Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.0.1
Segment Information
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company primarily operates as a global nutrition, personal health and wellness company that develops and manufactures high quality, science-based nutritional, and personal care products. As of December 28, 2024, the Company had two reportable segments: direct selling and Hiya direct-to-consumer. Management identifies segments based upon the Company's organizational and management reporting structure. The direct selling segment develops and manufactures high quality, science-based nutritional, personal care and skincare products with a primary focus on promoting long-term health and wellness in various geographic markets worldwide that are distributed through the direct selling channel. The Hiya direct-to-consumer segment is a new reportable segment in 2024 resulting from the Hiya Acquisition during 2024. Hiya is a leading provider of high-quality children’s health and wellness products in the U.S. that are distributed through the direct-to-consumer channel. Additionally, the Company has operating segments that are not material and included as a component of “Other”.
The operating segments reflect the Company's primary sales channels and represent the way the chief operating decision maker ("CODM") evaluates the Company's business performance and allocates resources. The CODM is the Company's Chief Executive Officer. The CODM evaluates the performance of each segment based on segment earnings from operations in order to determine how to allocate the Company's resources across its operating segments, including allocating capital and personnel. The CODM does not evaluate operating segments using asset information, accordingly, the Company does not report asset information by segment.
Summarized financial information for the Company’s reportable segments is shown in the following tables, including significant segment expenses that are regularly reviewed by the CODM.
Year Ended
2024
Direct selling Hiya direct-to-consumer Other Total
Net Sales (1)
$ 845,789  $ 1,970  $ 6,744  $ 854,503 
Less:
Cost of sales 157,094  598  3,520  161,212 
Associate incentives 363,183  —  516  363,699 
Selling, general and administrative 254,733  1,226  7,309  263,268 
Segment earnings (loss) from operations $ 70,779  $ 146  $ (4,601) $ 66,324 
Reconciliation of segment earnings from operations
Interest income 11,319 
Interest expense (281)
Other, net (1,011)
Earnings before income taxes $ 76,351 
______________________________
(1)The direct selling segment excludes $2,087 of intersegment net sales.
Year Ended
2023
Direct selling Other Total
Net Sales (1)
$ 915,212  $ 5,798  $ 921,010 
Less:
Cost of sales 173,432  3,261  176,693 
Associate incentives 393,932  325  394,257 
Selling, general and administrative 251,495  5,494  256,989 
Segment earnings (loss) from operations $ 96,353  $ (3,282) $ 93,071 
Reconciliation of segment earnings from operations
Interest income 9,637 
Interest expense (262)
Other, net 7 
Earnings before income taxes $ 102,453 
______________________________
(1)The direct selling segment excludes $1,425 of intersegment net sales.
Year Ended
2022
Direct selling Other Total
Net Sales (1)
$ 995,042  $ 3,559  $ 998,601 
Less:
Cost of sales 191,994  1,896  193,890 
Associate incentives 434,514  279  434,793 
Selling, general and administrative 259,036  3,268  262,304 
Segment earnings (loss) from operations $ 109,498  $ (1,884) $ 107,614 
Reconciliation of segment earnings from operations
Interest income 3,789 
Interest expense (192)
Other, net (2,590)
Earnings before income taxes $ 108,621 
______________________________
(1)There was no intersegment net sales.
Year Ended
2024 2023 2022
Depreciation and amortization:
Direct selling $ 12,851  $ 11,855  $ 12,966 
Hiya direct-to-consumer 294  —  — 
Other 1,394  847  427 
Consolidated Total $ 14,539  $ 12,702  $ 13,393 
No single Associate or customer accounted for 10% or more of net sales for the periods presented. The table below summarizes the approximate percentage of total product revenue for our direct selling and Hiya direct-to-consumer segments that has been contributed by the Company’s nutritionals, foods, and personal care and skincare products for the periods indicated.
Year Ended
2024 2023 2022
USANA Nutritionals 87% 87% 87%
USANA Foods (1)
6% 7% 7%
Personal care and Skincare 6% 5% 5%
All Other 1% 1% 1%
______________________________
(1)Includes the Company’s Active Nutrition line
Financial information on net sales and long-lived assets (excluding intangible assets), presented by geographic region is listed below:
Year Ended
2024 2023 2022
Net Sales to External Customers
Asia Pacific
Greater China $ 457,976  $ 475,099  $ 502,486 
Southeast Asia Pacific 146,795  163,890  190,478 
North Asia 78,214  101,446  108,952 
Asia Pacific Total 682,985  740,435  801,916 
Americas and Europe 171,518  180,575  196,685 
Consolidated Total $ 854,503  $ 921,010  $ 998,601 
December 28,
2024		 December 30,
2023
Long-lived Assets
Asia Pacific
Greater China $ 31,668  $ 34,892 
Southeast Asia Pacific 13,893  17,504 
North Asia 8,820  2,235 
Asia Pacific Total 54,381  54,631 
Americas and Europe 83,460  85,213 
Consolidated Total $ 137,841  $ 139,844 
Total Assets
Asia Pacific
Greater China $ 202,428  $ 219,781 
Southeast Asia Pacific 44,793  57,820 
North Asia 25,930  21,807 
Asia Pacific Total 273,151  299,408 
Americas and Europe 475,042  333,349 
Consolidated Total $ 748,193  $ 632,757 
The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets (excluding intangible assets), respectively:
Year Ended
2024 2023 2022
Net sales:
China $ 413,471  $ 427,265  $ 453,134 
United States $ 91,796  $ 95,906  $ 106,087 
South Korea $ 76,445  $ 99,108  $ 106,391 
Long-lived Assets:
United States $ 81,459  $ 81,914 
China $ 29,304  $ 33,241