SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

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-four countries. Each of the business units receives associate fees or sells similar packs (in the case of Mexico and South Korea, where packs have not been replaced with associate fees, see Note 1, Organization and Summary of Significant Accounting Policies) 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 pack sales and associate fees 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 eleven countries and sells product in twenty-five countries around the world. These facilities are located in the United States, Canada, Australia, the Netherlands, Japan, the Republic of Korea (South Korea), Taiwan, South Africa, Mexico, Hong Kong and China. Each facility services different geographic areas. We currently sell our products in three regions: (i) the Americas (the United States, Canada 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 or associate fee and product information for the three and nine months ended September 30, were as follows (in millions, except percentages):


	Three Months Ended September 30,								Nine Months Ended September 30,
Region	2020				2019				2020				2019
Americas	$	11.4	30.0	%	$	11.8	29.7	%	$	34.1	30.4	%	$	36.1	30.5	%
Asia/Pacific	23.0		60.5	%	24.3		61.2	%	67.9		60.5	%	71.9		60.8	%
EMEA	3.6		9.5	%	3.6		9.1	%	10.2		9.1	%	10.3		8.7	%
Totals	$	38.0	100.0	%	$	39.7	100.0	%	$	112.2	100.0	%	$	118.3	100.0	%


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Consolidated product sales	$	35.7	$	38.7	$	108.7	$	115.8
Consolidated pack sales and associate fees	2.0		0.7		2.8		1.8
Consolidated other	0.3		0.3		0.7		0.7
Consolidated total net sales	$	38.0	$	39.7	$	112.2	$	118.3

Long-lived assets, which include property and equipment and construction in process for the Company and its subsidiaries, as of September 30, 2020 and December 31, 2019, reside in the following regions, as follows (in millions):


Region	September 30, 2020		December 31, 2019
Americas	$	4.5	$	5.1
Asia/Pacific	0.9		1.0
EMEA	—		—
Total	$	5.4	$	6.1

Inventory balances, which consist of raw materials, 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, 2020		December 31, 2019
Americas	$	6.1	$	5.4
Asia/Pacific	5.9		3.8
EMEA	1.5		1.0
Total	$	13.5	$	10.2