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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/04/21 Nu Skin Enterprises, Inc. 10-Q 9/30/21 63:7M Edgarfilings Ltd. |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 965K 2: EX-31.1 Certification -- §302 - SOA'02 HTML 25K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 25K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 19K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 19K 12: R1 Document and Entity Information HTML 71K 13: R2 Consolidated Balance Sheets (Unaudited) HTML 122K 14: R3 Consolidated Balance Sheets (Unaudited) HTML 27K (Parenthetical) 15: R4 Consolidated Statements of Income (Unaudited) HTML 90K 16: R5 Consolidated Statements of Comprehensive Income HTML 48K (Unaudited) 17: R6 Consolidated Statements of Comprehensive Income HTML 26K (Unaudited) (Parenthetical) 18: R7 Consolidated Statements of Stockholders' Equity HTML 68K (Unaudited) 19: R8 Consolidated Statements of Stockholders' Equity HTML 22K (Unaudited) (Parenthetical) 20: R9 Consolidated Statements of Cash Flows (Unaudited) HTML 105K 21: R10 The Company HTML 22K 22: R11 Summary of Significant Accounting Policies HTML 35K 23: R12 Goodwill HTML 38K 24: R13 Debt HTML 31K 25: R14 Leases HTML 67K 26: R15 Capital Stock HTML 29K 27: R16 Fair Value and Equity Investments HTML 76K 28: R17 Income Taxes HTML 27K 29: R18 Derivatives and Hedging Activities HTML 47K 30: R19 Segment Information HTML 189K 31: R20 Commitments and Contingencies HTML 23K 32: R21 Acquisitions HTML 24K 33: R22 Summary of Significant Accounting Policies HTML 49K (Policies) 34: R23 Summary of Significant Accounting Policies HTML 27K (Tables) 35: R24 Goodwill (Tables) HTML 37K 36: R25 Debt (Tables) HTML 33K 37: R26 Leases (Tables) HTML 69K 38: R27 Fair Value and Equity Investments (Tables) HTML 75K 39: R28 Derivatives and Hedging Activities (Tables) HTML 45K 40: R29 Segment Information (Tables) HTML 188K 41: R30 The Company (Details) HTML 23K 42: R31 Summary of Significant Accounting Policies, HTML 24K Inventory (Details) 43: R32 Summary of Significant Accounting Policies, HTML 23K Revenue Recognition (Details) 44: R33 Goodwill (Details) HTML 41K 45: R34 Debt, Credit Agreement (Details) HTML 49K 46: R35 Debt, Debt Facilities (Details) HTML 54K 47: R36 Leases (Details) HTML 108K 48: R37 Capital Stock, Net Income per Share (Details) HTML 22K 49: R38 Capital Stock, Dividends (Details) HTML 49K 50: R39 Capital Stock, Repurchase of Common Stock HTML 28K (Details) 51: R40 Fair Value and Equity Investments, Fair Value HTML 76K (Details) 52: R41 Fair Value and Equity Investments, Equity HTML 30K Investments (Details) 53: R42 Income Taxes (Details) HTML 43K 54: R43 Derivatives and Hedging Activities, Fair Value of HTML 35K Derivative Instruments on the Balance Sheet (Details) 55: R44 Derivatives and Hedging Activities, Effect of Cash HTML 32K Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) 56: R45 Segment Information, Revenue by Segment (Details) HTML 68K 57: R46 Segment Information, Segment Contribution HTML 61K (Details) 58: R47 Segment Information, Depreciation and Amortization HTML 61K and Capital Expenditures (Details) 59: R48 Acquisitions (Details) HTML 89K 61: XML IDEA XML File -- Filing Summary XML 107K 11: XML XBRL Instance -- brhc10030192_10q_htm XML 1.82M 60: EXCEL IDEA Workbook of Financial Reports XLSX 72K 7: EX-101.CAL XBRL Calculations -- nus-20210930_cal XML 162K 8: EX-101.DEF XBRL Definitions -- nus-20210930_def XML 501K 9: EX-101.LAB XBRL Labels -- nus-20210930_lab XML 1.41M 10: EX-101.PRE XBRL Presentations -- nus-20210930_pre XML 852K 6: EX-101.SCH XBRL Schema -- nus-20210930 XSD 111K 62: JSON XBRL Instance as JSON Data -- MetaLinks 336± 458K 63: ZIP XBRL Zipped Folder -- 0001140361-21-036462-xbrl Zip 204K
i ☑ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED i SEPTEMBER 30, 2021
|
i ☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________
TO _____________
|
i NU SKIN ENTERPRISES, INC.
|
||
(Exact name of registrant as specified in its charter)
|
i Delaware
|
i 87-0565309
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
i 75 West Center Street
i Provo,
i Utah i 84601
|
||
(Address of principal executive offices, including zip code)
|
( i 801)
i 345-1000
|
||
(Registrant’s telephone number, including area code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
i Class A Common Stock, $.001 par value
|
i NUS
|
i New York Stock Exchange
|
i Large accelerated filer
☑
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company i ☐
|
Emerging growth company i ☐
|
Page
|
|||
Part I.
|
|||
Item 1.
|
|||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
6
|
|||
7
|
|||
Item 2.
|
18
|
||
Item 3.
|
26
|
||
Item 4.
|
26
|
||
Part II.
|
|||
Item 1.
|
27
|
||
Item 1A.
|
27
|
||
Item 2.
|
31
|
||
Item 3.
|
31
|
||
Item 4.
|
31 | ||
Item 5.
|
31
|
||
Item 6.
|
32
|
||
33
|
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
i 282,412
|
$
|
i 402,683
|
||||
Current investments
|
i 19,190
|
i 21,216
|
||||||
Accounts receivable, net
|
i 52,441
|
i 63,370
|
||||||
Inventories, net
|
i 415,203
|
i 314,366
|
||||||
Prepaid expenses and other
|
i 121,626
|
i 101,563
|
||||||
Total current assets
|
i 890,872
|
i 903,198
|
||||||
Property and equipment, net
|
i 464,049
|
i 468,181
|
||||||
Operating lease right-of-use assets
|
i 128,887
|
i 155,104
|
||||||
Goodwill
|
i 215,582
|
i 202,979
|
||||||
Other intangible assets, net
|
i 88,497
|
i 89,532
|
||||||
Other assets
|
i 186,522
|
i 138,082
|
||||||
Total assets
|
$
|
i 1,974,409
|
$
|
i 1,957,076
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
i 52,023
|
$
|
i 66,174
|
||||
Accrued expenses
|
i 378,573
|
i 446,682
|
||||||
Current portion of long-term debt
|
i 110,000
|
i 30,000
|
||||||
Total current liabilities
|
i 540,596
|
i 542,856
|
||||||
Operating lease liabilities
|
i 95,741
|
i 112,275
|
||||||
Long-term debt
|
i 278,563
|
i 305,393
|
||||||
Other liabilities
|
i 123,032
|
i 102,281
|
||||||
Total liabilities
|
i 1,037,932
|
i 1,062,805
|
||||||
Commitments and contingencies (Notes 5 and 11)
|
i
|
i
|
||||||
Stockholders’ equity:
|
||||||||
Class A common stock – i i 500 / million shares authorized, $ i i 0.001 /
par value, i i 90.6 / million shares issued
|
i 91
|
i 91
|
||||||
Additional paid-in capital
|
i 590,678
|
i 579,801
|
||||||
Treasury stock, at cost – i 40.5 million and i 39.7 million shares
|
( i 1,518,535
|
)
|
( i 1,461,593
|
)
|
||||
Accumulated other comprehensive loss
|
( i 75,658
|
)
|
( i 64,768
|
)
|
||||
Retained earnings
|
i 1,939,901
|
i 1,840,740
|
||||||
Total stockholders’ equity
|
i 936,477
|
i 894,271
|
||||||
Total liabilities and stockholders’ equity
|
$
|
i 1,974,409
|
$
|
i 1,957,076
|
Three Months Ended
September 30,
|
Nine
Months Ended
|
|||||||||||||||
2020
|
2021
|
2020
|
||||||||||||||
Revenue
|
$
|
i 641,152
|
$
|
i 703,347
|
$
|
i 2,022,233
|
$
|
i 1,833,741
|
||||||||
Cost of sales
|
i 158,907
|
i 183,374
|
i 501,448
|
i 463,277
|
||||||||||||
Gross profit
|
i 482,245
|
i 519,973
|
i 1,520,785
|
i 1,370,464
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling expenses
|
i 255,719
|
i 280,695
|
i 807,358
|
i 735,365
|
||||||||||||
General and administrative expenses
|
i 161,142
|
i 165,050
|
i 499,754
|
i 466,232
|
||||||||||||
Total operating expenses
|
i 416,861
|
i 445,745
|
i 1,307,112
|
i 1,201,597
|
||||||||||||
Operating income
|
i 65,384
|
i 74,228
|
i 213,673
|
i 168,867
|
||||||||||||
Other income (expense), net
|
i 2,781
|
i 525
|
i 351
|
( i 4,068
|
)
|
|||||||||||
Income before provision for income taxes
|
i 68,165
|
i 74,753
|
i 214,024
|
i 164,799
|
||||||||||||
Provision for income taxes
|
i 18,436
|
i 18,446
|
i 57,527
|
i 46,911
|
||||||||||||
Net income
|
$
|
i 49,729
|
$
|
i 56,307
|
$
|
i 156,497
|
$
|
i 117,888
|
||||||||
Net income per share (Note 6):
|
||||||||||||||||
Basic
|
$
|
i 0.99
|
$
|
i 1.10
|
$
|
i 3.11
|
$
|
i 2.24
|
||||||||
Diluted
|
$
|
i 0.97
|
$
|
i 1.08
|
$
|
i 3.03
|
$
|
i 2.23
|
||||||||
Weighted-average common shares outstanding (000s):
|
||||||||||||||||
Basic
|
i 50,098
|
i 51,308
|
i 50,304
|
i 52,741
|
||||||||||||
Diluted
|
i 51,260
|
i 52,243
|
i 51,629
|
i 52,906
|
Three Months Ended
September 30,
|
Nine
Months Ended
|
|||||||||||||||
2020
|
2021
|
2020
|
||||||||||||||
Net income
|
$
|
i 49,729
|
$
|
i 56,307
|
$
|
i 156,497
|
$
|
i 117,888
|
||||||||
Other comprehensive (loss) income, net of tax:
|
||||||||||||||||
Foreign currency translation adjustment, net of taxes of $( i 1) and $( i 8)
for the three months ended September 30, 2021
and 2020, respectively, and $ i 1
and $( i 3) for the nine
months ended September 30, 2021
and 2020, respectively
|
( i 7,165
|
)
|
i 10,022
|
( i 13,431
|
)
|
i 1,873
|
||||||||||
Net unrealized gains/(losses) on cash flow hedges, net of taxes of $( i 7) and $( i 83)
for the three months ended September 30, 2021
and 2020, respectively and $( i 678)
and $( i 83) for the nine months ended September 30, 2021 and 2020, respectively
|
i 25
|
i 305
|
i 2,455
|
i 305
|
||||||||||||
Reclassification adjustment for realized losses/(gains) in current earnings on cash flow
hedges, net of taxes of $( i 10) and $( i 2)
for the three months ended September 30, 2021 and 2020, respectively and $( i 24) and $( i 2)
for the nine months ended September 30, 2021 and 2020,
respectively
|
i 35
|
i 6
|
i 86
|
i 6
|
||||||||||||
( i 7,105
|
)
|
i 10,333
|
( i 10,890
|
)
|
i 2,184
|
|||||||||||
Comprehensive income
|
$
|
i 42,624
|
$
|
i 66,640
|
$
|
i 145,607
|
$
|
i 120,072
|
For the Three Months Ended September 30, 2021
|
||||||||||||||||||||||||
Class A
Common Stock
|
Additional
Paid-in Capital
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
|
Total
|
|||||||||||||||||||
Balance at July 1, 2021
|
$
|
i 91
|
$
|
i 586,976
|
$
|
( i 1,509,867
|
)
|
$
|
( i 68,553
|
)
|
$
|
i 1,909,179
|
$
|
i 917,826
|
||||||||||
Net income
|
i —
|
i —
|
i —
|
i —
|
i 49,729
|
i 49,729
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
i —
|
i —
|
i —
|
( i 7,105
|
)
|
i —
|
( i 7,105
|
)
|
||||||||||||||||
Repurchase of Class A common stock (Note 6)
|
i —
|
i —
|
( i 10,005
|
)
|
i —
|
i —
|
( i 10,005
|
)
|
||||||||||||||||
Exercise of employee stock options ( i 0.1 million shares)/vesting of stock awards
|
i —
|
i 609
|
i 1,337
|
i —
|
i —
|
i 1,946
|
||||||||||||||||||
Stock-based compensation
|
i —
|
i 3,093
|
i —
|
i —
|
i —
|
i 3,093
|
||||||||||||||||||
Cash dividends
|
i —
|
i —
|
i —
|
i —
|
( i 19,007
|
)
|
( i 19,007
|
)
|
||||||||||||||||
Balance at September 30, 2021
|
$
|
i 91
|
$
|
i 590,678
|
$
|
( i 1,518,535
|
)
|
$
|
( i 75,658
|
)
|
$
|
i 1,939,901
|
$
|
i 936,477
|
For the Three Months Ended September 30, 2020
|
||||||||||||||||||||||||
Class A
Common Stock
|
Additional
Paid-in Capital
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
|
Total
|
|||||||||||||||||||
Balance at July 1, 2020
|
$
|
i 91
|
$
|
i 563,115
|
$
|
( i 1,427,064
|
)
|
$
|
( i 93,441
|
)
|
$
|
i 1,749,311
|
$
|
i 792,012
|
||||||||||
Net income
|
i —
|
i —
|
i —
|
i —
|
i 56,307
|
i 56,307
|
||||||||||||||||||
Other comprehensive income, net of tax
|
i —
|
i —
|
i —
|
i 10,333
|
i —
|
i 10,333
|
||||||||||||||||||
Repurchase of Class A common stock (Note 6)
|
i —
|
i —
|
( i 19,994
|
)
|
i —
|
i —
|
( i 19,994
|
)
|
||||||||||||||||
Exercise of employee stock options ( i — million shares)/vesting of stock awards
|
i —
|
i 261
|
i 684
|
i —
|
i —
|
i 945
|
||||||||||||||||||
Stock-based compensation
|
i —
|
i 7,115
|
i —
|
i —
|
i —
|
i 7,115
|
||||||||||||||||||
Cash dividends
|
i —
|
i —
|
i —
|
i —
|
( i 19,245
|
)
|
( i 19,245
|
)
|
||||||||||||||||
Balance at September 30, 2020
|
$
|
i 91
|
$
|
i 570,491
|
$
|
( i 1,446,374
|
)
|
$
|
( i 83,108
|
)
|
$
|
i 1,786,373
|
$
|
i 827,473
|
Class A
Common
Stock
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Loss
|
Retained
Earnings
|
Total
|
|||||||||||||||||||
Balance at January 1, 2021
|
$
|
i 91
|
$
|
i 579,801
|
$
|
( i 1,461,593
|
)
|
$
|
( i 64,768
|
)
|
$
|
i 1,840,740
|
$
|
i 894,271
|
||||||||||
Net income
|
i —
|
i —
|
i —
|
i —
|
i 156,497
|
i 156,497
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
i —
|
i —
|
i —
|
( i 10,890
|
)
|
i —
|
( i 10,890
|
)
|
||||||||||||||||
Repurchase of Class A common stock (Note 6)
|
i —
|
i —
|
( i 70,415
|
)
|
i —
|
i —
|
( i 70,415
|
)
|
||||||||||||||||
Exercise of employee stock options ( i 0.6 million shares)/vesting of stock awards
|
i —
|
( i 5,599
|
)
|
i 13,473
|
i —
|
i —
|
i 7,874
|
|||||||||||||||||
Stock-based compensation
|
i —
|
i 16,476
|
i —
|
i —
|
i —
|
i 16,476
|
||||||||||||||||||
Cash dividends
|
i —
|
i —
|
i —
|
i —
|
( i 57,336
|
)
|
( i 57,336
|
)
|
||||||||||||||||
Balance at September 30, 2021
|
$
|
i 91
|
$
|
i 590,678
|
$
|
( i 1,518,535
|
)
|
$
|
( i 75,658
|
)
|
$
|
i 1,939,901
|
$
|
i 936,477
|
For the Nine
Months Ended September 30, 2020
|
||||||||||||||||||||||||
Class A
Common Stock
|
Additional
Paid-in Capital
|
Treasury
Stock
|
Accumulated Other
Comprehensive Loss
|
Retained
Earnings
|
Total
|
|||||||||||||||||||
Balance at January 1, 2020
|
$
|
i 91
|
$
|
i 557,544
|
$
|
( i 1,324,826
|
)
|
$
|
( i 85,292
|
)
|
$
|
i 1,727,772
|
$
|
i 875,289
|
||||||||||
Net income
|
i —
|
i —
|
i —
|
i —
|
i 117,888
|
i 117,888
|
||||||||||||||||||
Other comprehensive income, net of tax
|
i —
|
i —
|
i —
|
i 2,184
|
i —
|
i 2,184
|
||||||||||||||||||
Repurchase of Class A common stock (Note 6)
|
i —
|
i —
|
( i 127,361
|
)
|
i —
|
i —
|
( i 127,361
|
)
|
||||||||||||||||
Exercise of employee stock options ( i 0.3 million shares)/vesting of stock awards
|
i —
|
( i 2,492
|
)
|
i 5,813
|
i —
|
i —
|
i 3,321
|
|||||||||||||||||
Stock-based compensation
|
i —
|
i 15,439
|
i —
|
i —
|
i —
|
i 15,439
|
||||||||||||||||||
Cash dividends
|
i —
|
i —
|
i —
|
i —
|
( i 59,287
|
)
|
( i 59,287
|
)
|
||||||||||||||||
Balance at September 30, 2020
|
$
|
i 91
|
$
|
i 570,491
|
$
|
( i 1,446,374
|
)
|
$
|
( i 83,108
|
)
|
$
|
i 1,786,373
|
$
|
i 827,473
|
Nine
Months Ended
|
||||||||
2020
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
i 156,497
|
$
|
i 117,888
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
i 57,858
|
i 55,279
|
||||||
Non-cash lease expense
|
i 40,703
|
i 34,087
|
||||||
Stock-based compensation
|
i 16,476
|
i 15,439
|
||||||
Foreign currency losses
|
i 5,501
|
i 1,203
|
||||||
Loss on disposal of assets
|
i 13,210
|
i 2,516
|
||||||
Deferred taxes
|
i 3,846
|
( i 7,931
|
)
|
|||||
Unrealized (gain)/losses on equity investments
|
( i 18,077) | i — | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
i 8,377
|
( i 9,273
|
)
|
|||||
Inventories, net
|
( i 109,371
|
)
|
i 4,882
|
|||||
Prepaid expenses and other
|
( i 29,311
|
)
|
i 4,180
|
|||||
Other assets
|
( i 18,438
|
)
|
( i 76,487
|
)
|
||||
Accounts payable
|
( i 11,182
|
)
|
i 15,884
|
|||||
Accrued expenses
|
( i 89,993
|
)
|
i 99,438
|
|||||
Other liabilities
|
i 5,977
|
i 27,343
|
||||||
Net cash provided by operating activities
|
i 32,073
|
i 284,448
|
||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
( i 50,384
|
)
|
( i 48,810
|
)
|
||||
Proceeds on investment sales
|
i 11,171
|
i 7,630
|
||||||
Purchases of investments
|
( i 14,973
|
)
|
( i 8,759
|
)
|
||||
Acquisitions (net of cash acquired)
|
( i 18,963
|
)
|
i —
|
|||||
Net cash used in investing activities
|
( i 73,149
|
)
|
( i 49,939
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Exercise of employee stock options and taxes paid related to the net shares settlement of
stock awards
|
i 7,874
|
i 3,321
|
||||||
Payment of cash dividends
|
( i 57,336
|
)
|
( i 59,287
|
)
|
||||
Repurchases of shares of common stock
|
( i 70,415
|
)
|
( i 127,361
|
)
|
||||
Finance lease principal payments
|
( i 1,409
|
)
|
i —
|
|||||
Payments of debt
|
( i 77,500
|
)
|
( i 135,000
|
)
|
||||
Proceeds from debt
|
i 130,000
|
i 115,000
|
||||||
Net cash used in financing activities
|
( i 68,786
|
)
|
( i 203,327
|
)
|
||||
Effect of exchange rate changes on cash
|
( i 10,409
|
)
|
( i 102
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
( i 120,271
|
)
|
i 31,080
|
|||||
Cash and cash equivalents, beginning of period
|
i 402,683
|
i 335,630
|
||||||
Cash and cash equivalents, end of period
|
$
|
i 282,412
|
$
|
i 366,710
|
1. |
2. |
Summary of Significant Accounting Policies
|
Raw materials
|
$
|
i 182,656
|
$
|
i 118,877
|
||||
Finished goods
|
i 232,547
|
i 195,489
|
||||||
Total Inventory, net
|
$
|
i 415,203
|
$
|
i 314,366
|
3. |
Goodwill
|
Nu Skin
|
||||||||
Mainland China
|
$
|
i 32,179
|
$
|
i 32,179
|
||||
Americas
|
i 9,449
|
i 9,449
|
||||||
South Korea
|
i 29,261
|
i 29,261
|
||||||
Southeast Asia/Pacific
|
i 18,537
|
i 18,537
|
||||||
EMEA
|
i 2,875
|
i 2,875
|
||||||
Japan
|
i 16,019
|
i 16,019
|
||||||
Hong Kong/Taiwan
|
i 6,634
|
i 6,634
|
||||||
Rhyz Investments
|
||||||||
Manufacturing
|
i 78,875
|
i 78,875
|
||||||
Grow Tech
|
i 9,150
|
i 9,150
|
||||||
Rhyz Other
|
i 12,603
|
i —
|
||||||
Total
|
$
|
i 215,582
|
$
|
i 202,979
|
4. |
Debt
|
Facility or Arrangement
|
Original
Principal Amount
|
Balance as of
September 30, 2021 (1)(2)
|
Balance as of
December 31, 2020 (1)(2)
|
Interest Rate
|
Repayment Terms
|
||||||||
Credit Agreement term loan facility
|
$
|
i 400.0 million
|
$
|
i 315.0 million
|
$
|
i 337.5 million
|
Variable i 30 day: i 2.33%
|
i 35% of the principal
amount is payable in increasing quarterly installments over a i five-year period that began on June 30, 2018, with the remainder payable at the end of the i five-year
term.
|
|||||
Credit Agreement revolving credit facility
|
$
|
i 75.0 million
|
$ |
i —
|
Variable i 30 day: i 2.33%
|
i Revolving line of credit expires April 18, 2023.
|
(1) |
As of September 30, 2021 and December 31, 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $ i 35.0 million and $ i 30.0
million,
respectively, of the balance of its term loan under the Credit Agreement.
|
(2) |
The carrying value of the debt reflects the amounts
stated in the above table, less debt issuance costs of $ i 1.4 million and $ i 2.1 million as of September
30, 2021 and December 31, 2020, respectively, related to
the Credit Agreement, which are not reflected in this table.
|
5. |
Leases
|
Three Months Ended
September 30,
|
Nine
Months Ended
|
|||||||||||||||
2020
|
2021
|
2020
|
||||||||||||||
Operating lease expense
|
||||||||||||||||
Operating lease cost
|
$
|
i 12,193
|
$
|
i 13,038
|
$
|
i 37,408
|
$
|
i 39,043
|
||||||||
Variable lease cost
|
i 1,121
|
i 678
|
i 4,145
|
i 2,062
|
||||||||||||
Short-term lease cost
|
i 13
|
i 118
|
i 590
|
i 258
|
||||||||||||
Sublease income
|
( i 1,352
|
)
|
( i 1,075
|
)
|
( i 5,164
|
)
|
( i 3,264
|
)
|
||||||||
Finance lease expense
|
||||||||||||||||
Amortization of right-of-use assets
|
i 594
|
i —
|
i 1,811
|
i —
|
||||||||||||
Interest on lease liabilities
|
i 77
|
i —
|
i 248
|
i —
|
||||||||||||
Total lease expense
|
$
|
i 12,646
|
$
|
i 12,759
|
$
|
i 39,038
|
$
|
i 38,099
|
Nine
Months Ended
September 30,
|
||||||||
2021
|
2020
|
|||||||
Operating cash outflow from operating leases
|
$
|
i 40,072
|
$
|
i 40,865
|
||||
Operating cash outflow from finance leases
|
$
|
i 250
|
$
|
i —
|
||||
Financing cash outflow from finance leases
|
$
|
i 1,409
|
$
|
i —
|
||||
Right-of-use assets obtained in exchange for operating lease obligations
|
$
|
i 19,120
|
$
|
i 62,514
|
||||
Right-of-use assets obtained in exchange for finance lease obligations
|
$
|
i 59
|
$
|
i —
|
Year Ending December 31
|
Operating
Leases
|
Finance
Leases
|
||||||
2021
|
$
|
i 11,911
|
$
|
i 535
|
||||
2022
|
i 35,502
|
i 2,150
|
||||||
2023
|
i 24,955
|
i 2,069
|
||||||
2024
|
i 19,610
|
i 1,958
|
||||||
2025
|
i 14,725
|
i 1,385
|
||||||
Thereafter
|
i 41,327
|
i 262
|
||||||
Total
|
i 148,030
|
i 8,359
|
||||||
Less: Finance charges
|
i 18,241
|
i 622
|
||||||
Total principal liability
|
$
|
i 129,789
|
$
|
i 7,737
|
6. |
Capital Stock
|
7. |
Fair Value and Equity Investments
|
◾ |
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.
|
Fair Value at September 30, 2021
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Financial assets (liabilities):
|
||||||||||||||||
Cash equivalents and current investments
|
$
|
i 74,360
|
$
|
i —
|
$
|
i —
|
$
|
i 74,360
|
||||||||
Derivative financial instruments asset
|
i —
|
i 4,395
|
i —
|
i 4,395
|
||||||||||||
Life insurance contracts
|
i —
|
i —
|
i 48,625
|
i 48,625
|
||||||||||||
Derivative financial instruments liability
|
i —
|
( i 112
|
)
|
i —
|
( i 112
|
)
|
||||||||||
Contingent consideration
|
i —
|
i —
|
( i 12,132
|
)
|
( i 12,132
|
)
|
||||||||||
Total
|
$
|
i 74,360
|
$
|
i 4,283
|
$
|
i 36,493
|
$
|
i 115,136
|
Fair Value at December 31, 2020
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Financial assets (liabilities):
|
||||||||||||||||
Cash equivalents and current investments
|
$
|
i 56,628
|
$
|
i —
|
$
|
i —
|
$
|
i 56,628
|
||||||||
Derivative financial instruments asset
|
i —
|
i 1,145
|
i —
|
i 1,145
|
||||||||||||
Life insurance contracts
|
i —
|
i —
|
i 45,453
|
i 45,453
|
||||||||||||
Derivative financial instruments liability
|
i —
|
( i 105
|
)
|
i —
|
( i 105
|
)
|
||||||||||
Contingent consideration
|
i —
|
i —
|
( i 3,125
|
)
|
( i 3,125
|
)
|
||||||||||
Total
|
$
|
i 56,628
|
$
|
i 1,040
|
$
|
i 42,328
|
$
|
i 99,996
|
Beginning balance at January 1, 2021
|
$
|
i 45,453
|
||
Actual return on plan assets
|
i 3,172
|
|||
Purchase and issuances
|
i 7,016
|
|||
Sales and settlements
|
( i 7,016
|
)
|
||
Transfers into Level 3
|
i —
|
|||
Ending balance at September 30, 2021
|
$
|
i 48,625
|
Beginning balance at January 1, 2021
|
$
|
( i 3,125
|
)
|
|
Additions from acquisitions
|
( i 8,702
|
)
|
||
Changes in fair value of contingent consideration
|
( i 305
|
)
|
||
Ending balance at September 30, 2021
|
$
|
( i 12,132
|
)
|
8. |
Income Taxes
|
9. |
Derivatives and Hedging Activities
|
Fair Values of Derivative Instruments
|
||||||||||
Derivatives in Cash flow
Hedging Relationships:
|
Balance Sheet
Location
|
|||||||||
Interest Rate Swap - Asset
|
Other Assets
|
$
|
i 4,395
|
$
|
i 1,145
|
|||||
Interest Rate Swap - Liability
|
Accrued Expenses
|
$
|
i 112
|
$
|
i 105
|
Amount of Gain (Loss) Recognized in OCI on Derivative
|
||||||||||||||||
Three Months Ended
|
Nine Months
Ended
|
|||||||||||||||
Derivatives in Cash flow
|
September 30,
|
September 30,
|
||||||||||||||
Hedging Relationships:
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Interest Rate Swaps
|
$
|
i 32
|
$
|
i 388
|
$
|
i 3,133
|
$
|
i 388
|
Amount of Gain (Loss) Reclassified from
Accumulated Other Comprehensive Loss into Income
|
||||||||||||||||||
Three Months Ended
|
Nine Months
Ended
|
|||||||||||||||||
Derivatives in Cash flow
|
Income Statement
|
September 30,
|
September 30,
|
|||||||||||||||
Hedging Relationships:
|
Location
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Interest Rate Swaps
|
Other Income (Expense), Net
|
$
|
( i 45
|
)
|
$
|
( i 8
|
)
|
$
|
( i 110
|
)
|
$
|
( i 8
|
)
|
10. |
Segment Information
|
Three Months Ended
September 30,
|
Nine
Months Ended
September 30,
|
|||||||||||||||
(U.S. dollars in thousands) |
2021 | 2020 | 2021 | 2020 | ||||||||||||
Nu Skin
|
||||||||||||||||
Mainland China
|
$
|
i 134,291
|
$
|
i 169,068
|
$
|
i 438,066
|
$
|
i 453,096
|
||||||||
Americas
|
i 131,482 | i 133,618 | i 403,755 | i 312,436 | ||||||||||||
South Korea | i 91,989 | i 83,460 | i 261,724 | i 236,094 | ||||||||||||
Southeast Asia/Pacific | i 79,081 | i 101,949 | i 246,338 | i 262,038 | ||||||||||||
EMEA
|
i 55,839 | i 61,411 | i 215,134 | i 147,590 | ||||||||||||
Japan | i 65,117 | i 70,958 | i 203,001 | i 200,549 | ||||||||||||
Hong Kong/Taiwan | i 39,921 | i 42,265 | i 114,795 | i 115,253 | ||||||||||||
Nu Skin other | i 889 | ( i 314 | ) | i 2,350 | i 374 | |||||||||||
Total Nu Skin |
i 598,609 | i 662,415 | i 1,885,163 | i 1,727,430 | ||||||||||||
Rhyz Investments |
||||||||||||||||
Manufacturing (1) | i 41,635 | i 40,910 | i 135,760 | i 105,975 | ||||||||||||
Grow Tech | i 783 | i 22 | i 1,147 | i 336 | ||||||||||||
Rhyz other | i 125 | i — | i 163 | i — | ||||||||||||
Total Rhyz Investments |
i 42,543 | i 40,932 | i 137,070 | i 106,311 | ||||||||||||
Total
|
$
|
i 641,152
|
$
|
i 703,347
|
$
|
i 2,022,233
|
$
|
i 1,833,741
|
(1) |
The Manufacturing segment had $ i 27.4 million and $ i 10.9
million of
intersegment revenue for the three months ended September 30, 2021 and 2020, respectively, and $ i 68.0 million and $ i 24.2
million for the nine months ended September 30, 2021 and 2020, respectively. Intersegment revenue is eliminated in the consolidated financial
statements, as well as the reported segment revenue in the table above.
|
Three Months Ended
September 30,
|
Nine
Months Ended
September 30,
|
|||||||||||||||
(U.S. dollars in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Nu Skin
|
||||||||||||||||
Mainland China
|
$
|
i 30,677
|
$
|
i 54,522
|
$
|
i 121,596
|
$
|
i 135,577
|
||||||||
Americas
|
i 25,752
|
i 20,618
|
i 83,495
|
i 48,730
|
||||||||||||
South Korea
|
i 28,984
|
i 25,232
|
i 84,401
|
i 73,421
|
||||||||||||
Southeast Asia/Pacific
|
i 19,020
|
i 23,892
|
i 59,881
|
i 62,263
|
||||||||||||
EMEA
|
i 6,693 | i 7,111 | i 29,270 | i 11,084 | ||||||||||||
Japan
|
i 16,267
|
i 18,245
|
i 50,709
|
i 49,292
|
||||||||||||
Hong Kong/Taiwan
|
i 8,940
|
i 9,048
|
i 24,848
|
i 22,825
|
||||||||||||
Nu Skin contribution
|
i 136,333
|
i 158,668
|
i 454,200
|
i 403,192
|
||||||||||||
Rhyz Investments
|
||||||||||||||||
Manufacturing
|
i 3,059
|
i 6,749
|
i 15,649
|
i 15,000
|
||||||||||||
Grow Tech
|
( i 6,798
|
)
|
( i 5,322
|
)
|
( i 19,869
|
)
|
( i 17,659
|
)
|
||||||||
Rhyz other
|
( i 659
|
)
|
i —
|
( i 1,178
|
)
|
i —
|
||||||||||
Rhyz Investments contribution
|
( i 4,398
|
)
|
i 1,427
|
( i 5,398
|
)
|
( i 2,659
|
)
|
|||||||||
Total segment contribution
|
i 131,935
|
i 160,095
|
i 448,802
|
i 400,533
|
||||||||||||
Corporate and other
|
( i 66,551
|
)
|
( i 85,867
|
)
|
( i 235,129
|
)
|
( i 231,666
|
)
|
||||||||
Operating income
|
i 65,384
|
i 74,228
|
i 213,673
|
i 168,867
|
||||||||||||
Other income (expense)
|
i 2,781
|
i 525
|
i 351
|
( i 4,068
|
)
|
|||||||||||
Income before provision for income taxes
|
$
|
i 68,165
|
$
|
i 74,753
|
$
|
i 214,024
|
$
|
i 164,799
|
Three Months Ended
September 30,
|
Nine
Months Ended
September 30,
|
|||||||||||||||
(U.S. dollars in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Nu Skin
|
||||||||||||||||
Mainland China
|
$
|
i 3,253
|
$
|
i 2,649
|
$
|
i 9,868
|
$
|
i 7,631
|
||||||||
Americas
|
i 190
|
i 251
|
i 656
|
i 714
|
||||||||||||
South Korea
|
i 805
|
i 756
|
i 2,768
|
i 2,731
|
||||||||||||
Southeast Asia/Pacific
|
i 359
|
i 334
|
i 1,096
|
i 1,300
|
||||||||||||
EMEA
|
i 281 | i 231 | i 850 | i 731 | ||||||||||||
Japan
|
i 220
|
i 296
|
i 699
|
i 1,602
|
||||||||||||
Hong Kong/Taiwan
|
i 1,004
|
i 691
|
i 2,794
|
i 1,948
|
||||||||||||
Total Nu Skin
|
i 6,112
|
i 5,208
|
i 18,731
|
i 16,657
|
||||||||||||
Rhyz Investments
|
||||||||||||||||
Manufacturing
|
i 3,069
|
i 2,077
|
i 8,644
|
i 5,954
|
||||||||||||
Grow Tech
|
i 1,303
|
i 1,302
|
i 4,002
|
i 3,775
|
||||||||||||
Rhyz other
|
i 592
|
i —
|
i 987
|
i —
|
||||||||||||
Total Rhyz Investments
|
i 4,964
|
i 3,379
|
i 13,633
|
i 9,729
|
||||||||||||
Corporate and other
|
i 8,857
|
i 9,333
|
i 25,494
|
i 28,893
|
||||||||||||
Total
|
$
|
i 19,933
|
$
|
i 17,920
|
$
|
i 57,858
|
$
|
i 55,279
|
Three Months Ended
September 30,
|
Nine
Months Ended
September 30,
|
|||||||||||||||
(U.S. dollars in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Nu Skin
|
||||||||||||||||
Mainland China
|
$
|
i 3,237
|
$
|
i 9,000
|
$
|
i 15,170
|
$
|
i 12,577
|
||||||||
Americas
|
i 95
|
i 123
|
i 294
|
i 885
|
||||||||||||
South Korea
|
i —
|
i 173
|
i 508
|
i 537
|
||||||||||||
Southeast Asia/Pacific
|
i 92
|
i 1,256
|
i 1,015
|
i 1,899
|
||||||||||||
EMEA
|
i 391 | i 718 | i 821 | i 1,378 | ||||||||||||
Japan
|
i 3
|
i 1,484
|
i 94
|
i 3,132
|
||||||||||||
Hong Kong/Taiwan
|
i 110
|
i 7
|
i 222
|
i 23
|
||||||||||||
Total Nu Skin
|
i 3,928
|
i 12,761
|
i 18,124
|
i 20,431
|
||||||||||||
Rhyz Investments
|
||||||||||||||||
Manufacturing
|
i 2,604
|
i 2,113
|
i 11,604
|
i 13,221
|
||||||||||||
Grow Tech
|
i 212
|
i 343
|
i 1,215
|
i 760
|
||||||||||||
Rhyz other
|
i —
|
i —
|
i —
|
i —
|
||||||||||||
Total Rhyz Investments
|
i 2,816
|
i 2,456
|
i 12,819
|
i 13,981
|
||||||||||||
Corporate and other
|
i 6,791
|
i 4,901
|
i 19,441
|
i 14,398
|
||||||||||||
Total
|
$
|
i 13,535
|
$
|
i 20,118
|
$
|
i 50,384
|
$
|
i 48,810
|
11. |
Commitments and Contingencies
|
12. |
Acquisitions
|
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Three Months Ended
September 30,
|
Constant-
Currency
|
Nine Months Ended
September 30,
|
Constant-
Currency
|
|||||||||||||||||||||||||||||
2021
|
2020
|
Change
|
Change(1)
|
2021
|
2020
|
Change
|
Change(1)
|
|||||||||||||||||||||||||
Nu Skin
|
||||||||||||||||||||||||||||||||
Mainland China
|
$
|
134,291
|
$
|
169,068
|
(21
|
)%
|
(26
|
)%
|
$
|
438,066
|
$
|
453,096
|
(3
|
)%
|
(11
|
)%
|
||||||||||||||||
Americas
|
131,482
|
133,618
|
(2
|
)%
|
(2
|
)%
|
403,755
|
312,436
|
29
|
%
|
28
|
%
|
||||||||||||||||||||
South Korea
|
91,989
|
83,460
|
10
|
%
|
8
|
%
|
261,724
|
236,094
|
11
|
%
|
5
|
%
|
||||||||||||||||||||
Southeast Asia/Pacific
|
79,081
|
101,949
|
(22
|
)%
|
(23
|
)%
|
246,338
|
262,038
|
(6
|
)%
|
(9
|
)%
|
||||||||||||||||||||
EMEA
|
55,839
|
61,411
|
(9
|
)%
|
(11
|
)%
|
215,134
|
147,590
|
46
|
%
|
36
|
%
|
||||||||||||||||||||
Japan
|
65,117
|
70,958
|
(8
|
)%
|
(5
|
)%
|
203,001
|
200,549
|
1
|
%
|
2
|
%
|
||||||||||||||||||||
Hong Kong/Taiwan
|
39,921
|
42,265
|
(6
|
)%
|
(8
|
)%
|
114,795
|
115,253
|
—
|
(4
|
)%
|
|||||||||||||||||||||
Nu Skin other
|
889
|
(314
|
)
|
383
|
%
|
382
|
%
|
2,350
|
374
|
528
|
%
|
530
|
%
|
|||||||||||||||||||
Total Nu Skin
|
598,609
|
662,415
|
(10
|
)%
|
(11
|
)%
|
1,885,163
|
1,727,430
|
9
|
%
|
5
|
%
|
||||||||||||||||||||
Rhyz Investments
|
||||||||||||||||||||||||||||||||
Manufacturing
|
41,635
|
40,910
|
2
|
%
|
2
|
%
|
135,760
|
105,975
|
28
|
%
|
28
|
%
|
||||||||||||||||||||
Grow Tech
|
783
|
22
|
3,459
|
%
|
3,459
|
%
|
1,147
|
336
|
241
|
%
|
241
|
%
|
||||||||||||||||||||
Rhyz other
|
125
|
—
|
163
|
—
|
||||||||||||||||||||||||||||
Total Rhyz Investments
|
42,543
|
40,932
|
4
|
%
|
4
|
%
|
137,070
|
106,311
|
29
|
%
|
29
|
%
|
||||||||||||||||||||
Total
|
$
|
641,152
|
$
|
703,347
|
(9
|
)%
|
(11
|
)%
|
$
|
2,022,233
|
$
|
1,833,741
|
10
|
%
|
6
|
%
|
(1) |
Constant-currency revenue change is a non-GAAP financial measure. See “Non-GAAP Financial Measures,” below.
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||||||||||
2020
|
Change
|
2021
|
2020
|
Change
|
||||||||||||||||||||
Nu Skin
|
||||||||||||||||||||||||
Mainland China
|
$
|
30,677
|
$
|
54,522
|
(44
|
)%
|
$
|
121,596
|
$
|
135,577
|
(10
|
)%
|
||||||||||||
Americas
|
25,752
|
20,618
|
25
|
%
|
83,495
|
48,730
|
71
|
%
|
||||||||||||||||
South Korea
|
28,984
|
25,232
|
15
|
%
|
84,401
|
73,421
|
15
|
%
|
||||||||||||||||
Southeast Asia/Pacific
|
19,020
|
23,892
|
(20
|
)%
|
59,881
|
62,263
|
(4
|
)%
|
||||||||||||||||
EMEA
|
6,693
|
7,111
|
(6
|
)%
|
29,270
|
11,084
|
164
|
%
|
||||||||||||||||
Japan
|
16,267
|
18,245
|
(11
|
)%
|
50,709
|
49,292
|
3
|
%
|
||||||||||||||||
Hong Kong/Taiwan
|
8,940
|
9,048
|
(1
|
)%
|
24,848
|
22,825
|
9
|
%
|
||||||||||||||||
Total Nu Skin
|
136,333
|
158,668
|
(14
|
)%
|
454,200
|
403,192
|
13
|
%
|
||||||||||||||||
Rhyz Investments
|
||||||||||||||||||||||||
Manufacturing
|
3,059
|
6,749
|
(55
|
)%
|
15,649
|
15,000
|
4
|
%
|
||||||||||||||||
Grow Tech
|
(6,798
|
)
|
(5,322
|
)
|
(28
|
)%
|
(19,869
|
)
|
(17,659
|
)
|
(13
|
)%
|
||||||||||||
Rhyz other
|
(659
|
)
|
—
|
(1,178
|
)
|
—
|
||||||||||||||||||
Total Rhyz Investments
|
(4,398
|
)
|
1,427
|
(408
|
)%
|
(5,398
|
)
|
(2,659
|
)
|
(103
|
)%
|
As of
|
As of
|
% Increase (Decrease)
|
||||||||||||||||||||||
Customers
|
Sales Leaders
|
Customers
|
Sales Leaders
|
Customers
|
Sales Leaders
|
|||||||||||||||||||
Mainland China
|
355,256
|
13,838
|
341,386
|
20,970
|
4
|
%
|
(34
|
)%
|
||||||||||||||||
Americas
|
324,880
|
12,127
|
397,936
|
12,798
|
(18
|
)%
|
(5
|
)%
|
||||||||||||||||
South Korea
|
156,439
|
9,448
|
164,256
|
7,973
|
(5
|
)%
|
18
|
%
|
||||||||||||||||
Southeast Asia/Pacific
|
162,048
|
7,607
|
204,489
|
9,959
|
(21
|
)%
|
(24
|
)%
|
||||||||||||||||
EMEA
|
210,705
|
5,726
|
235,202
|
6,226
|
(10
|
)%
|
(8
|
)%
|
||||||||||||||||
Japan
|
123,453
|
6,029
|
126,896
|
6,523
|
(3
|
)%
|
(8
|
)%
|
||||||||||||||||
Hong Kong/Taiwan
|
62,490
|
3,790
|
69,346
|
4,067
|
(10
|
)%
|
(7
|
)%
|
||||||||||||||||
Total
|
1,395,271
|
58,565
|
1,539,511
|
68,516
|
(9
|
)%
|
(15
|
)%
|
● |
the expansion and upgrade of facilities in our various markets;
|
● |
purchases and expenditures for computer systems and equipment, software, and application development; and
|
● |
a new manufacturing plant in Mainland China
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 1A. |
RISK FACTORS
|
• |
In 2015, the FTC took aggressive actions against a multi-level
marketing company, alleging an illegal business model and inappropriate earnings claims.
|
• |
In 2016, the FTC entered into a settlement with a multi-level marketing company, requiring the company to modify its business model, including basing sales compensation and qualification only on sales to retail and preferred customers
and on purchases by a distributor for personal consumption within allowable limits. Although this settlement does not represent judicial precedent or a new FTC rule, the FTC has indicated that the industry should look at this settlement,
and the principles underlying its specific measures, for guidance.
|
• |
In 2019, the FTC entered into a settlement with a multi-level marketing company, alleging an illegal business model and compensation structure and inappropriate earnings claims. The company agreed to a prohibition from engaging in
multi-level marketing. The FTC and another multi-level company are currently in litigation, and that company has indicated the FTC is seeking to limit the levels of payment in its compensation structure as a condition to settlement.
|
• |
During 2020, the FTC issued letters that warned several direct-selling companies to remove and address claims that they or members of their sales force were making about their products’ ability to treat or prevent COVID-19 and/or about
the earnings that people who have recently lost income could make.
|
• |
In October 2021, the FTC sent a notice to more than 1,100 companies, including us, that outlined several practices that the FTC determined to be unfair or deceptive in prior administrative cases. These
practices relate to earnings claims, other money-making opportunity claims, and endorsements and testimonials. Pursuant to the FTC’s “penalty offense authority,” companies that received the notice are expected to comply with the standards
set in the prior administrative cases and could incur significant civil penalties if they or their representatives fail to do so. The penalties could be up to $43,792 per violation, and there is some ambiguity in how a “violation” would be
defined for these purposes.
|
• |
impose requirements related to sign-up, order cancellations, product returns, inventory buy-backs and cooling-off periods for our sales force and consumers;
|
• |
require us, or our sales force, to register with government agencies;
|
• |
impose limits on the amount of sales compensation we can pay;
|
• |
impose reporting requirements; and
|
• |
require that our sales force is compensated primarily for selling products and not for recruiting others.
|
• |
During 2020 the FTC issued letters that warned several direct-selling companies to remove and address claims that they or members of their sales force were making about their products’ ability to treat or prevent COVID-19 and/or about
the earnings that people who have recently lost income could make.
|
• |
In October 2021, the FTC sent a notice to more than 1,100 companies, including us, that outlined several practices
that the FTC determined to be unfair or deceptive in prior administrative cases. These practices relate to earnings claims, other money-making opportunity claims, and endorsements and testimonials. Pursuant to the FTC’s “penalty offense authority,” companies that received the notice are expected to comply with the standards set in the prior administrative cases and could incur
significant civil penalties if they or their representatives fail to do so. The penalties could be up to $43,792 per violation, and there is some ambiguity in how a “violation” would be defined for these purposes.
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
(a)
|
(b)
|
(c)
|
(d)
|
|||||||||||||
Period
|
Total
Number
of Shares
Purchased
|
Average
Price Paid
per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Approximate Dollar
Value of Shares that May
Yet Be Purchased Under
the Plans or Programs
(in millions)(1)
|
||||||||||||
July 1 - 31, 2021
|
56,955
|
$
|
54.73
|
56,955
|
$
|
262.3
|
||||||||||
August 1 - 31, 2021
|
132,308
|
52.06
|
132,308
|
$
|
255.4
|
|||||||||||
September 1 - 30, 2021
|
—
|
—
|
—
|
$
|
255.4
|
|||||||||||
Total
|
189,263
|
$
|
52.87
|
189,263
|
(1) |
In August 2018, we announced that our board of directors approved a stock repurchase plan. Under this plan, our board of directors authorized the repurchase of up to $500 million of our outstanding Class A common stock on the open market
or in privately negotiated transactions.
|
ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
OTHER INFORMATION
|
ITEM 6. |
EXHIBITS
|
Exhibits
Regulation S-K
Number
|
Description
|
|
Certification by Ryan S. Napierski, Chief Executive Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification by Mark H. Lawrence, Chief Financial Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification by Ryan S. Napierski, Chief Executive Officer, pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
Certification by Mark H. Lawrence, Chief Financial Officer, pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
NU SKIN ENTERPRISES, INC.
|
||
By:
|
/s/ Mark H. Lawrence
|
|
Chief Financial Officer
|
||
(Duly Authorized Officer and Principal Financial Officer)
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
7/31/25 | ||||
4/18/23 | ||||
12/31/22 | ||||
12/31/21 | 10-K, 5, SD | |||
12/8/21 | 4 | |||
11/26/21 | ||||
Filed as of: | 11/4/21 | |||
Filed on: | 11/3/21 | 8-K | ||
10/31/21 | ||||
For Period end: | 9/30/21 | |||
9/8/21 | 4 | |||
8/27/21 | ||||
7/1/21 | ||||
6/9/21 | 4 | |||
5/28/21 | ||||
3/31/21 | 10-Q | |||
3/10/21 | 4 | |||
2/26/21 | ||||
1/1/21 | ||||
12/31/20 | 10-K, 5, SD | |||
9/30/20 | 10-Q | |||
7/1/20 | 8-K | |||
1/1/20 | ||||
7/1/18 | ||||
6/30/18 | 10-Q | |||
4/18/18 | 8-K | |||
List all Filings |