Segment Information

12 Months Ended

Dec. 31, 2016

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,
	2016		2015		2014
Net sales from external customers:
United States	$	4,100	$	3,246	$	1,438
Canada	1,809		2,746		1,374
Hong Kong	263,482		245,737		111,028
China	9,086		4,425		1,538
Taiwan	6,213		5,965		4,628
South Korea	691		1,129		1,009
Commonwealth of Independent States (Russia, Kazakhstan and Ukraine)1	858		1,139		3,113
Europe	1,234		382		373
Other foreign countries	255		91		89
Total net sales	$	287,728	$	264,860	$	124,590

¹ The Company discontinued its Ukraine operations during the second quarter of 2015.

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

	Year Ended December 31,
	2016			2015			2014
Net sales by product and service:
Product sales	$	269,731		$	253,041		$	118,843
Enrollment package revenue, freight and other	25,616			17,623			7,927
Less: sales returns	(7,619		)	(5,804		)	(2,180		)
Total net sales	$	287,728		$	264,860		$	124,590

Due to system constraints, it is impracticable for the Company to separately disclose sales by product category for the years presented.

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

	December 31,
	2016		2015
Long-lived assets:
United States	$	763	$	283
Hong Kong	140		204
China	199		252
Other foreign countries	286		155
Total long-lived assets	$	1,388	$	894