0001140361-19-014385 | 10-Q | XBRL Viewer

Summary of Significant Accounting Policies, Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Revenue Recognition [Abstract]
Revenue	$ 623,500	$ 704,190	$ 1,247,123	$ 1,320,409
ASC Topic 606 [Member]
Revenue Recognition [Abstract]
Cumulative impact on opening retained earnings					$ 13,000
Impact of Adopting ASC Topic 606 [Member] \| ASC Topic 606 [Member]
Revenue Recognition [Abstract]
Revenue	$ 600	$ (700)	$ 1,100	$ 600

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 360,632	$ 386,911
Current investments	7,733	11,346
Accounts receivable	61,571	53,282
Inventories, net	292,696	295,821
Prepaid expenses and other	65,551	51,877
Total current assets	788,183	799,237
Property and equipment, net	442,990	464,535
Right-of-use assets	118,507	0
Goodwill	196,573	196,573
Other intangible assets, net	84,482	89,989
Other assets	160,363	144,112
Total assets	1,791,098	1,694,446
Current liabilities:
Accounts payable	48,551	47,617
Accrued expenses	306,497	322,583
Current portion of long-term debt	59,500	69,455
Total current liabilities	414,548	439,655
Operating lease liabilities	84,102	0
Long-term debt	348,986	361,008
Other liabilities	108,512	111,916
Total liabilities	956,148	912,579
Stockholders' equity:
Class A common stock - 500 million shares authorized, $0.001 par value, 90.6 million shares issued	91	91
Additional paid-in capital	556,294	552,564
Treasury stock, at cost - 35.0 million and 35.2 million shares	(1,324,834)	(1,326,605)
Accumulated other comprehensive loss	(81,276)	(79,934)
Retained earnings	1,684,675	1,635,751
Total stockholders' equity	834,950	781,867
Total liabilities and stockholders' equity	$ 1,791,098	$ 1,694,446

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net income	$ 46,349	$ 50,961	$ 89,351	$ 86,500
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of taxes of $362 and $(558) for the three months ended June 30, 2019 and 2018, respectively, and $217 and $296 for the six months ended June 30, 2019 and 2018, respectively	(5,482)	(20,047)	(1,342)	(9,000)
Net unrealized gains/(losses) on foreign currency cash flow hedges, net of taxes of zero and $(10) for the three months ended June 30, 2019 and 2018, respectively, and zero and $18 for the six months ended June 30, 2019 and 2018, respectively	0	87	0	(160)
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of zero and $3 for the three months ended June 30, 2019 and 2018, respectively, and zero and $(2) for the six months ended June 30, 2019 and 2018, respectively	0	(26)	0	18
Other comprehensive income	(5,482)	(19,986)	(1,342)	(9,142)
Comprehensive income	$ 40,867	$ 30,975	$ 88,009	$ 77,358

- Definition

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

+ References + Details

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019
Restructuring [Abstract]
Non-cash impairment charges			$ 48,600
Cash charges associated with restructuring			22,100
Employee severance			20,100
Other related restructuring charges			2,000
Restructuring Reserve [Roll Forward]
Beginning balance	$ 0	$ 15,462	$ 15,462
Amounts paid		(15,046)
Adjustments		(416)
Ending balance		$ 0
Restructuring activity	$ 0

Consolidated Statements of Stockholder's Equity (Unaudited) (Parenthetical) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stockholders' Equity [Roll Forward]
Exercise of employee stock options (in shares)	0.0	0.1	0.2	0.2
Business acquisitions (in shares)				1.4

Segment Information, Segment Contribution (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Contribution [Abstract]
Operating income (loss)	$ 74,202	$ 82,764	$ 142,855	$ 141,754
Other income (expense)	(3,326)	(11,165)	(6,174)	(9,958)
Income before provision for income taxes	70,876	71,599	136,681	131,796
Mainland China [Member]
Segment Contribution [Abstract]
Operating income (loss)	51,087	73,899	110,254	118,716
Americas/Pacific [Member]
Segment Contribution [Abstract]
Operating income (loss)	16,420	17,068	28,439	26,240
South Korea [Member]
Segment Contribution [Abstract]
Operating income (loss)	25,979	24,880	51,647	51,081
Southeast Asia [Member]
Segment Contribution [Abstract]
Operating income (loss)	20,840	20,639	38,832	37,041
Japan [Member]
Segment Contribution [Abstract]
Operating income (loss)	15,823	13,377	29,929	26,615
Hong Kong/Taiwan [Member]
Segment Contribution [Abstract]
Operating income (loss)	9,217	7,835	16,691	15,681
EMEA [Member]
Segment Contribution [Abstract]
Operating income (loss)	3,234	3,069	4,585	7,823
Nu Skin [Member]
Segment Contribution [Abstract]
Operating income (loss)	142,600	160,767	280,377	283,197
Operating Segment [Member]
Segment Contribution [Abstract]
Operating income (loss)	141,393	161,058	279,187	281,874
Corporate and Other [Member]
Segment Contribution [Abstract]
Operating income (loss)	(67,191)	(78,294)	(136,332)	(140,120)
Manufacturing [Member] \| Operating Segment [Member]
Segment Contribution [Abstract]
Operating income (loss)	3,375	2,348	7,021	1,994
Grow Tech [Member] \| Operating Segment [Member]
Segment Contribution [Abstract]
Operating income (loss)	$ (4,582)	$ (2,057)	$ (8,211)	$ (3,317)

Capital Stock

6 Months Ended

Jun. 30, 2019

Capital Stock [Abstract]

Capital Stock

6.	Capital Stock

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. For the three-month periods ended June 30, 2019 and 2018, stock options of 1.1 million and 0.3 million, respectively, and for the six-month periods ended June 30, 2019 and 2018, stock options of 1.1 million and 0.9 million, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive.

Dividends

In February and April 2019, the Company’s board of directors declared quarterly cash dividends of $0.37 per share. These quarterly cash dividends of $20.5 million and $20.6 million were paid on March 13, 2019, and June 12, 2019 to stockholders of record on February 25, 2019 and May 31, 2019. In August 2019, the Company’s board of directors declared a quarterly cash dividend of $0.37 per share to be paid on September 11, 2019 to stockholders of record on August 30, 2019.

Repurchase of common stock

During the three-month periods ended June 30, 2019 and 2018, the Company repurchased zero and 0.2 million shares of its Class A common stock under its stock repurchase plans for zero and $18.4 million, respectively. During the six-month periods ended June 30, 2019 and 2018, the Company repurchased 14,000 shares and 0.5 million shares of its Class A common stock under its stock repurchase plans for $0.8 million and $35.8 million, respectively. As of June 30, 2019, $470.2 million was available for repurchases under the Company’s stock repurchase plan.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Inventories

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

	June 30, 2019		December 31, 2018

Raw materials	$	92,768	$	91,610
Finished goods		199,928		204,211
Total Inventory, net	$	292,696	$	295,821

Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended
Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value on a Recurring Basis [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	$ 37,082	$ 35,260
Other long-term assets	3,886	3,568
Life insurance contracts	39,585	35,590
Financial assets (liabilities), net	80,553	74,418
Fair Value on a Recurring Basis [Member] \| Level 1 [Member]
Financial Assets (Liabilities) [Abstract]
Cash equivalents and current investments	37,082	35,260
Other long-term assets	3,886	3,568
Life insurance contracts	0	0
Financial assets (liabilities), net	40,968	38,828
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
Life insurance contracts	0	0
Financial assets (liabilities), net	0	0
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
Life insurance contracts	39,585	35,590
Financial assets (liabilities), net	39,585	$ 35,590
Life Insurance Contracts [Member]
Changes in Fair Value of Level 3 Marketable Securities [Roll Forward]
Beginning balance	35,590
Actual return on plan assets	3,566
Purchases and issuances	2,003
Sales and settlements	(1,574)
Transfers into Level 3	0
Ending balance	$ 39,585

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Basis of Accounting

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited consolidated financial statements include the accounts of the Company and its Subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information as of June 30, 2019, and for the three- and six month periods ended June 30, 2019 and 2018. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. The consolidated balance sheet as of December 31, 2018 has been prepared using information from the audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842). ASU 2016-02 requires companies to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company adopted the new standard effective January 1, 2019 using the modified retrospective transition method. The Company elected the package of practical expedients available under the transition provisions of the new lease standard, including: not reassessing whether expired or existing contracts 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. As a result of adopting this new accounting guidance, the Company derecognized the build-to-suit assets and liabilities that remained on the balance sheet following the construction period, along with recognition of right-of-use assets and lease liabilities for operating leases. The cumulative impact of adoption was a $0.7 million increase to beginning retained earnings. See Note 5 - Leases.

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, and early adoption is permitted. The Company elected to early adopt the new standard effective January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In December 2017, the FASB issued ASU 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. This ASU was effective for the Company beginning on January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

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, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for interim and annual reporting periods beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Company is still assessing the impact of adoption on our consolidated financial statements.

Inventory

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

	June 30, 2019		December 31, 2018

Raw materials	$	92,768	$	91,610
Finished goods		199,928		204,211
Total Inventory, net	$	292,696	$	295,821

Revenue Recognition

Adoption of ASC Topic 606, “Revenue from Contracts with Customers”

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 historic accounting under Topic 605.

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 the Company’s loyalty point program deferrals. The impact to revenues as a result of applying Topic 606 for the three-month periods ended June 30, 2019, and 2018 was an increase of $0.6 million and a decrease of $0.7 million, respectively. The impact to revenue for the six-month periods ended June 30, 2019, and 2018 was an increase of $1.1 million and $0.6 million, respectively.

Revenue Recognition

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 the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the 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. The Company estimates product returns based on historical return rates. 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 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 balance of deferred revenue related to contract liabilities as of June 30, 2019 and December 31, 2018 was $12.7 million and $13.8 million, respectively.

Disaggregation of Revenue

Please refer to Note 10 - Segment Information for revenue by segment.

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.

Practical Expedients and Exemptions

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling expenses.

The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, accrued expenses and operating lease liabilities on the consolidated balance sheets. The Company has not separately disclosed finance leases, as they are not material, either individually or in the aggregate, to the Company’s consolidated financial statements.

Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any residual value guarantees.

The Company has lease agreements with lease and non-lease components. The Company accounts for the lease and non-lease components as a single lease component.

Segment Information, Depreciation and Amortization and Capital Expenditures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Summarized Financial Information [Abstract]
Depreciation and amortization	$ 19,052	$ 21,235	$ 38,659	$ 40,142
Capital expenditures	15,449	15,777	29,214	28,429
Mainland China [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	2,909	3,444	6,025	6,931
Capital expenditures	1,033	1,029	2,714	2,898
Americas/Pacific [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	206	279	420	493
Capital expenditures	473	240	747	429
South Korea [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	1,358	1,576	2,882	3,243
Capital expenditures	30	44	79	44
Southeast Asia [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	462	564	939	1,123
Capital expenditures	225	144	319	195
Japan [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	957	900	2,005	1,815
Capital expenditures	946	72	1,118	383
Hong Kong/Taiwan [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	537	321	1,053	644
Capital expenditures	1,091	116	1,554	598
EMEA [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	272	175	712	351
Capital expenditures	42	42	76	77
Nu Skin [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	6,701	7,259	14,036	14,600
Capital expenditures	3,840	1,687	6,607	4,624
Corporate and Other [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	9,775	10,927	19,598	19,450
Capital expenditures	7,964	7,636	14,375	14,015
Manufacturing [Member] \| Operating Segments [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	1,631	2,821	3,205	5,646
Capital expenditures	1,579	719	3,181	1,468
Grow Tech [Member] \| Operating Segments [Member]
Summarized Financial Information [Abstract]
Depreciation and amortization	945	228	1,820	446
Capital expenditures	$ 2,066	$ 5,735	$ 5,051	$ 8,322

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Foreign Currency Derivatives [Abstract]
Unrealized gains/(losses) related to foreign currency cash flow hedges included in accumulated other comprehensive loss	$ 0		$ 0		$ 0
Cumulative translation adjustments included in accumulated other comprehensive loss	81,300		81,300		$ 79,900
Foreign Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member]
Foreign Currency Derivatives [Abstract]
Gain (loss) on derivative instruments	0	$ 0	0	$ 0
Foreign Currency Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedges [Member]
Foreign Currency Derivatives [Abstract]
Notional amount	0	0	0	0
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	0	87	0	(160)
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	$ 0	$ (26)	$ 0	$ 18

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2019

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

9.	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 at times 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.

During the three- and six-month periods ended June 30, 2019 and 2018, the Company had no gains (losses) related to derivative instruments not designated as hedging instruments.

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 loss within stockholders’ 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 June 30, 2019, and 2018, the Company held no forward contracts designated as foreign currency cash flow hedges.

The following table summarizes gains (losses) related to derivative instruments recorded in other comprehensive income (loss) during the three- and six-month periods ended June 30, 2019 and 2018 (U.S. dollars in thousands):

	Amount of Gain (Loss) Recognized in Other Comprehensive Loss
Derivatives Designated	Three Months Ended June 30,				Six Months Ended June 30,
as Hedging Instruments:	2019		2018		2019		2018
Foreign currency forward contracts related to intercompany license fee, product sales, and selling expense hedges	$	—	$	87	$	—	$	(160	)

The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the three- and six-month periods ended June 30, 2019 and 2018 (U.S. dollars in thousands):

		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Derivatives Designated	Location of Gain (Loss) Reclassified from Accumulated	Three Months Ended June 30,					Six Months Ended June 30,
as Hedging Instruments:	Other Comprehensive Loss into Income	2019		2018			2019		2018
Foreign currency forward contracts related to intercompany license fees and product sales hedges	Revenue	$	—	$	(26	)	$	—	$	18

As of June 30, 2019 and December 31, 2018, there were no unrealized gains/(losses) included in accumulated other comprehensive loss related to foreign currency cash flow hedges. The remaining $81.3 million and $79.9 million as of June 30, 2019 and December 31, 2018, respectively, in accumulated other comprehensive loss are related to cumulative translation adjustments. The Company assesses hedge effectiveness at least quarterly. During the three- and six-month periods ended June 30, 2019 and 2018, 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 sheets. See Note 7 - Fair Value.

Segment Information, Revenue by Segment (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

USD ($)

Jun. 30, 2018

USD ($)

Jun. 30, 2019

USD ($)

Segment

Jun. 30, 2018

USD ($)

Segment Information [Abstract]

Number of reportable segments | Segment

Number of geographic segments | Segment

Number of new segments previously included in Other category | Segment

Revenue by Segment [Abstract]

Revenue

$ 623,500

$ 704,190

$ 1,247,123

$ 1,320,409

Other [Member]

Revenue by Segment [Abstract]

Revenue

1,249

1,030

(177)

1,265

Mainland China [Member]

Revenue by Segment [Abstract]

Revenue

185,333

245,256

393,821

442,787

Americas/Pacific [Member]

Revenue by Segment [Abstract]

Revenue

92,841

103,990

179,297

196,279

South Korea [Member]

Revenue by Segment [Abstract]

Revenue

84,732

91,624

168,585

180,554

Southeast Asia [Member]

Revenue by Segment [Abstract]

Revenue

75,395

79,223

147,890

150,083

Japan [Member]

Revenue by Segment [Abstract]

Revenue

65,251

64,113

127,360

127,337

Hong Kong/Taiwan [Member]

Revenue by Segment [Abstract]

Revenue

43,712

52,206

84,270

93,198

EMEA [Member]

Revenue by Segment [Abstract]

Revenue

43,400

44,010

85,218

88,991

Operating Segment [Member] | Manufacturing [Member]

Revenue by Segment [Abstract]

Revenue

^[1]

31,557

22,738

60,829

39,915

Operating Segment [Member] | Grow Tech [Member]

Revenue by Segment [Abstract]

Revenue

Nu Skin [Member]

Revenue by Segment [Abstract]

Revenue

591,913

681,452

1,186,264

1,280,494

Intersegment Member] | Manufacturing [Member]

Revenue by Segment [Abstract]

Revenue

$ 6,500

$ 6,600

$ 12,400

$ 9,800

[1]

The Manufacturing segment had $6.5 million and $6.6 million of intersegment revenue for the three-month period ended June 30, 2019 and 2018, respectively, and $12.4 million and $9.8 million. for the first half of 2019 and 2018, respectively. Intersegment revenue is eliminated in the consolidated financial statements, as well as the reported segment revenue in the table above.

Debt

6 Months Ended

Jun. 30, 2019

Debt [Abstract]

Debt

4. Debt

Previous Credit Agreement

On October 9, 2014, the Company entered into a Credit Agreement (the “Previous Credit Agreement”) with various financial institutions as lenders, and Bank of America, N.A. as administrative agent. The Previous 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 Previous Credit Agreement.

Credit Agreement

On April 18, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent. The 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 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 amortizes 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 Credit Agreement, with the remainder payable at final maturity. The 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. As of June 30, 2019, the Company was in compliance with all covenants under the Credit Agreement.

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 were senior unsecured obligations which ranked equal in right of payment to all senior unsecured indebtedness of the Company and ranked senior in right of payment to any indebtedness that was contractually subordinated to the Convertible Notes. Interest on the Convertible Notes was payable semiannually in arrears on June 15 and December 15 of each year at a rate of 4.75% per annum.

The Convertible Notes had a stated maturity date of June 15, 2020, unless repurchased or converted prior to maturity. Prior to the stated maturity date, the Company could, 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 was equal to or exceeded 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 could, at its option, cause the Company to repurchase all of such Holder’s Convertible Notes or any portion thereof that was 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 were defined in the indenture governing the Convertible Notes. In addition, the Holder of the Convertible Notes had 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 would 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 was equal to an initial conversion price of approximately $46.50 per common share). Throughout the term of the Convertible Notes, the conversion rate could 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 originally 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 sheets. 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, representing 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 did not require separate accounting treatment as a derivative instrument because it was both indexed to the Company’s own stock and would be classified in stockholders’ equity if freestanding. The Equity Component would not be remeasured as long as it continued to meet the conditions for equity classification. The excess of the principal amount of the Liability Component over its carrying amount (the “Debt Discount”) was amortized to interest expense over the term of the Convertible Notes. As a result, the Liability Component was 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 was 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 sheets as a reduction of long-term debt was amortized over the contractual term of the Convertible Notes using the effective interest method. During the first quarter of 2018 the issuance costs were expensed due to the conversion of the Notes.

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 Convertible 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.

The following table summarizes the Company’s debt facilities as of June 30, 2019 and December 31, 2018:

Facility or

Arrangement

Original

Principal

Amount

Balance as of

June 30,

2019⁽¹⁾⁽²⁾

Balance as of

December 31,

2018⁽²⁾

Interest

Rate

Repayment

Terms

Credit Agreement term loan facility

400.0 million

375.0 million

385.0 million

Variable 30 day: 4.15%

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.

Credit Agreement revolving credit facility

37.0 million

49.5 million

Variable 30 day: 4.15%

Revolving line of credit expires April 18, 2023.

(1)

As of June 30, 2019, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $22.5 million of the balance of its term loan under the Credit Agreement. The Company has classified the $37.0 million borrowed under the revolving line of credit as current debt 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 debt issuance costs of $3.5 million and $4.0 million as of June 30, 2019 and December 31, 2018, respectively, related to the Credit Agreement, which are not reflected in this table.

Acquisitions	6 Months Ended
Acquisitions	Jun. 30, 2019
Acquisitions [Abstract]
Acquisitions	12. 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. Innuvate is a contract manufacturer that specializes in softgel and hardshell capsule manufacturing. Prior to this acquisition, the Company owned 27% of Innuvate and accounted for it using the equity method. Following the January 22, 2018 acquisition, the remaining 8% ownership in the manufacturer continues 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. 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 liquid contract manufacturing laboratory for premium personal care products. Prior to this acquisition, the Company owned 35% of Treviso and accounted for it using the equity method. Under the terms of the purchase agreement, the Company paid $83.9 million in cash and shares of the Company in exchange for the 65% ownership in Treviso. 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 that specializes in the distribution and packaging of products in the cosmetic and nutritional industries. 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. The allocation of the fair value of assets acquired and liabilities assumed for the acquisitions of Innuvate, Treviso and L&W were finalized during the year ended December 31, 2018, resulting in goodwill of $17.2 million, $42.5 million and $12.8 million, respectively. There were no significant adjustments to the allocation of the fair value of assets acquired and liabilities assumed for the acquisitions of Innuvate, Treviso or L&W from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

5. Leases

The Company has operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers and certain equipment. The Company’s leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. As of June 30, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.1 years and 4.8%. The Company has not separately disclosed finance leases, as they are not material, either individually or in the aggregate, to the Company’s consolidated financial statements.

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019

Operating lease cost	$	12,417	$	25,278
Short-term lease cost		52		104
Variable lease cost		1,105		2,157
	$	13,574	$	27,539

As of June 30, 2019, the Company had $118.5 million of operating right-of-use assets on the balance sheet, along with $37.2 million and $84.1 million of operating lease liabilities in accrued expenses and long-term operating lease liabilities, respectively.

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Six Months Ended June 30, 2019

Operating cash outflow from operating leases	$	26,570
ROU assets obtained in exchange for lease obligations		140,585

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases

2019	$	23,632
2020		37,424
2021		30,478
2022		16,439
2023		11,574
Thereafter		15,514
Total		135,061
Less: Finance charges		13,794
Total principal liability	$	121,267

The Company has additional lease liabilities of $0.2 million which have not yet commenced as of June 30, 2019, and as such, have not been recognized on the consolidated balance sheets.

Under ASC Topic 840, 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		Finance leases

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

Debt, Credit Agreement (Details) - USD ($) $ in Thousands		6 Months Ended
Debt, Credit Agreement (Details) - USD ($) $ in Thousands	Apr. 18, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt [Abstract]
Proceeds from debt		$ 130,000	$ 582,398
Credit Agreement [Member] \| Maximum [Member]
Debt [Abstract]
Consolidated leverage ratio		2.25
Credit Agreement [Member] \| Minimum [Member]
Debt [Abstract]
Consolidated interest coverage ratio		3.00
Term Loan Facility [Member]
Debt [Abstract]
Original principal amount	$ 400,000	$ 400,000
Term of loan		5 years
Term Loan Facility [Member] \| First Year [Member]
Debt [Abstract]
Annual amortization percentage		5.00%
Term Loan Facility [Member] \| Second Year [Member]
Debt [Abstract]
Annual amortization percentage		5.00%
Term Loan Facility [Member] \| Third Year [Member]
Debt [Abstract]
Annual amortization percentage		7.50%
Term Loan Facility [Member] \| Fourth Year [Member]
Debt [Abstract]
Annual amortization percentage		7.50%
Term Loan Facility [Member] \| Fifth Year [Member]
Debt [Abstract]
Annual amortization percentage		10.00%
Term Loan Facility [Member] \| LIBOR [Member]
Debt [Abstract]
Basis spread on variable rate		2.25%
Revolving Credit Facility [Member]
Debt [Abstract]
Borrowing capacity	350,000
Term of loan		5 years
Proceeds from debt	$ 78,500
Revolving Credit Facility [Member] \| LIBOR [Member]
Debt [Abstract]
Basis spread on variable rate		2.25%

Summary of Significant Accounting Policies, Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventories [Abstract]
Raw materials	$ 92,768	$ 91,610
Finished goods	199,928	204,211
Total Inventory, net	$ 292,696	$ 295,821

Debt, Debt Facilities (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2019

Dec. 31, 2018

Apr. 18, 2018

Debt [Abstract]

Current portion of long-term debt

$ 59,500

$ 69,455

Credit Agreement [Member]

Debt [Abstract]

Unamortized debt issuance costs

3,500

4,000

Credit Agreement Term Loan Facility [Member]

Debt [Abstract]

Original principal amount

400,000

$ 400,000

Balance

$ 375,000

^[1],[2]

385,000

Interest rate

Variable 30 day: 4.15%

Interest rate

4.15%

Term of variable rate

30 days

Repayment terms

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.

Percentage of principal payable in installments

35.00%

Term of loan

5 years

Current portion of long-term debt

$ 22,500

Credit Agreement Revolving Credit Facility [Member]

Debt [Abstract]

Balance

$ 37,000

^[1],[2]

$ 49,500

Interest rate

Variable 30 day: 4.15%

Interest rate

4.15%

Term of variable rate

30 days

Repayment terms

Revolving line of credit expires April 18, 2023.

Term of loan

5 years

Current portion of long-term debt

$ 37,000

[1]

[2]

The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $3.5 million and $4.0 million as of June 30, 2019 and December 31, 2018, respectively, related to the Credit Agreement, which are not reflected in this table.

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 31, 2019
Cover [Abstract]
Entity Registrant Name	NU SKIN ENTERPRISES INC
Entity Central Index Key	0001021561
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		55,546,590
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-12421
Entity Tax Identification Number	87-0565309
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	75 West Center St
Entity Address, City or Town	Provo
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84601
City Area Code	801
Local Phone Number	345-1000
Title of 12(b) Security	Class A Common Stock, $.001 par value
Trading Symbol	NUS
Security Exchange Name	NYSE

Restructuring (Tables)

6 Months Ended

Jun. 30, 2019

Restructuring [Abstract]

Restructuring Activity

See the table below for detail of restructuring activity for the three months ended March 31, 2019 (U.S. dollars in thousands):

Beginning balance at January 1, 2019	$	15,462
Amounts paid		(15,046	)
Adjustments		(416	)
Ending balance at March 31, 2019	$	—

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2019
Commitments and Contingencies [Abstract]
Commitments and Contingencies	11. 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 on management’s evaluation of the matters and the 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.

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions	Jun. 30, 2019	Dec. 31, 2018
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)	35.0	35.2

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member] Class A [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Total
Stockholders' Equity [Roll Forward]
Cumulative effect adjustment from adoption of ASC Topic \| ASC Topic 606 [Member]	$ 0	$ 0	$ 0	$ 0	$ (13,042)	$ (13,042)
Balance at beginning of period at Dec. 31, 2017	91	466,349	(1,304,694)	(66,318)	1,609,168	704,596
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	86,500	86,500
Other comprehensive income, net of tax	0	0	0	(9,142)	0	(9,142)
Repurchase of Class A common stock (Note 6)	0	0	(35,823)	0	0	(35,823)
Exercise of employee stock options/vesting of stock awards	0	58	5,893	0	0	5,951
Stock-based compensation	0	13,267	0	0	0	13,267
Business Acquisitions (1.4 million shares)	0	76,584	18,109	0	0	94,693
Equity component of convertible note settlement (net)	0	(23,262)	19,887	0	0	(3,375)
Cash dividends	0	0	0	0	(40,091)	(40,091)
Balance at end of period at Jun. 30, 2018	91	532,996	(1,296,628)	(75,460)	1,642,535	803,534
Balance at beginning of period at Mar. 31, 2018	91	523,233	(1,280,586)	(55,474)	1,611,864	799,128
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	50,961	50,961
Other comprehensive income, net of tax	0	0	0	(19,986)	0	(19,986)
Repurchase of Class A common stock (Note 6)	0	0	(18,437)	0	0	(18,437)
Exercise of employee stock options/vesting of stock awards	0	3,257	2,395	0	0	5,652
Stock-based compensation	0	6,506	0	0	0	6,506
Cash dividends	0	0	0	0	(20,290)	(20,290)
Balance at end of period at Jun. 30, 2018	91	532,996	(1,296,628)	(75,460)	1,642,535	803,534
Stockholders' Equity [Roll Forward]
Cumulative effect adjustment from adoption of ASC Topic \| ASC Topic 842 [Member]	0	0	0	0	657	657
Balance at beginning of period at Dec. 31, 2018	91	552,564	(1,326,605)	(79,934)	1,635,751	781,867
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	89,351	89,351
Other comprehensive income, net of tax	0	0	0	(1,342)	0	(1,342)
Repurchase of Class A common stock (Note 6)	0	0	(825)	0	0	(825)
Exercise of employee stock options/vesting of stock awards	0	(4,904)	2,596	0	0	(2,308)
Stock-based compensation	0	8,634	0	0	0	8,634
Cash dividends	0	0	0	0	(41,084)	(41,084)
Balance at end of period at Jun. 30, 2019	91	556,294	(1,324,834)	(81,276)	1,684,675	834,950
Balance at beginning of period at Mar. 31, 2019	91	553,270	(1,325,251)	(75,794)	1,658,879	811,195
Stockholders' Equity [Roll Forward]
Net income	0	0	0	0	46,349	46,349
Other comprehensive income, net of tax	0	0	0	(5,482)	0	(5,482)
Repurchase of Class A common stock (Note 6)	0	0	0	0	0	0
Exercise of employee stock options/vesting of stock awards	0	(569)	417	0	0	(152)
Stock-based compensation	0	3,593	0	0	0	3,593
Cash dividends	0	0	0	0	(20,553)	(20,553)
Balance at end of period at Jun. 30, 2019	$ 91	$ 556,294	$ (1,324,834)	$ (81,276)	$ 1,684,675	$ 834,950

Debt, Previous Credit Agreement (Details) $ in Millions, ¥ in Billions	6 Months Ended
	Jun. 30, 2019	Oct. 09, 2014 USD ($)	Oct. 09, 2014 JPY (¥)
Term Loan Facility [Member]
Debt [Abstract]
Original principal amount		$ 127.5
Term of loan	5 years
Japanese Yen Term Loan Facility [Member]
Debt [Abstract]
Original principal amount \| ¥			¥ 6.6
Term of loan	5 years
Revolving Credit Facility [Member]
Debt [Abstract]
Borrowing capacity		$ 187.5
Term of loan	5 years

Goodwill (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill [Abstract]

Goodwill

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended June 30, 2019 and December 31, 2018 (U.S. dollars in thousands):

	June 30, 2019		December 31, 2018

Nu Skin
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
Manufacturing		72,469		72,469
Grow Tech		9,150		9,150
Total	$	196,573	$	196,573

Summary of Significant Accounting Policies, Accounting Pronouncements (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
ASU 2014-09 [Member]
Accounting Pronouncements [Abstract]
Cumulative impact on opening retained earnings		$ 13.0
ASU 2016-02 [Member]
Accounting Pronouncements [Abstract]
Cumulative impact on opening retained earnings	$ 0.7

Income Taxes

6 Months Ended

Jun. 30, 2019

Income Taxes [Abstract]

Income Taxes

8.	Income Taxes

Provision for income taxes for the three- and six-month periods of 2019 was $24.5 million and $47.3 million, compared to $20.6 million and $45.3 million for the prior-year periods. The effective tax rates for the three- and six-month periods was 34.6% of pre-tax book income, compared to 28.8% and 34.4% in the prior-year periods.

The Company accounts for income taxes in accordance with ASC Topic 740 “Income Taxes.” 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. The Company had net deferred tax assets of $14.8 million and $19.1 million as of June 30, 2019 and December 31, 2018, respectively.

The Company evaluates its indefinite reinvestment assertions with respect to foreign earnings for each quarter. For all foreign earnings, the Company accrues the applicable foreign income taxes. For the earnings that have been indefinitely reinvested, the Company does not accrue foreign withholding taxes. Undistributed earnings that the Company has indefinitely reinvested, for which no foreign withholding taxes have been provided, aggregate to $60.0 million as of December 31, 2018. If the amount designated as indefinitely reinvested as of December 31, 2018 was repatriated to the United States, the amount of incremental taxes would be approximately $6.0 million. The Company intends to utilize the indefinitely reinvested offshore earnings to fund foreign investments, specifically capital expenditures.

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 of limitations in certain countries may be as long as ten years. The Company is currently under examination in certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable. The Company’s unrecognized tax benefits relate to multiple 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 limitations, it is reasonably possible that the Company’s gross unrecognized tax benefits, net of foreign currency adjustments, may increase in the next 12 months by approximately $0.5 to $1.5 million.

Debt (Tables)

6 Months Ended

Jun. 30, 2019

Debt [Abstract]

Debt Facilities

The following table summarizes the Company’s debt facilities as of June 30, 2019 and December 31, 2018:

Facility or

Arrangement

Original

Principal

Amount

Balance as of

June 30,

2019⁽¹⁾⁽²⁾

Balance as of

December 31,

2018⁽²⁾

Interest

Rate

Repayment

Terms

Credit Agreement term loan facility

400.0 million

375.0 million

385.0 million

Variable 30 day: 4.15%

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.

Credit Agreement revolving credit facility

37.0 million

49.5 million

Variable 30 day: 4.15%

Revolving line of credit expires April 18, 2023.

(1)

(2)	The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $3.5 million and $4.0 million as of June 30, 2019 and December 31, 2018, respectively, related to the Credit Agreement, which are not reflected in this table.

- Definition

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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-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))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-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
-Paragraph 8
-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

Fair Value

6 Months Ended

Jun. 30, 2019

Fair Value [Abstract]

Fair Value

7.	Fair Value

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. Fair value estimates are made at a specific point in time, based on relevant market information.

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 certain financial instruments and other eligible items at fair value. The Company has elected not to apply the fair value option to existing eligible items beyond what is required by US GAAP.

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 June 30, 2019
	Level 1		Level 2		Level 3		Total
Financial assets (liabilities):
Cash equivalents and current investments	$	37,082	$	—	$	—	$	37,082
Other long-term assets		3,886		—		—		3,886
Life insurance contracts		—		—		39,585		39,585
Total	$	40,968	$	—	$	39,585	$	80,553

	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
Life insurance contracts		—		—		35,590		35,590
Total	$	38,828	$	—	$	35,590	$	74,418

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

Beginning balance at January 1, 2019	$	35,590
Actual return on plan assets		3,566
Purchase and issuances		2,003
Sales and settlements		(1,574	)
Transfers into Level 3		—
Ending balance at June 30, 2019	$	39,585

- Definition

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

Restructuring

6 Months Ended

Jun. 30, 2019

Restructuring [Abstract]

Restructuring

13.	Restructuring

In the fourth quarter of 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 the restructuring. The restructuring charges were predominately recorded in the Corporate and Other category.

See the table below for detail of restructuring activity for the three months ended March 31, 2019 (U.S. dollars in thousands):

Beginning balance at January 1, 2019	$	15,462
Amounts paid		(15,046	)
Adjustments		(416	)
Ending balance at March 31, 2019	$	—

There was no restructuring activity for the three months ended June 30, 2019.

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Income (Unaudited) [Abstract]
Revenue	$ 623,500	$ 704,190	$ 1,247,123	$ 1,320,409
Cost of sales	154,028	168,549	300,692	314,830
Gross profit	469,472	535,641	946,431	1,005,579
Operating expenses:
Selling expenses	245,828	272,757	495,536	530,459
General and administrative expenses	149,442	180,120	308,040	333,366
Total operating expenses	395,270	452,877	803,576	863,825
Operating income	74,202	82,764	142,855	141,754
Other income (expense), net	(3,326)	(11,165)	(6,174)	(9,958)
Income before provision for income taxes	70,876	71,599	136,681	131,796
Provision for income taxes	24,527	20,638	47,330	45,296
Net income	$ 46,349	$ 50,961	$ 89,351	$ 86,500
Net income per share (Note 2):
Basic (in dollars per share)	$ 0.83	$ 0.92	$ 1.61	$ 1.58
Diluted (in dollars per share)	$ 0.83	$ 0.90	$ 1.59	$ 1.53
Weighted-average common shares outstanding:
Basic (in shares)	55,536	55,608	55,486	54,807
Diluted (in shares)	55,943	56,713	56,030	56,430

Segment Information

6 Months Ended

Jun. 30, 2019

Segment Information [Abstract]

Segment Information

10.	Segment Information

The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin segments—Mainland China, South Korea, Southeast Asia, Americas/Pacific, Japan, Hong Kong/Taiwan, and EMEA—and its Manufacturing and Grow Tech segments, which the Company decided to disclose separately beginning in the first quarter of 2019. Previously, these latter two segments were included in the Other category. The Other category includes miscellaneous corporate revenue and related adjustments. These segments reflect the way the chief operating decision maker evaluates the Company’s business performance and allocates resources. Reported revenue includes only the revenue generated by sales to external customers.

Segment information for the three- and six-month periods ended June 30, 2018 has been recast to reflect the separate disclosure of the Manufacturing and Grow Tech segments, both of which were previously included in the Other category. Consolidated financial information is not affected.

Profitability by segment as determined under US GAAP is driven primarily by the Company’s transfer pricing 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, and 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 2 – Summary of Significant Accounting Policies. 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

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. dollars in thousands)	2019		2018		2019			2018

Nu Skin
Mainland China	$	185,333	$	245,256	$	393,821		$	442,787
Americas/Pacific		92,841		103,990		179,297			196,279
South Korea		84,732		91,624		168,585			180,554
Southeast Asia		75,395		79,223		147,890			150,083
Japan		65,251		64,113		127,360			127,337
Hong Kong/Taiwan		43,712		52,206		84,270			93,198
EMEA		43,400		44,010		85,218			88,991
Other		1,249		1,030		(177	)		1,265
Total Nu Skin		591,913		681,452		1,186,264			1,280,494
Manufacturing ⁽¹⁾		31,557		22,738		60,829			39,915
Grow Tech		30		—		30			—
Total	$	623,500	$	704,190	$	1,247,123		$	1,320,409

(1)

Segment Contribution

	Three Months Ended June 30,						Six Months Ended June 30,
(U.S. dollars in thousands)	2019			2018			2019			2018

Nu Skin
Mainland China	$	51,087		$	73,899		$	110,254		$	118,716
Americas/Pacific		16,420			17,068			28,439			26,240
South Korea		25,979			24,880			51,647			51,081
Southeast Asia		20,840			20,639			38,832			37,041
Japan		15,823			13,377			29,929			26,615
Hong Kong/Taiwan		9,217			7,835			16,691			15,681
EMEA		3,234			3,069			4,585			7,823
Nu Skin contribution		142,600			160,767			280,377			283,197
Manufacturing		3,375			2,348			7,021			1,994
Grow Tech		(4,582	)		(2,057	)		(8,211	)		(3,317	)
Total segment contribution		141,393			161,058			279,187			281,874
Corporate and other		(67,191	)		(78,294	)		(136,332	)		(140,120	)
Operating income		74,202			82,764			142,855			141,754
Other income (expense)		(3,326	)		(11,165	)		(6,174	)		(9,958	)
Income before provision for income taxes	$	70,876		$	71,599		$	136,681		$	131,796

Depreciation and Amortization

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. dollars in thousands)	2019		2018		2019		2018

Nu Skin
Mainland China	$	2,909	$	3,444	$	6,025	$	6,931
Americas/Pacific		206		279		420		493
South Korea		1,358		1,576		2,882		3,243
Southeast Asia		462		564		939		1,123
Japan		957		900		2,005		1,815
Hong Kong/Taiwan		537		321		1,053		644
EMEA		272		175		712		351
Total Nu Skin		6,701		7,259		14,036		14,600
Manufacturing		1,631		2,821		3,205		5,646
Grow Tech		945		228		1,820		446
Corporate and other		9,775		10,927		19,598		19,450
Total	$	19,052	$	21,235	$	38,659	$	40,142

Capital Expenditures

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. dollars in thousands)	2019		2018		2019		2018

Nu Skin
Mainland China	$	1,033	$	1,029	$	2,714	$	2,898
Americas/Pacific		473		240		747		429
South Korea		30		44		79		44
Southeast Asia		225		144		319		195
Japan		946		72		1,118		383
Hong Kong/Taiwan		1,091		116		1,554		598
EMEA		42		42		76		77
Total Nu Skin		3,840		1,687		6,607		4,624
Manufacturing		1,579		719		3,181		1,468
Grow Tech		2,066		5,735		5,051		8,322
Corporate and other		7,964		7,636		14,375		14,015
Total	$	15,449	$	15,777	$	29,214	$	28,429

Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019
	Level 1		Level 2		Level 3		Total
Financial assets (liabilities):
Cash equivalents and current investments	$	37,082	$	—	$	—	$	37,082
Other long-term assets		3,886		—		—		3,886
Life insurance contracts		—		—		39,585		39,585
Total	$	40,968	$	—	$	39,585	$	80,553

	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
Life insurance contracts		—		—		35,590		35,590
Total	$	38,828	$	—	$	35,590	$	74,418

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):

Beginning balance at January 1, 2019	$	35,590
Actual return on plan assets		3,566
Purchase and issuances		2,003
Sales and settlements		(1,574	)
Transfers into Level 3		—
Ending balance at June 30, 2019	$	39,585

- Definition

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

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 89,351	$ 86,500
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	38,659	40,142
Equity method earnings	0	(43)
Gain on step acquisitions	0	(13,644)
Loss on extinguishment of debt	0	7,220
Foreign currency losses	1,355	10,194
Stock-based compensation	8,634	13,267
Deferred taxes	5,854	3,023
Non-cash lease expense	22,505	0
Changes in operating assets and liabilities:
Accounts receivable	(8,220)	(6,775)
Inventories, net	3,085	(16,743)
Prepaid expenses and other	(13,245)	(19,676)
Other assets	(14,892)	(546)
Accounts payable	1,606	1,040
Accrued expenses	(66,152)	(45,363)
Other liabilities	5,937	(6,663)
Net cash provided by operating activities	74,477	51,933
Cash flows from investing activities:
Purchases of property and equipment	(29,214)	(28,429)
Proceeds on investment sales	7,615	7,964
Purchases of investments	(4,774)	(4,722)
Acquisitions and investments in equity investees	(8,073)	(33,061)
Net cash used in investing activities	(34,446)	(58,248)
Cash flows from financing activities:
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards	(2,308)	5,951
Payments of debt	(152,455)	(514,177)
Payment of cash dividends	(41,084)	(40,091)
Payment of debt issuance costs	0	(7,243)
Proceeds from debt	130,000	582,398
Repurchases of shares of common stock	(825)	(35,823)
Net cash used in financing activities	(66,672)	(8,985)
Effect of exchange rate changes on cash	362	(9,068)
Net increase (decrease) in cash and cash equivalents	(26,279)	(24,368)
Cash and cash equivalents, beginning of period	386,911	426,399
Cash and cash equivalents, end of period	$ 360,632	$ 402,031

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Accounting Pronouncements

Inventory

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

	June 30, 2019		December 31, 2018

Raw materials	$	92,768	$	91,610
Finished goods		199,928		204,211
Total Inventory, net	$	292,696	$	295,821

Revenue Recognition

Adoption of ASC Topic 606, “Revenue from Contracts with Customers”

Revenue Recognition

Contract Liabilities – Customer Loyalty Programs

The balance of deferred revenue related to contract liabilities as of June 30, 2019 and December 31, 2018 was $12.7 million and $13.8 million, respectively.

Disaggregation of Revenue

Please refer to Note 10 - Segment Information for revenue by segment.

Arrangements with Multiple Performance Obligations

Practical Expedients and Exemptions

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling expenses.

The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Leases

The Company has lease agreements with lease and non-lease components. The Company accounts for the lease and non-lease components as a single lease component.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Taxes [Abstract]
Provision for income taxes	$ 24,527	$ 20,638	$ 47,330	$ 45,296
Effective tax rate	34.60%	28.80%	34.60%	34.40%
Net deferred tax assets	$ 14,800		$ 14,800		$ 19,100
Undistributed earnings of non-U.S. subsidiaries					60,000
Incremental taxes if undistributed earnings on non-U.S. subsidiaries were repatriated					$ 6,000
Minimum [Member]
Income Taxes [Abstract]
Decrease in unrecognized tax benefits within the next 12 months that is reasonably possible	(500)		$ (500)
Maximum [Member]
Income Taxes [Abstract]
Statute of limitations related to income tax examinations			10 years
Income Taxes [Abstract]
Decrease in unrecognized tax benefits within the next 12 months that is reasonably possible	$ (1,500)		$ (1,500)

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Financial Instruments [Abstract]

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

	Amount of Gain (Loss) Recognized in Other Comprehensive Loss
Derivatives Designated	Three Months Ended June 30,				Six Months Ended June 30,
as Hedging Instruments:	2019		2018		2019		2018
Foreign currency forward contracts related to intercompany license fee, product sales, and selling expense hedges	$	—	$	87	$	—	$	(160	)

		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Derivatives Designated	Location of Gain (Loss) Reclassified from Accumulated	Three Months Ended June 30,					Six Months Ended June 30,
as Hedging Instruments:	Other Comprehensive Loss into Income	2019		2018			2019		2018
Foreign currency forward contracts related to intercompany license fees and product sales hedges	Revenue	$	—	$	(26	)	$	—	$	18

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows (U.S. dollars in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019

Operating lease cost	$	12,417	$	25,278
Short-term lease cost		52		104
Variable lease cost		1,105		2,157
	$	13,574	$	27,539

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (U.S. dollars in thousands):

	Six Months Ended June 30, 2019

Operating cash outflow from operating leases	$	26,570
ROU assets obtained in exchange for lease obligations		140,585

Maturities of Operating Lease Liabilities

Maturities of lease liabilities were as follows (U.S. dollars in thousands):

Year Ending December 31,	Operating leases

2019	$	23,632
2020		37,424
2021		30,478
2022		16,439
2023		11,574
Thereafter		15,514
Total		135,061
Less: Finance charges		13,794
Total principal liability	$	121,267

Minimum Future Operating Leases and Financing Obligations

Under ASC Topic 840, 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		Finance leases

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

Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other comprehensive income, net of tax:
Foreign currency translation adjustment, tax	$ 362	$ (558)	$ 217	$ 296
Net unrealized gains/(losses) on foreign currency cash flow hedges, tax	0	(10)	0	18
Reclassification adjustment for realized losses/(gains) in current earnings, tax	$ 0	$ 3	$ 0	$ (2)

Debt, Convertible Note (Details)				3 Months Ended	4 Months Ended	6 Months Ended
Debt, Convertible Note (Details)	Apr. 18, 2018 USD ($)	Feb. 28, 2018 shares	Jun. 16, 2016 USD ($)	Mar. 31, 2018 USD ($)	Apr. 17, 2018 USD ($)	Jun. 30, 2019 USD ($) d $ / shares shares	Jun. 30, 2018 USD ($)
Convertible Debt [Abstract]
Debt issuance costs						$ 0	$ 7,243,000
Loss on extinguishment of debt						$ 0	$ (7,220,000)
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			$ 210,000,000.0
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			210,000,000.0
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						$ 6,600,000
Additions to deferred financing cost						6,300,000
Adjustments to additional paid-in capital for debt issuance costs						$ 300,000
Payment for principal and accrued interest	$ 213,400,000
Accrued interest					$ 3,400,000
Loss on extinguishment of debt				$ (7,200,000)

The Company (Details)	6 Months Ended
The Company (Details)	Jun. 30, 2019 Segment
The Company [Abstract]
Number of reportable segments	9
Number of geographic segments	7

Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Weighted average remaining lease term for operating leases	4 years 1 month 6 days	4 years 1 month 6 days
Weighted average discount rate for operating leases	4.80%	4.80%
Components of Lease Expense [Abstract]
Operating lease cost	$ 12,417	$ 25,278
Short-term lease cost	52	104
Variable lease cost	1,105	2,157
Total lease expense	13,574	27,539
Operating right-of-use assets	118,507	118,507	$ 0
Current operating lease liabilities	37,200	37,200
Long-term operating lease liabilities	84,102	84,102	0
Supplemental Cash Flow Information Related to Leases [Abstract]
Operating cash outflow from operating leases		26,570
ROU assets obtained in exchange for lease obligations		140,585
Maturities of Operating Lease Liabilities [Abstract]
2019	23,632	23,632
2020	37,424	37,424
2021	30,478	30,478
2022	16,439	16,439
2023	11,574	11,574
Thereafter	15,514	15,514
Total	135,061	135,061
Less: Finance charges	13,794	13,794
Total principal liability	121,267	121,267
Additional lease liabilities not yet commenced	$ 200	$ 200
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
Minimum [Member]
Leases [Abstract]
Remaining lease terms		1 year
Maximum [Member]
Leases [Abstract]
Remaining lease terms		15 years
Extension period for leases		10 years
Termination period for leases		1 year

Summary of Significant Accounting Policies, Contract Liabilities - Customer Loyalty Programs (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Contract Liabilities - Customer Loyalty Programs [Abstract]
Contract liabilities for customer loyalty programs	$ 12.7	$ 13.8

Acquisitions (Details) - USD ($) $ in Thousands	Feb. 12, 2018	Jan. 22, 2018	Jun. 30, 2019	Dec. 31, 2018	Feb. 11, 2018	Jan. 21, 2018
Acquisitions [Abstract]
Goodwill			$ 196,573	$ 196,573
Nutritional Product Manufacturer [Member]
Acquisitions [Abstract]
Percentage of acquired entity held by third party		8.00%
Innuvate [Member]
Acquisitions [Abstract]
Percentage of entity acquired		73.00%
Ownership interest in equity method investment						27.00%
Consideration paid in cash and shares		$ 23,500
Goodwill				17,200
Innuvate [Member] \| Nutritional Product Manufacturer [Member]
Acquisitions [Abstract]
Percentage of entity acquired		92.00%
Treviso [Member]
Acquisitions [Abstract]
Percentage of entity acquired	65.00%
Ownership interest in equity method investment					35.00%
Consideration paid in cash and shares	$ 83,900
Goodwill				42,500
L&W [Member]
Acquisitions [Abstract]
Percentage of entity acquired	100.00%
Consideration paid in shares	$ 25,000
Goodwill				$ 12,800

The Company	6 Months Ended
The Company	Jun. 30, 2019
The Company [Abstract]
The Company	1. The Company Nu Skin Enterprises, Inc. (the “Company”) is a holding company, with Nu Skin, a leading, global direct selling company, being the primary operating unit. Nu Skin 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. The Company reports revenue from nine segments, consisting of its seven geographic Nu Skin 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—its Manufacturing segment, which includes the manufacturing and packaging subsidiaries it acquired in the first quarter of 2018; and its Grow Tech segment, which focuses on a long-term strategy for consistently sourcing pure, effective and sustainable ingredients for use in the Company’s products, while also working on and developing applications in other industries (the Company’s subsidiaries operating within each segment are collectively referred to as the “Subsidiaries”).

Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Goodwill [Abstract]
Goodwill	$ 196,573	$ 196,573
Manufacturing [Member]
Goodwill [Abstract]
Goodwill	72,469	72,469
Grow Tech [Member]
Goodwill [Abstract]
Goodwill	9,150	9,150
Mainland China [Member]
Goodwill [Abstract]
Goodwill	32,179	32,179
Americas/Pacific [Member]
Goodwill [Abstract]
Goodwill	9,449	9,449
South Korea [Member]
Goodwill [Abstract]
Goodwill	29,261	29,261
Southeast Asia [Member]
Goodwill [Abstract]
Goodwill	18,537	18,537
Japan [Member]
Goodwill [Abstract]
Goodwill	16,019	16,019
Hong Kong/Taiwan [Member]
Goodwill [Abstract]
Goodwill	6,634	6,634
EMEA [Member]
Goodwill [Abstract]
Goodwill	$ 2,875	$ 2,875

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Information [Abstract]

Revenue by Segment

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. dollars in thousands)	2019		2018		2019			2018

Nu Skin
Mainland China	$	185,333	$	245,256	$	393,821		$	442,787
Americas/Pacific		92,841		103,990		179,297			196,279
South Korea		84,732		91,624		168,585			180,554
Southeast Asia		75,395		79,223		147,890			150,083
Japan		65,251		64,113		127,360			127,337
Hong Kong/Taiwan		43,712		52,206		84,270			93,198
EMEA		43,400		44,010		85,218			88,991
Other		1,249		1,030		(177	)		1,265
Total Nu Skin		591,913		681,452		1,186,264			1,280,494
Manufacturing ⁽¹⁾		31,557		22,738		60,829			39,915
Grow Tech		30		—		30			—
Total	$	623,500	$	704,190	$	1,247,123		$	1,320,409

(1)

Segment Contribution

	Three Months Ended June 30,						Six Months Ended June 30,
(U.S. dollars in thousands)	2019			2018			2019			2018

Nu Skin
Mainland China	$	51,087		$	73,899		$	110,254		$	118,716
Americas/Pacific		16,420			17,068			28,439			26,240
South Korea		25,979			24,880			51,647			51,081
Southeast Asia		20,840			20,639			38,832			37,041
Japan		15,823			13,377			29,929			26,615
Hong Kong/Taiwan		9,217			7,835			16,691			15,681
EMEA		3,234			3,069			4,585			7,823
Nu Skin contribution		142,600			160,767			280,377			283,197
Manufacturing		3,375			2,348			7,021			1,994
Grow Tech		(4,582	)		(2,057	)		(8,211	)		(3,317	)
Total segment contribution		141,393			161,058			279,187			281,874
Corporate and other		(67,191	)		(78,294	)		(136,332	)		(140,120	)
Operating income		74,202			82,764			142,855			141,754
Other income (expense)		(3,326	)		(11,165	)		(6,174	)		(9,958	)
Income before provision for income taxes	$	70,876		$	71,599		$	136,681		$	131,796

Depreciation and Amortization and Capital Expenditures

Depreciation and Amortization

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. dollars in thousands)	2019		2018		2019		2018

Nu Skin
Mainland China	$	2,909	$	3,444	$	6,025	$	6,931
Americas/Pacific		206		279		420		493
South Korea		1,358		1,576		2,882		3,243
Southeast Asia		462		564		939		1,123
Japan		957		900		2,005		1,815
Hong Kong/Taiwan		537		321		1,053		644
EMEA		272		175		712		351
Total Nu Skin		6,701		7,259		14,036		14,600
Manufacturing		1,631		2,821		3,205		5,646
Grow Tech		945		228		1,820		446
Corporate and other		9,775		10,927		19,598		19,450
Total	$	19,052	$	21,235	$	38,659	$	40,142

Capital Expenditures

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. dollars in thousands)	2019		2018		2019		2018

Nu Skin
Mainland China	$	1,033	$	1,029	$	2,714	$	2,898
Americas/Pacific		473		240		747		429
South Korea		30		44		79		44
Southeast Asia		225		144		319		195
Japan		946		72		1,118		383
Hong Kong/Taiwan		1,091		116		1,554		598
EMEA		42		42		76		77
Total Nu Skin		3,840		1,687		6,607		4,624
Manufacturing		1,579		719		3,181		1,468
Grow Tech		2,066		5,735		5,051		8,322
Corporate and other		7,964		7,636		14,375		14,015
Total	$	15,449	$	15,777	$	29,214	$	28,429

Goodwill

6 Months Ended

Jun. 30, 2019

Goodwill [Abstract]

Goodwill

3. Goodwill

During the first quarter of 2019, the Company reorganized the structure of the segments to separately disclose the Manufacturing entities that were acquired in the first quarter of 2018 and the Grow Tech segment, both of which were previously included in the Other category. The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments.

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended June 30, 2019 and December 31, 2018 (U.S. dollars in thousands):

	June 30, 2019		December 31, 2018

Nu Skin
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
Manufacturing		72,469		72,469
Grow Tech		9,150		9,150
Total	$	196,573	$	196,573

Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended		3 Months Ended		6 Months Ended
	Aug. 06, 2019	Jun. 12, 2019	Mar. 13, 2019	Apr. 30, 2019	Feb. 28, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Dividends per Share [Abstract]
Payment of cash dividends								$ 41,084	$ 40,091
Repurchases of Common Stock [Abstract]
Class A common stock repurchased						$ 0	$ 18,437	825	$ 35,823
Amount available for repurchases						$ 470,200		$ 470,200
Treasury Stock [Member]
Repurchases of Common Stock [Abstract]
Class A common stock repurchased (in shares)						0	200,000	14,000	500,000
Class A common stock repurchased						$ 0	$ 18,437	$ 825	$ 35,823
Dividend Declared 2019 Q1 [Member]
Dividends per Share [Abstract]
Dividend payable, date declared						2019-02		2019-02
Dividend payable per share (in dollars per share)					$ 0.37
Payment of cash dividends			$ 20,500
Dividend payable, date paid								Mar. 13, 2019
Dividend payable, date of record								Feb. 25, 2019
Dividend Declared 2019 Q2 [Member]
Dividends per Share [Abstract]
Dividend payable, date declared						2019-04		2019-04
Dividend payable per share (in dollars per share)				$ 0.37
Payment of cash dividends		$ 20,600
Dividend payable, date paid								Jun. 12, 2019
Dividend payable, date of record								May 31, 2019
Dividend Declared 2019 Q3 [Member] \| Subsequent Event [Member]
Dividends per Share [Abstract]
Dividend payable, date declared	2019-08
Dividend payable per share (in dollars per share)	$ 0.37
Dividend payable, date paid	Sep. 11, 2019
Dividend payable, date of record	Aug. 30, 2019
Stock Options [Member]
Net Income per Share [Abstract]
Anti-dilutive shares excluded from calculation of diluted earnings per share (in shares)						1,100,000	300,000	1,100,000	900,000