). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company has elected to participate in CAP for 2020 and may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. In major foreign jurisdictions, the Company is generally no longer subject to income tax examinations for years before 2012. However, statutes of limitations in certain countries may be as long as ten years. The Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable. The Company’s unrecognized tax benefits relate to multiple jurisdictions. Due to potential increases in unrecognized tax benefits from the multiple jurisdictions in which the Company operates, as well as the expiration of various statutes of limitations, it is reasonably possible that the Company’s gross unrecognized tax benefits, net of foreign currency adjustments, may decrease in the next 12 months by approximately $0.1 to $1.0 million.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2020

Derivatives and Hedging Activities

Derivatives and Hedging Activities

9.	Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2020, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $76 thousand will be reclassified as an increase to interest expense.

As of September 30, 2020, the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk with a total notional amount of $200 million.

Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet:

		Fair Values of Derivative Instruments
Derivatives in Cash flow Hedging Relationships:	Balance Sheet Location	September 30, 2020		December 31, 2019
Interest Rate Swap - Asset	Other Assets	$	472	$	—
Interest Rate Swap - Liability	Accrued Expenses	$	76	$	—

Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income

The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income.

	Amount of Gain or (Loss) Recognized in OCI on Derivative
	Three Months Ended				Nine Months Ended
Derivatives in Cash flow	September 30,				September 30,
Hedging Relationships:	2020		2019		2020		2019
Interest Rate Swaps	$	396	$	—	$	396	$	—

		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
		Three Months Ended				Nine Months Ended
Derivatives in Cash flow	Income Statement	September 30,				September 30,
Hedging Relationships:	Location	2020		2019		2020		2019
Interest Rate Swaps	Other Income	$	(8)	$	—	$	(8)	$	—

Segment Information

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Segment Information

10.	Segment Information

The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China, Americas/Pacific, South Korea, Southeast Asia, Japan, EMEA, and Hong Kong/Taiwan—and its Manufacturing and Grow Tech segments. The Other category includes miscellaneous corporate revenue and related adjustments. These segments reflect the way the chief operating decision maker evaluates the Company’s business performance and allocates resources. Reported revenue includes only the revenue generated by sales to external customers.

Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing policies. Segment contribution, which is the Company’s segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company’s executive and administrative offices, information technology, research and development, and marketing and supply chain functions not recorded at the segment level.

The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. The Company evaluates the performance of its segments based on revenue and segment contribution. Each segment records direct expenses related to its employees and its operations.

Summarized financial information for the Company’s reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company’s internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.

Revenue by Segment

	Three Months Ended September 30,						Nine Months Ended September 30,
(U.S. dollars in thousands)	2020			2019			2020		2019
Nu Skin
Mainland China	$	169,068		$	173,974		$	453,096	$	567,795
Americas/Pacific		151,465			83,635			353,957		262,932
South Korea		83,460			79,435			236,094		248,020
Southeast Asia		84,102			78,963			220,517		226,853
Japan		70,958			67,197			200,549		194,557
EMEA		61,411			35,742			147,590		120,960
Hong Kong/Taiwan		42,265			40,449			115,253		124,719
Other		(314	)		(62	)		374		(239	)
Total Nu Skin		662,415			559,333			1,727,430		1,745,597
Manufacturing ⁽¹⁾		40,910			30,601			105,975		91,430
Grow Tech		22			—			336		30
Total	$	703,347		$	589,934		$	1,833,741	$	1,837,057

(1)

The Manufacturing segment had $10.9 million and $7.1 million of intersegment revenue for the three months ended September 30, 2020 and 2019, respectively, and $24.2 million and $19.5 million for the nine months ended September 30, 2020 and 2019, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above.

Segment Contribution

	Three Months Ended September 30,						Nine Months Ended September 30,
(U.S. dollars in thousands)	2020			2019			2020			2019
Nu Skin
Mainland China	$	54,522		$	48,619		$	135,577		$	158,873
Americas/Pacific		26,256			12,875			61,184			41,314
South Korea		25,232			24,770			73,421			76,417
Southeast Asia		20,426			22,063			54,121			60,895
Japan		18,245			16,287			49,292			46,216
EMEA		7,111			1,529			11,084			6,114
Hong Kong/Taiwan		9,048			8,063			22,825			24,754
Nu Skin contribution		160,840			134,206			407,504			414,583
Manufacturing		6,749			4,577			15,000			11,598
Grow Tech		(5,322	)		(5,822	)		(17,659	)		(14,033	)
Total segment contribution		162,267			132,961			404,845			412,148
Corporate and other		(88,039	)		(63,069	)		(235,978	)		(199,401	)
Operating income		74,228			69,892			168,867			212,747
Other income (expense)		525			(4,979	)		(4,068	)		(11,153	)
Income before provision for income taxes	$	74,753		$	64,913		$	164,799		$	201,594

Depreciation and Amortization

	Three Months Ended September 30,				Nine Months Ended September 30,
(U.S. dollars in thousands)	2020		2019		2020		2019
Nu Skin
Mainland China	$	2,649	$	2,708	$	7,631	$	8,733
Americas/Pacific		268		213		766		633
South Korea		756		1,115		2,731		3,997
Southeast Asia		317		434		1,248		1,373
Japan		296		938		1,602		2,943
EMEA		231		268		731		980
Hong Kong/Taiwan		691		547		1,948		1,600
Total Nu Skin		5,208		6,223		16,657		20,259
Manufacturing		2,077		1,711		5,954		4,916
Grow Tech		1,302		1,244		3,775		3,064
Corporate and other		9,333		10,127		28,893		29,725
Total	$	17,920	$	19,305	$	55,279	$	57,964

Capital Expenditures

	Three Months Ended September 30,				Nine Months Ended September 30,
(U.S. dollars in thousands)	2020		2019		2020		2019
Nu Skin
Mainland China	$	9,000	$	10,614	$	12,577	$	13,328
Americas/Pacific		125		337		891		1,084
South Korea		173		972		537		1,051
Southeast Asia		1,254		140		1,893		459
Japan		1,484		267		3,132		1,385
EMEA		718		16		1,378		92
Hong Kong/Taiwan		7		99		23		1,653
Total Nu Skin		12,761		12,445		20,431		19,052
Manufacturing		2,113		1,100		13,221		4,281
Grow Tech		343		2,577		760		7,628
Corporate and other		4,901		7,448		14,398		21,823
Total	$	20,118	$	23,570	$	48,810	$	52,784

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies [Abstract]

Commitments and Contingencies

11.	Commitments and Contingencies

The Company is subject to government regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and the Company’s direct selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company’s sales force is not in compliance with existing statutes, laws, rules or regulations could have a material adverse effect on the Company’s operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. No assurance can be given that the Company’s compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company and its Subsidiaries are defendants in litigation, investigations and other proceedings involving various matters. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. The Company believes it has appropriately provided for income taxes for all years. Several factors drive the calculation of its tax reserves. Some of these factors include: (i) the expiration of various statutes of limitations; (ii) changes in tax law and regulations; (iii) issuance of tax rulings; and (iv) settlements with tax authorities. Changes in any of these factors may result in adjustments to the Company’s reserves, which would impact its reported financial results.

Restructuring

9 Months Ended

Sep. 30, 2020

Restructuring [Abstract]

Restructuring

12.	Restructuring

In the fourth quarter of 2018, the Company began a strategic plan to align its resources and capabilities to support its vision of being a world-leading business platform. This program primarily impacted the Company’s information technology infrastructure and organization and other departments within its corporate and Americas offices. As a result of the restructuring program, the Company recorded a non-cash charge of $48.6 million for impairment of information technology assets, including internally developed software for social sharing and digital initiatives, and $22.1 million of cash charges, including $20.1 million for employee severance and $2.0 million for other related cash charges with the restructuring. The restructuring charges were predominately recorded in the Corporate and Other category.

See the table below for detail of restructuring activity for the three months ended March 31, 2019 (U.S. dollars in thousands):

Beginning balance at January 1, 2019	$	15,462
Amounts paid		(15,046	)
Adjustments		(416	)
Ending balance at March 31, 2019	$	—

There was no restructuring activity for the three or nine months ended September 30, 2020 and three months ended September 30, 2019.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies [Abstract]

Basis of Accounting

Consolidation

The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Accounting Pronouncements

Inventory

Inventories consist of the following (U.S. dollars in thousands):

	September 30, 2020		December 31, 2019
Raw materials	$	92,911	$	87,942
Finished goods		177,408		187,949
Total Inventory, net	$	270,319	$	275,891

Revenue Recognition

Contract Liabilities – Customer Loyalty Programs

Derivative Instruments and Hedging Activities

Derivative instruments and hedging activities

- Definition

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

+ References + Details

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies [Abstract]

Inventories

Inventories consist of the following (U.S. dollars in thousands):

	September 30, 2020		December 31, 2019
Raw materials	$	92,911	$	87,942
Finished goods		177,408		187,949
Total Inventory, net	$	270,319	$	275,891

Goodwill (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill [Abstract]

Goodwill

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended September 30, 2020 and December 31, 2019 (U.S. dollars in thousands):

	September 30, 2020		December 31, 2019
Nu Skin
Mainland China	$	32,179	$	32,179
Americas/Pacific		9,449		9,449
South Korea		29,261		29,261
Southeast Asia		18,537		18,537
Japan		16,019		16,019
EMEA		2,875		2,875
Hong Kong/Taiwan		6,634		6,634
Manufacturing		72,469		72,469
Grow Tech		9,150		9,150
Total	$	196,573	$	196,573

Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt [Abstract]

Debt Facilities

The following table summarizes the Company’s debt facilities as of September 30, 2020 and December 31, 2019:

Facility or Arrangement

Original

Principal Amount

Balance as of

September 30, 2020⁽¹⁾⁽²⁾

Balance as of

December 31, 2019⁽²⁾

Interest Rate

Repayment Terms

Credit Agreement term loan facility

400.0 million

345.0 million

365.0 million

Variable 30 day: 2.40%

35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.

Credit Agreement revolving credit facility

—

Variable 30 day: —

Revolving line of credit expires April 18, 2023.

(1)	As of September 30, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $30.0 million of the balance of its term loan under the Credit Agreement.

(2)	The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $2.3 million and $3.0 million as of September 30, 2020 and December 31, 2019, respectively, related to the Credit Agreement, which are not reflected in this table.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Operating lease cost	$	13,038		$	12,399		$	39,043		$	37,677
Variable lease cost		678			732			2,062			2,889
Short-term lease cost		118			41			258			145
Sublease income		(1,075	)		(1,395	)		(3,264	)		(4,563	)
Total lease expense	$	12,759		$	11,777		$	38,099		$	36,148

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Nine Months Ended September 30,
	2020		2019
Operating cash outflow from operating leases	$	40,865	$	39,885
Right-of-use assets obtained in exchange for lease obligations	$	62,514	$	150,127

Maturities of Operating Lease Liabilities

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating Leases
2020	$	15,631
2021		53,303
2022		36,529
2023		26,418
2024		21,389
Thereafter		41,468
Total		194,738
Less: Finance charges		26,820
Total principal liability	$	167,918

Fair Value (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value [Abstract]

Assets Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for those assets measured at fair value on a recurring basis (U.S. dollars in thousands):

	Fair Value at September 30, 2020
	Level 1		Level 2			Level 3		Total
Financial assets (liabilities):
Cash equivalents and current investments	$	45,552	$	—		$	—	$	45,552
Other long-term assets		1,344		—			—		1,344
Derivative financial instruments asset		—		472			—		472
Life insurance contracts		—		—			41,328		41,328
Derivative financial instruments liability		—		(76	)		—		(76	)
Total	$	46,896	$	396		$	41,328	$	88,620

	Fair Value at December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents and current investments	$	54,642	$	—	$	—	$	54,642
Other long-term assets		3,216		—		—		3,216
Life insurance contracts		—		—		41,707		41,707
Total	$	57,858	$	—	$	41,707	$	99,565

Changes in Fair Value of Level 3 Marketable Securities

The following table provides a summary of changes in fair value of the Company’s Level 3 marketable securities (U.S. dollars in thousands):

Beginning balance at January 1, 2020	$	41,707
Actual return on plan assets		(379	)
Purchase and issuances		—
Sales and settlements		—
Transfers into Level 3		—
Ending balance at September 30, 2020	$	41,328

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2020

Derivatives and Hedging Activities

Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet:

		Fair Values of Derivative Instruments
Derivatives in Cash flow Hedging Relationships:	Balance Sheet Location	September 30, 2020		December 31, 2019
Interest Rate Swap - Asset	Other Assets	$	472	$	—
Interest Rate Swap - Liability	Accrued Expenses	$	76	$	—

Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income

The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income.

	Amount of Gain or (Loss) Recognized in OCI on Derivative
	Three Months Ended				Nine Months Ended
Derivatives in Cash flow	September 30,				September 30,
Hedging Relationships:	2020		2019		2020		2019
Interest Rate Swaps	$	396	$	—	$	396	$	—

		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
		Three Months Ended				Nine Months Ended
Derivatives in Cash flow	Income Statement	September 30,				September 30,
Hedging Relationships:	Location	2020		2019		2020		2019
Interest Rate Swaps	Other Income	$	(8)	$	—	$	(8)	$	—

Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Revenue by Segment

	Three Months Ended September 30,						Nine Months Ended September 30,
(U.S. dollars in thousands)	2020			2019			2020		2019
Nu Skin
Mainland China	$	169,068		$	173,974		$	453,096	$	567,795
Americas/Pacific		151,465			83,635			353,957		262,932
South Korea		83,460			79,435			236,094		248,020
Southeast Asia		84,102			78,963			220,517		226,853
Japan		70,958			67,197			200,549		194,557
EMEA		61,411			35,742			147,590		120,960
Hong Kong/Taiwan		42,265			40,449			115,253		124,719
Other		(314	)		(62	)		374		(239	)
Total Nu Skin		662,415			559,333			1,727,430		1,745,597
Manufacturing ⁽¹⁾		40,910			30,601			105,975		91,430
Grow Tech		22			—			336		30
Total	$	703,347		$	589,934		$	1,833,741	$	1,837,057

(1)

Segment Contribution

	Three Months Ended September 30,						Nine Months Ended September 30,
(U.S. dollars in thousands)	2020			2019			2020			2019
Nu Skin
Mainland China	$	54,522		$	48,619		$	135,577		$	158,873
Americas/Pacific		26,256			12,875			61,184			41,314
South Korea		25,232			24,770			73,421			76,417
Southeast Asia		20,426			22,063			54,121			60,895
Japan		18,245			16,287			49,292			46,216
EMEA		7,111			1,529			11,084			6,114
Hong Kong/Taiwan		9,048			8,063			22,825			24,754
Nu Skin contribution		160,840			134,206			407,504			414,583
Manufacturing		6,749			4,577			15,000			11,598
Grow Tech		(5,322	)		(5,822	)		(17,659	)		(14,033	)
Total segment contribution		162,267			132,961			404,845			412,148
Corporate and other		(88,039	)		(63,069	)		(235,978	)		(199,401	)
Operating income		74,228			69,892			168,867			212,747
Other income (expense)		525			(4,979	)		(4,068	)		(11,153	)
Income before provision for income taxes	$	74,753		$	64,913		$	164,799		$	201,594

Depreciation and Amortization and Capital Expenditures

Depreciation and Amortization

	Three Months Ended September 30,				Nine Months Ended September 30,
(U.S. dollars in thousands)	2020		2019		2020		2019
Nu Skin
Mainland China	$	2,649	$	2,708	$	7,631	$	8,733
Americas/Pacific		268		213		766		633
South Korea		756		1,115		2,731		3,997
Southeast Asia		317		434		1,248		1,373
Japan		296		938		1,602		2,943
EMEA		231		268		731		980
Hong Kong/Taiwan		691		547		1,948		1,600
Total Nu Skin		5,208		6,223		16,657		20,259
Manufacturing		2,077		1,711		5,954		4,916
Grow Tech		1,302		1,244		3,775		3,064
Corporate and other		9,333		10,127		28,893		29,725
Total	$	17,920	$	19,305	$	55,279	$	57,964

Capital Expenditures

	Three Months Ended September 30,				Nine Months Ended September 30,
(U.S. dollars in thousands)	2020		2019		2020		2019
Nu Skin
Mainland China	$	9,000	$	10,614	$	12,577	$	13,328
Americas/Pacific		125		337		891		1,084
South Korea		173		972		537		1,051
Southeast Asia		1,254		140		1,893		459
Japan		1,484		267		3,132		1,385
EMEA		718		16		1,378		92
Hong Kong/Taiwan		7		99		23		1,653
Total Nu Skin		12,761		12,445		20,431		19,052
Manufacturing		2,113		1,100		13,221		4,281
Grow Tech		343		2,577		760		7,628
Corporate and other		4,901		7,448		14,398		21,823
Total	$	20,118	$	23,570	$	48,810	$	52,784

Restructuring (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring [Abstract]

Restructuring Activity

See the table below for detail of restructuring activity for the three months ended March 31, 2019 (U.S. dollars in thousands):

Beginning balance at January 1, 2019	$	15,462
Amounts paid		(15,046	)
Adjustments		(416	)
Ending balance at March 31, 2019	$	—

The Company (Details)	9 Months Ended
The Company (Details)	Sep. 30, 2020 Segment
The Company [Abstract]
Number of reportable segments	9
Number of geographic segments	7

Summary of Significant Accounting Policies, Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories [Abstract]
Raw materials	$ 92,911	$ 87,942
Finished goods	177,408	187,949
Total Inventory, net	$ 270,319	$ 275,891

Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Contract Liabilities - Customer Loyalty Programs [Abstract]
Contract liabilities for customer loyalty programs	$ 17.8		$ 17.8		$ 12.5
Contract liabilities impact to revenue	$ (1.8)	$ 0.0	$ (5.3)	$ 1.1

Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill [Abstract]
Goodwill	$ 196,573	$ 196,573
Mainland China [Member]
Goodwill [Abstract]
Goodwill	32,179	32,179
Americas/Pacific [Member]
Goodwill [Abstract]
Goodwill	9,449	9,449
South Korea [Member]
Goodwill [Abstract]
Goodwill	29,261	29,261
Southeast Asia [Member]
Goodwill [Abstract]
Goodwill	18,537	18,537
Japan [Member]
Goodwill [Abstract]
Goodwill	16,019	16,019
EMEA [Member]
Goodwill [Abstract]
Goodwill	2,875	2,875
Hong Kong/Taiwan [Member]
Goodwill [Abstract]
Goodwill	6,634	6,634
Manufacturing [Member]
Goodwill [Abstract]
Goodwill	72,469	72,469
Grow Tech [Member]
Goodwill [Abstract]
Goodwill	$ 9,150	$ 9,150

Debt, Credit Agreement (Details) - USD ($) $ in Millions	9 Months Ended
Debt, Credit Agreement (Details) - USD ($) $ in Millions	Sep. 30, 2020	Apr. 18, 2018
Credit Agreement [Member] \| Maximum [Member]
Debt [Abstract]
Consolidated leverage ratio	2.25
Credit Agreement [Member] \| Minimum [Member]
Debt [Abstract]
Consolidated interest coverage ratio	3.00
Term Loan Facility [Member]
Debt [Abstract]
Original principal amount	$ 400.0	$ 400.0
Term of loan	5 years
Term Loan Facility [Member] \| First Year [Member]
Debt [Abstract]
Annual amortization percentage	5.00%
Term Loan Facility [Member] \| Second Year [Member]
Debt [Abstract]
Annual amortization percentage	5.00%
Term Loan Facility [Member] \| Third Year [Member]
Debt [Abstract]
Annual amortization percentage	7.50%
Term Loan Facility [Member] \| Fourth Year [Member]
Debt [Abstract]
Annual amortization percentage	7.50%
Term Loan Facility [Member] \| Fifth Year [Member]
Debt [Abstract]
Annual amortization percentage	10.00%
Revolving Credit Facility [Member]
Debt [Abstract]
Borrowing capacity		$ 350.0
Term of loan	5 years

Debt, Debt Facilities (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Apr. 18, 2018

Debt [Abstract]

Current portion of long-term debt

$ 30,000

$ 27,500

Credit Agreement [Member]

Debt [Abstract]

Unamortized debt issuance costs

2,300

3,000

Credit Agreement Term Loan Facility [Member]

Debt [Abstract]

Original principal amount

400,000

$ 400,000

Balance

^[2]

$ 345,000

^[1]

365,000

Interest rate

Variable 30 day: 2.40%

Interest rate

2.40%

Term of variable rate

30 days

Repayment terms

35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.

Percentage of principal payable in installments

35.00%

Term of loan

5 years

Current portion of long-term debt

$ 30,000

Credit Agreement Revolving Credit Facility [Member]

Debt [Abstract]

Balance

^[2]

$ 0

^[1]

$ 0

Interest rate

Variable 30 day: —

Interest rate

0.00%

Term of variable rate

30 days

Repayment terms

Revolving line of credit expires April 18, 2023.

Term of loan

5 years

[1]	As of September 30, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $30.0 million of the balance of its term loan under the Credit Agreement.
[2]	The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $2.3 million and $3.0 million as of September 30, 2020 and December 31, 2019, respectively, related to the Credit Agreement, which are not reflected in this table.

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Weighted average remaining lease term for operating leases	6 years 3 months 18 days		6 years 3 months 18 days
Weighted average discount rate for operating leases	4.30%		4.30%
Components of Lease Expense [Abstract]
Operating lease cost	$ 13,038	$ 12,399	$ 39,043	$ 37,677
Variable lease cost	678	732	2,062	2,889
Short-term lease cost	118	41	258	145
Sublease income	(1,075)	(1,395)	(3,264)	(4,563)
Total lease expense	12,759	$ 11,777	38,099	36,148
Supplemental Cash Flow Information Related to Leases [Abstract]
Operating cash outflow from operating leases			40,865	39,885
Right-of-use assets obtained in exchange for lease liabilities			62,514	$ 150,127
Maturities of Operating Lease Liabilities [Abstract]
2020	15,631		15,631
2021	53,303		53,303
2022	36,529		36,529
2023	26,418		26,418
2024	21,389		21,389
Thereafter	41,468		41,468
Total	194,738		194,738
Less: Finance charges	26,820		26,820
Total principal liability	167,918		167,918
Right-of-use assets recognized	31,300
Additional lease liabilities not yet commenced	$ 1,200		$ 1,200
Minimum [Member]
Leases [Abstract]
Remaining lease terms			1 year
Maximum [Member]
Leases [Abstract]
Remaining lease terms			24 years
Extension period for leases			20 years
Termination period for leases			1 year

Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended				3 Months Ended		9 Months Ended
	Sep. 09, 2020	Jun. 10, 2020	Mar. 11, 2020	Oct. 30, 2020	Jul. 31, 2020	Apr. 30, 2020	Feb. 29, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Dividends per Share [Abstract]
Payment of cash dividends										$ 59,287	$ 61,636
Repurchases of Common Stock [Abstract]
Class A common stock repurchased								$ 19,994	$ 0	127,361	$ 825
Amount available for repurchases								$ 342,800		$ 342,800
Treasury Stock [Member]
Repurchases of Common Stock [Abstract]
Class A common stock repurchased (in shares)								400,000	0	4,800,000	14,000
Class A common stock repurchased								$ 19,994	$ 0	$ 127,361	$ 825
Dividend Declared 2020-Q1 [Member]
Dividends per Share [Abstract]
Dividend payable, date declared								2020-02		2020-02
Dividend payable per share (in dollars per share)							$ 0.375
Payment of cash dividends			$ 20,700
Dividend payable, date paid										Mar. 11, 2020
Dividend payable, date of record										Feb. 28, 2020
Dividend Declared 2020-Q2 [Member]
Dividends per Share [Abstract]
Dividend payable, date declared								2020-04		2020-04
Dividend payable per share (in dollars per share)						$ 0.375
Payment of cash dividends		$ 19,400
Dividend payable, date paid										Jun. 10, 2020
Dividend payable, date of record										May 29, 2020
Dividend Declared 2020-Q3 [Member]
Dividends per Share [Abstract]
Dividend payable, date declared								2020-07		2020-07
Dividend payable per share (in dollars per share)					$ 0.375
Payment of cash dividends	$ 19,200
Dividend payable, date paid										Sep. 09, 2020
Dividend payable, date of record										Aug. 28, 2020
Dividend Declared 2020-Q4 [Member] \| Subsequent Event [Member]
Dividends per Share [Abstract]
Dividend payable, date declared				2020-10
Dividend payable per share (in dollars per share)				$ 0.375
Dividend payable, date paid				Dec. 09, 2020
Dividend payable, date of record				Nov. 27, 2020
Stock Options [Member]
Net Income per Share [Abstract]
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares)								200,000	1,300,000	600,000	1,200,000

Fair Value (Details) - USD ($) $ in Thousands	9 Months Ended
Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value on a Recurring Basis [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	$ 45,552	$ 54,642
Other long-term assets	1,344	3,216
Derivative financial instruments asset	472
Life insurance contracts	41,328	41,707
Derivative financial instruments liability	(76)
Financial assets (liabilities)	88,620	99,565
Fair Value on a Recurring Basis [Member] \| Level 1 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	45,552	54,642
Other long-term assets	1,344	3,216
Derivative financial instruments asset	0
Life insurance contracts	0	0
Derivative financial instruments liability	0
Financial assets (liabilities)	46,896	57,858
Fair Value on a Recurring Basis [Member] \| Level 2 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	0	0
Other long-term assets	0	0
Derivative financial instruments asset	472
Life insurance contracts	0	0
Derivative financial instruments liability	(76)
Financial assets (liabilities)	396	0
Fair Value on a Recurring Basis [Member] \| Level 3 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	0	0
Other long-term assets	0	0
Derivative financial instruments asset	0
Life insurance contracts	41,328	41,707
Derivative financial instruments liability	0
Financial assets (liabilities)	41,328	$ 41,707
Life Insurance Contracts [Member]
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward]
Beginning balance	41,707
Actual return on plan assets	(379)
Purchases and issuances	0
Sales and settlements	0
Transfers into Level 3	0
Ending balance	$ 41,328

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Taxes [Abstract]
Provision for income taxes	$ 18,446	$ 20,823	$ 46,911	$ 68,153
Effective tax rate	24.70%	32.10%	28.50%	33.80%
Net deferred tax assets	$ 27,100		$ 27,100		$ 20,000
Undistributed earnings of non-U.S. subsidiaries					60,000
Incremental taxes if undistributed earnings on non-U.S. subsidiaries were repatriated					$ 6,000
Minimum [Member]
Income Taxes [Abstract]
Decrease in unrecognized tax benefits within the next 12 months that is reasonably possible	(100)		$ (100)
Maximum [Member]
Income Taxes [Abstract]
Statute of limitations related to income tax examinations			10 years
Income Taxes [Abstract]
Decrease in unrecognized tax benefits within the next 12 months that is reasonably possible	$ (1,000)		$ (1,000)

Derivatives and Hedging Activities, Fair Value of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($) Derivatives	Dec. 31, 2019 USD ($)
Derivatives and Hedging Activities [Abstract]
Gain to be reclassified to interest expense during next twelve months	$ 76
Number of outstanding derivatives held \| Derivatives	4
Notional amount	$ 200,000
Interest Rate Swaps [Member] \| Designated as Hedging Instrument [Member] \| Other Assets [Member]
Derivatives and Hedging Activities [Abstract]
Fair value, asset	472	$ 0
Interest Rate Swaps [Member] \| Designated as Hedging Instrument [Member] \| Accrued Expenses [Member]
Derivatives and Hedging Activities [Abstract]
Fair value, liability	$ 76	$ 0

Derivatives and Hedging Activities, Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - Interest Rate Swaps [Member] - Designated as Hedging Instrument [Member] - Cash Flow Hedges [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other Income [Member]
Derivatives and Hedging Activities [Abstract]
Gain (loss) reclassified from accumulated other comprehensive loss into income	$ (8)	$ 0	$ (8)	$ 0
Other Comprehensive Loss [Member]
Derivatives and Hedging Activities [Abstract]
Gain (loss) recognized in OCI	$ 396	$ 0	$ 396	$ 0

Segment Information, Revenue by Segment (Details)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2020

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2020

USD ($)

Segment

Sep. 30, 2019

USD ($)

Segment Information [Abstract]

Number of reportable segments | Segment

Number of geographic segments | Segment

Revenue by Segment [Abstract]

Revenue

$ 703,347

$ 589,934

$ 1,833,741

$ 1,837,057

Other [Member]

Revenue by Segment [Abstract]

Revenue

(314)

(62)

374

(239)

Operating Segment [Member] | Nu Skin [Member]

Revenue by Segment [Abstract]

Revenue

662,415

559,333

1,727,430

1,745,597

Operating Segment [Member] | Mainland China [Member]

Revenue by Segment [Abstract]

Revenue

169,068

173,974

453,096

567,795

Operating Segment [Member] | Americas/Pacific [Member]

Revenue by Segment [Abstract]

Revenue

151,465

83,635

353,957

262,932

Operating Segment [Member] | South Korea [Member]

Revenue by Segment [Abstract]

Revenue

83,460

79,435

236,094

248,020

Operating Segment [Member] | Southeast Asia [Member]

Revenue by Segment [Abstract]

Revenue

84,102

78,963

220,517

226,853

Operating Segment [Member] | Japan [Member]

Revenue by Segment [Abstract]

Revenue

70,958

67,197

200,549

194,557

Operating Segment [Member] | EMEA [Member]

Revenue by Segment [Abstract]

Revenue

61,411

35,742

147,590

120,960

Operating Segment [Member] | Hong Kong/Taiwan [Member]

Revenue by Segment [Abstract]

Revenue

42,265

40,449

115,253

124,719

Operating Segment [Member] | Manufacturing [Member]

Revenue by Segment [Abstract]

Revenue

^[1]

40,910

30,601

105,975

91,430

Operating Segment [Member] | Grow Tech [Member]

Revenue by Segment [Abstract]

Revenue

336

Intersegment Member] | Manufacturing [Member]

Revenue by Segment [Abstract]

Revenue

$ 10,900

$ 7,100

$ 24,200

$ 19,500

[1]

Segment Information, Segment Contribution (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Contribution [Abstract]
Operating income	$ 74,228	$ 69,892	$ 168,867	$ 212,747
Other income (expense)	525	(4,979)	(4,068)	(11,153)
Income before provision for income taxes	74,753	64,913	164,799	201,594
Operating Segment [Member]
Segment Contribution [Abstract]
Operating income	162,267	132,961	404,845	412,148
Operating Segment [Member] \| Nu Skin [Member]
Segment Contribution [Abstract]
Operating income	160,840	134,206	407,504	414,583
Operating Segment [Member] \| Mainland China [Member]
Segment Contribution [Abstract]
Operating income	54,522	48,619	135,577	158,873
Operating Segment [Member] \| Americas/Pacific [Member]
Segment Contribution [Abstract]
Operating income	26,256	12,875	61,184	41,314
Operating Segment [Member] \| South Korea [Member]
Segment Contribution [Abstract]
Operating income	25,232	24,770	73,421	76,417
Operating Segment [Member] \| Southeast Asia [Member]
Segment Contribution [Abstract]
Operating income	20,426	22,063	54,121	60,895
Operating Segment [Member] \| Japan [Member]
Segment Contribution [Abstract]
Operating income	18,245	16,287	49,292	46,216
Operating Segment [Member] \| EMEA [Member]
Segment Contribution [Abstract]
Operating income	7,111	1,529	11,084	6,114
Operating Segment [Member] \| Hong Kong/Taiwan [Member]
Segment Contribution [Abstract]
Operating income	9,048	8,063	22,825	24,754
Operating Segment [Member] \| Manufacturing [Member]
Segment Contribution [Abstract]
Operating income	6,749	4,577	15,000	11,598
Operating Segment [Member] \| Grow Tech [Member]
Segment Contribution [Abstract]
Operating income	(5,322)	(5,822)	(17,659)	(14,033)
Corporate and Other [Member]
Segment Contribution [Abstract]
Operating income	$ (88,039)	$ (63,069)	$ (235,978)	$ (199,401)

Segment Information, Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summarized Financial Information [Abstract]
Depreciation and amortization	$ 17,920	$ 19,305	$ 55,279	$ 57,964
Capital expenditures	20,118	23,570	48,810	52,784
Operating Segments [Member] \| Nu Skin [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	5,208	6,223	16,657	20,259
Capital expenditures	12,761	12,445	20,431	19,052
Operating Segments [Member] \| Mainland China [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	2,649	2,708	7,631	8,733
Capital expenditures	9,000	10,614	12,577	13,328
Operating Segments [Member] \| Americas/Pacific [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	268	213	766	633
Capital expenditures	125	337	891	1,084
Operating Segments [Member] \| South Korea [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	756	1,115	2,731	3,997
Capital expenditures	173	972	537	1,051
Operating Segments [Member] \| Southeast Asia [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	317	434	1,248	1,373
Capital expenditures	1,254	140	1,893	459
Operating Segments [Member] \| Japan [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	296	938	1,602	2,943
Capital expenditures	1,484	267	3,132	1,385
Operating Segments [Member] \| EMEA [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	231	268	731	980
Capital expenditures	718	16	1,378	92
Operating Segments [Member] \| Hong Kong/Taiwan [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	691	547	1,948	1,600
Capital expenditures	7	99	23	1,653
Operating Segments [Member] \| Manufacturing [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	2,077	1,711	5,954	4,916
Capital expenditures	2,113	1,100	13,221	4,281
Operating Segments [Member] \| Grow Tech [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	1,302	1,244	3,775	3,064
Capital expenditures	343	2,577	760	7,628
Corporate and Other [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	9,333	10,127	28,893	29,725
Capital expenditures	$ 4,901	$ 7,448	$ 14,398	$ 21,823

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended	12 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Dec. 31, 2019
Restructuring [Abstract]
Non-cash impairment charges					$ 48,600
Cash charges associated with restructuring					22,100
Employee severance					20,100
Other related restructuring charges					2,000
Restructuring Reserve [Roll Forward]
Beginning balance			$ 15,462		$ 15,462
Amounts paid			(15,046)
Adjustments			(416)
Ending balance			$ 0
Restructuring activity	$ 0	$ 0		$ 0