Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company sells products to a member network that operates in a seamless manner from market to market, except for the Chinese market where it sells to consumers through an e-commerce retail platform. Outside of the China e-commerce retail platform, the Company believes that all of its other operating segments have similar economic characteristics, except for its operations located within the Commonwealth of Independent States (“CIS”). In making this determination, the Company believes that its operating segments are similar in the nature of the products sold, the product acquisition process, the types of customers products are sold to, the methods used to distribute the products, and the nature of the regulatory environment. The Company’s engagement of a third-party service provider in the CIS market results in a different economic structure than its other markets.

However, there is no separate segment manager who is held accountable by the Company’s chief operating decision-makers, or anyone else, for operations, operating results and planning for the either Chinese or the CIS markets on a stand-alone basis, and neither market is material for the two years presented. As such, the Company believes that all operating segments should be aggregated into a single reportable segment for disclosure purposes.

The Company’s net sales by geographic area are as follows (in thousands):

	Year Ended December 31,
	2015		2014
Net sales from external customers:
United States	$	3,246	$	1,438
Canada	2,746		1,374
Hong Kong	245,737		111,028
China	4,425		1,538
Taiwan	5,965		4,628
South Korea	1,129		1,009
Commonwealth of Independent States (Russia, Kazakhstan and Ukraine)	1,139		3,113
Other foreign countries	473		462
Total net sales	$	264,860	$	124,590

The Company’s net sales by product and service are as follows (in thousands):

	December 31,
	2015			2014
Net sales by product and service:
Product sales	$	253,041		$	118,843
Enrollment package revenue, freight and other	17,623			7,927
Less: sales returns	(5,804		)	(2,180		)
Total net sales	$	264,860		$	124,590

The Company’s long-lived assets by geographic area are as follows (in thousands):

	December 31,
	2015		2014
Long-lived assets:
United States	$	283	$	31
Hong Kong	204		51
China	252		241
Other foreign countries	155		153
Total long-lived assets	$	894	$	476