6. SEGMENT INFORMATION

The Company's operating segments are based on geographic regions that generate revenue and hold its long-lived assets. The Company sells and distributes its products through a global network of customers and sales leaders in approximately 50 markets. The Company has divided these markets into seven operating segments, which are the Company's reportable segments: Mainland China, Hong Kong/Taiwan, South Korea, Japan, Southeast Asia, Americas/Pacific and EMEA. The reportable segments generate revenue from the sale of personal care products and nutritional supplements under the Nu Skin and Pharmanex brands, have similar business characteristics and align with how the CODM function began assessing performance and allocating resources in the first quarter of 2017. The Other category includes the manufacturing and product-packaging companies that the Company acquired during the first quarter of 2018, as well as the Company's indoor growing technology initiative.

Segment information for Q1 2017 has been recast to reflect the move of the Pacific components from the "South Asia/Pacific" operating segment to the "Americas/Pacific" operating segment. Consolidated financial information is not affected.

Profitability by segment as reported 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, 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 1 – The Company. 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)	2018		2017

Mainland China	$	197,531	$	150,004
Americas/Pacific		92,289		71,425
South Korea		88,930		82,471
Southeast Asia		70,860		63,025
Japan		63,224		61,156
EMEA		44,981		34,064
Hong Kong/Taiwan		40,992		35,948
Other		17,412		1,006
Total	$	616,219	$	499,099

Segment Contribution

	Three Months Ended March 31,
(U.S. dollars in thousands)	2018			2017

Mainland China	$	44,817		$	35,427
Americas/Pacific		9,172			11,059
South Korea		26,201			24,512
Southeast Asia		16,402			13,017
Japan		13,238			12,426
EMEA		4,754			1,791
Hong Kong/Taiwan		7,846			5,083
Total segment contribution		122,430			103,315
Corporate and other		(63,440	)		(57,053	)
Operating income		58,990			46,262
Other income (expense)		1,207			(4,567	)
Income before provision for income taxes	$	60,197		$	41,695

Depreciation and Amortization

	Three Months Ended March 31,
(U.S. dollars in thousands)	2018		2017

Mainland China	$	3,487	$	3,971
Americas/Pacific		214		566
South Korea		1,667		1,632
Southeast Asia		559		527
Japan		915		880
EMEA		176		272
Hong Kong/Taiwan		323		302
Other		11,566		9,475
Total	$	18,907	$	17,625

Capital Expenditures

	Three Months Ended March 31,
(U.S. dollars in thousands)	2018		2017

Mainland China	$	1,869	$	903
Americas/Pacific		189		234
South Korea		—		448
Southeast Asia		51		200
Japan		311		76
EMEA		35		193
Hong Kong/Taiwan		482		606
Other		9,715		13,268
Total	$	12,652	$	15,928

Revenue by Major Market

A major market is defined as one with total revenue greater than 10% of consolidated total revenue. Based on this criteria, the Company has identified three major markets: Mainland China, South Korea and Japan. There are approximately 50 other markets, each of which individually is less than 10%. No single customer accounted for 10% or more of net sales for the periods presented. Sales are recorded in the jurisdiction in which the transactions occurred.

Revenue by Product Line

	Three Months Ended March 31,
(U.S. dollars in thousands)	2018		2017

Nu Skin	$	386,450	$	301,873
Pharmanex		212,899		196,103
Other		16,870		1,123
Total	$	616,219	$	499,099

Long-Lived Assets by Major Market

A major market is defined as a market with long-lived assets greater than 10% of consolidated long-lived assets and also includes the Company's country of domicile (the U.S.). Long-lived assets in Mainland China consist primarily of property, plant and equipment related to manufacturing, distribution facilities and the Mainland China headquarters. Long-lived assets in the U.S. consist primarily of property, plant and equipment, including the Company's corporate offices and distribution facilities. Long-lived assets by major markets are set forth below for the periods ended March 31, 2018 and December 31, 2017 (U.S. dollars in thousands):

	March 31, 2018		December 31, 2017

United States	$	348,173	$	302,884
Mainland China		96,914		97,046
South Korea		40,804		42,211
Japan		9,305		9,342
All others		13,280		13,104
Total	$	508,476	$	464,587