SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

Notes To Financial Statements [Abstract]

Segment Information

NOTE 10: SEGMENT INFORMATION

The Company conducts its business as a single operating segment, consolidating all of its business units into a single reportable entity, as a seller of proprietary nutritional supplements, topical and skin care products, and weight-management products through its network marketing distribution channels operating in seventeen countries. Each of the Company’s business units sells similar packs and products and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Company’s management reviews its financial information by country and focuses its internal reporting and analysis of revenues by packs and product sales. The Company sells its products through its independent associates and distributes its products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Company’s consolidated net sales.

The Company operates facilities in ten countries and sells product in twenty-one countries around the world. These facilities are located in the United States, Canada, Switzerland, Australia, the United Kingdom, Japan, the Republic of Korea (South Korea), Taiwan, South Africa, and Mexico. Each facility services different geographic areas. The Switzerland office was created to manage certain day-to-day business needs of non-North American markets.

By country of operation, consolidated net sales shipped to customers in these locations, along with pack and product information for the three and six months ended June 30, are as follows (in millions, except percentages):

	Three months(1)									Six months(1)
Country	2011					2010				2011				2010
United States	$	21.3	41.4	%	$	26.0	45.1	%	$	43.7	42.7	%	$		53.8	45.5	%
Japan		7.7	15.0	%		8.2	14.2	%		15.2	14.9	%			16.9	14.3	%
Republic of Korea		6.2	12.1	%		5.7	9.9	%		11.4	11.1	%			11.1	9.4	%
Australia		4.5	8.8	%		4.8	8.3	%		9.0	8.8	%			10.1	8.5	%
Canada		4.3	8.3	%		5.0	8.7	%		8.2	8.0	%			9.4	7.9	%
South Africa		2.2	4.3	%		2.9	5.0	%		4.3	4.2	%			6.1	5.2	%
Taiwan		1.0	1.9	%		1.4	2.4	%		2.3	2.2	%			3.6	3.0	%
Singapore		0.8	1.6	%		0.4	0.7	%		1.4	1.4	%			1.0	0.8	%
New Zealand		0.7	1.3	%		0.9	1.7	%		1.2	1.2	%			1.8	1.5	%
Mexico(2)		0.6	1.2	%		—	—			1.3	1.3	%			—	—
Germany		0.5	1.0	%		0.6	1.0	%		1.0	1.0	%			1.2	1.0	%
United Kingdom		0.5	0.9	%		0.6	1.0	%		0.8	0.8	%			1.2	1.0	%
Norway		0.4	0.8	%		0.4	0.7	%		0.9	0.9	%			0.7	0.6	%
The Netherlands		0.3	0.6	%		0.2	0.4	%		0.6	0.6	%			0.3	0.3	%
Austria		0.2	0.4	%		0.3	0.5	%		0.5	0.4	%			0.6	0.5	%
Denmark		0.1	0.2	%		0.1	0.2	%		0.2	0.2	%			0.3	0.3	%
Sweden		0.1	0.2	%		0.1	0.2	%		0.3	0.3	%			0.2	0.2	%
Totals	$	51.4	100	%	$	57.6	100	%	$	102.3	100	%	$		118.3	100	%

________________________

(1)   The Company began operations in the Czech Republic, Estonia, Finland, and the Republic of Ireland in June 2011. Their combined consolidated sales for the three and six months ended June 30, 2011 were less than $0.1 million.

(2)   The Company began operations in Mexico in January 2011.

	Three months					Six months
	2011		2010			2011		2010
Consolidated product sales	$	43.4	$	46.9	$	86.6	$	95.4
Consolidated pack sales		5.9		8.4		11.4		18.1
Consolidated other, including freight		2.1		2.3		4.3		4.8
Consolidated total net sales	$	51.4	$	57.6	$	102.3	$	118.3

Long-lived assets, which include property and equipment and construction in progress for the Company and its subsidiaries, reside in the following countries (in millions):

Country	June 30, 2011		December 31, 2010
Australia	$	0.2	$	0.3
Canada		0.1		0.1
Japan		0.1		0.2
Mexico		0.6		0.3
Republic of Korea		0.7		0.8
South Africa		0.1		0.1
Switzerland		0.3		0.4
Taiwan		0.1		0.1
United Kingdom		0.1		0.1
United States		11.9		16.6
Total	$	14.2	$	19.0

Inventory balances by country, which consist of raw materials, work in progress, and finished goods, including promotional materials, and offset by obsolete inventories, were as follows (in millions):

Country	June 30, 2011		December 31, 2010
Australia	$	1.3	$	1.5
Canada		1.0		1.5
Japan		1.1		1.6
Mexico		0.6		0.8
Republic of Korea		0.7		0.8
South Africa		0.9		1.3
Switzerland		0.4		0.3
Taiwan		0.3		0.4
United Kingdom		1.1		1.1
United States		11.4		14.8
Total	$	18.8	$	24.1