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Property and equipment, net

799,237

777,789

464,535

464,587

Other intangible assets, net

196,573

114,954

^[1]

89,989

67,647

Other assets

144,112

164,895

Total assets

1,694,446

1,589,872

Current liabilities

Accounts payable

47,617

50,341

Accrued expenses

322,583

319,189

Current portion of long-term debt

69,455

77,840

Commitments and contingencies (Notes 7 and 19)

439,655

447,370

Long-term debt

361,008

310,790

Other liabilities

111,916

127,116

Total liabilities

912,579

885,276

Stockholders' equity

Class A common stock - 500 million shares authorized, $.001 par value, 90.6 million shares issued

Additional paid-in capital

552,564

466,349

Treasury stock, at cost - 35.2 million and 37.9 million shares

(1,326,605)

(1,304,694)

Accumulated other comprehensive loss

(79,934)

(66,318)

Retained earnings

1,635,751

1,609,168

Total stockholders' equity

781,867

704,596

Total liabilities and stockholders' equity

$ 1,694,446

$ 1,589,872

[1]	Goodwill was recast to reflect current period presentation by geographic region at December 31, 2018.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2018	Dec. 31, 2017
Stockholders' equity:
Common stock, shares authorized (in shares)	500.0	500.0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued (in shares)	90.6	90.6
Treasury stock (in shares)	35.2	37.9

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Income [Abstract]
Revenue	$ 2,679,008	$ 2,279,099	$ 2,207,797
Cost of sales	634,140	502,078	500,457
Gross profit	2,044,868	1,777,021	1,707,340
Operating expenses:
Selling expenses	1,071,020	938,024	922,083
General and administrative expenses	662,302	564,514	554,153
Restructuring and impairment expenses	70,686	0	0
Total operating expenses	1,804,008	1,502,538	1,476,236
Operating income	240,860	274,483	231,104
Other income (expense), net (Note 20)	(21,194)	(8,916)	(18,265)
Income before provision for income taxes	219,666	265,567	212,839
Provision for income taxes	97,779	136,130	69,753
Net income	$ 121,887	$ 129,437	$ 143,086
Net income per share:
Basic (in dollars per share)	$ 2.21	$ 2.45	$ 2.58
Diluted (in dollars per share)	$ 2.16	$ 2.36	$ 2.55
Weighted-average common shares outstanding:
Basic (in shares)	55,170	52,806	55,412
Diluted (in shares)	56,476	54,852	56,097

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 121,887	$ 129,437	$ 143,086
Other comprehensive income:
Foreign currency translation adjustment, net of taxes of $2,275, $(8,056), and $2,483 respectively	(13,474)	18,264	(13,127)
Net unrealized gains/(losses) on foreign currency cash flow hedges, net of taxes of $18, $84 and $784, respectively	(160)	(152)	(1,423)
Less: Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $(2), $169, and $(935), respectively	18	(308)	1,697
Total other comprehensive income (loss)	(13,616)	17,804	(12,853)
Comprehensive income	$ 108,271	$ 147,241	$ 130,233

Summary of Significant Accounting Policies [Abstract]

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other comprehensive income:
Foreign currency translation adjustment, tax	$ 2,275	$ (8,056)	$ 2,483
Net unrealized gains/(losses) on foreign currency cash flow hedges, tax	18	84	784
Reclassification adjustment for realized losses/(gains) in current earnings, tax	$ (2)	$ 169	$ (935)

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member] Class A [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Total
Balance at beginning of period at Dec. 31, 2015	$ 91	$ 419,921	$ (1,017,063)	$ (71,269)	$ 1,493,941	$ 825,621
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	143,086	143,086
Other comprehensive income, net of tax	0	0	0	(12,853)	0	(12,853)
Repurchase of Class A common stock (Note 8)	0	0	(247,208)	0	0	(247,208)
Exercise of employee stock options/vesting of stock awards	0	159	14,148	0	0	14,307
Excess tax benefit from equity awards	0	3,840	0	0	0	3,840
Stock-based compensation	0	8,890	0	0	0	8,890
Equity component of convertible note issuance (net)	0	6,825	0	0	0	6,825
Cash dividends	0	0	0	0	(78,438)	(78,438)
Balance at end of period at Dec. 31, 2016	91	439,635	(1,250,123)	(84,122)	1,558,589	664,070
Stockholders' Equity [Roll Forward]
Cumulative effect adjustment from adoption of ASU \| ASU 2016-09 [Member]	0	2,800	0	0	(2,800)	0
Net income	0	0	0	0	129,437	129,437
Other comprehensive income, net of tax	0	0	0	17,804	0	17,804
Repurchase of Class A common stock (Note 8)	0	0	(71,731)	0	0	(71,731)
Exercise of employee stock options/vesting of stock awards	0	9,479	14,964	0	0	24,443
Stock-based compensation	0	19,314	0	0	0	19,314
Acquisition of noncontrolling interests	0	(11,067)	0	0	0	(11,067)
Acquisitions	0	6,188	2,196	0	0	8,384
Cash dividends	0	0	0	0	(76,058)	(76,058)
Balance at end of period at Dec. 31, 2017	91	466,349	(1,304,694)	(66,318)	1,609,168	704,596
Stockholders' Equity [Roll Forward]
Cumulative effect adjustment from adoption of ASU \| ASC 606 [Member]	0	0	0	0	(13,042)	(13,042)
Cumulative effect adjustment from adoption of ASU \| ASU 2018-02 [Member]	0	0	0	0	(1,681)	(1,681)
Net income	0	0	0	0	121,887	121,887
Other comprehensive income, net of tax	0	0	0	(13,616)	0	(13,616)
Repurchase of Class A common stock (Note 8)	0	0	(69,565)	0	0	(69,565)
Exercise of employee stock options/vesting of stock awards	0	2,804	7,973	0	0	10,777
Stock-based compensation	0	26,609	0	0	0	26,609
Acquisitions	0	80,064	19,794	0	0	99,858
Equity component of convertible note settlement (net)	0	(23,262)	19,887	0	0	(3,375)
Cash dividends	0	0	0	0	(80,581)	(80,581)
Balance at end of period at Dec. 31, 2018	$ 91	$ 552,564	$ (1,326,605)	$ (79,934)	$ 1,635,751	$ 781,867

Consolidated Statements of Stockholder's Equity (Parenthetical) - shares shares in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Stockholders' Equity [Roll Forward]
Exercise of employee stock options (in shares)	0.5	1.2
Acquisitions (in shares)	1.5	0.2

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 121,887	$ 129,437	$ 143,086
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	83,003	71,564	72,397
Impairment of fixed assets	48,551	0	0
Equity method earnings	(456)	(1,048)	0
Gain on step acquisition	(13,644)	0	0
Loss on extinguishment of debt	7,220	0	0
Japan customs expense	0	0	31,355
Foreign currency (gains)/losses	16,381	(3,014)	8,863
Stock-based compensation	26,609	19,314	8,890
Deferred taxes	(14,929)	39,213	(17,652)
Changes in operating assets and liabilities:
Accounts receivable	(10,453)	(103)	3,357
Inventories, net	(33,371)	7,537	9,801
Prepaid expenses and other	(1,536)	14,250	37,789
Other assets	887	(11,658)	(3,969)
Accounts payable	(9,164)	6,834	13,443
Accrued expenses	(7,433)	22,490	(33,624)
Other liabilities	(10,814)	7,739	1,527
Net cash provided by (used in) operating activities	202,738	302,555	275,263
Cash flows from investing activities:
Purchases of property and equipment	(70,371)	(60,156)	(50,221)
Proceeds on investment sales	11,536	11,269	18,132
Purchases of investments	(11,420)	(11,332)	(17,080)
Acquisitions and investments in equity investees	(38,506)	(31,745)	(8,692)
Net cash used in investing activities	(108,761)	(91,964)	(57,861)
Cash flows from financing activities:
Payment of cash dividends	(80,581)	(76,058)	(78,438)
Repurchase of shares of common stock	(69,565)	(71,731)	(247,208)
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards	10,777	24,443	14,307
Income tax benefit of equity awards	0	0	5,651
Payments on long-term debt	(552,500)	(103,226)	(56,151)
Payment of debt issuance costs	(7,243)	0	(6,596)
Proceeds from long-term debt	582,398	67,000	233,721
Net cash used in financing activities	(116,714)	(159,572)	(134,714)
Effect of exchange rate changes on cash	(16,751)	18,134	(14,796)
Net increase (decrease) in cash and cash equivalents	(39,488)	69,153	67,892
Cash and cash equivalents, beginning of period	426,399	357,246	289,354
Cash and cash equivalents, end of period	$ 386,911	$ 426,399	$ 357,246

The Company

12 Months Ended

Dec. 31, 2018

The Company [Abstract]

The Company

1.	The Company

Nu Skin Enterprises, Inc. (the “Company”) is a leading, global direct selling company that develops and distributes premium-quality, innovative personal care products and nutritional supplements that are sold worldwide under the Nu Skin and Pharmanex brands and a small number of other products and services. Over the last several years, the Company has introduced new Pharmanex nutritional supplements and Nu Skin personal care products under its ageLOC anti-aging brand. The Company reports revenue from seven segments: Mainland China; South Korea; Southeast Asia, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam; Americas/Pacific, which includes Australia, Canada, Latin America, New Caledonia, New Zealand and the United States; Japan; Hong Kong/Taiwan, which also includes Macau; and Europe, Middle East and Africa (“EMEA”), which includes several markets in Europe as well as Israel, Russia and South Africa (the Company's subsidiaries operating in these markets in each segment are collectively referred to as the “Subsidiaries”).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Consolidation

The consolidated financial statements include the accounts of the Company and the Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Use of estimates

The preparation of these financial statements, in conformity with accounting principles generally accepted in the United States of America, required management to make estimates and assumptions that affected the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

Cash and cash equivalents

Cash equivalents are short-term, highly liquid instruments with original maturities of 90 days or less.

Inventories

Inventories consist primarily of merchandise purchased for resale and are stated at the lower of standard cost or net realizable value, using a standard cost method which approximates the first-in, first-out method. The Company had reserves of its inventory carrying value totaling $14.1 million and $8.1 million as of December 31, 2018 and 2017, respectively.

Inventories consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Raw materials	$	91,610	$	87,683
Finished goods		204,211		165,771
	$	295,821	$	253,454

Reserves of inventories consist of the following (U.S. dollars in thousands):

	2018			2017			2016

Beginning balance	$	8,081		$	7,995		$	20,744
Additions		23,940			16,382			24,906
Write-offs		(17,872	)		(16,296	)		(37,655	)
Ending balance	$	14,149		$	8,081		$	7,995

Prepaid expense and other

Prepaid expenses and other consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Deferred charges	$	6,703	$	4,256
Prepaid inventory and import costs		2,808		9,397
Prepaid rent, insurance and other occupancy costs		8,799		14,558
Prepaid promotion and event cost		6,013		3,581
Prepaid other taxes		6,268		5,559
Forward contracts	─			158
Prepaid software license		4,006		255
Deposits		1,470		1,147
Other		15,810		13,982
	$	51,877	$	52,893

Property and equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the following estimated useful lives:

Buildings	39 years
Furniture and fixtures	5 - 7 years
Computers and equipment	3 - 5 years
Leasehold improvements	Shorter of estimated useful life or lease term
Scanners	3 years
Vehicles	3 - 5 years

Expenditures for maintenance and repairs are charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of income. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value.

Goodwill and other intangible assets

Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized, but are assessed for impairment annually on June 30. In addition, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Guidance under Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other, requires an entity to test goodwill for impairment on at least an annual basis. The Company had the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If under the quantitative assessment the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, must be measured. The Company elected to perform the qualitative assessment during fiscal 2018 and determined that it is not more likely than not the carrying value exceeds the fair value of the reporting units. In fiscal 2017 and 2016, a quantitative assessment was performed. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives using the straight-line method and reviewed for impairment whenever events or circumstances warrant such a review.

No impairment charges were recorded for goodwill or intangibles during the periods presented.

Other assets

Other assets consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Deferred taxes	$	37,332	$	33,785
Deposits for noncancelable operating leases		41,986		43,375
Cash surrender value for life insurance policies		35,590		37,737
Other		29,204		49,998
	$	144,112	$	164,895

Accrued expenses

Accrued expenses consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Accrued sales force commissions and other payments	$	128,022	$	151,549
Accrued income taxes		6,674		13,075
Accrued other taxes		38,693		44,580
Accrued payroll and other employee expenses		68,155		38,167
Accrued payable to vendors		34,539		29,874
Accrued royalties		3,899		2,623
Sales return reserve		3,577		4,523
Deferred revenue		20,104		12,669
Other		18,920		22,129
	$	322,583	$	319,189

Other liabilities

Other liabilities consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Deferred tax liabilities	$	18,236	$	36,718
Reserve for other tax liabilities		14,382		7,163
Liability for deferred compensation plan		36,398		43,248
Pension plan benefits reserve		3,023		6,359
Build to suit – financing obligation		9,332		10,290
Deferred rent and deferred tenant incentives		5,665		6,389
Asset retirement obligation		6,444		6,578
Other		18,436		10,371
	$	111,916	$	127,116

Revenue recognition

On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605.

In connection with the adoption of Topic 606, we used the following practical expedients offered as part of the adoption: sales commissions are generally expensed when incurred because the amortization period would have been one year or less, these costs are recorded within selling expenses; and the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

The Company recorded a net reduction to opening retained earnings of $13.0 million, net of tax, as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to our loyalty point program deferrals. The impact to revenues as a result of applying Topic 606 for the year ended December 31, 2018 was an increase of $1.1 million.

Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer, with revenue recognized at shipping point, the point in time the customer obtains control of the products. The Company recognizes revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. A reserve for product returns is accrued based on historical experience totaling $3.6 million and $4.5 million as of December 31, 2018 and 2017, respectively. During the years ended December 31, 2018, 2017 and 2016, the Company recorded sales returns of $52.0 million, $53.8 million and $61.2 million, respectively. The Company generally requires cash or credit card payment at the point of sale. Accounts receivable generally represents amounts due from credit card companies and are generally collected within a few days of the purchase. As such, the Company has determined that no allowance for doubtful accounts is necessary. The majority of the Company’s contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.

Contract Liabilities – Customer Loyalty Programs

Contract liabilities, recorded as deferred revenue within the accrued expenses line in the Condensed Consolidated Balance Sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products on an annual basis.

The Company recorded customer loyalty points under the cost provision method prior to the adoption of Topic 606. The loyalty point liability under the cost provision methodology was $1.9 million as of December 31, 2017. The Company recorded an additional liability of $13.0 million due to the cumulative impact of adopting Topic 606. The balance of deferred revenue related to contract liabilities was $13.8 million as of December 31, 2018, and $14.9 million as of the beginning period upon adoption of the Topic 606.

Disaggregation of Revenue

Please refer to Note 18 - Segment Information for revenue by segment and product line.

Arrangements with Multiple Performance Obligations

The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenues to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers for individual products sales to customers.

Shipping and handling costs

Shipping and handling costs are recorded as cost of sales and are expensed as incurred.

Advertising expenses

Advertising costs are expensed as incurred. Advertising expense incurred for the years ended December 31, 2018, 2017 and 2016 totaled $19.1 million, $15.6 million and $15.9 million, respectively.

Selling expenses

Selling expenses are the Company’s most significant expense and are classified as operating expenses. Selling expenses include distributor commissions as well as wages, benefits, bonuses and other labor and unemployment expenses the Company pays to its sales force in Mainland China. In each of the Company’s markets, except Mainland China, Sales Leaders can earn “multi-level” compensation under the Company’s global sales compensation plan, including commissions for product sales to their consumer groups as well as the product sales made through the sales network they have developed and trained. The Company does not pay commissions on sales materials.

Outside of Mainland China, the Company’s distributors may make profits by purchasing the products from the Company at a discount and selling them to consumers with a mark-up. The Company does not account for nor pay additional commissions on these mark-ups received by distributors. In many markets, the Company also allows individuals who are not members of its sales force, referred to as “preferred customers,” to buy products directly from the Company at a discount. The Company pays commissions on preferred customer purchases to the referring member of its sales force.

Research and development

Research and development costs are expensed as incurred and are included in general and administrative expenses in the accompanying consolidated statements of income and totaled $23.0 million, $22.0 million and $24.3 million in 2018, 2017 and 2016, respectively.

Deferred tax assets and liabilities

The Company accounts for income taxes in accordance with the Income Taxes Topic of the Financial Accounting Standards Codification. These standards establish financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized.

Uncertain tax positions

The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company is no longer subject to tax examinations from the IRS for all years for which tax returns have been filed before 2015. With a few exceptions, the Company is no longer subject to state and local income tax examination by tax authorities for the years before 2015. In 2009, the Company entered into a voluntary program with the IRS called Compliance Assurance Process (“CAP”). The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company has elected to participate in the CAP program for 2019 and may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. In major foreign jurisdictions, the Company is generally no longer subject to income tax examinations for years before 2012. However, statutes in certain markets may be as long as ten years for transfer pricing related issues. The Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable.

A reconciliation of the beginning and ending amount of unrecognized tax benefits included in other liabilities is as follows (U.S. dollars in thousands):

	2018			2017			2016

Gross balance at January 1	$	5,514		$	5,290		$	7,772
Increases related to prior year tax positions		5,161		─				185
Decreases related to prior year tax positions	─				(277	)	─
Increases related to current year tax positions		3,704			669			918
Settlements		(956	)		(159	)		(3,369	)
Decreases due to lapse of statutes of limitations		(1,483	)		(187	)		(252	)
Currency adjustments		(484	)		178			36
Gross balance at December 31	$	11,456		$	5,514		$	5,290

At December 31, 2018, the Company had $11.5 million in unrecognized tax benefits of which $11.4 million, if recognized, would affect the effective tax rate. In comparison, at December 31, 2017, the Company had $5.5 million in unrecognized tax benefits of which $5.2 million, if recognized, would affect the effective tax rate. The Company’s unrecognized tax benefits relate to multiple foreign and domestic jurisdictions. Due to potential increases in unrecognized tax benefits from the multiple jurisdictions in which the Company operates, as well as the expiration of various statutes of limitation, it is reasonably possible that the Company's gross unrecognized tax benefits, net of foreign currency adjustments, may increase within the next 12 months by a range of approximately $0.5 to $2.0 million.

During the years ended December 31, 2018, 2017 and 2016 the Company recognized $1.3 million, $0.7 million and $(0.8) million, respectively in interest and penalties expenses/(benefits). The Company had $2.9 million, $1.6 million and $0.9 million of accrued interest and penalties related to uncertain tax positions at December 31, 2018, 2017 and 2016, respectively. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense.

Net income per share

Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share data gives effect to all potentially dilutive common shares that were outstanding during the periods presented (Note 8).

Foreign currency translation

A significant portion of the Company’s business operations occur outside of the United States. The local currency of each of the Company’s Subsidiaries is considered its functional currency, except for the Company’s subsidiaries in Singapore and countries deemed highly inflationary where the U.S. dollar is used. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the consolidated balance sheets and transaction gains and losses are included in other income (expense) in the consolidated financial statements. Net of tax, the accumulated other comprehensive loss related to the foreign currency translation adjustments are $79.9 million (net of tax of $7.9 million), $66.4 million (net of tax of $5.8 million), and $84.7 million (net of tax of $13.4 million), at December 31, 2018, 2017 and 2016, respectively.

Classification of a highly inflationary economy

A market is considered to have a highly inflationary economy if it has a cumulative inflation rate of approximately 100% or more over a three-year period as well as other qualitative factors including historic inflation rate trends (increasing and decreasing), the capital intensiveness of the operation and other pertinent economic factors. The functional currency in highly inflationary economies is required to be the functional currency of the entity’s parent company, and transactions denominated in the local currency are remeasured to the functional currency. The remeasurement of local currency into U.S. dollars creates foreign currency transaction gains or losses, which the Company includes in its consolidated statement of income.

In the second quarter of 2018, published inflation indices indicated that the three-year cumulative inflation in Argentina exceeded 100 percent, and as of July 1, 2018, we elected to adopt highly inflationary accounting for our subsidiary in Argentina. Under highly inflationary accounting, Argentina’s functional currency became the U.S. dollar, and its income statement and balance sheet have been measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other income (expense), net and was not material. As of December 31, 2018, Argentina had a small net peso monetary position. Net sales of Argentina were less than 2 percent of our consolidated net sales for the year ended December 31, 2018, 2017 and 2016.

Venezuela has been classified as a highly inflationary since 2010. During the third quarter of 2016 the Company ceased business operations in Venezuela.

Fair value of financial instruments

The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair values due to the short-term nature of these instruments. The Company’s current investments as of December 31, 2018 include certificates of deposits and pre-refunded municipal bonds that are classified by management as held-to-maturity as the Company had the positive intent and ability to hold to maturity. The carrying value of these current investments approximate fair values due to the short-term nature of these instruments. As of December 31, 2018 and 2017, the fair value of debt was $434.5 million and $515.2 million, respectively. The estimated fair value of the Company’s debt is based on interest rates available for debt with similar terms and remaining maturities.

The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy:

•

Level 1 – quoted prices in active markets for identical assets or liabilities;

•

Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

•

Level 3 – unobservable inputs based on the Company’s own assumptions.

Accounting standards permit companies, at their option, to measure many financial instruments and certain other items at fair value. The Company has elected not to apply the fair value option to existing eligible items.

Stock-based compensation

All share-based payments, including grants of stock options and restricted stock units, are required to be recognized in the Company’s financial statements based upon their respective grant date fair values. The Black-Scholes option-pricing model is used to estimate the fair value of stock options. The determination of the fair value of stock options is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical volatility as the expected volatility assumption required in the Black-Scholes model. The expected life of the stock options is based on historical data trended into the future. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the Company’s stock options. The fair value of the Company’s restricted stock units is based on the closing market price of its stock on the date of grant less the Company’s expected dividend yield. The Company recognizes stock-based compensation net of any actual forfeitures over the requisite service period of the award.

The total compensation expense related to equity compensation plans was $26.6 million, $19.3 million and $8.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. In 2018, 2017 and 2016, these amounts reflect the reversal of none, none, and $9.6, respectively, for certain performance-based awards that were no longer expected to vest. For the years ended December 31, 2018, 2017 and 2016, all stock-based compensation expense was recorded within general and administrative expenses.

Reporting comprehensive income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and it includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Accounting for derivative instruments and hedging activities

The Company recognizes all derivatives as either assets or liabilities, with the instruments measured at fair value.

The Company’s Subsidiaries enter into significant transactions with each other and third parties that may not be denominated in the respective Subsidiaries’ functional currencies. The Company regularly monitors its foreign currency risks and seeks to reduce its exposure to fluctuations in foreign exchange rates using foreign currency exchange contracts and through certain intercompany loans of foreign currency.

Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting treatment. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the results of operations currently. In the event that an anticipated transaction is no longer likely to occur, the Company recognizes the change in fair value of the derivative in its results of operations currently.

Changes in the fair value of derivatives are recorded in current earnings or accumulated other comprehensive loss, depending on the intended use of the derivative and its resulting designation. The gains and losses in accumulated other comprehensive loss stemming from these derivatives will be reclassified into earnings in the period during which the hedged forecasted transaction affects earnings. The fair value of the receivable and payable amounts related to these unrealized gains and losses is classified as other current assets and liabilities. The Company does not use such derivative financial instruments for trading or speculative purposes. Gains and losses on certain intercompany loans of foreign currency are recorded as other income (expense) in the consolidated statements of income.

Recent accounting pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard was effective for the Company in the first quarter of 2018. As a result of adopting this new accounting guidance, the Company has changed the method of accounting for its loyalty points program from a cost provision method to a deferred revenue method. The Company adopted the new standard effective January 1, 2018 using the modified retrospective transition method. The cumulative impact of adoption was a $13.0 million net reduction to beginning retained earnings. See Note 2 – Revenue Recognition.

In February 2016, the FASB issued ASU 2016-02, Leases (Subtopic 842). ASU 2016-02 will require companies to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. Under the new lease standard, we expect to derecognize the build-to-suit assets and liabilities that remained on our balance sheet following the construction period, see Note 7 for discussion of our build-to-suit lease. The Company expects the adoption will result in a material increase to the assets and liabilities on the Consolidated Balance Sheet, but we do not expect a material impact on the Consolidated Statements of Income or Consolidated Statements of Cash Flows. The Company will adopt the standard in the first quarter of 2019 using the modified retrospective transition method as of the adoption date. The Company plans to elect the package of practical expedients available under the transition provisions of the New Lease Standard, including: not reassessing whether expired or existing contract are or contain leases; not reassessing the classification of expired or existing leases; not reassessing the initial direct cost for any existing leases; and using hindsight in determining the lease term.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this update was to simplify several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes related to share-based compensation, the related classification in the statement of cash-flows, and accounting for share award forfeitures. This ASU was effective for the Company beginning on January 1, 2017. Prior to January 1, 2017, excess tax benefits were recognized in equity. As permitted, the Company elected to classify excess tax benefits as an operating activity in the Statement of Cash Flows instead of as a financing activity on a prospective basis and did not retroactively adjust prior periods. As also permitted by the new guidance, beginning January 1, 2017 the Company has elected to account for share award forfeitures as they occur. Previously, share-based compensation expense was recorded net of estimated forfeitures. A cumulative adjustment of $2.8 million was recorded to retained earnings and additional paid-in capital as of January 1, 2017. Prior periods were not retroactively adjusted.

In the second half of 2016, the FASB issued ASU Nos. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, and 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The objective of these updates is to reduce the diversity in practice in the classification of certain cash receipts and cash payments, and the presentation of restricted cash within an entity’s statement of cash flows, respectively. These ASUs are effective for interim and annual fiscal periods beginning after December 15, 2017. This ASU was effective for the Company beginning on January 1. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This guidance revises the definition of a business as it relates to acquisitions, disposals, goodwill impairments and consolidations. This ASU is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. This ASU was effective for the Company beginning on January 1. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance simplifies the required test of goodwill for impairment by eliminating Step 2 from the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of a reporting unit is less than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. This ASU is effective for interim and annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company has elected to early adopt the new standard effective January 1, 2019. The adoption of this guidance is not expected to have significant impact on the consolidated financial statements.

In December 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The new standard makes more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. For public companies, the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This guidance provides an option to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company has elected to early adopt the standard effective October 1, 2018. The cumulative impact of adoption was a $1.7 million net reduction to beginning retained earnings.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance modifies, removes, and adds certain disclosure requirements on fair value measurements. This ASU is effective for annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

Property and Equipment

12 Months Ended

Dec. 31, 2018

Property and Equipment

3.	Property and Equipment

Property and equipment are comprised of the following (U.S. dollars in thousands):

	December 31,
	2018			2017

Land	$	35,709		$	33,667
Buildings		295,748			274,632
Construction in progress⁽¹⁾		18,153			53,125
Furniture and fixtures		118,149			95,378
Computers and equipment		160,873			156,994
Leasehold improvements		147,604			123,479
Scanners		8,986			11,212
Vehicles		2,312			2,339
		787,534			750,826
Less: accumulated depreciation		(322,999	)		(286,239	)
	$	464,535		$	464,587

⁽¹⁾

Construction in progress includes $8.7 million and $43.4 million as of December 31, 2018 and 2017, respectively, of eligible capitalized internal-use software development costs which will be reclassified to computers and equipment when placed into service.

Depreciation of property and equipment totaled $56.4 million, $58.3 million and $60.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company recorded an impairment of $48.6 million for the year ended December 31, 2018 in connection with our fiscal year 2018 restructuring plan, see Note 17 – Restructuring and Severance Charges.

Goodwill

12 Months Ended

Dec. 31, 2018

Lease and Financing Obligations [Abstract]

During the first quarter of 2017, the Company realigned its operational segments and reporting structure to reflect how the business will be managed going forward. As part of this realignment, the Company divided its single operating segment into seven geographical reporting segments. The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. As a result of the segment changes, the historical goodwill of $115.0 million was allocated to the seven reportable segments.

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended December 30, 2018 and December 31, 2017 (U.S. dollars in thousands):

	December 31, 2018		December 31, 2017⁽²⁾

Mainland China	$	32,179	$	32,179
Americas/Pacific		9,449		9,449
South Korea		29,261		29,261
Southeast Asia		18,537		18,537
Japan		16,019		16,019
Hong Kong/Taiwan		6,634		6,634
EMEA		2,875		2,875
Other⁽¹⁾		81,619	─
Total	$	196,573	$	114,954

⁽¹⁾

The other category represents goodwill allocated to the companies acquired during 2018 (see Note 16 – Acquisitions)

⁽²⁾

Goodwill was recast to reflect current period presentation by geographic region at December 31, 2018.

All of the Company’s goodwill is recorded in US Dollar functional currency, and allocated to the respective segments. Goodwill is not amortized, rather it is subject to annual impairment tests. Annual impairment tests were completed resulting in no impairment charges for any of the periods shown.

Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Other Intangible Assets [Abstract]

Other Intangible Assets

5.	Other Intangible Assets

Other intangible assets consist of the following (U.S. dollars in thousands):

	Carrying Amount at December 31,
Indefinite life intangible assets:	2018		2017

Trademarks and trade names	$	24,599	$	24,599
Other indefinite lived intangibles		3,763		3,763
	$	28,362	$	28,362

	December 31, 2018				December 31, 2017
Finite life intangible assets:	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Weighted-average Amortization Period

Scanner technology	$	46,482	$	42,690	$	46,482	$	39,657	18 years
Developed technology		22,500		20,032		22,500		19,207	20 years
Distributor network		11,598		11,598		11,598		11,598	15 years
Trademarks		5,823		1,812		2,785		1,197	11 years
Other		95,150		43,794		57,550		29,972	10 years
	$	181,553	$	119,926	$	140,915	$	101,631	14 years

Amortization of finite-life intangible assets totaled $18.3 million, $8.1 million and $8.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The estimated annual amortization expense for each of the five succeeding fiscal years are as follows (U.S. dollars in thousands):

Year Ending December 31,

2019	$	14,271
2020		9,024
2021		7,491
2022		6,409
2023		6,224

Indefinite life intangible assets are not amortized, rather they are subject to annual impairment tests. Annual impairment tests were completed resulting in no impairment charges for any of the periods shown. Finite life intangibles are amortized over their useful lives unless circumstances occur that cause the Company to revise such lives or review such assets for impairment.

Long-Term Debt

12 Months Ended

Dec. 31, 2018

Long-Term Debt [Abstract]

Long-Term Debt

6.	Long-Term Debt

Existing Credit Agreement

On October 9, 2014, the Company entered into a Credit Agreement (the “Existing Credit Agreement”) with various financial institutions, and Bank of America, N.A. as administrative agent. The Credit Agreement provided for a $127.5 million term loan facility, a 6.6 billion Japanese yen term loan facility and a $187.5 million revolving credit facility, each with a term of five years. On October 10, 2014, the Company drew the full amount of the term loan facilities. On April 18, 2018, the Company repaid the full balance that was outstanding under the Existing Credit Agreement. As of December 31, 2018, and 2017, the Company had an outstanding balance of zero and $47.5 million, respectively, on the revolving credit facility. The Existing Credit Agreement required that the Company maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00.

New Credit Agreement

On April 18, 2018, the Company entered into a Credit Agreement (the “New Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent. The New Credit Agreement provides for a $400 million term loan facility and a $350 million revolving credit facility, each with a term of five years. Concurrently with the closing of the New Credit Agreement, the Company drew the full amount of the term loan facility and $78.5 million of the revolving facility, each of which initially bear interest at the London Interbank Offered Rate (“LIBOR”), plus 2.25%. The interest rate applicable to the facilities is subject to adjustment based on the Company’s consolidated leverage ratio. The term loan facility will amortize in quarterly installments in amounts resulting in an annual amortization of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year after the closing date of the New Credit Agreement, with the remainder payable at final maturity. The New Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00.

Convertible Note

On June 16, 2016, the Company issued $210.0 million of convertible senior notes (the “Convertible Notes”) in a private offering to a Chinese investor (the “Holder”). The Convertible Notes are senior unsecured obligations which will rank equal in right of payment to all senior unsecured indebtedness of the Company, and will rank senior in right of payment to any indebtedness that is contractually subordinated to the Convertible Notes. Interest on the Convertible Notes is payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2016 at a rate of 4.75% per annum.

The Convertible Notes mature on June 15, 2020, unless repurchased or converted prior to maturity. Prior to the stated maturity date, the Company may, at its option, redeem all or part of the Convertible Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, provided that its common stock share price is equal to or exceeds 180% of the applicable conversion price for 20 or more trading days (including the final three trading days) in the 30 consecutive trading days prior to the Company’s exercise of such redemption right. The Holder of the Convertible Notes may, at its option, cause the Company to repurchase all of such Holder’s Convertible Notes or any portion thereof that is equal to $1,000 in principal amount or multiples of $1,000 upon a change in control or a termination of trading of the Company’s common stock, as those terms are defined in the indenture governing the Convertible Notes. In addition, each holder of the Convertible Notes shall have the right, at such holder’s option, to convert all or any portion thereof that is equal to $1,000 in principal amount or multiples of $1,000 at any time beginning six calendar months following June 16, 2016, at the then-applicable conversion rate. Upon conversion by the Holder, the Convertible Notes will be settled in cash with respect to principal and any accrued and unpaid interest to such date and in the Company’s common shares with respect to any additional amounts, based on the applicable conversion rate at such time. The Convertible Notes had an initial conversion rate of 21.5054 common shares per $1,000 principal amount of the Convertible Notes (which is equal to an initial conversion price of approximately $46.50 per common share). Throughout the term of the Convertible Notes, the conversion rate may be adjusted upon the occurrence of certain specified events.

Of the $210.0 million in proceeds received from the issuance of the Convertible Notes, $199.1 million was allocated to long-term debt (the “Liability Component”) and $10.9 million was allocated to additional paid-in-capital (the “Equity Component”) within the Company’s consolidated balance sheet. The Liability Component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The amount allocated to the Equity Component, which represents the conversion option, was calculated by deducting the fair value of the Liability Component from the par value of the Convertible Notes. The Company determined that the conversion option does not require separate accounting treatment as a derivative instrument because it is both indexed to the Company’s own stock and would be classified in stockholders’ equity if freestanding. The Equity Component will not be remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Liability Component over its carrying amount (the “Debt Discount”) will be amortized to interest expense over the term of the Convertible Notes. As a result, the Liability Component will be accreted up to the Convertible Notes’ $210.0 million face value, resulting in additional non-cash interest expense being recognized within the Company’s consolidated statement of income. The effective interest rate on the Convertible Notes is approximately 7.1% per annum.

The Company incurred approximately $6.6 million of issuance costs related to the issuance of the Convertible Notes. Of the $6.6 million in issuance costs incurred, $6.3 million and $0.3 million were recorded to deferred financing cost and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the Convertible Notes. The $6.3 million recorded to deferred financing cost on the Company’s consolidated balance sheet as a reduction of long-term debt is being amortized over the contractual term of the Convertible Notes using the effective interest method.

During the first quarter of 2018, the Holder elected to convert the Convertible Notes pursuant to their terms in the indenture. The Company satisfied the equity portion of its conversion obligation on February 28, 2018 by issuing 1,535,652 shares of the Company’s Class A Common Stock to the Holder and, on April 18, 2018, satisfied and discharged its obligations under the Convertible Notes and the indenture governing the Convertible Notes by paying the Holder $213.4 million which included $3.4 million of accrued interest from December 15, 2017 through April 17, 2018. The early conversion of the notes resulted in a $7.2 million charge to other income (expense) during the first quarter of 2018 for a loss on extinguishment of debt.

During the year ended December 31, 2018, the Company recognized $3.5 million in interest expense related to the Convertible Notes, which included $3.0 million of contractual interest and $0.5 million in amortization of debt issuance costs and in amortization of the Debt Discount.

The following table summarizes the Company’s debt facilities as of December 31, 2017 and 2018:

Facility or Arrangement	Original Principal Amount	Balance as of December 31, 2017	Balance as of December 31, 2018⁽¹⁾⁽²⁾	Interest Rate	Repayment terms

October 2014 Credit Agreement term loan facility:

U.S. dollar denominated:	$127.5 million	$94.8 million	─	Variable 30 day: 4.627%	Principal amount was paid in full during April 2018.

Japanese yen denominated:	6.6 billion yen	4.9 billion yen ($43.5 million as of December 31, 2017)	─	Variable 30 day: 2.7595%	Principal amount was paid in full during April 2018.
October 2014 Credit Agreement revolving credit facility:		$47.5 million	─	Variable 30 day: 4.594%	Principal amount was paid in full during April 2018 and credit line was closed.
April 2018 Credit Agreement term loan facility:
	$400.0 million	─	$385.0 million	Variable 30 day: 4.77%	35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.
April 2018 Credit Agreement revolving credit facility:

		─	$49.5 million	Variable 30 day: 4.77%	Revolving line of credit expires April 18, 2023.


Japan subsidiary loan:	2.0 billion yen	0.7 billion yen ($5.9 million as of December 31, 2017)	─	0.66%	Principal amount was paid in full during July 2018.

Convertible note	$210.0 million	$210.0 million	─	4.75%	Principal amount was paid in full during April 2018.

⁽¹⁾

As of December 31, 2018, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $20.0 million of the balance of its U.S. dollar denominated debt under the New Credit Agreement facility. The Company has classified the $49.5 million borrowed under the revolving line of credit as short term because it is the Company’s intention to use the line of credit to borrow and pay back funds over short periods of time.

⁽²⁾	The carrying value of the debt reflects the amounts stated in the above table less a debt issuance costs of $4.0 million, which is not reflected in this table.

Interest expense relating to debt totaled $21.8 million, $22.2 million and $15.6 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Maturities of all long-term debt at December 31, 2018, based on the year-end exchange rate, are as follows (U.S. dollars in thousands):

Year Ending December 31,

2019	$	69,455
2020		27,500
2021		30,000
2022		37,500
2023		270,000
Thereafter	─
Total⁽¹⁾	$	434,455

⁽¹⁾	The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table.

Lease and Financing Obligations

12 Months Ended

Dec. 31, 2018

Lease and Financing Obligations

7.	Lease and Financing Obligations

In 2014, the Company’s subsidiary in South Korea entered into a lease agreement (the “Lease”) with a third-party landlord for a new regional headquarters. As part of the Lease, the landlord agreed to renovate an existing building (the “Existing Building”) and construct a new building (the “New Building”) adjacent to the Existing Building. The Lease provided that when such renovations and construction were completed, the Company and the landlord would enter into a new lease agreement (the “New Lease”) for the Existing Building and the New Building. In April 2015, the Company and the landlord entered into the New Lease on terms generally consistent with the 2014 lease. The New Lease term is for the period May 1, 2015 through April 30, 2025, with an option to extend the agreement for 10 years.

The Company accounts for its lease of the Existing Building as an operating lease. As an inducement to enter into the Lease, the landlord agreed to make certain improvements on behalf of the Company to the Existing Building. The improvements have been accounted for by the Company as a tenant incentive.

The Company has concluded that it is the deemed owner (for accounting purposes only) of the New Building during the construction period under build-to-suit lease accounting. Construction of the New Building began in June 2014 and was completed in June 2015. During the construction period, the Company recorded estimated project construction costs as a construction in progress asset in “Property and equipment, net” and a corresponding long-term liability in “Other liabilities,” respectively, in its consolidated balance sheets. In addition, the amounts that the Company has paid or incurred for normal tenant improvements were also recorded to the construction-in-progress asset.

At the end of the construction period in June 2015, the Company concluded that the New Lease of the New Building did not meet “sale-leaseback” criteria; therefore, the asset and obligation recognized during construction will remain recorded in the Company’s consolidated balance sheets. As of December 31, 2015, the completed building and normal tenant improvements under the lease have been reclassified from construction in progress to buildings and leasehold improvements, respectively. The Company accounts for the New Lease of the New Building as a financing with the associated lease payments allocated between the New Building and the underlying parcel of land on a relative fair value basis. Rent expense attributed to the underlying parcel of land, and representing the imputed cost to lease the land, is accounted for on a straight-line basis as the land element is an operating lease.

Lease payments attributed to the New Building are allocated between principal and interest expense using the effective interest method. The principal portion of the lease payment attributed to the New Building is reflected as a principal reduction of the financing obligation. In addition, the asset, which represents the total estimated cost of construction of the New Building at the end of the construction period, is being depreciated over the initial ten-year term of the New Lease to its expected residual value. At the conclusion of the New Lease, the Company will de-recognize both the net book value of the asset and the unamortized portion of the financing obligation. The amount of asset depreciation and financing obligation amortization is structured at the outset such that the remaining residual book value of the asset is equal to the remaining financing obligation at the end of the lease term.

As of December 31, 2018, the Company had recognized $19.4 million as the value of the New Building and a financing obligation of $9.9 million, net of a $9.9 million deposit paid directly to the landlord, as part of other liabilities in its consolidated balance sheet. As of December 31, 2017, the Company had recognized $20.8 million as the value of the New Building and a financing obligation of $10.8 million, net of a $10.3 million deposit paid directly to the landlord, as part of other liabilities in its consolidated balance sheet.

As of December 31, 2018, the tenant incentive asset and deferred tenant incentive liability associated with the Existing Building totaled $4.0 million and $3.7 million, respectively. As of December 31, 2017, the tenant incentive asset and deferred tenant incentive liability associated with the Existing Building totaled $4.9 million and $4.5 million, respectively.

In addition to the lease arrangements described above, the Company leases office space and computer hardware under noncancelable long-term operating leases. Most leases include renewal options of at least three years.

Minimum future operating leases and financing obligations at December 31, 2018 are as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating Leases		Financing Obligations

2019	$	39,358	$	726
2020		27,553		748
2021		20,266		757
2022		11,723		770
2023		9,950		794
Thereafter		7,628		1,148
Total minimum lease payments	$	116,478	$	4,943

Rent expense for operating leases totaled $50.4 million, $50.7 million and $48.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Interest expense associated with the financing obligations was $0.2 million for the years ended December 31, 2018, 2017 and 2016.

Capital Stock

12 Months Ended

Dec. 31, 2018

Capital Stock [Abstract]

Capital Stock

8.	Capital Stock

The Company’s authorized capital stock consists of 25 million shares of preferred stock, par value $.001 per share, 500 million shares of Class A common stock, par value $.001 per share, and 100 million shares of Class B common stock, par value $.001 per share. The shares of Class A common stock and Class B common stock are identical in all respects, except for voting rights and certain conversion rights and transfer restrictions, as follows: (1) each share of Class A common stock entitles the holder to one vote on matters submitted to a vote of the Company’s stockholders and each share of Class B common stock entitles the holder to ten votes on each such matter; (2) stock dividends of Class A common stock may be paid only to holders of Class A common stock and stock dividends of Class B common stock may be paid only to holders of Class B common stock; (3) if a holder of Class B common stock transfers such shares to a person other than a permitted transferee, as defined in the Company’s Certificate of Incorporation, such shares will be converted automatically into shares of Class A common stock; and (4) Class A common stock has no conversion rights; however, each share of Class B common stock is convertible into one share of Class A common stock, in whole or in part, at any time at the option of the holder. All outstanding Class B shares have been converted to Class A shares. As of December 31, 2018 and 2017, there were no preferred or Class B common shares outstanding.

Weighted-average common shares outstanding

The following is a reconciliation of the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands):

	Year Ended December 31,
	2018		2017		2016

Basic weighted-average common shares outstanding		55,170		52,806		55,412
Effect of dilutive securities:
Stock awards and options		1,061		1,110		683
Convertible note		245		936		2
Diluted weighted-average common shares outstanding		56,476		54,852		56,097

For the years ended December 31, 2018, 2017 and 2016, other stock options totaling 0.9 million, 0.4 million and 2.0 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. The convertible notes have a dilutive impact on EPS when the average market price of the Company’s common stock for a given period exceeds the initial conversion price. See Note 6 for discussion of initial conversion price and conversion rate.

Dividends

Quarterly cash dividends for the years ended December 31, 2018 and 2017 totaled $80.6 million and $76.1 million or $0.365 per share in all quarters of 2018 and $0.36 for all quarters of 2017. The board of directors has declared a quarterly cash dividend of $0.37 per share of Class A common stock to be paid on March 13, 2019 to stockholders of record on February 25, 2019.

Repurchases of common stock

In 1998, the Company’s board of directors approved a stock repurchase plan authorizing the Company to repurchase $10.0 million of its outstanding shares of Class A common stock on the open market or in private transactions. The Company’s board from time to time increased the amount authorized under the 1998 stock repurchase plan, including an increase of $400.0 million announced in August 2013. In October 2015, the Company’s board terminated the 1998 stock repurchase plan and approved a new repurchase plan with an initial authorization amount of $500.0 million. In July 2018, the Company’s board of directors terminated the 2015 stock repurchase plan and approved a new repurchase plan with an initial authorization amount of $500 million. The repurchases are used primarily for strategic initiatives and to offset dilution from the Company’s equity incentive plans and from conversion of the Convertible Notes. During the years ended December 31, 2018, 2017 and 2016, the Company repurchased 0.5 million, 1.2 million and 4.5 million shares of Class A common stock under the 2015 plan for an aggregate price of $40.6 million, $71.7 million and $247.2 million, respectively. During the year ended December 31, 2018 we purchased 0.4 shares under the 2018 plan for $29.0 million At December 31, 2018, $471.0 million was available for repurchases under the 2018 stock repurchase plan.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

Stock-Based Compensation [Abstract]

Stock-Based Compensation

9.	Stock–Based Compensation

At December 31, 2018, the Company had the following stock-based employee compensation plans:

Equity Incentive Plans

In April 2010, the Company’s Board of Directors approved the Nu Skin Enterprises, Inc. 2010 Omnibus Incentive Plan (the “2010 Omnibus Incentive Plan”). This plan was approved by the Company’s stockholders at the Company’s 2010 Annual Meeting of Stockholders held in May 2010. The 2010 Omnibus Incentive Plan provides for granting of a variety of equity-based awards including stock options, stock appreciation rights, restricted stock, restricted stock units, other share-based awards, performance cash, performance shares and performance units to executives, other employees, independent consultants and directors of the Company and its subsidiaries. Options granted under the 2010 Omnibus Incentive Plan are generally non-qualified stock options, but the 2010 Omnibus Incentive Plan permits some stock options granted to qualify as “incentive stock options” under the U.S. Internal Revenue Code. The exercise price of a stock option generally is equal to the fair market value of the Company’s common stock on the stock option grant date. The contractual term of a stock option granted under the 2010 Omnibus Incentive Plan is seven years. Currently, all shares issued upon the exercise of stock options are from the Company’s treasury shares. Subject to certain adjustments, 7.0 million shares were authorized for issuance under the 2010 Omnibus Incentive Plan. On June 3, 2013, the Company’s stockholders approved an Amended and Restated 2010 Omnibus Incentive Plan, which among other things increased the number of shares available for awards by 3.2 million shares. On May 24, 2016, the Company’s stockholders approved a Second Amended and Restated 2010 Omnibus Incentive Plan, which among other things increased the number of shares available for awards by 3.8 million shares.

In July 2013, the compensation committee of the board of directors approved the grant of performance stock options to certain key employees under the Amended and Restated 2010 Omnibus Incentive Plan. Vesting for the options is performance based, with the options vesting in four installments if the Company’s earnings per share equal or exceed the four established performance levels, measured in terms of diluted earnings per share. One fourth of the options will vest upon earnings per share meeting or exceeding the first performance level, one fourth of the options will vest upon earnings per share meeting or exceeding the second performance level, one fourth of the options will vest upon earnings per share meeting or exceeding the third performance level and one fourth of the options will vest upon earnings per share meeting or exceeding the fourth performance level. The unvested options will terminate upon the Company’s failure to meet certain performance thresholds for each of years 2013 through 2019. In addition, all unvested options will terminate on March 30, 2020. The Company has also issued other performance-based awards to a limited number of participants that similarly vest, or become eligible for vesting, upon achievement of various performance targets.

The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values as follows:

	December 31,
Stock Options:	2018			2017			2016

Weighted-average grant date fair value of grants	$	24.72		$	18.84		$	12.59
Risk-free interest rate⁽¹⁾		2.6	%		2.1	%		1.4	%
Dividend yield⁽²⁾		2.6	%		2.5	%		2.3	%
Expected volatility⁽³⁾		45.6	%		48.2	%		47.9	%
Expected life in months⁽⁴⁾		66 months			68 months			68 months

⁽¹⁾

The risk-free interest rate is based upon the rate on a zero-coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant.

⁽²⁾

The dividend yield is based on the average of historical stock prices and actual dividends paid.

⁽³⁾

Expected volatility is based on the historical volatility of the Company’s stock price, over a period similar to the expected life of the option.

⁽⁴⁾

The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years.

Options under the plans as of December 31, 2018 and changes during the year ended December 31, 2018 were as follows:

	Shares (in thousands)			Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)

Options activity – service based
Outstanding at December 31, 2017		1,392.9		$	39.76
Granted	─			─
Exercised		(337.7	)		37.40
Forfeited/cancelled/expired		(8.8	)		39.45
Outstanding at December 31, 2018		1,046.4			40.53		3.53		24,330
Exercisable at December 31, 2018		648.6			43.72		3.08		19,984

Options activity – performance based
Outstanding at December 31, 2017		2,301.5		$	62.89
Granted		920.1			71.19
Exercised		(151.9	)		36.91
Forfeited/cancelled/expired		(698.9	)		75.68
Outstanding at December 31, 2018		2,370.8			64.00		4.16		15,190
Exercisable at December 31, 2018		416.2			37.88		3.95		9,762

Options activity – all options
Outstanding at December 31, 2017		3,694.4		$	54.17
Granted		920.1			71.19
Exercised		(489.6	)		37.25
Forfeited/cancelled/expired		(707.7	)		75.23
Outstanding at December 31, 2018		3,417.2			56.81		3.97		39,519
Exercisable at December 31, 2018		1,064.8			41.44		3.42		23,746

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the respective years and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2018. This amount varies based on the fair market value of the Company’s stock.

Cash proceeds, tax benefits and intrinsic value related to total stock options exercised during 2018, 2017 and 2016, were as follows (U.S. dollars in thousands):

	December 31,
	2018		2017		2016

Cash proceeds from stock options exercised	$	13,908	$	26,980	$	15,707
Tax benefit realized for stock options exercised		3,217		6,457		3,840
Intrinsic value of stock options exercised		11,855		42,749		30,587

Nonvested restricted stock awards as of December 31, 2018 and changes during the year ended December 31, 2018 were as follows:

	Number of Shares (in thousands)			Weighted- average Grant Date Fair Value

Nonvested at December 31, 2017		562.8			51.17

Granted		202.7			72.62
Vested		(233.9	)		56.00
Forfeited		(64.0	)		54.40

Nonvested at December 31, 2018		467.6			57.61

Stock-based compensation expense is recognized on a straight-line basis, except for performance-based awards for which expense is recognized using a graded-attribution method if the results are materially different than the straight-line method. The Company recognized $3.1 million, $4.0 million and $5.8 million of expense related to service condition stock options in 2018, 2017 and 2016, respectively; and $11.2 million, $11.3 million and $10.5 million of expense related to service condition restricted stock units in 2018, 2017 and 2016, respectively. For performance stock options and performance stock units, an expense is recorded each period for the estimated expense associated with the projected achievement of the performance-based targets. The Company recognized $12.2 million of expense, $3.9 million of expense and $7.1 million of income related to performance stock options in 2018, 2017 and 2016, respectively; and $0.1 million of expense, $0.1 million of expense and $0.3 million of income related to performance stock units in 2018, 2017 and 2016, respectively. The amount in 2016 reflects the reversal of stock compensation for awards no longer expected to vest.

As of December 31, 2018, there was $11.2 million of unrecognized stock-based compensation expense related to nonvested stock option awards. That cost is expected to be recognized over a weighted-average period of 1.4 years. As of December 31, 2018, there was $16.2 million of unrecognized stock-based compensation expense related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 2.1 years.

Fair Value

12 Months Ended

Dec. 31, 2018

Fair Value [Abstract]

Fair Value

10.	Fair Value

The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands):

	Fair Value at December 31, 2018
	Level 1		Level 2		Level 3		Total

Financial assets (liabilities):
Cash equivalents and current investments	$	35,260	$	─	$	─	$	35,260
Other long-term assets		3,568		─		─		3,568
Forward contracts		─		─		─		─
Life insurance contracts		─		─		35,590		35,590
Total	$	38,828	$	─	$	35,590	$	74,418

	Fair Value at December 31, 2017
	Level 1		Level 2		Level 3		Total

Financial assets (liabilities):
Cash equivalents and current investments	$	36,531	$	─	$	─	$	36,531
Other long-term assets		3,726		─		─		3,726
Forward contracts		─		158		─		158
Life insurance contracts		─		─		37,737		37,737
Total	$	40,257	$	158	$	37,737	$	78,152

The following methods and assumptions were used to determine the fair value of each class of assets and liabilities recorded at fair value in the consolidated balance sheets:

Cash equivalents and current investments: Cash equivalents and current investments primarily consist of highly rated money market funds with maturities of three months or less, and are purchased daily at par value with specified yield rates. Due to the high ratings and short-term nature of the funds, the Company considers all cash equivalents and current investments as Level 1. Current investments include $11.3 million and $11.8 million as of December 31, 2018 and 2017, respectively, that is restricted for the Company’s voluntary participation in a consumer protection cooperative in South Korea.

Forward contracts: To hedge foreign currency risks, the Company uses foreign currency exchange forward contracts, where possible and practical. These forward contracts are valued using standard valuation formulas with assumptions about foreign currency exchange rates derived from existing exchange rates as discussed in Note 14, “Derivative Financial Instruments.”

Life insurance contracts: ASC 820 preserves practicability exceptions to fair value measurements provided by other applicable GAAP. The guidance in ASC 715-30-35-60 allows a reporting entity, as a practical expedient, to use cash surrender value or conversion value as an expedient for fair value when it is present. Accordingly, the Company determines the fair value of its life insurance contracts as the cash-surrender value of life insurance policies held in its Rabbi Trust as disclosed in Note 13, “Executive Deferred Compensation Plan.”

The following table provides a summary of changes in fair value of the Company’s Level 3 marketable securities (U.S. dollars in thousands):

Life Insurance Contracts	2018			2017

Beginning balance at January 1	$	37,737		$	32,287
Actual return on plan assets		(1,788	)		4,917
Purchases and issuances		─			895
Sales and settlements		(359	)		(362	)
Transfers into Level 3		─			─
Ending balance at December 31	$	35,590		$	37,737

Executive Deferred Compensation Plan [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Taxes [Abstract]

Income Taxes

11.	Income Taxes

We reasonably estimated the effects of the Tax Reform Act and recorded provisional amounts in our financial statements as of December 31, 2017. We recorded a provisional tax detriment for the impact of Tax Reform Act of approximately $47.7 million. This amount was primarily comprised of a valuation allowance on foreign tax credits, reversal of indefinite reinvestment, reduction of FIN 48 assets, write-off of net outside basis deferred tax liabilities, tax effect on other comprehensive income, and remeasurement of deferred tax assets. Changes to the provisional amounts recorded at the end of 2017 were not material to the financial results reported during 2018. In 2018, we completed our determination of the accounting implications of the Tax Reform Act. The Company continues to analyze the effects of new taxes due on certain foreign income, such as GILTI (global intangible low-taxed income), BEAT (base-erosion anti-abuse tax), FDII (foreign-derived intangible income), limitations on the deductibility of executive compensation, limitations on interest expense deductions (if certain conditions apply), and other provisions of the Tax Reform Act that were effective starting in 2018. Under U.S. GAAP, the company has elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”).

Consolidated income before provision for income taxes consists of the following for the years ended December 31, 2018, 2017 and 2016 (U.S. dollars in thousands):

	2018			2017		2016

U.S.	$	(67,087	)	$	1,135	$	(19,119	)
Foreign		286,753			264,432		231,958
Total	$	219,666		$	265,567	$	212,839

The provision for current and deferred taxes for the years ended December 31, 2018, 2017 and 2016 consists of the following (U.S. dollars in thousands):

	2018			2017			2016
Current
Federal	$	─		$	(14,358	)	$	─
State		652			1,814			(718	)
Foreign		116,303			104,688			70,652
		116,955			92,144			69,934
Deferred
Federal		(17,836	)		45,593			(27,171	)
State		(1,974	)		(2,273	)		1,104
Foreign		634			666			25,886
		(19,176	)		43,986			(181	)
Provision for income taxes	$	97,779		$	136,130		$	69,753

The principal components of deferred taxes are as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2018			2017
Deferred tax assets:
Inventory differences	$	4,257		$	2,861
Foreign tax credit and other foreign benefits		62,521			52,408
Stock-based compensation		7,893			6,327
Accrued expenses not deductible until paid		40,509			39,326
Foreign currency exchange		1,023			2,001
Net operating losses		4,522			5,230
Capitalized research and development		11,988			197
Interest expense limitation – 163(j)		847			─
R&D credit carryforward		807			─
Other		339			211
Gross deferred tax assets		134,706			108,561
Deferred tax liabilities:
Foreign currency exchange		124			874
Foreign withholding taxes		21,524			29,018
Intangibles step-up		5,763			6,568
Overhead allocation to inventory		2,857			3,977
Amortization of intangibles		15,812			11,475
Foreign outside basis in controlled foreign corporation		─			─
Other		833			2,676
Gross deferred tax liabilities		46,913			54,588
Valuation allowance		(68,697	)		(56,906	)
Deferred taxes, net	$	19,096		$	(2,933	)

At December 31, 2018, the Company had foreign operating loss carryforwards of $14.8 million for tax purposes, which will be available to offset future taxable income. If not used, $4.4 million of carryforwards will expire between 2019 and 2028, while $10.4 million do not expire. A valuation allowance has been placed on foreign operating loss carryforwards of $14.8 million. In addition, a valuation allowance has been recorded on the foreign tax credit carryforward, the interest expense limitation, and the R&D credit carryforward of $64.3 million which will expire between 2026 and 2028.

The Company uses the tax law ordering approach when determining when excess tax benefits have been realized.

The valuation allowance has been recognized for the foreign tax credit, the foreign net operating loss carryforwards, the interest expense limitations and the R&D credit carryforward. The valuation allowances were recognized for assets which it is more likely than not some portion or all of the deferred tax asset will not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary difference, projected future taxable income, tax planning strategies and recent financial operations. When the Company determines that there is sufficient positive evidence to utilize the foreign tax credits, the foreign net operating losses, the interest expense limitation, or the R&D credit carryforward, the valuation will be released which would reduce the provision for income taxes.

The deferred tax asset valuation adjustments for the years ended December 31, 2018, 2017 and 2016 are as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2018			2017			2016

Balance at the beginning of period	$	56,906		$	9,137		$	49,271
Additions charged to cost and expenses		27,902	⁽¹⁾		53,983	⁽⁴⁾		692
Decreases		(16,215	)⁽²⁾		(6,400	)⁽⁵⁾		(40,442	)⁽⁶⁾
Adjustments		104	⁽³⁾		186	⁽³⁾		(384	)⁽³⁾
Balance at the end of the period	$	68,697		$	56,906		$	9,137

⁽¹⁾

Increase in valuation is due primarily to $27.2 million that was recorded on the foreign tax credit carryforward. The additional amount is due to research and development credits, interest expense limitation (163(j)), and net operating losses in foreign markets.

⁽²⁾

The decrease was due primarily to the utilization of foreign tax credits, the conversion of foreign tax credits to NOL’s at the filing of the US 2017 Income Tax return (note NOL’s were absorbed in 2018 due to GILTI inclusion), utilization, and expiration of foreign NOL’s.

⁽³⁾

Represents the net currency effects of translating valuation allowances at current rates of exchange.

⁽⁴⁾

Increase in valuation is due primarily to the $52.0 million that was recorded on the foreign tax credit carryforward. The additional amount is due to net operating losses in foreign markets

⁽⁵⁾

Decrease is due primarily to the write-off of Brazil deferred tax assets, which had no impact to the income statement, as a valuation allowance had been previously recorded against the asset.

⁽⁶⁾

Decrease in valuation allowance due to lapse in statute of limitation of the net operating losses carryforward and due to the write off of Venezuelan deferred tax assets, which had no impact to the income statement.

The components of deferred taxes, net on a jurisdiction basis are as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2018		2017

Net noncurrent deferred tax assets	$	37,332	$	33,785

Net noncurrent deferred tax liabilities		18,236		36,718

Deferred taxes, net	$	19,096	$	(2,933	)

The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in proposed assessments that may result in additional tax liabilities.

The actual tax rate for the years ended December 31, 2018, 2017 and 2016 compared to the statutory U.S. Federal tax rate is as follows:

	Year Ended December 31,
	2018			2017			2016

Income taxes at statutory rate		21.00	%		35.00	%		35.00	%
Indefinite reinvestment		(2.73	)		2.75			(1.98	)
Excess tax benefit from equity award		(1.41	)		(2.38	)		─
Non-U.S. income taxed at different rates		7.37			─			─
Foreign withholding taxes		7.68			─			─
Change in reserve for uncertain tax positions		3.68			─			─
Non-deductible expenses		─			0.17			0.11
Controlled foreign corporation losses		─			(0.13	)		(2.63	)
Valuation allowance recognized foreign tax credit & others		5.54			19.59			─
Write-off outside basis DTL		─			(2.89	)		─
Revaluation of deferred taxes		1.61			(1.28	)		─
Section 987 implementation		─			─			2.69
Other		1.77			0.43			(0.42	)
		44.51	%		51.26%	%		32.77	%

The effective rate for 2018 was significantly impacted by the restructuring and impairment expenses incurred in Q4 of 2018, as well as additional valuation allowances related to foreign tax credits. The effective tax rate for 2017 was impacted largely due to the Tax Reform Act.

The cumulative amount of undistributed earnings of the Company's non-U.S. Subsidiaries held for indefinite reinvestment is approximately $60.0 million, at December 31, 2018. If this amount were repatriated to the United States, the amount of incremental taxes would be approximately $6.0 million.

Employee Benefit Plan

12 Months Ended

Dec. 31, 2018

Employee Benefit Plan [Abstract]

Employee Benefit Plan

12.	Employee Benefit Plan

The Company has a 401(k) defined-contribution plan which permits participating employees to defer up to a maximum of 100% of their compensation, subject to limitations established by the Internal Revenue Service. Employees age 18 and older are eligible to contribute to the plan starting the first day of employment. After completing at least one day of service, employees are eligible to receive matching contributions from the Company. In 2018, 2017, and 2016 the Company matched employees’ base pay up to 4% each year. The Company’s matching contributions cliff vest after two years of service. The Company recorded compensation expense of $3.6 million, $3.2 million and $2.8 million for the years ended December 31, 2018, 2017 and 2016, respectively, related to its contributions to the plan. The Company may make additional discretionary contributions to the plan of up to 10% of employees’ base pay. The Company’s discretionary contributions vest 20% per year for an employee’s first five years of service. For the years ended December 31, 2018, 2017 and 2016 the Company did not make any additional discretionary contributions.

The Company has a defined benefit pension plan for its employees in Japan. All employees of Nu Skin Japan, after certain years of service, are entitled to pension plan benefits when they terminate employment with Nu Skin Japan. The accrued pension liability was $3.0 million, $6.1 million and $5.6 million as of December 31, 2018, 2017 and 2016, respectively. Although Nu Skin Japan has not specifically funded this obligation, as it is not required to do so, Nu Skin Japan believes it maintains adequate cash balances for this defined benefit pension plan. The Company recorded pension expense of $0.8 million, $0.7 million and $0.9 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Executive Deferred Compensation Plan

12 Months Ended

Dec. 31, 2018

Executive Deferred Compensation Plan

13.	Executive Deferred Compensation Plan

The Company has an executive deferred compensation plan for select management personnel. Under this plan, the Company may make a contribution of up to 10% of a participant’s salary. In addition, each participant has the option to defer a portion of their compensation up to a maximum of 80% of their base salary and 100% of their bonuses. Participant contributions are immediately vested. Company contributions vest 50% after ten years of service and 5% each year of service thereafter. In addition, any unvested company contributions will fully vest on the earlier of: (a) the participant attaining 60 years of age; and (b) death or disability.

The Company recorded compensation expense of $1.1 million, $1.5 million and $1.5 million for the years ended December 31, 2018, 2017 and 2016, respectively, related to its contributions to the plan. The total long-term deferred compensation liability under the deferred compensation plan was $36.4 million and $43.2 million for the years ended December 31, 2018 and 2017, respectively, related to its contributions to the plan and is included in other long-term liabilities.

All benefits under the deferred compensation plan are unsecured obligations of the Company. The Company has contributed assets to a “rabbi trust” for the payment of benefits under the deferred compensation plan. As the assets of the trust are available to satisfy the claims of general creditors if the Company becomes insolvent, the amounts held in the trust are accounted for as an investment on the Company’s consolidated balance sheet of $35.6 million and $37.7 million for the years ended December 31, 2018 and 2017, respectively.

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2018

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

14.	Derivative Financial Instruments

The Company enters into non-designated foreign currency derivatives, primarily comprised of foreign currency forward contracts, for which hedge accounting does not apply. The changes in the fair market value of these non-designated derivatives are included in other income/expense in the Company’s consolidated statements of income. The Company uses non-designated foreign currency derivatives to hedge foreign-currency-denominated intercompany transactions and to partially mitigate the impact of foreign-currency fluctuations. The fair value of the non-designated foreign currency derivatives is based on third-party quotes that management considered when determining the fair value.

As of December 31, 2018 and 2017, the Company did not hold any non-designated derivative contracts.

The following table summarizes gains (losses) related to derivative instruments not designated as hedging instruments during the years ended December 31, 2018 and 2017 (U.S. dollars in thousands):

Derivatives not designated as hedging instruments:	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income
		Year Ended December 31,
		2018		2017			2016

Foreign currency contracts	Other income (expense)	$	─	$	(485	)	$	39

The Company designates as cash-flow hedges those foreign currency forward contracts it enters to hedge forecasted intercompany transactions that are subject to foreign currency exposures. Changes in the fair value of these forward contracts designated as cash-flow hedges are recorded as a component of accumulated other comprehensive income (loss) within shareholders’ equity (deficit), and are recognized in the consolidated statement of income during the period which approximates the time the hedged transaction is settled.

As of December 31, 2018, the Company held no forward contracts designated as foreign currency cash flow hedges compared to notional amounts of 600 billion Japanese yen ($5.5 million) as of December 31, 2017 to hedge forecasted foreign-currency-denominated intercompany transactions. The fair value of these hedges were zero and $0.2 million as of December 31, 2018 and 2017, respectively.

The following table summarizes gains (losses) related to derivative instruments recorded in other comprehensive income (loss) during the years ended December 31, 2018, 2017 and 2016 (U.S. dollars in thousands):

Derivatives designated as hedging instruments:	Amount of Gain (Loss) Recognized in Other Comprehensive Loss
	Year Ended December 31,
	2018			2017			2016

Foreign currency forward contracts related to intercompany license fee, product sales, and selling expense hedges	$	(160	)	$	(152	)	$	(1,423	)

The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2018, 2017 and 2016 (U.S. dollars in thousands):

Derivatives designated as hedging instruments:	Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
		Year Ended December 31,
		2018		2017		2016

Foreign currency forward contracts related to intercompany license fees and product sales hedges	Revenue	$	18	$	119	$	(1,088	)
Foreign currency forward contracts related to intercompany selling expense hedges	Selling expenses	$	─	$	358	$	(1,544	)

As of December 31, 2018 and 2017, there were zero and $0.1 million, respectively, of unrealized gains/(losses) included in accumulated other comprehensive loss related to foreign currency cash flow hedges. The remaining $79.9 million and $66.4 million as of December 31, 2018 and 2017, respectively, in accumulated other comprehensive loss are related to cumulative translation adjustments. The Company assesses hedge effectiveness at least quarterly. During the years ended December 31, 2018 and 2017, all hedges were determined to be effective.

The Company reports its derivatives at fair value as either other current assets or accrued expenses within its consolidated balance sheet. See Note 10, “Fair Value.”

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

15.	Supplemental Cash Flow Information

Cash paid for interest totaled $20.9 million, $18.4 million and $11.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. Cash paid for income taxes totaled $123.2 million, $78.1 million and $40.9 million for the years ended December 31, 2016, 2017 and 2018, respectively.

Acquisitions

12 Months Ended

Dec. 31, 2018

Restructuring and Severance Charges [Abstract]

Acquisitions

16.	Acquisitions

On January 22, 2018, the Company acquired the remaining 73% ownership in Innuvate Health Sciences, LLC ("Innuvate"), which owns a 92% interest in a nutritional product manufacturer. Prior to this acquisition, the Company owned 27% of Innuvate and accounted for it using the equity method. The remaining 8% ownership in the manufacturer will continue to be held by an unrelated third party. Under the terms of the agreement, the Company paid $23.5 million in cash and shares of the Company in exchange for the 73% ownership in Innuvate, subject to adjustment for certain closing items. Innuvate is a contract manufacturer that specializes in softgel and hardshell capsule manufacturing.

On February 12, 2018, the Company acquired the remaining 65% ownership in Treviso, LLC ("Treviso"), making Treviso a wholly owned subsidiary of the Company. Treviso is a personal care product manufacturer. Under the terms of the purchase agreement, the Company has paid $83.9 million in cash and shares of the Company in exchange for the remaining 65% ownership in Treviso, subject to adjustment for certain closing items. On February 28, 2017, the Company initially purchased a 35% membership interest in Treviso, for a purchase price of $21.0 million and a possible earnout of $1.0 million. The purchase price included $12.6 million in cash and $8.4 million in the Company’s stock (169,560 shares based on the closing stock price of $49.54 per share on February 28, 2017). Treviso is a liquid contract manufacturing laboratory for premium personal care products.

On February 12, 2018, the Company acquired 100% ownership in L&W Holdings, Inc. ("L&W") making L&W a wholly owned subsidiary of the Company. L&W is a packaging supplier company. Under the terms of the purchase agreement, the Company paid $25.0 million in shares of the Company in exchange for 100% ownership in L&W, subject to adjustment for certain closing items. L&W specializes in the distribution and packaging of products in the cosmetic and nutritional industries.

The following table summarizes the fair value of consideration transferred for the acquisitions disclosed above (in thousands):

	Innuvate		Treviso		L&W Holdings		Total

Total cash consideration	$	17,587	$	14,648	$	—	$	32,235
Shares issued in conjunction with acquisition		5,863		69,252		25,000		100,115
Total consideration	$	23,450	$	83,900	$	25,000		132,350
Previously held equity interest in equity method Investments⁽¹⁾		8,748		30,281		—		39,029
Total	$	32,198	$	114,181	$	25,000	$	171,379

⁽¹⁾

The acquisitions of Innuvate and Treviso are considered step acquisitions, and accordingly, the Company remeasured its pre-existing 27% equity interest in Innuvate and 35% of Treviso immediately prior to completion of the acquisition to its estimated fair value of approximately $39.0 million. As a result of the remeasurement, the Company recorded a gain of approximately $13.6 million within other income (expense), during the first quarter of 2018, representing the excess of the approximate $39.0 million estimated fair value of its pre-existing 27% equity interest in Innuvate and 35% equity interest of Treviso over its transaction date carrying value of approximately $25.4 million.

The following table summarizes the fair value of the assets acquired for the acquisitions disclosed above (in thousands):

	Innuvate				Treviso				L&W Holdings
	Life	Amount			Life	Amount			Life	Amount

Total current assets		$	6,219			$	19,659			$	7,353
Fixed assets			9,291				33,282				114
Customer list	9 years		5,100		9 years		16,500		7 years		6,500
Order backlog	5 months		200		10 months		4,700		4 months		900
Trademarks	7 years		900		6 years		1,300		5 years		600
Total current liabilities			(3,942	)			(3,740	)			(1,495	)
Other non-current liabilities			—				—				(1,731	)
Total identifiable net assets acquired			17,768				71,701				12,241
Goodwill			17,230				42,480				12,759
Fair value of noncontrolling interest			(2,800	)			—				—
Total consideration and value to be allocated to net assets		$	32,198			$	114,181			$	25,000

Pro forma and historical results of operations for the acquired companies have not been presented because they are not material, either individually or in the aggregate, to the Company’s consolidated financial statements.

In the first quarter of 2016, the Company purchased 70% of Vertical Eden, LLC, an early-stage company in the warehouse growing market, for $3.3 million in cash and contingent consideration valued at $1.5 million which resulted in $2.5 million of goodwill. In the second quarter of 2017, the Company purchased the remaining 30% of Vertical Eden for $12.5 million in cash. The purchase of Vertical Eden includes specialized technology in remote programming and management of the entire crop growing cycle. As a result of this acquisition, the Company recorded approximately $4.4 million of intangible assets which are being amortized over the useful lives of 3 to 7 years.

In the third quarter of 2017, the Company acquired certain assets of Dr. Dana Beauty, LLC for $7.0 million in cash. The assets acquired include trademarks, product formulas and other intellectual property primarily related to nail treatment.

Restructuring and Severance Charges

12 Months Ended

Dec. 31, 2018

Restructuring and Severance Charges

17.	Restructuring and Severance Charges

In 2018, the Company began a strategic plan to align its resources and capabilities to support its vision of being a world-leading business platform. This program primarily impacted the Company’s information technology infrastructure and organization and other departments within its corporate and Americas offices. As a result of the restructuring program, the Company recorded a non-cash charge of $48.6 million for impairment of information technology assets, including internally developed software for social sharing and digital initiatives, and $22.1 million of cash charges, including $20.1 million for employee severance and $2.0 million for other related cash charges with our restructuring. The restructuring charges were predominately recorded in the Corporate and Other category. As of December 31, 2018 the Company had a liability of $15.5 million in accrued payroll and other employee expenses. The Company expects to pay out the remaining liability in the first quarter of 2019.

	December 31, 2018

Restructuring, severance and impairment charges incurred	$	70,686
Non-cash impairment charges		(48,551	)
Amounts paid		(6,673	)
Adjustments		—
Balance December 31, 2018	$	15,462

Segment Information

12 Months Ended

Dec. 31, 2018

Segment Information [Abstract]

Segment Information

18.	Segment Information

As a result of the Company’s management changes in the first quarter of 2017, the Company concluded that the Chief Operating Decision Maker, as defined in ASC 280, is now comprised of the CEO, President and CFO. This change required the Company to reevaluate its determination of operating segments. The Company’s operating segments are based on geographic regions that generate revenue and hold its long-lived assets. The Company sells and distributes its products through a global network of customers and sales leaders in approximately 50 markets. The Company has divided these markets into seven operating segments, which are the Company’s reportable segments: Mainland China, Hong Kong/Taiwan, South Korea, Japan, Southeast Asia, Americas/Pacific and EMEA. The seven reportable segments generate revenue from the sale of personal care products and nutritional supplements under the Nu Skin and Pharmanex brands, have similar business characteristics and align with how the CODM function began assessing performance and allocating resources in the first quarter of 2017. The Other category includes the manufacturing and product-packaging companies that the Company acquired during the first quarter of 2018.

Segment information for the years ended December 31, 2017 and 2016 has been recast to reflect the move of the Pacific components from the "Southeast Asia/Pacific" operating segment to the "Americas/Pacific" operating segment. Consolidated financial information is not affected.

Profitability by segment as reported under US GAAP is driven primarily by the Company’s international taxation policies. Segment contribution, which is the Company’s segment profitability metric presented in the table below, excludes certain intercompany charges, specifically royalties, license fees, transfer pricing, discrete charges and other miscellaneous items. These charges have been included in Corporate and other expenses. Corporate and other expenses also include costs related to the Company’s executive and administrative offices, information technology, research and development, marketing and supply chain functions not recorded at the segment level.

The accounting policies of the segments are the same as those described in Note 1, “The Company.” The Company evaluates the performance of its segments based on revenue and segment contribution. Each segment records direct expenses related to its employees and its operations.

Summarized financial information for the Company’s reportable segments is shown in the following tables. Asset information is not reviewed or included with the Company’s internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.

Revenue by Segment

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	886,472	$	716,991	$	610,414
Americas/Pacific		385,034		342,429		298,774
South Korea		373,357		361,692		413,696
Southeast Asia		316,890		268,631		271,897
Japan		254,939		256,085		279,042
Hong Kong/Taiwan		185,893		166,696		183,979
EMEA		182,394		160,275		147,318
Other		94,029		6,300		2,677
Total	$	2,679,008	$	2,279,099	$	2,207,797

Segment Contribution

	Year ended December 31,
(U.S. dollars in thousands)	2018			2017			2016

Mainland China	$	253,598		$	211,625		$	135,174
Americas/Pacific		52,433			51,885			47,803
South Korea		107,215			100,964			117,142
Southeast Asia		78,598			63,296			67,952
Japan		56,676			51,372			59,175
Hong Kong/Taiwan		33,392			27,958			35,978
EMEA		14,773			11,749			10,386
Total segment contribution		596,685			518,849			473,610
Corporate and other		(355,825	)		(244,366	)		(242,506	)
Operating income		240,860			274,483			231,104
Other income (expense)		(21,194	)		(8,916	)		(18,265	)
Income before provision for income taxes	$	219,666		$	265,567		$	212,839

Depreciation and Amortization

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	13,036	$	15,122	$	16,775
Americas/Pacific		988		1,746		2,837
South Korea		6,266		6,499		6,787
Southeast Asia		2,123		2,234		2,168
Japan		3,604		3,554		3,782
Hong Kong/Taiwan		1,316		1,395		2,507
EMEA		847		985		1,387
Corporate and other		54,823		40,029		36,154
Total	$	83,003	$	71,564	$	72,397

Capital Expenditures

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	11,658	$	4,539	$	13,656
Americas/Pacific		974		800		1,171
South Korea		285		469		556
Southeast Asia		1,120		1,753		2,206
Japan		788		994		1,288
Hong Kong/Taiwan		4,113		1,350		634
EMEA		734		1,168		1,224
Corporate and other		50,699		49,083		29,486
Total	$	70,371	$	60,156	$	50,221

Revenue by Major Market

A major market is defined as one with total revenue greater than 10% of consolidated total revenue. Based on this criteria, the Company has identified three major markets: Mainland China, South Korea and Japan. There are approximately 50 other markets, each of which individually is less than 10%. The table below also includes the Company’s country of domicile (the U.S.). No single customer accounted for 10% or more of net sales for the periods presented. Sales are recorded in the jurisdiction in which the transactions occurred:

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	886,472	$	716,991	$	610,414
South Korea		373,357		361,692		413,696
Japan		254,939		256,085		279,042
United States		311,436		218,734		201,239
All others		852,804		725,597		703,406
Total	$	2,679,008	$	2,279,099	$	2,207,797

Revenue by Product Line

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Nu Skin	$	1,659,737	$	1,456,386	$	1,308,135
Pharmanex		921,328		817,230		892,738
Other		97,943		5,483		6,924
Total	$	2,679,008	$	2,279,099	$	2,207,797

Long-Lived Assets by Major Market

A major market is defined as a market with long-lived assets greater than 10% of consolidated long-lived assets and also includes the Company’s country of domicile (the U.S.). Long-lived assets in Mainland China consist primarily of property, plant and equipment related to manufacturing, distribution facilities and the Mainland China headquarters. Long-lived assets in the U.S. consist primarily of property, plant and equipment, including the Company’s corporate offices and distribution facilities. Long-lived assets by major market are set forth below for the periods ended December 31, 2018, 2017 and 2016:

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

United States	$	317,516	$	302,884	$	283,868
Mainland China		89,447		97,046		97,867
South Korea		36,325		42,211		41,545
Japan		6,864		9,342		11,517
All others		14,383		13,104		9,935
Total	$	464,535	$	464,587	$	444,732

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies [Abstract]

Commitments and Contingencies

19.	Commitments and Contingencies

The Company is subject to government regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and the Company’s direct-selling system. The Company is also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company’s sales force is not in compliance with existing statutes, laws, rules or regulations could have a material adverse effect on the Company’s operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. No assurance can be given that the Company’s compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company and its Subsidiaries are defendants in litigation, investigations and other proceedings involving various matters. In the opinion of the Company’s management, based upon advice of its counsel handling such litigation, investigations and other proceedings, adverse outcomes, if any, are not currently expected to result in a material effect on the Company’s consolidated financial condition, results of operations or cash flows.

The Company is subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. The Company believes it has appropriately provided for income taxes for all years. Several factors drive the calculation of its tax reserves. Some of these factors include: (i) the expiration of various statutes of limitations; (ii) changes in tax law and regulations; (iii) issuance of tax rulings; and (iv) settlements with tax authorities. Changes in any of these factors may result in adjustments to the Company’s reserves, which would impact its reported financial results.

Other Income (Expense), Net

12 Months Ended

Dec. 31, 2018

Other Income (Expense), Net [Abstract]

Other Income (Expense), Net

20.	Other Income (Expense), Net

Other income (expense), net was $21.2 million, $8.9 million and $18.3 million of expense in 2018, 2017 and 2016, respectively. Other income (expense), net also includes $21.8 million, $22.2 million and $15.6 million in interest expense during 2018, 2017 and 2016, respectively. The Company cannot estimate the degree to which its operations will be impacted in the future, but it remains subject to these currency risks. However, the majority of these transaction losses are non-cash, non-operating losses.

Cost of Sales

12 Months Ended

Dec. 31, 2018

Cost of Sales [Abstract]

Cost of Sales

21.	Cost of Sales

The Tokyo District Court and, on appeal in 2017, the Tokyo High Court upheld the Japan customs authorities’ customs assessments related to the importation of several of the Company’s products into Japan. The Company appealed the High Court’s decision to the Japan Supreme Court. In May 2018, the Japan Supreme Court declined to hear the Company’s appeal. Accordingly, this matter is now closed.

As previously disclosed, the Company already recorded a charge of $31.4 million to cost of sales in the first quarter of 2016, when the District Court issued its decision. This charge represents the full amount that was disputed. It was a non-cash item because the Company was previously required to pay the assessments.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies [Abstract]

Consolidation

The consolidated financial statements include the accounts of the Company and the Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Use of estimates

Cash and cash equivalents

Cash equivalents are short-term, highly liquid instruments with original maturities of 90 days or less.

Inventories

Inventories consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Raw materials	$	91,610	$	87,683
Finished goods		204,211		165,771
	$	295,821	$	253,454

Reserves of inventories consist of the following (U.S. dollars in thousands):

	2018			2017			2016

Beginning balance	$	8,081		$	7,995		$	20,744
Additions		23,940			16,382			24,906
Write-offs		(17,872	)		(16,296	)		(37,655	)
Ending balance	$	14,149		$	8,081		$	7,995

Goodwill and other intangible assets

Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the following estimated useful lives:

Buildings	39 years
Furniture and fixtures	5 - 7 years
Computers and equipment	3 - 5 years
Leasehold improvements	Shorter of estimated useful life or lease term
Scanners	3 years
Vehicles	3 - 5 years

No impairment charges were recorded for goodwill or intangibles during the periods presented.

Revenue Recognition

Revenue recognition

Contract Liabilities – Customer Loyalty Programs

Disaggregation of Revenue

Please refer to Note 18 - Segment Information for revenue by segment and product line.

Arrangements with Multiple Performance Obligations

Shipping and handling costs

Shipping and handling costs are recorded as cost of sales and are expensed as incurred.

Advertising expenses

Advertising costs are expensed as incurred. Advertising expense incurred for the years ended December 31, 2018, 2017 and 2016 totaled $19.1 million, $15.6 million and $15.9 million, respectively.

Selling expenses

Research and development

Deferred tax assets and liabilities

Uncertain tax positions

A reconciliation of the beginning and ending amount of unrecognized tax benefits included in other liabilities is as follows (U.S. dollars in thousands):

	2018			2017			2016

Gross balance at January 1	$	5,514		$	5,290		$	7,772
Increases related to prior year tax positions		5,161		─				185
Decreases related to prior year tax positions	─				(277	)	─
Increases related to current year tax positions		3,704			669			918
Settlements		(956	)		(159	)		(3,369	)
Decreases due to lapse of statutes of limitations		(1,483	)		(187	)		(252	)
Currency adjustments		(484	)		178			36
Gross balance at December 31	$	11,456		$	5,514		$	5,290

Net income per share

Foreign currency translation and classification of a highly inflationary economy

Foreign currency translation

Classification of a highly inflationary economy

Venezuela has been classified as a highly inflationary since 2010. During the third quarter of 2016 the Company ceased business operations in Venezuela.

Fair value of financial instruments

•

Level 1 – quoted prices in active markets for identical assets or liabilities;

•

Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

•

Level 3 – unobservable inputs based on the Company’s own assumptions.

Stock-based compensation

Reporting comprehensive income

Accounting for derivative instruments and hedging activities

The Company recognizes all derivatives as either assets or liabilities, with the instruments measured at fair value.

Recent accounting pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies [Abstract]

Inventories

Inventories consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Raw materials	$	91,610	$	87,683
Finished goods		204,211		165,771
	$	295,821	$	253,454

Inventory Reserves

Reserves of inventories consist of the following (U.S. dollars in thousands):

	2018			2017			2016

Beginning balance	$	8,081		$	7,995		$	20,744
Additions		23,940			16,382			24,906
Write-offs		(17,872	)		(16,296	)		(37,655	)
Ending balance	$	14,149		$	8,081		$	7,995

Prepaid Expenses and Other

Prepaid expenses and other consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Deferred charges	$	6,703	$	4,256
Prepaid inventory and import costs		2,808		9,397
Prepaid rent, insurance and other occupancy costs		8,799		14,558
Prepaid promotion and event cost		6,013		3,581
Prepaid other taxes		6,268		5,559
Forward contracts	─			158
Prepaid software license		4,006		255
Deposits		1,470		1,147
Other		15,810		13,982
	$	51,877	$	52,893

Estimated Useful Lives

Depreciation is recorded using the straight-line method over the following estimated useful lives:

Buildings	39 years
Furniture and fixtures	5 - 7 years
Computers and equipment	3 - 5 years
Leasehold improvements	Shorter of estimated useful life or lease term
Scanners	3 years
Vehicles	3 - 5 years

Other Assets

Other assets consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Deferred taxes	$	37,332	$	33,785
Deposits for noncancelable operating leases		41,986		43,375
Cash surrender value for life insurance policies		35,590		37,737
Other		29,204		49,998
	$	144,112	$	164,895

Accrued Expenses

Accrued expenses consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Accrued sales force commissions and other payments	$	128,022	$	151,549
Accrued income taxes		6,674		13,075
Accrued other taxes		38,693		44,580
Accrued payroll and other employee expenses		68,155		38,167
Accrued payable to vendors		34,539		29,874
Accrued royalties		3,899		2,623
Sales return reserve		3,577		4,523
Deferred revenue		20,104		12,669
Other		18,920		22,129
	$	322,583	$	319,189

Other Liabilities

Other liabilities consist of the following (U.S. dollars in thousands):

	December 31,
	2018		2017

Deferred tax liabilities	$	18,236	$	36,718
Reserve for other tax liabilities		14,382		7,163
Liability for deferred compensation plan		36,398		43,248
Pension plan benefits reserve		3,023		6,359
Build to suit – financing obligation		9,332		10,290
Deferred rent and deferred tenant incentives		5,665		6,389
Asset retirement obligation		6,444		6,578
Other		18,436		10,371
	$	111,916	$	127,116

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits included in other liabilities is as follows (U.S. dollars in thousands):

	2018			2017			2016

Gross balance at January 1	$	5,514		$	5,290		$	7,772
Increases related to prior year tax positions		5,161		─				185
Decreases related to prior year tax positions	─				(277	)	─
Increases related to current year tax positions		3,704			669			918
Settlements		(956	)		(159	)		(3,369	)
Decreases due to lapse of statutes of limitations		(1,483	)		(187	)		(252	)
Currency adjustments		(484	)		178			36
Gross balance at December 31	$	11,456		$	5,514		$	5,290

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property and Equipment

Property and equipment are comprised of the following (U.S. dollars in thousands):

	December 31,
	2018			2017

Land	$	35,709		$	33,667
Buildings		295,748			274,632
Construction in progress⁽¹⁾		18,153			53,125
Furniture and fixtures		118,149			95,378
Computers and equipment		160,873			156,994
Leasehold improvements		147,604			123,479
Scanners		8,986			11,212
Vehicles		2,312			2,339
		787,534			750,826
Less: accumulated depreciation		(322,999	)		(286,239	)
	$	464,535		$	464,587

⁽¹⁾

Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Indefinite Life Intangible Assets

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended December 30, 2018 and December 31, 2017 (U.S. dollars in thousands):

	December 31, 2018		December 31, 2017⁽²⁾

Mainland China	$	32,179	$	32,179
Americas/Pacific		9,449		9,449
South Korea		29,261		29,261
Southeast Asia		18,537		18,537
Japan		16,019		16,019
Hong Kong/Taiwan		6,634		6,634
EMEA		2,875		2,875
Other⁽¹⁾		81,619	─
Total	$	196,573	$	114,954

⁽¹⁾

The other category represents goodwill allocated to the companies acquired during 2018 (see Note 16 – Acquisitions)

⁽²⁾

Goodwill was recast to reflect current period presentation by geographic region at December 31, 2018.

Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Other Intangible Assets [Abstract]

Other intangible assets consist of the following (U.S. dollars in thousands):

	Carrying Amount at December 31,
Indefinite life intangible assets:	2018		2017

Trademarks and trade names	$	24,599	$	24,599
Other indefinite lived intangibles		3,763		3,763
	$	28,362	$	28,362

Finite Life Intangible Assets

	December 31, 2018				December 31, 2017
Finite life intangible assets:	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Weighted-average Amortization Period

Scanner technology	$	46,482	$	42,690	$	46,482	$	39,657	18 years
Developed technology		22,500		20,032		22,500		19,207	20 years
Distributor network		11,598		11,598		11,598		11,598	15 years
Trademarks		5,823		1,812		2,785		1,197	11 years
Other		95,150		43,794		57,550		29,972	10 years
	$	181,553	$	119,926	$	140,915	$	101,631	14 years

Annual Estimated Future Amortization Expense

The estimated annual amortization expense for each of the five succeeding fiscal years are as follows (U.S. dollars in thousands):

Year Ending December 31,

2019	$	14,271
2020		9,024
2021		7,491
2022		6,409
2023		6,224

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Long-Term Debt [Abstract]

Debt Facilities

The following table summarizes the Company’s debt facilities as of December 31, 2017 and 2018:

Facility or Arrangement	Original Principal Amount	Balance as of December 31, 2017	Balance as of December 31, 2018⁽¹⁾⁽²⁾	Interest Rate	Repayment terms

October 2014 Credit Agreement term loan facility:

U.S. dollar denominated:	$127.5 million	$94.8 million	─	Variable 30 day: 4.627%	Principal amount was paid in full during April 2018.

Japanese yen denominated:	6.6 billion yen	4.9 billion yen ($43.5 million as of December 31, 2017)	─	Variable 30 day: 2.7595%	Principal amount was paid in full during April 2018.
October 2014 Credit Agreement revolving credit facility:		$47.5 million	─	Variable 30 day: 4.594%	Principal amount was paid in full during April 2018 and credit line was closed.
April 2018 Credit Agreement term loan facility:
	$400.0 million	─	$385.0 million	Variable 30 day: 4.77%	35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.
April 2018 Credit Agreement revolving credit facility:

		─	$49.5 million	Variable 30 day: 4.77%	Revolving line of credit expires April 18, 2023.


Japan subsidiary loan:	2.0 billion yen	0.7 billion yen ($5.9 million as of December 31, 2017)	─	0.66%	Principal amount was paid in full during July 2018.

Convertible note	$210.0 million	$210.0 million	─	4.75%	Principal amount was paid in full during April 2018.

⁽¹⁾

⁽²⁾	The carrying value of the debt reflects the amounts stated in the above table less a debt issuance costs of $4.0 million, which is not reflected in this table.

Maturities of Long-Term Debt

Maturities of all long-term debt at December 31, 2018, based on the year-end exchange rate, are as follows (U.S. dollars in thousands):

Year Ending December 31,

2019	$	69,455
2020		27,500
2021		30,000
2022		37,500
2023		270,000
Thereafter	─
Total⁽¹⁾	$	434,455

⁽¹⁾	The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table.

Lease and Financing Obligations [Abstract]

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Lease and Financing Obligations (Tables)

12 Months Ended

Dec. 31, 2018

Minimum Future Operating Leases and Financing Obligations

Minimum future operating leases and financing obligations at December 31, 2018 are as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating Leases		Financing Obligations

2019	$	39,358	$	726
2020		27,553		748
2021		20,266		757
2022		11,723		770
2023		9,950		794
Thereafter		7,628		1,148
Total minimum lease payments	$	116,478	$	4,943

Capital Stock (Tables)

12 Months Ended

Dec. 31, 2018

Capital Stock [Abstract]

Weighted Average Common Shares Outstanding

The following is a reconciliation of the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands):

	Year Ended December 31,
	2018		2017		2016

Basic weighted-average common shares outstanding		55,170		52,806		55,412
Effect of dilutive securities:
Stock awards and options		1,061		1,110		683
Convertible note		245		936		2
Diluted weighted-average common shares outstanding		56,476		54,852		56,097

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Stock-Based Compensation [Abstract]

Stock Option Valuation Assumptions

The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values as follows:

	December 31,
Stock Options:	2018			2017			2016

Weighted-average grant date fair value of grants	$	24.72		$	18.84		$	12.59
Risk-free interest rate⁽¹⁾		2.6	%		2.1	%		1.4	%
Dividend yield⁽²⁾		2.6	%		2.5	%		2.3	%
Expected volatility⁽³⁾		45.6	%		48.2	%		47.9	%
Expected life in months⁽⁴⁾		66 months			68 months			68 months

⁽¹⁾

The risk-free interest rate is based upon the rate on a zero-coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant.

⁽²⁾

The dividend yield is based on the average of historical stock prices and actual dividends paid.

⁽³⁾

Expected volatility is based on the historical volatility of the Company’s stock price, over a period similar to the expected life of the option.

⁽⁴⁾

The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years.

Stock Options

Options under the plans as of December 31, 2018 and changes during the year ended December 31, 2018 were as follows:

	Shares (in thousands)			Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)

Options activity – service based
Outstanding at December 31, 2017		1,392.9		$	39.76
Granted	─			─
Exercised		(337.7	)		37.40
Forfeited/cancelled/expired		(8.8	)		39.45
Outstanding at December 31, 2018		1,046.4			40.53		3.53		24,330
Exercisable at December 31, 2018		648.6			43.72		3.08		19,984

Options activity – performance based
Outstanding at December 31, 2017		2,301.5		$	62.89
Granted		920.1			71.19
Exercised		(151.9	)		36.91
Forfeited/cancelled/expired		(698.9	)		75.68
Outstanding at December 31, 2018		2,370.8			64.00		4.16		15,190
Exercisable at December 31, 2018		416.2			37.88		3.95		9,762

Options activity – all options
Outstanding at December 31, 2017		3,694.4		$	54.17
Granted		920.1			71.19
Exercised		(489.6	)		37.25
Forfeited/cancelled/expired		(707.7	)		75.23
Outstanding at December 31, 2018		3,417.2			56.81		3.97		39,519
Exercisable at December 31, 2018		1,064.8			41.44		3.42		23,746

Stock Options Exercised

Cash proceeds, tax benefits and intrinsic value related to total stock options exercised during 2018, 2017 and 2016, were as follows (U.S. dollars in thousands):

	December 31,
	2018		2017		2016

Cash proceeds from stock options exercised	$	13,908	$	26,980	$	15,707
Tax benefit realized for stock options exercised		3,217		6,457		3,840
Intrinsic value of stock options exercised		11,855		42,749		30,587

Nonvested Restricted Stock Awards

Nonvested restricted stock awards as of December 31, 2018 and changes during the year ended December 31, 2018 were as follows:

	Number of Shares (in thousands)			Weighted- average Grant Date Fair Value

Nonvested at December 31, 2017		562.8			51.17

Granted		202.7			72.62
Vested		(233.9	)		56.00
Forfeited		(64.0	)		54.40

Nonvested at December 31, 2018		467.6			57.61

Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (U.S. dollars in thousands):

	Fair Value at December 31, 2018
	Level 1		Level 2		Level 3		Total

Financial assets (liabilities):
Cash equivalents and current investments	$	35,260	$	─	$	─	$	35,260
Other long-term assets		3,568		─		─		3,568
Forward contracts		─		─		─		─
Life insurance contracts		─		─		35,590		35,590
Total	$	38,828	$	─	$	35,590	$	74,418

	Fair Value at December 31, 2017
	Level 1		Level 2		Level 3		Total

Financial assets (liabilities):
Cash equivalents and current investments	$	36,531	$	─	$	─	$	36,531
Other long-term assets		3,726		─		─		3,726
Forward contracts		─		158		─		158
Life insurance contracts		─		─		37,737		37,737
Total	$	40,257	$	158	$	37,737	$	78,152

Changes in Fair Value of Level 3 Marketable Securities

The following table provides a summary of changes in fair value of the Company’s Level 3 marketable securities (U.S. dollars in thousands):

Life Insurance Contracts	2018			2017

Beginning balance at January 1	$	37,737		$	32,287
Actual return on plan assets		(1,788	)		4,917
Purchases and issuances		─			895
Sales and settlements		(359	)		(362	)
Transfers into Level 3		─			─
Ending balance at December 31	$	35,590		$	37,737

Consolidated Income Before Provision for Income Taxes

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes [Abstract]

Consolidated income before provision for income taxes consists of the following for the years ended December 31, 2018, 2017 and 2016 (U.S. dollars in thousands):

	2018			2017		2016

U.S.	$	(67,087	)	$	1,135	$	(19,119	)
Foreign		286,753			264,432		231,958
Total	$	219,666		$	265,567	$	212,839

Current and Deferred Taxes

The provision for current and deferred taxes for the years ended December 31, 2018, 2017 and 2016 consists of the following (U.S. dollars in thousands):

	2018			2017			2016
Current
Federal	$	─		$	(14,358	)	$	─
State		652			1,814			(718	)
Foreign		116,303			104,688			70,652
		116,955			92,144			69,934
Deferred
Federal		(17,836	)		45,593			(27,171	)
State		(1,974	)		(2,273	)		1,104
Foreign		634			666			25,886
		(19,176	)		43,986			(181	)
Provision for income taxes	$	97,779		$	136,130		$	69,753

Deferred Tax Assets and Liabilities

The principal components of deferred taxes are as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2018			2017
Deferred tax assets:
Inventory differences	$	4,257		$	2,861
Foreign tax credit and other foreign benefits		62,521			52,408
Stock-based compensation		7,893			6,327
Accrued expenses not deductible until paid		40,509			39,326
Foreign currency exchange		1,023			2,001
Net operating losses		4,522			5,230
Capitalized research and development		11,988			197
Interest expense limitation – 163(j)		847			─
R&D credit carryforward		807			─
Other		339			211
Gross deferred tax assets		134,706			108,561
Deferred tax liabilities:
Foreign currency exchange		124			874
Foreign withholding taxes		21,524			29,018
Intangibles step-up		5,763			6,568
Overhead allocation to inventory		2,857			3,977
Amortization of intangibles		15,812			11,475
Foreign outside basis in controlled foreign corporation		─			─
Other		833			2,676
Gross deferred tax liabilities		46,913			54,588
Valuation allowance		(68,697	)		(56,906	)
Deferred taxes, net	$	19,096		$	(2,933	)

Deferred Tax Asset Valuation Adjustments

The deferred tax asset valuation adjustments for the years ended December 31, 2018, 2017 and 2016 are as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2018			2017			2016

Balance at the beginning of period	$	56,906		$	9,137		$	49,271
Additions charged to cost and expenses		27,902	⁽¹⁾		53,983	⁽⁴⁾		692
Decreases		(16,215	)⁽²⁾		(6,400	)⁽⁵⁾		(40,442	)⁽⁶⁾
Adjustments		104	⁽³⁾		186	⁽³⁾		(384	)⁽³⁾
Balance at the end of the period	$	68,697		$	56,906		$	9,137

⁽¹⁾

⁽²⁾

⁽³⁾

Represents the net currency effects of translating valuation allowances at current rates of exchange.

⁽⁴⁾

Increase in valuation is due primarily to the $52.0 million that was recorded on the foreign tax credit carryforward. The additional amount is due to net operating losses in foreign markets

⁽⁵⁾

Decrease is due primarily to the write-off of Brazil deferred tax assets, which had no impact to the income statement, as a valuation allowance had been previously recorded against the asset.

⁽⁶⁾

Deferred Taxes, Net on a Jurisdiction Basis

The components of deferred taxes, net on a jurisdiction basis are as follows (U.S. dollars in thousands):

	Year Ended December 31,
	2018		2017

Net noncurrent deferred tax assets	$	37,332	$	33,785

Net noncurrent deferred tax liabilities		18,236		36,718

Deferred taxes, net	$	19,096	$	(2,933	)

Reconciliation of Statutory to Effective Tax Rate

The actual tax rate for the years ended December 31, 2018, 2017 and 2016 compared to the statutory U.S. Federal tax rate is as follows:

	Year Ended December 31,
	2018			2017			2016

Income taxes at statutory rate		21.00	%		35.00	%		35.00	%
Indefinite reinvestment		(2.73	)		2.75			(1.98	)
Excess tax benefit from equity award		(1.41	)		(2.38	)		─
Non-U.S. income taxed at different rates		7.37			─			─
Foreign withholding taxes		7.68			─			─
Change in reserve for uncertain tax positions		3.68			─			─
Non-deductible expenses		─			0.17			0.11
Controlled foreign corporation losses		─			(0.13	)		(2.63	)
Valuation allowance recognized foreign tax credit & others		5.54			19.59			─
Write-off outside basis DTL		─			(2.89	)		─
Revaluation of deferred taxes		1.61			(1.28	)		─
Section 987 implementation		─			─			2.69
Other		1.77			0.43			(0.42	)
		44.51	%		51.26%	%		32.77	%

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Financial Instruments [Abstract]

Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments

The following table summarizes gains (losses) related to derivative instruments not designated as hedging instruments during the years ended December 31, 2018 and 2017 (U.S. dollars in thousands):

Derivatives not designated as hedging instruments:	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income
		Year Ended December 31,
		2018		2017			2016

Foreign currency contracts	Other income (expense)	$	─	$	(485	)	$	39

Gains (Losses) Related to Derivative Instruments Designated as Cash Flow Hedges

Derivatives designated as hedging instruments:	Amount of Gain (Loss) Recognized in Other Comprehensive Loss
	Year Ended December 31,
	2018			2017			2016

Foreign currency forward contracts related to intercompany license fee, product sales, and selling expense hedges	$	(160	)	$	(152	)	$	(1,423	)

Derivatives designated as hedging instruments:	Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
		Year Ended December 31,
		2018		2017		2016

Foreign currency forward contracts related to intercompany license fees and product sales hedges	Revenue	$	18	$	119	$	(1,088	)
Foreign currency forward contracts related to intercompany selling expense hedges	Selling expenses	$	─	$	358	$	(1,544	)

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring and Severance Charges [Abstract]

Acquisitions

The following table summarizes the fair value of consideration transferred for the acquisitions disclosed above (in thousands):

	Innuvate		Treviso		L&W Holdings		Total

Total cash consideration	$	17,587	$	14,648	$	—	$	32,235
Shares issued in conjunction with acquisition		5,863		69,252		25,000		100,115
Total consideration	$	23,450	$	83,900	$	25,000		132,350
Previously held equity interest in equity method Investments⁽¹⁾		8,748		30,281		—		39,029
Total	$	32,198	$	114,181	$	25,000	$	171,379

⁽¹⁾

The following table summarizes the fair value of the assets acquired for the acquisitions disclosed above (in thousands):

	Innuvate				Treviso				L&W Holdings
	Life	Amount			Life	Amount			Life	Amount

Total current assets		$	6,219			$	19,659			$	7,353
Fixed assets			9,291				33,282				114
Customer list	9 years		5,100		9 years		16,500		7 years		6,500
Order backlog	5 months		200		10 months		4,700		4 months		900
Trademarks	7 years		900		6 years		1,300		5 years		600
Total current liabilities			(3,942	)			(3,740	)			(1,495	)
Other non-current liabilities			—				—				(1,731	)
Total identifiable net assets acquired			17,768				71,701				12,241
Goodwill			17,230				42,480				12,759
Fair value of noncontrolling interest			(2,800	)			—				—
Total consideration and value to be allocated to net assets		$	32,198			$	114,181			$	25,000

Restructuring and Severance Charges (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring and Severance Charges

	December 31, 2018

Restructuring, severance and impairment charges incurred	$	70,686
Non-cash impairment charges		(48,551	)
Amounts paid		(6,673	)
Adjustments		—
Balance December 31, 2018	$	15,462

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Information [Abstract]

Revenue by Segment

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	886,472	$	716,991	$	610,414
Americas/Pacific		385,034		342,429		298,774
South Korea		373,357		361,692		413,696
Southeast Asia		316,890		268,631		271,897
Japan		254,939		256,085		279,042
Hong Kong/Taiwan		185,893		166,696		183,979
EMEA		182,394		160,275		147,318
Other		94,029		6,300		2,677
Total	$	2,679,008	$	2,279,099	$	2,207,797

Segment Contribution

	Year ended December 31,
(U.S. dollars in thousands)	2018			2017			2016

Mainland China	$	253,598		$	211,625		$	135,174
Americas/Pacific		52,433			51,885			47,803
South Korea		107,215			100,964			117,142
Southeast Asia		78,598			63,296			67,952
Japan		56,676			51,372			59,175
Hong Kong/Taiwan		33,392			27,958			35,978
EMEA		14,773			11,749			10,386
Total segment contribution		596,685			518,849			473,610
Corporate and other		(355,825	)		(244,366	)		(242,506	)
Operating income		240,860			274,483			231,104
Other income (expense)		(21,194	)		(8,916	)		(18,265	)
Income before provision for income taxes	$	219,666		$	265,567		$	212,839

Depreciation and Amortization and Capital Expenditures

Depreciation and Amortization

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	13,036	$	15,122	$	16,775
Americas/Pacific		988		1,746		2,837
South Korea		6,266		6,499		6,787
Southeast Asia		2,123		2,234		2,168
Japan		3,604		3,554		3,782
Hong Kong/Taiwan		1,316		1,395		2,507
EMEA		847		985		1,387
Corporate and other		54,823		40,029		36,154
Total	$	83,003	$	71,564	$	72,397

Capital Expenditures

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	11,658	$	4,539	$	13,656
Americas/Pacific		974		800		1,171
South Korea		285		469		556
Southeast Asia		1,120		1,753		2,206
Japan		788		994		1,288
Hong Kong/Taiwan		4,113		1,350		634
EMEA		734		1,168		1,224
Corporate and other		50,699		49,083		29,486
Total	$	70,371	$	60,156	$	50,221

Revenue by Major Market

Sales are recorded in the jurisdiction in which the transactions occurred:

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Mainland China	$	886,472	$	716,991	$	610,414
South Korea		373,357		361,692		413,696
Japan		254,939		256,085		279,042
United States		311,436		218,734		201,239
All others		852,804		725,597		703,406
Total	$	2,679,008	$	2,279,099	$	2,207,797

Revenue by Product Line

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

Nu Skin	$	1,659,737	$	1,456,386	$	1,308,135
Pharmanex		921,328		817,230		892,738
Other		97,943		5,483		6,924
Total	$	2,679,008	$	2,279,099	$	2,207,797

Long-Lived Assets by Major Market

Long-lived assets by major market are set forth below for the periods ended December 31, 2018, 2017 and 2016:

	Year ended December 31,
(U.S. dollars in thousands)	2018		2017		2016

United States	$	317,516	$	302,884	$	283,868
Mainland China		89,447		97,046		97,867
South Korea		36,325		42,211		41,545
Japan		6,864		9,342		11,517
All others		14,383		13,104		9,935
Total	$	464,535	$	464,587	$	444,732

The Company (Details)	12 Months Ended
The Company (Details)	Dec. 31, 2018 Segment
The Company [Abstract]
Number of segments	7

Summary of Significant Accounting Policies, Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Inventories [Abstract]
Raw materials	$ 91,610	$ 87,683
Finished goods	204,211	165,771
Inventories	295,821	253,454
Inventory Valuation Reserve [Member]
Valuation Allowance [Roll Forward]
Beginning balance	8,081	7,995	$ 20,744
Additions	23,940	16,382	24,906
Write-offs	(17,872)	(16,296)	(37,655)
Ending balance	$ 14,149	$ 8,081	$ 7,995

Summary of Significant Accounting Policies, Prepaid Expense and Other (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Prepaid Expense and Other [Abstract]
Deferred charges	$ 6,703	$ 4,256
Prepaid inventory and import costs	2,808	9,397
Prepaid rent, insurance and other occupancy costs	8,799	14,558
Prepaid promotion and event cost	6,013	3,581
Prepaid other taxes	6,268	5,559
Forward contracts	0	158
Prepaid software license	4,006	255
Deposits	1,470	1,147
Other	15,810	13,982
Total prepaid expenses and other	$ 51,877	$ 52,893

Summary of Significant Accounting Policies, Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Buildings [Member]
Property and Equipment [Abstract]
Useful life	39 years
Furniture and Fixtures [Member] \| Minimum [Member]
Property and Equipment [Abstract]
Useful life	5 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property and Equipment [Abstract]
Useful life	7 years
Computers and Equipment [Member] \| Minimum [Member]
Property and Equipment [Abstract]
Useful life	3 years
Computers and Equipment [Member] \| Maximum [Member]
Property and Equipment [Abstract]
Useful life	5 years
Leasehold Improvements [Member]
Property and Equipment [Abstract]
Estimated useful life description	Shorter of estimated useful life or lease term
Scanners [Member]
Property and Equipment [Abstract]
Useful life	3 years
Vehicles [Member] \| Minimum [Member]
Property and Equipment [Abstract]
Useful life	3 years
Vehicles [Member] \| Maximum [Member]
Property and Equipment [Abstract]
Useful life	5 years

Summary of Significant Accounting Policies, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Other Intangible Assets [Abstract]
Impairment charges	$ 0	$ 0	$ 0

Summary of Significant Accounting Policies, Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other Assets [Abstract]
Deferred taxes	$ 37,332	$ 33,785
Deposits for noncancelable operating leases	41,986	43,375
Cash surrender value for life insurance policies	35,590	37,737
Other	29,204	49,998
Total other assets	$ 144,112	$ 164,895

Summary of Significant Accounting Policies, Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued Expenses [Abstract]
Accrued sales force commissions and other payments	$ 128,022	$ 151,549
Accrued income taxes	6,674	13,075
Accrued other taxes	38,693	44,580
Accrued payroll and other employee expenses	68,155	38,167
Accrued payable to vendors	34,539	29,874
Accrued royalties	3,899	2,623
Sales return reserve	3,577	4,523
Deferred revenue	20,104	12,669
Other	18,920	22,129
Total accrued expenses	$ 322,583	$ 319,189

Summary of Significant Accounting Policies, Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other Liabilities [Abstract]
Deferred tax liabilities	$ 18,236	$ 36,718
Reserve for other tax liabilities	14,382	7,163
Liability for deferred compensation plan	36,398	43,248
Pension plan benefits reserve	3,023	6,359
Build to suit - financing obligation	9,332	10,290
Deferred rent and deferred tenant incentives	5,665	6,389
Asset retirement obligation	6,444	6,578
Other	18,436	10,371
Total other liabilities	$ 111,916	$ 127,116

Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue Recognition [Abstract]
Revenue	$ 2,679,008	$ 2,279,099	$ 2,207,797
Revenue Recognition [Abstract]
Sales returns	52,000	53,800	$ 61,200
ASC Topic 606 [Member]
Revenue Recognition [Abstract]
Cumulative impact on opening retained earnings		13,000
Allowance for Product Returns [Member]
Revenue Recognition [Abstract]
Accrued reserve	3,600	$ 4,500
Impact of Adopting ASC Topic 606 [Member] \| ASC Topic 606 [Member]
Revenue Recognition [Abstract]
Revenue	$ 1,100

Summary of Significant Accounting Policies, Contract Liabilities - Customer Loyalty Programs (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Contract Liabilities - Customer Loyalty Programs [Abstract]
Contract liabilities for customer loyalty programs	$ 13.8	$ 14.9
Calculated under Cost Provision Methodology [Member]
Contract Liabilities - Customer Loyalty Programs [Abstract]
Contract liabilities for customer loyalty programs		1.9
Impact of Adopting ASC Topic 606 [Member]
Contract Liabilities - Customer Loyalty Programs [Abstract]
Contract liabilities for customer loyalty programs		$ 13.0

Summary of Significant Accounting Policies, Advertising Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Advertising Expense [Abstract]
Advertising costs incurred	$ 19.1	$ 15.6	$ 15.9

Summary of Significant Accounting Policies, Research and Development (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Research and Development [Abstract]
Research and development expense	$ 23.0	$ 22.0	$ 24.3

Summary of Significant Accounting Policies, Uncertain Tax Positions (Details) - Multiple Foreign and Domestic Authorities [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Gross balance at beginning of year	$ 5,514	$ 5,290	$ 7,772
Increases related to prior year tax positions	5,161	0	185
Decreases related to prior year tax positions	0	(277)	0
Increases related to current year tax positions	3,704	669	918
Settlements	(956)	(159)	(3,369)
Decreases due to lapse of statutes of limitations	(1,483)	(187)	(252)
Currency adjustments	(484)
Currency adjustments		178	36
Gross balance at end of year	11,456	5,514	5,290
Uncertain Tax Positions [Abstract]
Unrecognized tax benefits that would impact effective tax rate	11,400	5,200
Interest and penalties expenses/(benefits)	1,300	700	(800)
Accrued interest and penalties	2,900	$ 1,600	$ 900
Minimum [Member]
Uncertain Tax Positions [Abstract]
Estimated increase in gross unrecognized tax benefits within next 12 months	500
Maximum [Member]
Uncertain Tax Positions [Abstract]
Estimated increase in gross unrecognized tax benefits within next 12 months	$ 2,000
Statute of limitations related to income tax examinations	10 years

Summary of Significant Accounting Policies, Foreign Currency Translation (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Foreign Currency Translation [Abstract]
Cumulative translation adjustment related to foreign currency adjustment	$ (79.9)	$ (66.4)	$ (84.7)
Cumulative translation adjustment related to foreign currency adjustment, tax	$ 7.9	$ 5.8	$ 13.4

Summary of Significant Accounting Policies, Classification of a Highly Inflationary Economy (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Argentina [Member] \| Net Sales [Member] \| Geographic Concentration Risk [Member] \| Maximum [Member]
Operations in Argentina [Abstract]
Concentration percentage	2.00%	2.00%	2.00%

Summary of Significant Accounting Policies, Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value of Financial Instruments [Abstract]
Fair value of debt	$ 434.5	$ 515.2

Summary of Significant Accounting Policies, Stock-Based Compensation (Details) - General and Administrative Expense [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock-Based Compensation [Abstract]
Compensation expense related to equity compensation plans	$ 26.6	$ 19.3	$ 8.9
Reversal of compensation expense for certain performance based awards no longer expected to vest	$ 0.0	$ 0.0	$ 9.6

Summary of Significant Accounting Policies, Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Standards Update 2016-09 [Member]
Accounting Pronouncements [Abstract]
Cumulative adjustment			$ 0
Cumulative impact on opening retained earnings		$ 13,000
Accounting Standards Update 2016-09 [Member] \| Retained Earnings [Member]
Accounting Pronouncements [Abstract]
Cumulative adjustment			(2,800)
Accounting Standards Update 2016-09 [Member] \| Additional Paid-in Capital [Member]
Accounting Pronouncements [Abstract]
Cumulative adjustment			$ 2,800
Accounting Standards Update 2018-02 [Member]
Accounting Pronouncements [Abstract]
Cumulative adjustment		(1,681)
Cumulative impact on opening retained earnings	$ 1,700
Accounting Standards Update 2018-02 [Member] \| Retained Earnings [Member]
Accounting Pronouncements [Abstract]
Cumulative adjustment		(1,681)
Accounting Standards Update 2018-02 [Member] \| Additional Paid-in Capital [Member]
Accounting Pronouncements [Abstract]
Cumulative adjustment		$ 0

Property and Equipment (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Less: accumulated depreciation

$ 787,534

$ 750,826

(322,999)

(286,239)

Property and equipment, net

464,535

464,587

$ 444,732

Depreciation expense

56,400

58,300

60,800

Impairment charges

48,551

$ 0

Land [Member]

35,709

33,667

Buildings [Member]

Construction in Progress [Member]

295,748

274,632

Furniture and Fixtures [Member]

^[1]

18,153

53,125

Computers and Equipment [Member]

118,149

95,378

Leasehold Improvements [Member]

160,873

156,994

147,604

123,479

Scanners [Member]

8,986

11,212

Vehicles [Member]

Internal-Use Software Development Costs [Member]

2,312

2,339

$ 8,700

$ 43,400

[1]	Construction in progress includes $8.7 million and $43.4 million as of December 31, 2018 and 2017, respectively, of eligible capitalized internal-use software development costs which will be reclassified to computers and equipment when placed into service.

Goodwill (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2018

USD ($)

Segment

Dec. 31, 2017

USD ($)

^[1]

Number of segments | Segment

$ 196,573

$ 114,954

Mainland China [Member]

Americas/Pacific [Member]

32,179

9,449

South Korea [Member]

29,261

Southeast Asia [Member]

18,537

Japan [Member]

Hong Kong/Taiwan [Member]

16,019

6,634

EMEA [Member]

2,875

Other [Member]

$ 81,619

^[2]

$ 0

[1]	Goodwill was recast to reflect current period presentation by geographic region at December 31, 2018.
[2]	The other category represents goodwill allocated to the companies acquired during 2018 (see Note 16 - Acquisitions)

Other Intangible Assets, Indefinite Life Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Indefinite Life Intangible Assets [Abstract]
Indefinite life intangible assets	$ 28,362	$ 28,362
Trademarks and Trade Names [Member]
Indefinite Life Intangible Assets [Abstract]
Indefinite life intangible assets	24,599	24,599
Other Indefinite Lived Intangibles [Member]
Indefinite Life Intangible Assets [Abstract]
Indefinite life intangible assets	$ 3,763	$ 3,763

Other Intangible Assets, Finite Life Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite Life Intangible Assets [Abstract]
Gross carrying amount	$ 181,553	$ 140,915
Accumulated amortization	$ 119,926	101,631
Weighted-average amortization period	14 years
Amortization expense	$ 18,300	8,100	$ 8,400
Scanner Technology [Member]
Finite Life Intangible Assets [Abstract]
Gross carrying amount	46,482	46,482
Accumulated amortization	$ 42,690	39,657
Weighted-average amortization period	18 years
Developed Technology [Member]
Finite Life Intangible Assets [Abstract]
Gross carrying amount	$ 22,500	22,500
Accumulated amortization	$ 20,032	19,207
Weighted-average amortization period	20 years
Distributor Network [Member]
Finite Life Intangible Assets [Abstract]
Gross carrying amount	$ 11,598	11,598
Accumulated amortization	$ 11,598	11,598
Weighted-average amortization period	15 years
Trademarks [Member]
Finite Life Intangible Assets [Abstract]
Gross carrying amount	$ 5,823	2,785
Accumulated amortization	$ 1,812	1,197
Weighted-average amortization period	11 years
Other [Member]
Finite Life Intangible Assets [Abstract]
Gross carrying amount	$ 95,150	57,550
Accumulated amortization	$ 43,794	$ 29,972
Weighted-average amortization period	10 years

Other Intangible Assets, Annual Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Annual Estimated Future Amortization Expense [Abstract]
2019	$ 14,271
2020	9,024
2021	7,491
2022	6,409
2023	6,224
Impairment Charges [Abstract]
Indefinite life intangible assets impairment charge	$ 0	$ 0	$ 0

Long-Term Debt, Existing Credit Agreement (Details)
$ in Thousands, ¥ in Billions

12 Months Ended

Dec. 31, 2018

USD ($)

Dec. 31, 2018

JPY (¥)

Dec. 31, 2017

USD ($)

Dec. 31, 2017

JPY (¥)

Oct. 09, 2014

USD ($)

Oct. 09, 2014

JPY (¥)

October 2014 Credit Agreement [Member] | Maximum [Member]

^[1]

$ 434,455

Consolidated leverage ratio

2.25

October 2014 Credit Agreement [Member] | Minimum [Member]

Consolidated interest coverage ratio

3.00

October 2014 Credit Agreement Term Loan Facility [Member]

$ 127,500

5 years

October 2014 Credit Agreement Japanese Yen Term Loan Facility [Member]

$ 0

$ 94,800

Original principal amount | ¥

¥ 6.6

5 years

October 2014 Credit Agreement Revolving Credit Facility [Member]

$ 0

¥ 0.0

43,500

¥ 4.9

Borrowing capacity

$ 187,500

5 years

$ 0

$ 47,500

[1]	The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table.

Long-Term Debt, New Credit Agreement (Details) $ in Thousands		12 Months Ended
	Apr. 18, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Long-term Debt, Current and Noncurrent [Abstract]
Proceeds from debt		$ 582,398	$ 67,000	$ 233,721
New Credit Agreement [Member] \| Maximum [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Consolidated leverage ratio		2.25
New Credit Agreement [Member] \| Minimum [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Consolidated interest coverage ratio		3.00
Term Loan Facility [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Original principal amount	$ 400,000	$ 400,000
Term of loan		5 years
Frequency of payment		Quarterly
Term Loan Facility [Member] \| First Year [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Annual amortization percentage	5.00%
Term Loan Facility [Member] \| Second Year [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Annual amortization percentage	5.00%
Term Loan Facility [Member] \| Third Year [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Annual amortization percentage	7.50%
Term Loan Facility [Member] \| Fourth Year [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Annual amortization percentage	7.50%
Term Loan Facility [Member] \| Fifth Year [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Annual amortization percentage	10.00%
Term Loan Facility [Member] \| LIBOR [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Basis spread on variable rate	2.25%
Revolving Credit Facility [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Borrowing capacity	$ 350,000
Term of loan		5 years
Proceeds from debt	$ 78,500
Revolving Credit Facility [Member] \| LIBOR [Member]
Long-term Debt, Current and Noncurrent [Abstract]
Basis spread on variable rate	2.25%

Long-Term Debt, Convertible Note (Details)				3 Months Ended	4 Months Ended	12 Months Ended
Long-Term Debt, Convertible Note (Details)	Apr. 18, 2018 USD ($)	Feb. 28, 2018 shares	Jun. 16, 2016 USD ($)	Mar. 31, 2018 USD ($)	Apr. 17, 2018 USD ($)	Dec. 31, 2018 USD ($) d $ / shares shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Convertible Debt [Abstract]
Equity component of convertible notes allocated to additional paid-in capital								$ 6,825,000
Debt issuance costs						$ 7,243,000	$ 0	6,596,000
Interest expense						21,800,000	22,200,000	15,600,000
Loss on extinguishment of debt				$ (7,200,000)		(7,220,000)	$ 0	$ 0
Class A Common Stock [Member]
Convertible Debt [Abstract]
Shares issued (in shares) \| shares		1,535,652
Convertible Note [Member]
Convertible Debt [Abstract]
Original principal amount			$ 210,000,000			$ 210,000,000
Interest rate						4.75%
Maturity date						Jun. 15, 2020
Redemption price, percentage of principal amount redeemed						100.00%
Threshold percentage of stock price trigger						180.00%
Threshold trading days \| d						20
Threshold final trading days \| d						3
Threshold consecutive trading days \| d						30
Principal amount increments that can be repurchased upon a change in control or termination of trading of common stock						$ 1,000
Principal amount increments that can be converted						$ 1,000
Holding period following issue date before notes can be converted						6 months
Initial conversion rate (in shares) \| shares						21.5054
Initial conversion price (in dollars per share) \| $ / shares						$ 46.50
Proceeds from issuance of notes			210,000,000
Liability component of convertible notes			199,100,000
Equity component of convertible notes allocated to additional paid-in capital			10,900,000
Effective interest rate						7.10%
Debt issuance costs			6,596,000
Additions to deferred financing cost			6,300,000
Adjustments to additional paid-in capital for debt issuance costs			$ 300,000
Interest expense						$ 3,500,000
Contractual interest						3,000,000
Amortization of debt issuance costs and debt discount						$ 500,000
Payment for principal and accrued interest	$ 213,400,000
Accrued interest					$ 3,400,000

Long-Term Debt, Debt Facilities (Details)
$ in Thousands, ¥ in Billions

12 Months Ended

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2018

JPY (¥)

Apr. 18, 2018

USD ($)

Dec. 31, 2017

JPY (¥)

Jun. 16, 2016

USD ($)

Oct. 09, 2014

USD ($)

Oct. 09, 2014

JPY (¥)

Current portion of long-term debt

^[1]

$ 434,455

69,455

$ 77,840

Unamortized debt issuance costs

4,000

Interest expense

21,800

22,200

$ 15,600

October 2014 Credit Agreement Term Loan Facility [Member]

127,500

$ 127,500

$ 0

94,800

Variable 30 day: 4.627%

4.627%

30 days

Principal amount was paid in full during April 2018.

Current portion of long-term debt

5 years

$ 20,000

October 2014 Credit Agreement Japanese Yen Term Loan Facility [Member]

Original principal amount | ¥

¥ 6.6

$ 0

43,500

¥ 0.0

¥ 4.9

Variable 30 day: 2.7595%

2.7595%

30 days

Principal amount was paid in full during April 2018.

October 2014 Credit Agreement Revolving Credit Facility [Member]

5 years

$ 0

47,500

Variable 30 day: 4.594%

4.594%

30 days

Principal amount was paid in full during April 2018 and credit line was closed.

April 2018 Credit Agreement Term Loan Facility [Member]

5 years

$ 400,000

$ 385,000

^[2],[3]

Variable 30 day: 4.77%

4.77%

30 days

Percentage of principal payable in installments

35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.

35.00%

Frequency of payment

Quarterly

April 2018 Credit Agreement Revolving Credit Facility [Member]

5 years

$ 49,500

^[2],[3]

Variable 30 day: 4.77%

4.77%

30 days

Revolving line of credit expires April 18, 2023.

Japan Subsidiary Loan [Member]

5 years

Original principal amount | ¥

¥ 2.0

$ 0

5,900

¥ 0.0

¥ 0.7

0.66%

Convertible Note [Member]

Principal amount was paid in full during July 2018.

$ 210,000

$ 0

$ 210,000

7.10%

4.75%

Maturities of Long-term Debt [Abstract]

Principal amount was paid in full during April 2018.

Interest expense

$ 3,500

[1]	The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table.
[2]	As of December 31, 2018, the current portion of the Company's debt (i.e. becoming due in the next 12 months) included $20.0 million of the balance of its U.S. dollar denominated debt under the New Credit Agreement facility. The Company has classified the $49.5 million borrowed under the revolving line of credit as short term because it is the Company's intention to use the line of credit to borrow and pay back funds over short periods of time.
[3]	The carrying value of the debt reflects the amounts stated in the above table less a debt issuance costs of $4.0 million, which is not reflected in this table.

Long-Term Debt, Maturities of Long-Term Debt (Details)
$ in Thousands

Dec. 31, 2018

USD ($)

$ 69,455

27,500

30,000

37,500

270,000

434,455

^[1]

Unamortized debt discount and debt issuance costs

$ 4,000

[1]	The carrying value of the debt reflects the amounts stated in the above table less a debt discount of $4.0 million, which is not reflected in this table.

Lease and Financing Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Building [Abstract]
Value of New Building	$ 787,534	$ 750,826
Accumulated depreciation	322,999	286,239
Deposit paid to landlord	41,986	43,375
Operating Leases, Minimum Future Obligations [Abstract]
2019	39,358
2020	27,553
2021	20,266
2022	11,723
2023	9,950
Thereafter	7,628
Total minimum lease payments	116,478
Financing Obligations, Minimum Future Obligations [Abstract]
2019	726
2020	748
2021	757
2022	770
2023	794
Thereafter	1,148
Total minimum lease payments	4,943
Rent expense for operating leases	50,400	50,700	$ 48,200
Interest expense associated with financing obligation	$ 200	200	$ 200
New Regional Headquarters Building [Member]
New Building [Abstract]
Extension period for lease	10 years
Initial term of lease	10 years
Value of New Building	$ 19,400	20,800
Financing obligation	9,900	10,800
Deposit paid to landlord	9,900	10,300
Tenant incentive asset	4,000	4,900
Deferred tenant incentive liability	$ 3,700	$ 4,500
Office Space and Computer Hardware [Member]
New Building [Abstract]
Extension period for lease	3 years

Capital Stock, Authorized Capital Stock (Details)	12 Months Ended
Capital Stock, Authorized Capital Stock (Details)	Dec. 31, 2018 Vote $ / shares shares	Dec. 31, 2017 $ / shares shares
Capital Stock [Abstract]
Preferred stock, authorized (in shares)	25,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Preferred stock, shares outstanding (in shares)	0	0
Common Class A [Member]
Capital Stock [Abstract]
Common stock, shares authorized (in shares)	500,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Number of votes per share \| Vote	1
Number of shares of class A common stock issued after conversion of Class B common stock (in shares)	1
Common Class B [Member]
Capital Stock [Abstract]
Common stock, shares authorized (in shares)	100,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Common stock, shares outstanding (in shares)	0	0
Number of votes per share \| Vote	10

Capital Stock, Weighted Average Shares Outstanding (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Shares Outstanding [Abstract]
Basic weighted-average common shares outstanding (in shares)	55,170	52,806	55,412
Effect of Dilutive Securities [Abstract]
Stock awards and options (in shares)	1,061	1,110	683
Convertible note (in shares)	245	936	2
Diluted weighted-average common shares outstanding (in shares)	56,476	54,852	56,097
Stock Options [Member]
Weighted Average Shares Outstanding [Abstract]
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares)	900	400	2,000

Capital Stock, Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Dividends [Abstract]
Payment of cash dividends									$ 80,581	$ 76,058	$ 78,438
Dividend Declared 2018-Q1 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)				$ 0.365
Dividend Declared 2018-Q2 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)			$ 0.365
Dividend Declared 2018-Q3 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)		$ 0.365
Dividend Declared 2018-Q4 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)	$ 0.365
Dividend Declared 2017-Q1 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)								$ 0.36
Dividend Declared 2017-Q2 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)							$ 0.36
Dividend Declared 2017-Q3 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)						$ 0.36
Dividend Declared 2017-Q4 [Member]
Dividends [Abstract]
Cash dividend paid (in dollars per share)					$ 0.36
Dividend Declared 2019 Q1 [Member]
Dividends [Abstract]
Dividend payable per share (in dollars per share)									$ 0.37
Dividend payable, date to be paid									Mar. 13, 2019
Dividend payable, date of record									Feb. 25, 2019

Capital Stock, Repurchases of Common Stock (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jul. 31, 2018	Oct. 31, 2015	Aug. 31, 2013	Dec. 31, 1998
Repurchases of Common Stock [Abstract]
Class A common stock repurchased	$ 69,565	$ 71,731	$ 247,208
1998 Stock Repurchase Plan [Member]
Repurchases of Common Stock [Abstract]
Authorized amount							$ 10,000
Increase in authorized amount						$ 400,000
2015 Stock Repurchase Plan [Member]
Repurchases of Common Stock [Abstract]
Authorized amount					$ 500,000
2018 Stock Repurchase Plan [Member]
Repurchases of Common Stock [Abstract]
Authorized amount				$ 500,000
Amount available for repurchases	471,000
Treasury Stock [Member]
Repurchases of Common Stock [Abstract]
Class A common stock repurchased	$ 69,565	$ 71,731	$ 247,208
Treasury Stock [Member] \| 2015 Stock Repurchase Plan [Member]
Repurchases of Common Stock [Abstract]
Class A common stock repurchased (in shares)	0.5	1.2	4.5
Class A common stock repurchased	$ 40,600	$ 71,700	$ 247,200
Treasury Stock [Member] \| 2018 Stock Repurchase Plan [Member]
Repurchases of Common Stock [Abstract]
Class A common stock repurchased (in shares)	0.4
Class A common stock repurchased	$ 29,000

Stock-Based Compensation, Equity Incentive Plans (Details) shares in Millions			12 Months Ended
	May 24, 2016 shares	Jun. 03, 2013 shares	Dec. 31, 2018 Installment Level	Apr. 30, 2010 shares
2010 Omnibus Incentive Plan [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)				7.0
2010 Omnibus Incentive Plan [Member] \| Stock Options [Member] \| Minimum [Member]
Stock-Based Compensation [Abstract]
Contractual term of stock options granted			7 years
2010 Omnibus Incentive Plan [Member] \| Stock Options [Member] \| Maximum [Member]
Stock-Based Compensation [Abstract]
Contractual term of stock options granted			10 years
Amended and Restated 2010 Omnibus Incentive Plan [Member]
Stock-Based Compensation [Abstract]
Number of additional shares authorized for issuance (in shares)		3.2
Amended and Restated 2010 Omnibus Incentive Plan [Member] \| Performance-Based Options [Member]
Stock-Based Compensation [Abstract]
Number of installments for vesting \| Installment			4
Number of established performance levels for vesting \| Level			4
Amended and Restated 2010 Omnibus Incentive Plan [Member] \| Performance-Based Options [Member] \| First Performance Level [Member]
Stock-Based Compensation [Abstract]
Vesting percentage			25.00%
Amended and Restated 2010 Omnibus Incentive Plan [Member] \| Performance-Based Options [Member] \| Second Performance Level [Member]
Stock-Based Compensation [Abstract]
Vesting percentage			25.00%
Amended and Restated 2010 Omnibus Incentive Plan [Member] \| Performance-Based Options [Member] \| Third Performance Level [Member]
Stock-Based Compensation [Abstract]
Vesting percentage			25.00%
Amended and Restated 2010 Omnibus Incentive Plan [Member] \| Performance-Based Options [Member] \| Fourth Performance Level [Member]
Stock-Based Compensation [Abstract]
Vesting percentage			25.00%
Second Amended and Restated 2010 Omnibus Incentive Plan [Member]
Stock-Based Compensation [Abstract]
Number of additional shares authorized for issuance (in shares)	3.8

Stock-Based Compensation, Stock Option Valuation Assumptions (Details) - Stock Options [Member] - $ / shares

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Fair Value Assumptions [Abstract]

Weighted-average grant date fair value of grants (in dollars per share)

$ 24.72

$ 18.84

$ 12.59

Risk-free interest rate

^[1]

2.60%

2.10%

1.40%

Dividend yield

^[2]

2.60%

2.50%

2.30%

Expected volatility

^[3]

45.60%

48.20%

47.90%

Expected life in months

^[4]

66 months

68 months

[1]	The risk-free interest rate is based upon the rate on a zero-coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant.
[2]	The dividend yield is based on the average of historical stock prices and actual dividends paid.
[3]	Expected volatility is based on the historical volatility of the Company's stock price, over a period similar to the expected life of the option.
[4]	The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years.

Stock-Based Compensation, Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of Shares [Roll Forward]
Exercised (in shares)	(500,000)	(1,200,000)	(1,100,000)
Stock Options [Member]
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	3,694,400
Granted (in shares)	920,100
Exercised (in shares)	(489,600)
Forfeited/cancelled/expired (in shares)	(707,700)
Outstanding at end of year (in shares)	3,417,200	3,694,400
Exercisable at end of year (in shares)	1,064,800
Weighted-Average Exercise Price [Roll Forward]
Outstanding at beginning of year (in dollars per share)	$ 54.17
Granted (in dollars per share)	71.19
Exercised (in dollars per share)	37.25
Forfeited/cancelled/expired (in dollars per share)	75.23
Outstanding at end of year (in dollars per share)	56.81	$ 54.17
Exercisable at end of year (in dollars per share)	$ 41.44
Remaining Contractual Term and Aggregate Intrinsic Value [Abstract]
Outstanding options, weighted-average remaining contractual term	3 years 11 months 19 days
Outstanding options, aggregate intrinsic value	$ 39,519
Exercisable options, weighted-average remaining contractual term	3 years 5 months 1 day
Exercisable options, aggregate intrinsic value	$ 23,746
Service-Based Options [Member]
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	1,392,900
Granted (in shares)	0
Exercised (in shares)	(337,700)
Forfeited/cancelled/expired (in shares)	(8,800)
Outstanding at end of year (in shares)	1,046,400	1,392,900
Exercisable at end of year (in shares)	648,600
Weighted-Average Exercise Price [Roll Forward]
Outstanding at beginning of year (in dollars per share)	$ 39.76
Granted (in dollars per share)	0
Exercised (in dollars per share)	37.40
Forfeited/cancelled/expired (in dollars per share)	39.45
Outstanding at end of year (in dollars per share)	40.53	$ 39.76
Exercisable at end of year (in dollars per share)	$ 43.72
Remaining Contractual Term and Aggregate Intrinsic Value [Abstract]
Outstanding options, weighted-average remaining contractual term	3 years 6 months 11 days
Outstanding options, aggregate intrinsic value	$ 24,330
Exercisable options, weighted-average remaining contractual term	3 years 29 days
Exercisable options, aggregate intrinsic value	$ 19,984
Performance-Based Options [Member]
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	2,301,500
Granted (in shares)	920,100
Exercised (in shares)	(151,900)
Forfeited/cancelled/expired (in shares)	(698,900)
Outstanding at end of year (in shares)	2,370,800	2,301,500
Exercisable at end of year (in shares)	416,200
Weighted-Average Exercise Price [Roll Forward]
Outstanding at beginning of year (in dollars per share)	$ 62.89
Granted (in dollars per share)	71.19
Exercised (in dollars per share)	36.91
Forfeited/cancelled/expired (in dollars per share)	75.68
Outstanding at end of year (in dollars per share)	64.00	$ 62.89
Exercisable at end of year (in dollars per share)	$ 37.88
Remaining Contractual Term and Aggregate Intrinsic Value [Abstract]
Outstanding options, weighted-average remaining contractual term	4 years 1 month 28 days
Outstanding options, aggregate intrinsic value	$ 15,190
Exercisable options, weighted-average remaining contractual term	3 years 11 months 12 days
Exercisable options, aggregate intrinsic value	$ 9,762

Stock-Based Compensation, Stock Options Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock-Based Compensation [Abstract]
Cash proceeds from stock options exercised	$ 10,777	$ 24,443	$ 14,307
Stock Options [Member]
Stock-Based Compensation [Abstract]
Cash proceeds from stock options exercised	13,908	26,980	15,707
Tax benefit realized for stock options exercised	3,217	6,457	3,840
Intrinsic value of stock options exercised	$ 11,855	$ 42,749	$ 30,587

Stock-Based Compensation, Nonvested Restricted Stock Awards (Details) - Restricted Stock Awards [Member]	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Number of Shares [Roll Forward]
Nonvested at beginning of year (in shares) \| shares	562,800
Granted (in shares) \| shares	202,700
Vested (in shares) \| shares	(233,900)
Forfeited (in shares) \| shares	(64,000)
Nonvested at end of year (in shares) \| shares	467,600
Weighted-Average Grant Date Fair Value [Abstract]
Nonvested, beginning balance (in dollars per share) \| $ / shares	$ 51.17
Granted (in dollars per share) \| $ / shares	72.62
Vested (in dollars per share) \| $ / shares	56.00
Forfeited (in dollars per share) \| $ / shares	54.40
Nonvested, Ending Balance (in dollars per share) \| $ / shares	$ 57.61

Stock-Based Compensation, Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock-Based Compensation Expense [Abstract]
Stock-based compensation expense (income)	$ 26,609	$ 19,314	$ 8,890
Stock Options [Member]
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense	$ 11,200
Unrecognized stock-based compensation expense, period for recognition	1 year 4 months 24 days
Restricted Stock Awards [Member]
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense	$ 16,200
Unrecognized stock-based compensation expense, period for recognition	2 years 1 month 6 days
Service-Based Options [Member]
Stock-Based Compensation Expense [Abstract]
Stock-based compensation expense (income)	$ 3,100	4,000	5,800
Service-Based Restricted Stock Units [Member]
Stock-Based Compensation Expense [Abstract]
Stock-based compensation expense (income)	11,200	11,300	10,500
Performance-Based Options [Member]
Stock-Based Compensation Expense [Abstract]
Stock-based compensation expense (income)	12,200	3,900	(7,100)
Performance Stock Units [Member]
Stock-Based Compensation Expense [Abstract]
Stock-based compensation expense (income)	$ 100	$ 100	$ (300)

Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value on a Recurring Basis [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	$ 35,260	$ 36,531
Other long-term assets	3,568	3,726
Forward contracts	0	158
Life insurance contracts	35,590	37,737
Financial assets (liabilities), net	74,418	78,152
Restricted current investments	11,300	11,800
Fair Value on a Recurring Basis [Member] \| Level 1 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	35,260	36,531
Other long-term assets	3,568	3,726
Forward contracts	0	0
Life insurance contracts	0	0
Financial assets (liabilities), net	38,828	40,257
Fair Value on a Recurring Basis [Member] \| Level 2 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	0	0
Other long-term assets	0	0
Forward contracts	0	158
Life insurance contracts	0	0
Financial assets (liabilities), net	0	158
Fair Value on a Recurring Basis [Member] \| Level 3 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	0	0
Other long-term assets	0	0
Forward contracts	0	0
Life insurance contracts	35,590	37,737
Financial assets (liabilities), net	35,590	37,737
Life Insurance Contracts [Member]
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward]
Beginning balance	37,737	32,287
Actual return on plan assets	(1,788)	4,917
Purchases and issuances	0	895
Sales and settlements	(359)	(362)
Transfers into Level 3	0	0
Ending balance	$ 35,590	$ 37,737

Income Taxes, Tax Cuts and Jobs Act (Details) $ in Millions	12 Months Ended
Income Taxes, Tax Cuts and Jobs Act (Details) $ in Millions	Dec. 31, 2017 USD ($)
Tax Cuts and Jobs Act of 2017 [Abstract]
Provisional tax detriment for effects of Tax Reform Act	$ 47.7

Income Taxes, Consolidated Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Income Before Provision for Income Taxes [Abstract]
U.S.	$ (67,087)	$ 1,135	$ (19,119)
Foreign	286,753	264,432	231,958
Income before provision for income taxes	$ 219,666	$ 265,567	$ 212,839

Income Taxes, Current and Deferred Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current [Abstract]
Federal	$ 0	$ (14,358)	$ 0
State	652	1,814	(718)
Foreign	116,303	104,688	70,652
Current income tax expense (benefit)	116,955	92,144	69,934
Deferred [Abstract]
Federal	(17,836)	45,593	(27,171)
State	(1,974)	(2,273)	1,104
Foreign	634	666	25,886
Deferred income tax expense (benefit)	(19,176)	43,986	(181)
Provision for income taxes	$ 97,779	$ 136,130	$ 69,753

Income Taxes, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets [Abstract]
Inventory differences	$ 4,257	$ 2,861
Foreign tax credit and other foreign benefits	62,521	52,408
Stock-based compensation	7,893	6,327
Accrued expenses not deductible until paid	40,509	39,326
Foreign currency exchange	1,023	2,001
Net operating losses	4,522	5,230
Capitalized research and development	11,988	197
Interest expense limitation - 163(j)	847	0
R&D credit carryforward	807	0
Other	339	211
Gross deferred tax assets	134,706	108,561
Deferred Tax Liabilities [Abstract]
Foreign currency exchange	124	874
Foreign withholding taxes	21,524	29,018
Intangibles step-up	5,763	6,568
Overhead allocation to inventory	2,857	3,977
Amortization of intangibles	15,812	11,475
Foreign outside basis in controlled foreign corporation	0	0
Other	833	2,676
Gross deferred tax liabilities	46,913	54,588
Valuation allowance	(68,697)	(56,906)
Deferred taxes, net	19,096
Deferred taxes, net		$ (2,933)
Tax Credit Carryforwards [Abstract]
Valuation allowance on foreign tax credit carryforward, interest expense limitation, and R&D credit carryforward	$ 64,300
Minimum [Member]
Tax Credit Carryforwards [Abstract]
Expiration date	Dec. 31, 2026
Maximum [Member]
Tax Credit Carryforwards [Abstract]
Expiration date	Dec. 31, 2028
Foreign [Member]
Operating Loss Carryforwards [Abstract]
Operating loss carryforwards	$ 14,800
Operating loss carryforwards scheduled to expire	4,400
Operating loss carryforwards that will not expire	10,400
Valuation allowance on operating loss carryforwards	$ 14,800
Foreign [Member] \| Minimum [Member]
Operating Loss Carryforwards [Abstract]
Expiration date	Dec. 31, 2019
Foreign [Member] \| Maximum [Member]
Operating Loss Carryforwards [Abstract]
Expiration date	Dec. 31, 2028

Income Taxes, Deferred Tax Asset Valuation Adjustments (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Valuation Allowance [Roll Forward]

Recognition of valuation allowance on foreign tax credit carryforwards

$ 27,200

$ 52,000

Deferred Tax Asset Valuation Allowance [Member]

Valuation Allowance [Roll Forward]

Beginning balance

56,906

9,137

$ 49,271

Additions charged to cost and expenses

27,902

^[1]

53,983

^[2]

692

Decreases

(16,215)

^[3]

(6,400)

^[4]

(40,442)

^[5]

Adjustments

^[6]

104

186

(384)

Ending balance

$ 68,697

$ 56,906

$ 9,137

[1]	Increase in valuation is due primarily to $27.2 million that was recorded on the foreign tax credit carryforward. The additional amount is due to research and development credits, interest expense limitation (163(j)), and net operating losses in foreign markets.
[2]	Increase in valuation is due primarily to the $52.0 million that was recorded on the foreign tax credit carryforward. The additional amount is due to net operating losses in foreign markets
[3]	The decrease was due primarily to the utilization of foreign tax credits, the conversion of foreign tax credits to NOL's at the filing of the US 2017 Income Tax return (note NOL's were absorbed in 2018 due to GILTI inclusion), utilization, and expiration of foreign NOL's.
[4]	Decrease is due primarily to the write-off of Brazil deferred tax assets, which had no impact to the income statement, as a valuation allowance had been previously recorded against the asset.
[5]	Decrease in valuation allowance due to lapse in statute of limitation of the net operating losses carryforward and due to the write off of Venezuelan deferred tax assets, which had no impact to the income statement.
[6]	Represents the net currency effects of translating valuation allowances at current rates of exchange.

Income Taxes, Components of Deferred Taxes, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Net noncurrent deferred tax assets	$ 37,332	$ 33,785
Net noncurrent deferred tax liabilities	18,236	36,718
Deferred taxes, net	$ 19,096
Deferred taxes, net		$ (2,933)

Income Taxes, Reconciliation of Statutory to Effective Tax Rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective income tax rate, continuing operations, tax rate reconciliation [Abstract]
Income taxes at statutory rate	21.00%	35.00%	35.00%
Indefinite reinvestment	(2.73%)	2.75%	(1.98%)
Excess tax benefit from equity award	(1.41%)	(2.38%)	0.00%
Non-U.S. income taxed at different rates	7.37%	0.00%	0.00%
Foreign withholding taxes	7.68%	0.00%	0.00%
Change in reserve for uncertain tax positions	3.68%	0.00%	0.00%
Non-deductible expenses	0.00%	0.17%	0.11%
Controlled foreign corporation losses	0.00%	(0.13%)	(2.63%)
Valuation allowance recognized foreign tax credit & others	5.54%	19.59%	0.00%
Write-off outside basis DTL	0.00%	(2.89%)	0.00%
Revaluation of deferred taxes	1.61%	(1.28%)	0.00%
Section 987 implementation	0.00%	0.00%	2.69%
Other	1.77%	0.43%	(0.42%)
Effective income tax rate, continuing operations	44.51%	51.26%	32.77%
Cumulative amount of undistributed earnings of non-U.S. subsidiaries	$ 60.0
Incremental taxes if undistributed earnings on non-U.S. subsidiaries were repatriated	$ 6.0

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
401(k) Defined Contribution Plan [Member]
401(k) Defined Contribution Plan [Abstract]
Maximum percentage of compensation that can be deferred	100.00%
Minimum age to make contributions	18 years
Requisite service period	1 day
Percent of employees' base pay matched by employer	4.00%	4.00%	4.00%
Vesting period for Company's matching contributions	2 years
Compensation expense	$ 3.6	$ 3.2	$ 2.8
Additional discretionary contribution by employer, maximum percentage of employees' base pay	10.00%
Additional discretionary contribution by employer, annual vesting percentage	20.00%
Vesting period for Company's additional discretionary contributions	5 years
Defined Benefit Pension Plan [Member] \| Japan [Member]
Defined Benefit Pension Plan [Abstract]
Accrued pension liability	$ 3.0	6.1	5.6
Pension expense	$ 0.8	$ 0.7	$ 0.9

Executive Deferred Compensation Plan (Details) - Executive [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Executive Deferred Compensation Plan [Abstract]
Percentage of matching contribution maximum	10.00%
Percentage of compensation deferred, maximum	80.00%
Percentage of bonus deferred, maximum	100.00%
Percentage vested after ten years of service	50.00%
Number of years of service to attain fifty percent vesting	10 years
Percentage vested per year after ten years of service	5.00%
Minimum age for unvested company contributions to fully vest	60 years
Compensation expense	$ 1.1	$ 1.5	$ 1.5
Long-term deferred compensation liability	36.4	43.2
Investment in Rabbi Trust	$ 35.6	$ 37.7

Derivative Financial Instruments (Details) $ in Thousands, ¥ in Billions	12 Months Ended
	Dec. 31, 2018 USD ($) Contract	Dec. 31, 2017 USD ($) Contract	Dec. 31, 2016 USD ($)	Dec. 31, 2017 JPY (¥) Contract
Foreign Currency Derivatives [Abstract]
Unrealized gains/(losses) related to foreign currency cash flow hedges included in accumulated other comprehensive loss	$ 0	$ 100
Cumulative translation adjustments included in accumulated other comprehensive loss	$ (79,900)	$ (66,400)	$ (84,700)
Foreign Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Foreign Currency Derivatives [Abstract]
Number of contracts \| Contract	0	0		0
Foreign Currency Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedges [Member]
Foreign Currency Derivatives [Abstract]
Number of contracts \| Contract	0
Notional amount		$ 5,500		¥ 600.0
Fair value	$ 0	200
Foreign Currency Forward Contracts [Member] \| Other Comprehensive Income (Loss) [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedges [Member]
Foreign Currency Derivatives [Abstract]
Gain (loss) recognized in other comprehensive loss	(160)	(152)	(1,423)
Foreign Currency Forward Contracts [Member] \| Other Income (Expense) [Member] \| Not Designated as Hedging Instrument [Member]
Foreign Currency Derivatives [Abstract]
Gain (loss) recognized in income	0	(485)	39
Foreign Currency Forward Contracts [Member] \| Revenue [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedges [Member]
Foreign Currency Derivatives [Abstract]
Gain (loss) reclassified from accumulated other comprehensive loss into income	18	119	(1,088)
Foreign Currency Forward Contracts [Member] \| Selling Expenses [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedges [Member]
Foreign Currency Derivatives [Abstract]
Gain (loss) reclassified from accumulated other comprehensive loss into income	$ 0	$ 358	$ (1,544)

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 20.9	$ 18.4	$ 11.6
Cash paid for income taxes	$ 40.9	$ 78.1	$ 123.2

Acquisitions (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Feb. 12, 2018

Jan. 22, 2018

Feb. 28, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2016

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Jan. 21, 2018

Fair Value of Consideration Transferred for Acquisition [Abstract]

$ 32,235

100,115

132,350

^[1]

39,029

Carrying value of investments

171,379

Gain on step acquisition

13,644

$ 0

$ 25,400

$ 196,573

$ 114,954

^[2]

14 years

Trademarks [Member]

Nutritional Product Manufacturer [Member]

11 years

Percentage of acquired entity held by third party

92.00%

8.00%

Innuvate [Member]

Ownership interest in equity method investment

73.00%

27.00%

Fair Value of Consideration Transferred for Acquisition [Abstract]

$ 17,587

5,863

23,450

^[1]

8,748

32,198

6,219

Fixed assets

9,291

Other non-current liabilities

(3,942)

Total identifiable net assets acquired

17,768

Fair value of noncontrolling interest

17,230

(2,800)

Total consideration and value to be allocated to net assets

32,198

Innuvate [Member] | Customer List [Member]

5,100

Innuvate [Member] | Order Backlog [Member]

9 years

200

Innuvate [Member] | Trademarks [Member]

5 months

$ 900

7 years

Treviso, LLC [Member]

Ownership interest in equity method investment

65.00%

35.00%

Possible earnout

$ 1,000

Number of shares issued (in shares)

169,560

Share price (in dollars per share)

$ 49.54

Fair Value of Consideration Transferred for Acquisition [Abstract]

$ 14,648

$ 12,600

69,252

8,400

83,900

$ 21,000

^[1]

30,281

114,181

19,659

Fixed assets

33,282

Other non-current liabilities

(3,740)

Total identifiable net assets acquired

71,701

Fair value of noncontrolling interest

42,480

Total consideration and value to be allocated to net assets

114,181

Treviso, LLC [Member] | Customer List [Member]

16,500

Treviso, LLC [Member] | Order Backlog [Member]

9 years

4,700

Treviso, LLC [Member] | Trademarks [Member]

10 months

$ 1,300

6 years

L&W Holdings [Member]

Fair Value of Consideration Transferred for Acquisition [Abstract]

100.00%

$ 0

25,000

25,000

25,000

7,353

Fixed assets

114

Other non-current liabilities

(1,495)

(1,731)

Total identifiable net assets acquired

12,241

Fair value of noncontrolling interest

12,759

Total consideration and value to be allocated to net assets

25,000

L&W Holdings [Member] | Customer List [Member]

6,500

L&W Holdings [Member] | Order Backlog [Member]

7 years

900

L&W Holdings [Member] | Trademarks [Member]

4 months

$ 600

Vertical Eden, LLC [Member]

5 years

Fair Value of Consideration Transferred for Acquisition [Abstract]

30.00%

70.00%

$ 12,500

$ 3,300

1,500

$ 4,400

Vertical Eden, LLC [Member] | Minimum [Member]

$ 2,500

Vertical Eden, LLC [Member] | Maximum [Member]

3 years

Dr. Dana Beauty, LLC [Member]

7 years

Fair Value of Consideration Transferred for Acquisition [Abstract]