USANA Health Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

9 Months Ended

Sep. 29, 2018

NOTE L – SEGMENT INFORMATION

USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care/skincare products that are sold through a global network marketing system of independent distributors (“Associates”). As such, management aggregates its operating segments into one reportable segment as management believes that the Company’s segments exhibit similar long-term financial performance and have similar economic characteristics. Performance for a region or market is evaluated based on sales. No single Associate accounted for 10% or more of net sales for the periods presented. The table below summarizes the approximate percentage of total product revenue that has been contributed by the Company’s nutritional, foods, and personal care/skincare products for the periods indicated.


	Quarter Ended		Nine Months Ended
	September 30,	September 29,	September 30,	September 29,
	2017	2018	2017	2018

USANA® Nutritionals	83%	83%	84%	82%
USANA Foods	9%	9%	9%	9%
Personal care/Skincare
Sensé – beautiful science®	6%	2%	6%	4%
Celavive®(1)	N/A	5%	N/A	4%

(1) We launched Celavive® in every market except China in the first quarter of 2018 and recently launched in China late in the third quarter of 2018.

Selected financial information for the Company is presented for two geographic regions: Asia Pacific, with three sub-regions under Asia Pacific, and Americas and Europe. Individual markets are categorized into these regions as follows:

Asia Pacific –

Greater China – Hong Kong, Taiwan and China. Our business in China is conducted by BabyCare Holding, Ltd. (“BabyCare”), our wholly-owned subsidiary.

Southeast Asia Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, Thailand, and Indonesia

North Asia – Japan and South Korea

Americas and Europe – United States, Canada, Mexico, Colombia, the United Kingdom, France, Germany(2), Spain(2), Italy(2), Romania(2), Belgium, and the Netherlands.

(2) We commenced operations in Germany, Spain, Italy, and Romania near the end of the second quarter of 2018.

NOTE L – SEGMENT INFORMATION - CONTINUED

Selected Financial Information

Financial information by geographic region is presented for the periods indicated below:


	Quarter Ended		Nine Months Ended
	September 30,	September 29,	September 30,	September 29,
	2017	2018	2017	2018

Net Sales to External Customers

Asia Pacific
Greater China	$ 131,273	$ 160,932	$ 399,713	$ 486,581
Southeast Asia Pacific	52,310	58,770	151,381	169,769
North Asia	15,708	19,899	42,612	56,969
Asia Pacific Total	199,291	239,601	593,706	713,319

Americas and Europe	62,474	57,166	180,445	176,906

Consolidated Total	$ 261,765	$ 296,767	$ 774,151	$ 890,225

The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively:


	Quarter Ended		Nine Months Ended
	September 30,	September 29,	September 30,	September 29,
	2017	2018	2017	2018

Net sales:
China	$ 116,174	$ 144,625	$ 352,462	$ 436,327
United States	$ 34,183	$ 29,790	$ 93,219	$ 88,734


			As of
			December 30,	September 29,
			2017	2018
Long-lived assets:
China			$ 96,248	$ 89,236
United States			$ 59,589	$ 51,218