0001140361-22-017690 | 10-Q | XBRL Viewer

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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
	Mar. 31, 2022	Mar. 31, 2021
Other Income (Expense), Net [Member]
Derivatives and Hedging Activities [Abstract]
Gain (loss) reclassified from accumulated other comprehensive loss into income	$ (18)	$ (27)
Other Comprehensive Income [Member]
Derivatives and Hedging Activities [Abstract]
Gain (loss) recognized in OCI	$ 8,057	$ 3,879

Restructuring

3 Months Ended

Mar. 31, 2022

Restructuring [Abstract]

Restructuring

13.	Restructuring

In the fourth quarter 2021, the Company determined to exit the Grow Tech segment, to better align its resources on key strategic initiatives to achieve the future growth objectives and priorities of the core Nu Skin business. The Grow Tech segment was pursuing the commercialization of controlled-environment agriculture for use in the agriculture feed industry. This segment has been operating as part of the Company’s Rhyz strategic investment arm. As a result of the restructuring program, the Company recorded a non-cash charge of $38.5 million in 2021, including $9.2 million for impairment of goodwill, $9.0 million for impairment of intangibles, $13.7 million of fixed asset impairments and $6.6 million for inventory write-off, and $20.0 million of cash charges, including $6.5 million for employee severance and $13.5 million for other related cash charges with our restructuring. As of December 31, 2021, the $20.0 million liability related to the cash charges was recorded within Accrued expenses. During the first quarter of 2022, the Company made cash payments of $11.6 million, leaving an ending restructuring accrual of $8.3 million as of March 31, 2022. The Company expects to pay out the remaining liability in the first half of 2022. The restructuring charges were recorded in the previous Grow Tech segment, which in the current year has been recast to Corporate and Other.

Capital Stock, Net Income per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock Options [Member]
Net Income per Share [Abstract]
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares)	0.1	0.1

Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Abstract]
Goodwill	$ 206,432	$ 206,432
Mainland China [Member]
Goodwill [Abstract]
Goodwill	32,179	32,179
Americas [Member]
Goodwill [Abstract]
Goodwill	9,449	9,449
Southeast Asia/Pacific [Member]
Goodwill [Abstract]
Goodwill	18,537	18,537
South Korea [Member]
Goodwill [Abstract]
Goodwill	29,261	29,261
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	78,875	78,875
Rhyz Other [Member]
Goodwill [Abstract]
Goodwill	$ 12,603	$ 12,603

Fair Value and Equity Investments, Equity Investments (Details) - Equity Securities [Member] - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2021	Mar. 31, 2022	Dec. 31, 2021
Equity Securities without Readily Determinable Fair Value [Line Items]
Carrying amount of equity securities without readily determinable fair values		$ 28.1	$ 28.1
Other Income (Expense), Net [Member]
Equity Securities without Readily Determinable Fair Value [Line Items]
Upward fair value adjustments on equity securities	$ 18.1

Capital Stock

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and 2021, the only dilutive common shares outstanding relate to the Company’s outstanding stock awards and options. For the three-month periods ended March 31, 2022 and 2021, stock options of 0.1 million and 0.1 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive.

Dividends

In February 2022, the Company’s board of directors declared a quarterly cash dividend of $0.385 per share. This quarterly cash dividend of $19.3 million was paid on March 9, 2022 to stockholders of record on February 28, 2022. In May 2022, the board of directors declared a quarterly cash dividend of $0.385 per share to be paid on June 8, 2022 to stockholders of record on May 27, 2022.

Repurchase of common stock

During the three-month periods ended March 31, 2022 and 2021, the Company repurchased 0.2 million shares and 1.0 million shares of its Class A common stock under its stock repurchase plans for $10.0 million and $50.4 million, respectively. As of March 31, 2022, $235.4 million was available for repurchases under the Company’s stock repurchase plan.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2022

Derivatives and Hedging Activities [Abstract]

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 variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, 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 $3.2 million will be reclassified as a reduction to interest expense.

As of March 31, 2022 and December 31, 2021, 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	March 31, 2022		December 31, 2021
Interest Rate Swap - Asset	Prepaid expenses and other	$	3,207	$	557
Interest Rate Swap - Asset	Other assets	$	11,457	$	6,033

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 (Loss) Recognized in OCI on Derivatives
	Three Months Ended
Derivatives in Cash flow	March 31,
Hedging Relationships:	2022		2021
Interest Rate Swaps	$	8,057	$	3,879

		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
		Three Months Ended
Derivatives in Cash flow	Income Statement	March 31,
Hedging Relationships:	Location	2022		2021
Interest Rate Swaps	Other income (expense), net	$	(18)	$	(27)

Income Taxes

3 Months Ended

Mar. 31, 2022

Income Taxes [Abstract]

Income Taxes

8.	Income Taxes

Provision for income taxes for the first quarter of 2022 was $12.0 million, compared to $17.1 million for the prior-year period. The effective tax rates for the first quarter 2022 was 23.6% of pre-tax income compared to 26.5% in the prior-year period.

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 $22.0 million and $24.1 million as of March 31, 2022 and December 31, 2021, 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, 2021. If the amount designated as indefinitely reinvested as of December 31, 2021 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. 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. As of December 31, 2021, tax years through 2020 have been audited and are effectively closed to further examination. For tax years 2021 and 2022, the Company is in the Bridge phase of the CAP program, pursuant to which the IRS will not accept disclosures, will not conduct reviews and will not provide letters of assurance for the Bridge years. There are limited circumstances that tax years in the Bridge phase will be opened for examination. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2018. In major foreign jurisdictions, the Company is generally no longer subject to income tax examinations for years before 2016. 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 increase in the next 12 months by approximately $1.0 to $2.0 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.

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Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Contract Liabilities - Customer Loyalty Programs [Abstract]
Contract liabilities for customer loyalty programs	$ 20.8		$ 22.0
Contract liabilities impact to revenue	$ 1.2	$ (1.6)

Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt [Abstract]

Debt Facilities

The following table summarizes the Company’s debt facilities as of March 31, 2022 and December 31, 2021:

Facility or Arrangement

Original

Principal Amount

Balance as of

March 31, 2022 ⁽¹⁾⁽²⁾

Balance as of

December 31, 2021⁽¹⁾⁽²⁾

Interest Rate

Repayment Terms

Credit Agreement term loan facility

400.0 million

300.0 million

307.5 million

Variable 30 day: 2.21%

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

70.0 million

Variable 30 day: 2.15%

Revolving line of credit expires April 18, 2023.

(1)	As of March 31, 2022 and December 31, 2021, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $40.0 million and $37.5 million, respectively, 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 $1.0 million and $1.2 million as of March 31, 2022 and December 31, 2021, 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.

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+ Details

Summary of Significant Accounting Policies, Reclassifications (Details) - Reclassification Adjustment [Member] $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
General and Administration Expenses [Member]
Reclassifications [Abstract]
Events and other miscellaneous selling costs	$ (2.2)
Selling Expenses [Member]
Reclassifications [Abstract]
Events and other miscellaneous selling costs	$ 2.2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions	Mar. 31, 2022	Dec. 31, 2021
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)	40.4	40.7

Segment Information, Segment Contribution (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Contribution [Abstract]
Operating income	$ 52,145	$ 62,913
Other income (expense)	(1,453)	1,582
Income before provision for income taxes	50,692	64,495
Operating Segment [Member]
Segment Contribution [Abstract]
Operating income	130,352	154,408
Operating Segment [Member] \| Nu Skin [Member]
Segment Contribution [Abstract]
Operating income	128,106	148,582
Operating Segment [Member] \| Mainland China [Member]
Segment Contribution [Abstract]
Operating income	28,995	39,439
Operating Segment [Member] \| Americas [Member]
Segment Contribution [Abstract]
Operating income	25,123	28,745
Operating Segment [Member] \| Southeast Asia/Pacific [Member]
Segment Contribution [Abstract]
Operating income	23,406	19,648
Operating Segment [Member] \| South Korea [Member]
Segment Contribution [Abstract]
Operating income	22,743	26,525
Operating Segment [Member] \| Japan [Member]
Segment Contribution [Abstract]
Operating income	15,313	17,981
Operating Segment [Member] \| EMEA [Member]
Segment Contribution [Abstract]
Operating income	3,836	8,896
Operating Segment [Member] \| Hong Kong/Taiwan [Member]
Segment Contribution [Abstract]
Operating income	8,690	7,348
Operating Segment [Member] \| Rhyz Investments [Member]
Segment Contribution [Abstract]
Operating income	2,246	5,826
Operating Segment [Member] \| Manufacturing [Member]
Segment Contribution [Abstract]
Operating income	3,292	5,826
Operating Segment [Member] \| Rhyz Other [Member]
Segment Contribution [Abstract]
Operating income	(1,046)	0
Corporate and Other [Member]
Segment Contribution [Abstract]
Operating income	$ (78,207)	$ (91,495)

Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment, tax	$ (7)	$ (2)
Net unrealized gains/(losses) on foreign currency cash flow hedges, tax	(1,743)	(839)
Reclassification adjustment for realized losses/(gains) in current earnings on cash flow hedges, tax	$ (4)	$ (6)

Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill [Abstract]

Goodwill

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended March 31, 2022 and December 31, 2021 (U.S. dollars in thousands):

	March 31, 2022		December 31, 2021
Nu Skin
Mainland China	$	32,179	$	32,179
Americas		9,449		9,449
Southeast Asia/Pacific		18,537		18,537
South Korea		29,261		29,261
Japan		16,019		16,019
EMEA		2,875		2,875
Hong Kong/Taiwan		6,634		6,634
Rhyz Investments
Manufacturing		78,875		78,875
Rhyz Other		12,603		12,603
Total	$	206,432	$	206,432

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Components of Lease Expense

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

	Three Months Ended March 31,
	2022		2021
Operating lease expense
Operating lease cost	$	10,439	$	12,815
Variable lease cost		1,157		1,368
Short-term lease cost		30		339
Sublease income		—		(1,984	)
Finance lease expense
Amortization of right-of-use assets		556		611
Interest on lease liabilities		66		88
Total lease expense	$	12,248	$	13,237

Supplemental Cash Flow Information Related to Leases

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

	Three Months Ended March 31,
	2022		2021
Operating cash outflow from operating leases	$	10,405	$	14,149
Operating cash outflow from finance leases	$	68	$	89
Financing cash outflow from finance leases	$	476	$	483
Right-of-use assets obtained in exchange for operating lease obligations	$	23,730	$	10,891
Right-of-use assets obtained in exchange for finance lease obligations	$	—	$	49

Maturities of Lease Liabilities

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

Year Ending December 31	Operating Leases		Finance Leases
2022	$	28,595	$	1,578
2023		28,298		2,032
2024		21,657		1,924
2025		15,507		1,361
2026		8,559		260
Thereafter		49,766		—
Total		152,382		7,155
Less: Finance charges		19,577		473
Total principal liability	$	132,805	$	6,682

Debt

3 Months Ended

Mar. 31, 2022

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 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 March 31, 2022, the Company was in compliance with all covenants under the Credit Agreement.

The following table summarizes the Company’s debt facilities as of March 31, 2022 and December 31, 2021:

Facility or Arrangement

Original

Principal Amount

Balance as of

March 31, 2022 ⁽¹⁾⁽²⁾

Balance as of

December 31, 2021⁽¹⁾⁽²⁾

Interest Rate

Repayment Terms

Credit Agreement term loan facility

400.0 million

300.0 million

307.5 million

Variable 30 day: 2.21%

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

70.0 million

Variable 30 day: 2.15%

Revolving line of credit expires April 18, 2023.

(1)	As of March 31, 2022 and December 31, 2021, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $40.0 million and $37.5 million, respectively, 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 $1.0 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively, related to the Credit Agreement, which are not reflected in this table.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income Taxes [Abstract]
Provision for income taxes	$ 11,976	$ 17,065
Effective tax rate	23.60%	26.50%
Net deferred tax assets	$ 22,000		$ 24,100
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]
Increase in unrecognized tax benefits within the next 12 months that is reasonably possible	$ 1,000
Maximum [Member]
Income Taxes [Abstract]
Statute of limitations related to income tax examinations	10 years
Income Taxes [Abstract]
Increase in unrecognized tax benefits within the next 12 months that is reasonably possible	$ 2,000

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 302,216	$ 339,593
Current investments	15,313	15,221
Accounts receivable, net	52,171	41,299
Inventories, net	381,585	399,931
Prepaid expenses and other	97,923	76,906
Total current assets	849,208	872,950
Property and equipment, net	448,822	453,674
Operating lease right-of-use assets	132,949	120,973
Goodwill	206,432	206,432
Other intangible assets, net	74,874	76,991
Other assets	179,964	175,460
Total assets	1,892,249	1,906,480
Current liabilities:
Accounts payable	40,719	49,993
Accrued expenses	343,737	372,201
Current portion of long-term debt	110,000	107,500
Total current liabilities	494,456	529,694
Operating lease liabilities	100,844	88,759
Long-term debt	258,995	268,781
Other liabilities	103,754	106,474
Total liabilities	958,049	993,708
Commitments and contingencies (Notes 5 and 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	599,258	601,703
Treasury stock, at cost - 40.4 million and 40.7 million shares	(1,526,778)	(1,526,860)
Accumulated other comprehensive loss	(69,528)	(73,896)
Retained earnings	1,931,157	1,911,734
Total stockholders' equity	934,200	912,772
Total liabilities and stockholders' equity	$ 1,892,249	$ 1,906,480

The Company (Details)	3 Months Ended
The Company (Details)	Mar. 31, 2022 Segment
The Company [Abstract]
Number of reportable segments	9
Number of geographic segments	7
Number of Rhyz Investments segments	2

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

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.

The Company

3 Months Ended

Mar. 31, 2022

The Company [Abstract]

The Company

1.	The Company

Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin, being the primary operating unit. Nu Skin develops and distributes premium-quality, innovative beauty 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; Americas, which includes Canada, Latin America and the United States; South Korea; Southeast Asia/Pacific, which includes Australia, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam; Europe, Middle East and Africa (“EMEA”), which includes markets in Europe as well as Israel and South Africa; Japan; and Hong Kong/Taiwan, which also includes Macau—and two Rhyz Investments segments—Manufacturing, which includes manufacturing and packaging subsidiaries it has acquired; and Rhyz other, which includes other investments by its Rhyz strategic investment arm (the Company’s subsidiaries operating within each segment are collectively referred to as the “Subsidiaries”).

Capital Stock, Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended
	May 04, 2022	Mar. 09, 2022	Feb. 28, 2022	Mar. 31, 2022	Mar. 31, 2021
Dividends per Share [Abstract]
Payment of cash dividends				$ 19,293	$ 19,289
Dividend Declared 2022-Q1 [Member]
Dividends per Share [Abstract]
Dividend payable, date declared				2022-02
Dividend payable per share (in dollars per share)			$ 0.385
Payment of cash dividends		$ 19,300
Dividend payable, date paid				Mar. 09, 2022
Dividend payable, date of record				Feb. 28, 2022
Dividend Declared 2022-Q2 [Member] \| Subsequent Event [Member]
Dividends per Share [Abstract]
Dividend payable, date declared	2022-05
Dividend payable per share (in dollars per share)	$ 0.385
Dividend payable, date paid	Jun. 08, 2022
Dividend payable, date of record	May 27, 2022

Goodwill

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021 (U.S. dollars in thousands):

	March 31, 2022		December 31, 2021
Nu Skin
Mainland China	$	32,179	$	32,179
Americas		9,449		9,449
Southeast Asia/Pacific		18,537		18,537
South Korea		29,261		29,261
Japan		16,019		16,019
EMEA		2,875		2,875
Hong Kong/Taiwan		6,634		6,634
Rhyz Investments
Manufacturing		78,875		78,875
Rhyz Other		12,603		12,603
Total	$	206,432	$	206,432

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

3 Months Ended

Mar. 31, 2022

USD ($)

Segment

Mar. 31, 2021

USD ($)

Segment Information [Abstract]

Number of reportable segments | Segment

Number of geographic segments | Segment

Number of Rhyz Investments segments | Segment

Revenue by Segment [Abstract]

Revenue

$ 604,899

$ 677,026

Other [Member]

Revenue by Segment [Abstract]

Revenue

620

878

Operating Segment [Member] | Nu Skin [Member]

Revenue by Segment [Abstract]

Revenue

564,317

631,041

Operating Segment [Member] | Mainland China [Member]

Revenue by Segment [Abstract]

Revenue

124,495

149,593

Operating Segment [Member] | Americas [Member]

Revenue by Segment [Abstract]

Revenue

123,580

133,761

Operating Segment [Member] | Southeast Asia/Pacific [Member]

Revenue by Segment [Abstract]

Revenue

90,236

83,289

Operating Segment [Member] | South Korea [Member]

Revenue by Segment [Abstract]

Revenue

72,133

81,131

Operating Segment [Member] | Japan [Member]

Revenue by Segment [Abstract]

Revenue

61,791

69,864

Operating Segment [Member] | EMEA [Member]

Revenue by Segment [Abstract]

Revenue

52,968

76,180

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

Revenue by Segment [Abstract]

Revenue

38,494

36,345

Operating Segment [Member] | Rhyz Investments [Member]

Revenue by Segment [Abstract]

Revenue

40,582

45,985

Operating Segment [Member] | Manufacturing [Member]

Revenue by Segment [Abstract]

Revenue

^[1]

40,341

45,985

Operating Segment [Member] | Rhyz Other [Member]

Revenue by Segment [Abstract]

Revenue

241

Intersegment [Member] | Manufacturing [Member]

Revenue by Segment [Abstract]

Revenue

$ 14,600

$ 17,400

[1]

The Rhyz Investments Manufacturing segment had $14.6 million and $17.4 million of intersegment revenue for the three-month period ended March 31, 2022 and 2021, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

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.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current presentation. The Company reclassified $2.2 million of events and other miscellaneous selling costs from the general and administration expenses line to the selling expenses line on the consolidated statement of income for the first quarter of 2021. The Company believes these costs are better reflected in selling expenses. The reclassification had no impact on operating income for the first quarter of 2021.

Accounting Pronouncements

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 US 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 the London Interbank Offered Rate (“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):

	March 31, 2022		December 31, 2021
Raw materials	$	163,746	$	179,891
Finished goods		217,839		220,040
Total Inventory, net	$	381,585	$	399,931

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 March 31, 2022 and December 31, 2021 was $20.8 million and $22.0 million, respectively. The contract liabilities impact to revenue for the three-month periods ended March 31, 2022, and 2021 was an increase of $1.2 million and a decrease of $1.6 million, respectively.

- 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.

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+ Details

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
Balance at beginning of period at Dec. 31, 2020	$ 91	$ 579,801	$ (1,461,593)	$ (64,768)	$ 1,840,740	$ 894,271
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	47,430	47,430
Other comprehensive income (loss), net of tax	0	0	0	(6,858)	0	(6,858)
Repurchase of Class A common stock (Note 6)	0	0	(50,406)	0	0	(50,406)
Exercise of employee stock options/vesting of stock awards	0	(7,400)	6,923	0	0	(477)
Stock-based compensation	0	6,803	0	0	0	6,803
Cash dividends	0	0	0	0	(19,289)	(19,289)
Balance at end of period at Mar. 31, 2021	91	579,204	(1,505,076)	(71,626)	1,868,881	871,474
Balance at beginning of period at Dec. 31, 2021	91	601,703	(1,526,860)	(73,896)	1,911,734	912,772
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	38,716	38,716
Other comprehensive income (loss), net of tax	0	0	0	4,368	0	4,368
Repurchase of Class A common stock (Note 6)	0	0	(10,006)	0	0	(10,006)
Exercise of employee stock options/vesting of stock awards	0	(6,572)	10,088	0	0	3,516
Stock-based compensation	0	4,127	0	0	0	4,127
Cash dividends	0	0	0	0	(19,293)	(19,293)
Balance at end of period at Mar. 31, 2022	$ 91	$ 599,258	$ (1,526,778)	$ (69,528)	$ 1,931,157	$ 934,200

- Definition

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

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+ 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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+ Details

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

As of March 31, 2022, the weighted average remaining lease term was 8.0 and 3.5 years for operating and finance leases, respectively. As of March 31, 2022, the weighted average discount rate was 3.7% and 3.8% for operating and finance leases, respectively.

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

	Three Months Ended March 31,
	2022		2021
Operating lease expense
Operating lease cost	$	10,439	$	12,815
Variable lease cost		1,157		1,368
Short-term lease cost		30		339
Sublease income		—		(1,984	)
Finance lease expense
Amortization of right-of-use assets		556		611
Interest on lease liabilities		66		88
Total lease expense	$	12,248	$	13,237

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

	Three Months Ended March 31,
	2022		2021
Operating cash outflow from operating leases	$	10,405	$	14,149
Operating cash outflow from finance leases	$	68	$	89
Financing cash outflow from finance leases	$	476	$	483
Right-of-use assets obtained in exchange for operating lease obligations	$	23,730	$	10,891
Right-of-use assets obtained in exchange for finance lease obligations	$	—	$	49

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

Year Ending December 31	Operating Leases		Finance Leases
2022	$	28,595	$	1,578
2023		28,298		2,032
2024		21,657		1,924
2025		15,507		1,361
2026		8,559		260
Thereafter		49,766		—
Total		152,382		7,155
Less: Finance charges		19,577		473
Total principal liability	$	132,805	$	6,682

The Company has additional lease liabilities of $0.1 million which have not yet commenced as of March 31, 2022, and as such, have not been recognized on the consolidated balance sheets.

Acquisitions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Mar. 31, 2022	Dec. 31, 2021
Fair Value of Assets Acquired [Abstract]
Goodwill		$ 206,432	$ 206,432
Mavely [Member]
Acquisitions [Abstract]
Percentage interest acquired	100.00%
Purchase price, net of cash acquired	$ 16,800
Cash acquired	400
Accrued liability	900
Incremental contingent consideration	24,000
Contingent consideration	8,700
Gross purchase price	29,400
Fair Value of Assets Acquired [Abstract]
Intangible assets	16,400
Cash	400
Accounts receivable	100
Deferred tax liability	3,500
Goodwill	12,600
Mavely [Member] \| Customer Relationships [Member]
Fair Value of Assets Acquired [Abstract]
Intangible assets	2,000
Useful life		4 years
Mavely [Member] \| Technology [Member]
Fair Value of Assets Acquired [Abstract]
Intangible assets	11,300
Useful life		8 years
Mavely [Member] \| Trademarks [Member]
Fair Value of Assets Acquired [Abstract]
Intangible assets	2,800
Mavely [Member] \| Tradenames [Member]
Fair Value of Assets Acquired [Abstract]
Useful life		8 years
Mavely [Member] \| Other Intangibles [Member]
Fair Value of Assets Acquired [Abstract]
Intangible assets	$ 300
Useful life		3 years

Fair Value and Equity Investments

3 Months Ended

Mar. 31, 2022

Fair Value and Equity Investments [Abstract]

Fair Value and Equity Investments

7.	Fair Value and Equity Investments

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. The carrying value of debt approximates fair value due to the variable 30-day interest rate. 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; and

◾

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 and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands):

	Fair Value at March 31, 2022
	Level 1		Level 2		Level 3			Total
Financial assets (liabilities):
Cash equivalents and current investments	$	57,647	$	—	$	—		$	57,647
Derivative financial instruments asset		—		14,664		—			14,664
Life insurance contracts		—		—		46,450			46,450
Contingent consideration		—		—		(10,226	)		(10,226	)
Total	$	57,647	$	14,664	$	36,224		$	108,535

	Fair Value at December 31, 2021
	Level 1		Level 2		Level 3			Total
Financial assets (liabilities):
Cash equivalents and current investments	$	66,477	$	—	$	—		$	66,477
Derivative financial instruments asset		—		6,590		—			6,590
Life insurance contracts		—		—		49,851			49,851
Contingent consideration		—		—		(10,341	)		(10,341	)
Total	$	66,477	$	6,590	$	39,510		$	112,577

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

	2022			2021
Beginning balance at January 1	$	49,851		$	45,453
Actual return on plan assets		(3,401	)		1,153
Purchase and issuances		—			7,016
Sales and settlements		—			(7,016	)
Transfers into Level 3		—			—
Ending balance at March 31	$	46,450		$	46,606

Life insurance contracts: ASC 820 preserves practicability exceptions to fair value measurements provided by other applicable provisions of U.S. GAAP. The guidance in ASC 715-30-35-60 allows a reporting entity, as a practical expedient, to use cash surrender value or conversion value as an expedient for fair value when it is present. Accordingly, the Company determines the fair value of its life insurance contracts as the cash-surrender value of life insurance policies held in its Rabbi Trust.

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

	2022			2021
Beginning balance at January 1	$	(10,341	)	$	(3,125	)
Additions from acquisitions		—			—
Changes in fair value of contingent consideration		115			(139	)
Ending balance at March 31	$	(10,226	)	$	(3,264	)

Contingent consideration: Contingent consideration represents the obligations incurred in connection with acquisitions. The estimate of fair value of the contingent consideration obligations requires subjective assumptions to be made regarding the future business results, discount rates, discount periods and probabilities assigned to various potential business result scenarios and was determined using probability assessments with respect to the likelihood of reaching various targets or of achieving certain milestones. The fair value measurement is based on significant inputs unobservable in the market and thus represents a Level 3 measurement. Changes in current expectations of progress could change the probability of achieving the targets within the measurement periods and result in an increase or decrease in the fair value of the contingent consideration obligation.

Equity Investments

The Company maintains equity investments in companies which are accounted for under the measurement alternative described in ASC 321-10-35-2 for equity securities that lack readily determinable fair values. The carrying amount of equity securities held by the Company without readily determinable fair values was $28.1 million at each of March 31, 2022 and December 31, 2021. During the three months ended September 30, 2021, the Company recognized $18.1 million upward fair value adjustments, based on the valuation of additional equity issued by the investee which was deemed to be an observable transaction of a similar investment under ASC 321. The third quarter 2021 gain was recorded within Other income (expense), net on the Consolidated Statement of Comprehensive Operations. The upward fair value adjustment represents a nonrecurring fair value measurement based on observable price changes and is classified as a Level 3 fair value measurement.

- 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

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, and for the three-month periods ended March 31, 2022 and 2021. 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, 2021 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, 2021.

Reclassifications

Accounting Pronouncements

Inventory

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

	March 31, 2022		December 31, 2021
Raw materials	$	163,746	$	179,891
Finished goods		217,839		220,040
Total Inventory, net	$	381,585	$	399,931

Revenue Recognition

Contract Liabilities – Customer Loyalty Programs

Segment Information, Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summarized Financial Information [Abstract]
Depreciation and amortization	$ 17,130	$ 18,344
Capital expenditures	10,279	19,373
Operating Segments [Member] \| Nu Skin [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	5,050	6,338
Capital expenditures	5,196	9,947
Operating Segments [Member] \| Mainland China [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	2,884	3,339
Capital expenditures	4,068	8,517
Operating Segments [Member] \| Americas [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	199	231
Capital expenditures	42	112
Operating Segments [Member] \| Southeast Asia/Pacific [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	381	354
Capital expenditures	68	565
Operating Segments [Member] \| South Korea [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	388	990
Capital expenditures	362	490
Operating Segments [Member] \| Japan [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	277	253
Capital expenditures	0	91
Operating Segments [Member] \| EMEA [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	230	286
Capital expenditures	393	172
Operating Segments [Member] \| Hong Kong/Taiwan [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	691	885
Capital expenditures	263	0
Operating Segments [Member] \| Rhyz Investments [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	3,922	2,688
Capital expenditures	1,208	3,338
Operating Segments [Member] \| Manufacturing [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	3,330	2,688
Capital expenditures	1,208	3,338
Operating Segments [Member] \| Rhyz Other [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	592	0
Capital expenditures	0	0
Corporate and Other [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	8,158	9,318
Capital expenditures	$ 3,875	$ 6,088

Derivatives and Hedging Activities, Fair Value of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Derivatives	Dec. 31, 2021 USD ($) Derivatives
Derivatives and Hedging Activities [Abstract]
Loss to be reclassified to interest expense during next twelve months	$ (3,200)
Number of outstanding derivatives held \| Derivatives	4	4
Notional amount	$ 200,000	$ 200,000
Interest Rate Swaps [Member] \| Designated as Hedging Instrument [Member] \| Prepaid Expenses and Other [Member]
Derivatives and Hedging Activities [Abstract]
Fair value, asset	3,207	557
Interest Rate Swaps [Member] \| Designated as Hedging Instrument [Member] \| Other Assets [Member]
Derivatives and Hedging Activities [Abstract]
Fair value, asset	$ 11,457	$ 6,033

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Summary of Significant Accounting Policies [Abstract]

Inventories

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

	March 31, 2022		December 31, 2021
Raw materials	$	163,746	$	179,891
Finished goods		217,839		220,040
Total Inventory, net	$	381,585	$	399,931

Segment Information

3 Months Ended

Mar. 31, 2022

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, South Korea, Southeast Asia/Pacific, Japan, EMEA, and Hong Kong/Taiwan—and two Rhyz Investments segments—Manufacturing and Rhyz other. The Nu Skin other category includes miscellaneous corporate revenue and related adjustments. The Rhyz other segment includes other investments by our Rhyz strategic investment arm. 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.

Prior year segment information has been recast to reflect the move of the Pacific components from the “America/Pacific” operating segment to the “Southeast Asia/Pacific” operating segment to comply with current segment presentation. Prior year segment information has also been recast to reflect the fourth quarter 2021 exit of the Grow Tech segment, which has been recast to Corporate and other expenses.Consolidated financial information is not affected.

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 March 31,
(U.S. dollars in thousands)	2022		2021

Nu Skin
Mainland China	$	124,495	$	149,593
Americas		123,580		133,761
Southeast Asia/Pacific		90,236		83,289
South Korea		72,133		81,131
Japan		61,791		69,864
EMEA		52,968		76,180
Hong Kong/Taiwan		38,494		36,345
Other		620		878
Total Nu Skin		564,317		631,041
Rhyz Investments
Manufacturing ⁽¹⁾		40,341		45,985
Rhyz other		241		—
Total Rhyz Investments		40,582		45,985
Total	$	604,899	$	677,026

(1)

Segment Contribution

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022			2021

Nu Skin
Mainland China	$	28,995		$	39,439
Americas		25,123			28,745
Southeast Asia/Pacific		23,406			19,648
South Korea		22,743			26,525
Japan		15,313			17,981
EMEA		3,836			8,896
Hong Kong/Taiwan		8,690			7,348
Nu Skin contribution		128,106			148,582
Rhyz Investments
Manufacturing		3,292			5,826
Rhyz other		(1,046	)		—
Total Rhyz Investments		2,246			5,826
Total segment contribution		130,352			154,408
Corporate and other		(78,207	)		(91,495	)
Operating income		52,145			62,913
Other income (expense)		(1,453	)		1,582
Income before provision for income taxes	$	50,692		$	64,495

Depreciation and Amortization

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022		2021

Nu Skin
Mainland China	$	2,884	$	3,339
Americas		199		231
Southeast Asia/Pacific		381		354
South Korea		388		990
Japan		277		253
EMEA		230		286
Hong Kong/Taiwan		691		885
Total Nu Skin		5,050		6,338
Rhyz Investments
Manufacturing		3,330		2,688
Rhyz other		592		—
Total Rhyz Investments		3,922		2,688
Corporate and other		8,158		9,318
Total	$	17,130	$	18,344

Capital Expenditures

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022		2021

Nu Skin
Mainland China	$	4,068	$	8,517
Americas		42		112
Southeast Asia/Pacific		68		565
South Korea		362		490
Japan		—		91
EMEA		393		172
Hong Kong/Taiwan		263		—
Total Nu Skin		5,196		9,947
Rhyz Investments
Manufacturing		1,208		3,338
Rhyz other		—		—
Total Rhyz Investments		1,208		3,338
Corporate and other		3,875		6,088
Total	$	10,279	$	19,373

- 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
-Topic 280
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Revenue by Segment

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022		2021

Nu Skin
Mainland China	$	124,495	$	149,593
Americas		123,580		133,761
Southeast Asia/Pacific		90,236		83,289
South Korea		72,133		81,131
Japan		61,791		69,864
EMEA		52,968		76,180
Hong Kong/Taiwan		38,494		36,345
Other		620		878
Total Nu Skin		564,317		631,041
Rhyz Investments
Manufacturing ⁽¹⁾		40,341		45,985
Rhyz other		241		—
Total Rhyz Investments		40,582		45,985
Total	$	604,899	$	677,026

(1)

Segment Contribution

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022			2021

Nu Skin
Mainland China	$	28,995		$	39,439
Americas		25,123			28,745
Southeast Asia/Pacific		23,406			19,648
South Korea		22,743			26,525
Japan		15,313			17,981
EMEA		3,836			8,896
Hong Kong/Taiwan		8,690			7,348
Nu Skin contribution		128,106			148,582
Rhyz Investments
Manufacturing		3,292			5,826
Rhyz other		(1,046	)		—
Total Rhyz Investments		2,246			5,826
Total segment contribution		130,352			154,408
Corporate and other		(78,207	)		(91,495	)
Operating income		52,145			62,913
Other income (expense)		(1,453	)		1,582
Income before provision for income taxes	$	50,692		$	64,495

Depreciation and Amortization and Capital Expenditures

Depreciation and Amortization

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022		2021

Nu Skin
Mainland China	$	2,884	$	3,339
Americas		199		231
Southeast Asia/Pacific		381		354
South Korea		388		990
Japan		277		253
EMEA		230		286
Hong Kong/Taiwan		691		885
Total Nu Skin		5,050		6,338
Rhyz Investments
Manufacturing		3,330		2,688
Rhyz other		592		—
Total Rhyz Investments		3,922		2,688
Corporate and other		8,158		9,318
Total	$	17,130	$	18,344

Capital Expenditures

	Three Months Ended March 31,
(U.S. dollars in thousands)	2022		2021

Nu Skin
Mainland China	$	4,068	$	8,517
Americas		42		112
Southeast Asia/Pacific		68		565
South Korea		362		490
Japan		—		91
EMEA		393		172
Hong Kong/Taiwan		263		—
Total Nu Skin		5,196		9,947
Rhyz Investments
Manufacturing		1,208		3,338
Rhyz other		—		—
Total Rhyz Investments		1,208		3,338
Corporate and other		3,875		6,088
Total	$	10,279	$	19,373

Capital Stock, Repurchase of Common Stock (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Repurchases of Common Stock [Abstract]
Class A common stock repurchased	$ 10,006	$ 50,406
Amount available for repurchases	$ 235,400
Treasury Stock [Member]
Repurchases of Common Stock [Abstract]
Class A common stock repurchased (in shares)	0.2	1.0
Class A common stock repurchased	$ 10,006	$ 50,406

Restructuring (Details) - Grow Tech [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Restructuring [Abstract]
Non-cash impairment charges		$ 38.5
Impairment of goodwill		9.2
Impairment of intangible assets		9.0
Impairment of fixed assets		13.7
Inventory write-off		6.6
Cash charges associated with restructuring		20.0
Employee severance		6.5
Other related restructuring charges		13.5
Cash payments	$ 11.6
Ending restructuring accrual	$ 8.3
Accrued Expenses [Member]
Restructuring [Abstract]
Liability related to cash charges		$ 20.0

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 38,716	$ 47,430
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	17,130	18,344
Non-cash lease expense	10,581	13,298
Stock-based compensation	4,127	6,803
Foreign currency losses	370	970
Loss on disposal of assets	517	506
Deferred taxes	3,292	3,363
Changes in operating assets and liabilities:
Accounts receivable, net	(12,463)	436
Inventories, net	17,212	(53,776)
Prepaid expenses and other	(18,110)	(19,241)
Other assets	941	(2,786)
Accounts payable	(5,663)	1,869
Accrued expenses	(40,270)	(36,779)
Other liabilities	(8,839)	707
Net cash provided by/(used in) operating activities	7,541	(18,856)
Cash flows from investing activities:
Purchases of property and equipment	(10,279)	(19,373)
Proceeds on investment sales	4,076	7,550
Purchases of investments	(3,930)	(6,973)
Net cash used in investing activities	(10,133)	(18,796)
Cash flows from financing activities:
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards	3,516	(477)
Payment of cash dividends	(19,293)	(19,289)
Repurchases of shares of common stock	(10,006)	(50,406)
Finance lease principal payments	(476)	(483)
Payments of debt	(7,500)	(17,500)
Proceeds from debt	0	70,000
Net cash used in financing activities	(33,759)	(18,155)
Effect of exchange rate changes on cash	(1,026)	(7,777)
Net increase (decrease) in cash and cash equivalents	(37,377)	(63,584)
Cash and cash equivalents, beginning of period	339,593	402,683
Cash and cash equivalents, end of period	$ 302,216	$ 339,099

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Consolidated Statements of Income [Abstract]
Revenue	$ 604,899	$ 677,026
Cost of sales	161,499	170,566
Gross profit	443,400	506,460
Operating expenses:
Selling expenses	242,699	275,965
General and administrative expenses	148,556	167,582
Total operating expenses	391,255	443,547
Operating income	52,145	62,913
Other income (expense), net	(1,453)	1,582
Income before provision for income taxes	50,692	64,495
Provision for income taxes	11,976	17,065
Net income	$ 38,716	$ 47,430
Net income per share (Note 6):
Basic (in dollars per share)	$ 0.77	$ 0.94
Diluted (in dollars per share)	$ 0.76	$ 0.91
Weighted-average common shares outstanding:
Basic (in shares)	49,991	50,706
Diluted (in shares)	51,066	52,172

Acquisitions

3 Months Ended

Mar. 31, 2022

Acquisitions [Abstract]

Acquisitions

12.	Acquisitions

In April 2021, the Company acquired 100% ownership in MyFavoriteThings, Inc. (“Mavely”), making Mavely a wholly owned subsidiary of the Company. The acquisition enables the Company to continue to expand its digital tools. The purchase price for Mavely was $16.8 million, net of cash acquired of $0.4 million and $0.9 million to be paid within six months, all payable in cash. In addition, there is potential for an incremental $24.0 million in contingent consideration, which becomes payable if certain revenue and profitability targets are reached in 2021, 2022 and 2023. The fair value of the contingent consideration recorded on the acquisition date was $8.7 million. The Company allocated the gross purchase price of $29.4 million to the assets acquired and liabilities assumed at estimated fair values. The estimated fair value of assets acquired included $16.4 million of intangible assets, $0.4 million of cash, $0.1 million of accounts receivable, and also resulted in a deferred tax liability of $3.5 million. The excess purchase price over the aggregate fair value of assets acquired less liabilities assumed of $12.6 million was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies. None of the goodwill is expected to be deductible for income tax purposes. The intangible assets acquired were comprised of $2.0 million for customer relationships, $11.3 million for technology, $2.8 million for trademarks and $0.3 million for other intangibles. The intangibles were assigned useful lives of 8 years for the technology and tradename, approximately 4 years for the customer relationships and 3 years for the other intangibles. All the goodwill was assigned to our Rhyz other segment. The allocation of the fair value of assets acquired and liabilities assumed for the acquisition was finalized during the three months ended September 30, 2021.

Summary of Significant Accounting Policies, Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventories [Abstract]
Raw materials	$ 163,746	$ 179,891
Finished goods	217,839	220,040
Total Inventory, net	$ 381,585	$ 399,931

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

3 Months Ended

Mar. 31, 2022

Dec. 31, 2021

Apr. 18, 2018

Debt [Abstract]

Term of variable rate

30 days

Current portion of long-term debt

$ 110,000

$ 107,500

Credit Agreement [Member]

Debt [Abstract]

Unamortized debt issuance costs

1,000

1,200

Credit Agreement Term Loan Facility [Member]

Debt [Abstract]

Original principal amount

400,000

$ 400,000

Balance

^[1],[2]

$ 300,000

307,500

Interest rate

Variable 30 day: 2.21%

Interest rate

2.21%

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

$ 40,000

37,500

Credit Agreement Revolving Credit Facility [Member]

Debt [Abstract]

Balance

^[1],[2]

$ 70,000

Interest rate

Variable 30 day: 2.15%

Interest rate

2.15%

Term of variable rate

30 days

Repayment terms

Revolving line of credit expires April 18, 2023.

Term of loan

5 years

[1]	As of March 31, 2022 and December 31, 2021, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $40.0 million and $37.5 million, respectively, 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 $1.0 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively, related to the Credit Agreement, which are not reflected in this table.

Fair Value and Equity Investments, Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Fair Value and Equity Investments [Abstract]
Term of variable rate	30 days
Contingent Consideration [Member]
Changes in Fair Value of Level 3 Contingent Consideration [Roll Forward]
Beginning balance	$ (10,341)	$ (3,125)
Additions from acquisitions	0	0
Changes in fair value of contingent consideration	115	(139)
Ending balance	(10,226)	(3,264)
Fair Value on a Recurring Basis [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	57,647		$ 66,477
Derivative financial instruments asset	14,664		6,590
Life insurance contracts	46,450		49,851
Contingent consideration	(10,226)		(10,341)
Financial assets (liabilities)	108,535		112,577
Fair Value on a Recurring Basis [Member] \| Level 1 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	57,647		66,477
Derivative financial instruments asset	0		0
Life insurance contracts	0		0
Contingent consideration	0		0
Financial assets (liabilities)	57,647		66,477
Fair Value on a Recurring Basis [Member] \| Level 2 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	0		0
Derivative financial instruments asset	14,664		6,590
Life insurance contracts	0		0
Contingent consideration	0		0
Financial assets (liabilities)	14,664		6,590
Fair Value on a Recurring Basis [Member] \| Level 3 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	0		0
Derivative financial instruments asset	0		0
Life insurance contracts	46,450		49,851
Contingent consideration	(10,226)		(10,341)
Financial assets (liabilities)	36,224		$ 39,510
Life Insurance Contracts [Member]
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward]
Beginning balance	49,851	45,453
Actual return on plan assets	(3,401)	1,153
Purchase and issuances	0	7,016
Sales and settlements	0	(7,016)
Transfers into Level 3	0	0
Ending balance	$ 46,450	$ 46,606

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Weighted average remaining lease term for operating leases	8 years
Weighted average remaining lease term for finance leases	3 years 6 months
Weighted average discount rate for operating leases	3.70%
Weighted average discount rate for finance leases	3.80%
Operating Lease Expense [Abstract]
Operating lease cost	$ 10,439	$ 12,815
Variable lease cost	1,157	1,368
Short-term lease cost	30	339
Sublease income	0	(1,984)
Finance Lease Expense [Abstract]
Amortization of right-of-use assets	556	611
Interest on lease liabilities	66	88
Total lease expense	12,248	13,237
Supplemental Cash Flow Information Related to Leases [Abstract]
Operating cash outflow from operating leases	10,405	14,149
Operating cash outflow from finance leases	68	89
Financing cash outflow from finance leases	476	483
Right-of-use assets obtained in exchange for operating lease obligations	23,730	10,891
Right-of-use assets obtained in exchange for finance lease obligations	0	$ 49
Maturities of Operating Lease Liabilities [Abstract]
2022	28,595
2023	28,298
2024	21,657
2025	15,507
2026	8,559
Thereafter	49,766
Total	152,382
Less: Finance charges	19,577
Total principal liability	132,805
Maturities of Financing Lease Liabilities [Abstract]
2022	1,578
2023	2,032
2024	1,924
2025	1,361
2026	260
Thereafter	0
Total	7,155
Less: Finance charges	473
Total principal liability	6,682
Additional lease liabilities not yet commenced	$ 100

Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stockholders' Equity [Roll Forward]
Exercise of employee stock options (in shares)	0.4	0.3

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 38,716	$ 47,430
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment, net of taxes of $(7) and $(2) for the three months ended March 31, 2022 and 2021, respectively	(1,960)	(9,919)
Net unrealized gains/(losses) on foreign currency cash flow hedges, net of taxes of $(1,743) and $(839) for the three months ended March 31, 2022 and 2021, respectively	6,314	3,040
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $(4) and $(6) for the three months ended March 31, 2022 and 2021, respectively	14	21
Other comprehensive (loss) income, net of tax	4,368	(6,858)
Comprehensive income	$ 43,084	$ 40,572

- Definition

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

+ References

+ Details

Debt, Credit Agreement (Details) - USD ($) $ in Millions	3 Months Ended
Debt, Credit Agreement (Details) - USD ($) $ in Millions	Mar. 31, 2022	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

Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2022

Derivatives and Hedging Activities [Abstract]

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	March 31, 2022		December 31, 2021
Interest Rate Swap - Asset	Prepaid expenses and other	$	3,207	$	557
Interest Rate Swap - Asset	Other assets	$	11,457	$	6,033

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 (Loss) Recognized in OCI on Derivatives
	Three Months Ended
Derivatives in Cash flow	March 31,
Hedging Relationships:	2022		2021
Interest Rate Swaps	$	8,057	$	3,879

		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
		Three Months Ended
Derivatives in Cash flow	Income Statement	March 31,
Hedging Relationships:	Location	2022		2021
Interest Rate Swaps	Other income (expense), net	$	(18)	$	(27)

Fair Value and Equity Investments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value and Equity Investments [Abstract]

Assets (Liabilities) Measured at Fair Value on a Recurring Basis

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

	Fair Value at March 31, 2022
	Level 1		Level 2		Level 3			Total
Financial assets (liabilities):
Cash equivalents and current investments	$	57,647	$	—	$	—		$	57,647
Derivative financial instruments asset		—		14,664		—			14,664
Life insurance contracts		—		—		46,450			46,450
Contingent consideration		—		—		(10,226	)		(10,226	)
Total	$	57,647	$	14,664	$	36,224		$	108,535

	Fair Value at December 31, 2021
	Level 1		Level 2		Level 3			Total
Financial assets (liabilities):
Cash equivalents and current investments	$	66,477	$	—	$	—		$	66,477
Derivative financial instruments asset		—		6,590		—			6,590
Life insurance contracts		—		—		49,851			49,851
Contingent consideration		—		—		(10,341	)		(10,341	)
Total	$	66,477	$	6,590	$	39,510		$	112,577

Changes in Fair Value of Level 3 Life Insurance Contracts

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

	2022			2021
Beginning balance at January 1	$	49,851		$	45,453
Actual return on plan assets		(3,401	)		1,153
Purchase and issuances		—			7,016
Sales and settlements		—			(7,016	)
Transfers into Level 3		—			—
Ending balance at March 31	$	46,450		$	46,606

Changes in Fair Value of Level 3 Contingent Consideration

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

	2022			2021
Beginning balance at January 1	$	(10,341	)	$	(3,125	)
Additions from acquisitions		—			—
Changes in fair value of contingent consideration		115			(139	)
Ending balance at March 31	$	(10,226	)	$	(3,264	)

- 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