OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION

OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION

We have four business segments (Asia, Europe, North America, and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy® WorldWide brands. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities, independent of the Company, that we have granted distribution rights for the relevant market.

Reportable business segment information for the years ended December 31, 2022 and 2021 is as follows (dollar amounts in thousands):

Year Ended December 31,	2022		2021
Net sales:
Asia	$	186,292	$	176,860
Europe	78,991		91,539
North America	133,214		149,746
Latin America and Other	23,413		25,939
Total net sales	421,910		444,084
Contribution margin (1):
Asia	85,876		89,939
Europe	25,911		30,959
North America	47,615		56,922
Latin America and Other	9,981		10,953
Total contribution margin	169,383		188,773
Selling, general and administrative (2)	153,125		154,103
Operating income	16,258		34,670
Other loss, net	(1,043)		(2,848)
Income before provision for income taxes	$	15,215	$	31,822

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(1) Contribution margin consists of net sales less cost of sales and volume incentives expense.

(2) Service fees in China totaled $14.9 million and $18.7 million for the years ended December 31, 2022 and 2021, respectively. These service fees are included in our selling, general and administrative expenses.

Year Ended December 31,	2022		2021
Capital expenditures:
Asia	$	1,830	$	1,081
Europe	57		142
North America	5,573		5,371
Latin America and Other	168		72
Total capital expenditures	$	7,628	$	6,666
Depreciation and amortization:
Asia	$	1,856	$	1,825
Europe	123		64
North America	8,863		9,206
Latin America and Other	183		67
Total depreciation and amortization	$	11,025	$	11,162

As of December 31,	2022		2021
Assets:
Asia	$	95,362	$	104,659
Europe	15,773		15,486
North America	112,319		131,207
Latin America and Other	6,324		7,522
Total assets	$	229,778	$	258,874

From an individual country/region perspective, only the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the years ended December 31, 2022 and 2021 as follows (dollar amounts in thousands):

Year Ended December 31,	2022		2021
Net sales:
United States	$	122,863	$	138,174
South Korea	54,935		61,107
Taiwan	48,474		23,198
Other	195,638		221,605
Total net sales	$	421,910	$	444,084

Revenue generated by each of our product lines is set forth below (dollars in thousands):

Year Ended December 31,	2022		2021
Asia:
General health	$	53,603	$	50,044
Immunity	3,283		1,599
Cardiovascular	55,312		48,019
Digestive	37,457		36,069
Personal care	9,205		17,765
Weight management	27,432		23,364
	186,292		176,860
Europe:
General health	$	34,438	$	40,045
Immunity	8,489		8,957
Cardiovascular	9,380		11,787
Digestive	20,024		23,142
Personal care	4,854		5,149
Weight management	1,806		2,459
	78,991		91,539
North America:
General health	$	64,488	$	65,379
Immunity	14,966		19,563
Cardiovascular	14,383		16,219
Digestive	28,490		37,130
Personal care	6,212		7,579
Weight management	4,675		3,876
	133,214		149,746
Latin America and Other:
General health	$	6,728	$	7,532
Immunity	2,901		2,667
Cardiovascular	1,662		2,001
Digestive	10,040		10,291
Personal care	1,399		2,573
Weight management	683		875
	23,413		25,939
Total net sales	$	421,910	$	444,084

From an individual country perspective, only the United States comprise 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):

As of December 31	2022		2021
Property, plant and equipment, net
United States	$	42,389	$	46,595
Other	3,773		4,262
Total property, plant and equipment	$	46,162	$	50,857