Segment Information

3 Months Ended

Mar. 31, 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.

Effective June 2023, the Company closed its Israel market. As a result the EMEA segment has been renamed Europe & Africa.

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)	2024		2023
Nu Skin
Americas	$	75,031	$	101,157
Mainland China		61,067		67,976
Southeast Asia/Pacific		60,065		67,810
Japan		44,236		52,606
Europe & Africa		42,273		47,444
South Korea		40,963		70,324
Hong Kong/Taiwan		30,466		34,548
Other		672		(115	)
Total Nu Skin		354,773		441,750
Rhyz Investments
Manufacturing (1)		50,302		35,767
Rhyz other		12,231		3,945
Total Rhyz Investments		62,533		39,712
Total	$	417,306	$	481,462

(1) The Rhyz Investments Manufacturing segment had $8.6 million and $11.8 million of intersegment revenue for the three-month period ended March 31, 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 March 31,
(U.S. dollars in thousands)	2024			2023
Nu Skin
Americas	$	14,976		$	16,250
Mainland China		12,253			13,612
Southeast Asia/Pacific		11,084			12,471
Japan		12,006			12,908
Europe & Africa		3,276			3,638
South Korea		12,183			23,575
Hong Kong/Taiwan		7,367			7,834
Nu Skin contribution		73,145			90,288
Rhyz Investments
Manufacturing		1,967			(1,373	)
Rhyz other		(5,942	)		(1,960	)
Total Rhyz Investments		(3,975	)		(3,333	)
Total segment contribution		69,170			86,955
Corporate and other		(60,348	)		(70,891	)
Operating income		8,822			16,064
Interest expense		7,325			4,888
Other income (expense), net		(396	)		3,412
Income before provision for income taxes	$	1,101		$	14,588

Depreciation and Amortization

	Three Months Ended March 31,
(U.S. dollars in thousands)	2024		2023
Nu Skin
Americas	$	105	$	66
Mainland China		2,774		2,775
Southeast Asia/Pacific		249		280
Japan		81		1,054
Europe & Africa		273		282
South Korea		245		453
Hong Kong/Taiwan		579		453
Total Nu Skin		4,306		5,363
Rhyz Investments
Manufacturing		3,335		3,424
Rhyz other		1,886		592
Total Rhyz Investments		5,221		4,016
Corporate and other		8,910		7,604
Total	$	18,437	$	16,983

Capital Expenditures

	Three Months Ended March 31,
(U.S. dollars in thousands)	2024		2023
Nu Skin
Americas	$	21	$	100
Mainland China		2,689		4,035
Southeast Asia/Pacific		9		64
Japan		—		5
Europe & Africa		165		119
South Korea		22		154
Hong Kong/Taiwan		198		260
Total Nu Skin		3,104		4,737
Rhyz Investments
Manufacturing		1,349		1,481
Rhyz other		635		—
Total Rhyz Investments		1,984		1,481
Corporate and other		7,193		5,269
Total	$	12,281	$	11,487