SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2013

SEGMENT INFORMATION [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 twenty-four 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 associates and distributes its products through similar distribution channels in each country. No single associate has ever accounted for more than 10% of the Company’s consolidated net sales.

The Company operates facilities in eleven countries and sells product in twenty-four 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, and Ukraine. Each facility services different geographic areas. We currently sell our products in three regions: (i) North America (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, Sweden, Ukraine, and the United Kingdom); (iii) Asia/Pacific (Australia, Hong Kong, Japan, New Zealand, the Republic of Korea, Singapore, and Taiwan). In December 2012, the Company commenced the shipment of its products to Hong Kong and officially launched Hong Kong operations in April 2013. In November 2012, the Company commenced the shipment of its products to Ukraine and officially launched Ukrainian operations in July 2013. The Switzerland office was created to manage certain day-to-day business needs of non-North American markets.

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

	Three months								Nine months
Region	2013				2012				2013				2012
North America	$	18.7	42.2	%	$	20.7	48.1	%	$	60.5	46.2	%	$	66.0	50.3	%
Asia/Pacific		22.0	49.5	%		17.8	41.4	%		59.7	45.6	%		53.0	40.4	%
EMEA		3.7	8.3	%		4.5	10.5	%		10.7	8.2	%		12.1	9.3	%
Totals	$	44.4	100.0	%	$	43.0	100.0	%	$	130.9	100.0	%	$	131.1	100.0	%

	Three months				Nine months
	2013		2012		2013		2012
Consolidated product sales	$	31.7	$	38.3	$	108.0	$	117.1
Consolidated pack sales		10.9		3.0		17.1		9.1
Consolidated other, including freight		1.8		1.7		5.8		4.9
Consolidated total net sales	$	44.4	$	43.0	$	130.9	$	131.1

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

Region	September 30, 2013		December 31, 2012
North America	$	2.7	$	3.8
Asia/Pacific		0.5		0.7
EMEA		0.4		0.3
Total	$	3.6	$	4.8

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

Region	September 30, 2013		December 31, 2012
North America	$	8.2	$	9.5
Asia/Pacific		4.5		4.2
EMEA		2.0		1.5
Total	$	14.7	$	15.2