v3.24.2.u1
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Information [Abstract]  
Segment Information
10.
Segment Information

The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Americas, Mainland China, Southeast Asia/Pacific, South Korea, Japan, Europe & Africa, 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 business 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.

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
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  2024     2023     2024     2023  
Nu Skin
                        
Americas
   $ 84,935     $ 107,641     $ 159,966     $ 208,798  
Mainland China
     64,710       88,362       125,777       156,338  
Southeast Asia/Pacific
    
60,341
      
63,764
      
120,406
      
131,574
  
       Japan     42,587       50,862       86,823       103,468  
South Korea
     44,119       53,686       85,082       124,010  
Europe & Africa
     40,714       46,968       82,987       94,412  
       Hong Kong/Taiwan     33,846       37,108       64,312       71,656  
       Nu Skin other     (4 )     597
       668
       482
  
Total Nu Skin
    371,248       448,988       726,021       890,738  
Rhyz Investments
                               
       Manufacturing (1)     51,473       45,551       101,775       81,318  
       Rhyz other     16,360
       5,718
       28,591
       9,663
  
Total Rhyz Investments
    67,833       51,269       130,366       90,981  
Total
  
$
439,081
    
$
500,257
    
$
856,387
    
$
981,719
  

(1)
The Manufacturing segment had $9.0 million and $16.3 million of intersegment revenue for the three months ended June 30, 2024 and 2023, respectively, and $17.6 million and $28.1 million for the six months ended June 30, 2024 and 2023, 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
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2024
    
2023
    
2024
    
2023
  
Nu Skin
                        
Americas
   $ 17,379     $ 28,853     $ 32,355     $ 45,103  
Mainland China
    
13,373
      
19,357
      
25,626
      
32,969
  
Southeast Asia/Pacific
     10,706       11,396       21,790       23,867  
Japan 
     11,704       12,508       23,710       25,416  
South Korea
    
13,323
      
17,391
      
25,506
      
40,966
  
Europe & Africa
     5,405       4,945       8,681       8,583  
Hong Kong/Taiwan
    
8,414
      
10,148
      
15,781
      
17,982
  
Nu Skin contribution
    
80,304
      
104,598
      
153,449
      
194,886
  
Rhyz Investments
                                
Manufacturing
    
1,757
      
4,218
      
3,724
      
2,845
  
Rhyz other
    
(5,473
)
    
(3,392
)
    
(11,415
)
    
(5,352
)
Rhyz Investments contribution
    
(3,716
)
    
826
      
(7,691
)
    
(2,507
)
Total segment contribution
    
76,588
      
105,424
      
145,758
      
192,379
  
Corporate and other
    
(202,145
)
    
(62,918
)
    
(262,493
)
    
(133,809
)
Operating income
    
(125,557
)
    
42,506
      
(116,735
)
    
58,570
  
Interest expense
   
6,720
      
5,769
      
14,045
      
10,657
  
Other income, net
     629       376       233       3,788  
Income (loss) before provision for income taxes
  
$
(131,648
)
  
$
37,113
    
$
(130,547
)
  
$
51,701
  

Depreciation and Amortization

 
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2024
    
2023
    
2024
    
2023
  
Nu Skin
                        
Americas
   $ 93     $ 126     $ 198     $ 192  
Mainland China
     2,726       2,610       5,500       5,385  
Southeast Asia/Pacific
    
174
      
276
      
423
      
556
  
Japan
    
71
      
94
      
152
      
1,148
  
South Korea
     261       299       506       752  
Europe & Africa
    
274
      
257
       547      
539
  
Hong Kong/Taiwan
    
318
      
822
      
897
      
1,275
  
Total Nu Skin
    
3,917
      
4,484
      
8,223
      
9,847
  
Rhyz Investments
                                
Manufacturing
    
3,432
      
3,329
      
6,767
      
6,753
  
Rhyz other
    
1,966
      
1,176
      
3,852
      
1,768
  
Total Rhyz Investments
    
5,398
      
4,505
      
10,619
      
8,521
  
Corporate and other
    
8,288
      
8,175
      
17,198
      
15,779
  
Total
  
$
17,603
    
$
17,164
    
$
36,040
    
$
34,147
  

Capital Expenditures

 
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(U.S. dollars in thousands)
  
2024
    
2023
    
2024
    
2023
  
Nu Skin
                        
Americas
   $ 12     $ 91     $ 33     $ 191  
Mainland China
     1,578       4,734       4,267       8,769  
Southeast Asia/Pacific
    
9
      
127
      
18
      
191
  
Japan
    
23
      
(2
)
     21       3  
South Korea
    
—
      
7
      
22
      
161
  
Europe & Africa
     124       157       289       276  
Hong Kong/Taiwan
    
38
      
348
      
236
      
608
  
Total Nu Skin
    
1,784
      
5,462
      
4,886
      
10,199
  
Rhyz Investments
                                
Manufacturing
    
1,115
      
4,216
      
2,464
      
5,697
  
Rhyz other
    
434
      
—
      
1,069
      
—
  
Total Rhyz Investments
    
1,549
      
4,216
      
3,533
      
5,697
  
Corporate and other
    
4,790
      
5,034
      
11,985
      
10,303
  
Total
  
$
8,123
    
$
14,712
    
$
20,404
    
$
26,199