SEGMENT INFORMATION

The Company's sole reporting segment is one where we sell proprietary nutritional supplements, skin care and anti-aging products, and weight-management and fitness products through network marketing distribution channels operating in twenty-five countries. Each of the business units sells similar packs (with the exception of the United States, Canada, South Africa, and Japan where packs have been replaced with associate fees, see Note 1 Organization and Summary of Significant Accounting Policies) 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 who occupy positions in our network and distribute 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 also operates a non-direct selling business in mainland China. Our subsidiary in China, Meitai, is operating as a traditional retailer under a cross-border e-commerce model. Meitai cannot legally conduct a direct selling business in China unless it acquires a direct selling license in China.

The Company operates facilities in fourteen countries and sells product in twenty-six 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, Mexico, Hong Kong, Singapore, Colombia and China. Each facility services different geographic areas. We currently sell our products in three regions: (i) the Americas (the United States, Canada, Colombia and Mexico); (ii) EMEA (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); and (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong and China).

Consolidated net sales shipped to customers in these regions, along with pack and product information for the three and nine months ended September 30, were as follows (in millions, except percentages):



	Three Months								Nine Months
Region	2017				2016				2017				2016
Americas	$	14.1	33.6	%	$	19.0	39.5	%	$	49.1	37.7	%	$	54.0	39.2	%
Asia/Pacific	24.4		58.1	%	25.5		53.0	%	71.0		54.5	%	73.2		53.2	%
EMEA	3.5		8.3	%	3.6		7.5	%	10.2		7.8	%	10.5		7.6	%
Totals	$	42.0	100.0	%	$	48.1	100.0	%	$	130.3	100.0	%	$	137.7	100.0	%



	Three Months				Nine Months
	2017		2016		2017		2016
Consolidated product sales	$	39.1	$	39.8	$	113.2	$	113.6
Consolidated pack sales and associate fees^(a)	1.8		6.9		13.5		20.2
Consolidated other, including freight	1.1		1.4		3.6		3.9
Consolidated total net sales	$	42.0	$	48.1	$	130.3	$	137.7

^(a)Coincident with the introduction of the 2017 Compensation Plan, which was implemented on July 1, 2017, the Company collects associate fees, which relate to providing the associates with the right to earn commissions, benefits and incentives for an annual period. The Company collected associate fees within the United States, Canada, South Africa and Japan during the three months ended September 30, 2017. Prior to the change, associates purchased packs that were bundles of products within these respective geographic markets. Total associate fees since implementing the 2017 Compensation Plan represented an immaterial amount of total sales.

Long-lived assets, which include property and equipment and construction in process for the Company and its subsidiaries, as of September 30, 2017 and December 31, 2016, reside in the following regions, as follows (in millions):



Region	September 30, 2017		December 31, 2016
Americas	$	3.0	$	3.1
Asia/Pacific	1.4		1.4
EMEA	0.1		0.1
Total	$	4.5	$	4.6

Inventory balances, which consist of raw materials, work in process, finished goods, and promotional materials, as offset by the allowance for slow moving or obsolete inventories, reside in the following regions (in millions):



Region	September 30, 2017		December 31, 2016
Americas	$	4.1	$	4.8
Asia/Pacific	4.9		4.2
EMEA	1.6		3.0
Total	$	10.6	$	12.0