Quarterly report pursuant to Section 13 or 15(d)

Organization, Consolidation, And Basis Of Presentation

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Organization, Consolidation, And Basis Of Presentation
 9 Months Ended
Oct. 01, 2011
Organization, Consolidation, And Basis Of Presentation [Abstract]  
Organization, Consolidation, And Basis Of Presentation

Organization, Consolidation, and Basis of Presentation

 

USANA Health Sciences, Inc. develops and manufactures high-quality nutritional and personal care products that are sold internationally through a network marketing system, which is a form of direct selling. The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "USANA") in two geographic regions: North America and Asia Pacific, which is further divided into three sub-regions; Southeast Asia/Pacific, Greater China, and North Asia.  North America includes the United States, Canada, Mexico, and direct sales from the United States to the United Kingdom and the Netherlands.  Southeast Asia/Pacific includes Australia, New Zealand, Singapore, Malaysia, and the Philippines; Greater China includes Hong Kong, Taiwan and China; and North Asia includes Japan and South Korea.  All significant inter-company accounts and transactions have been eliminated in this consolidation.

 

The condensed balance sheet as of January 1, 2011, derived from audited financial statements, and the unaudited interim consolidated financial information of the Company have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission.  Certain information and footnote disclosures that are normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations.  In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting of normal recurring adjustments that are necessary to present fairly the Company's financial position as of October 1, 2011 and results of operations for the quarters and nine months ended October 2, 2010 and October 1, 2011. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto that are included in the Company's Annual Report on Form 10-K for the year ended January 1, 2011.  The results of operations for the quarter and nine months ended October 1, 2011, may not be indicative of the results that may be expected for the fiscal year 2011 ending December 31, 2011.

 

Revisions

 

Revisions relating to deferred taxes and intangible assets have been made to the Company's financial statements to reflect adjustments made to correct the presentation of deferred taxes on a gross rather than net basis, and to record the impact of currency translation on intangible assets acquired as part of the 2010 purchase of BabyCare Holdings Ltd.  These adjustments revise amounts reported for periods prior to January 2, 2011 in the financial statements and related notes, for deferred taxes, goodwill, intangible assets and accumulated other comprehensive income in the Consolidated Balance Sheet, and the foreign currency translation adjustment component of comprehensive income in the Consolidated Statement of Stockholders' Equity and Comprehensive Income.  While the overall net deferred tax amount has not changed, certain deferred tax line items in the Consolidated Balance Sheet have been modified to reflect a gross presentation.  Additionally, goodwill and intangible assets have been increased, along with a corresponding increase in accumulated other comprehensive income, to capture the changes on these assets related to foreign currency translation. These revisions had no effect on our earnings from operations, net earnings, or earnings per share.
 
The following tables illustrate the effects of the revision on the Company's consolidated financial statements for only those line items that were affected: 
                   
                   
Consolidated Balance Sheet Items          
(in thousands)          
                   
          As of January 1, 2011
          As Previously Reported   Adjustment   As Revised
    Prepaid expenses and other current assets, including current deferred tax assets      $        21,972    $          1,405    $        23,377
    Total current assets                80,272                1,405              81,677
    Goodwill                16,930                   337              17,267
    Intangible assets, net                40,616                1,299              41,915
    Other assets, including long-term deferred tax assets                  8,416                9,793              18,209
    Total assets              203,802              12,834            216,636
    Other current liabilities                51,179                1,405              52,584
    Total current liabilities                57,624                1,405              59,029
    Long-term deferred tax liabilities                        -                  9,793                9,793
    Accumulated other comprehensive income *                  3,721                1,636                5,357
    Total stockholders' equity *              145,166                1,636            146,802
    Total liabilities and stockholders' equity              203,802              12,834            216,636
                   
    * Change also reflected in the beginning balance within the Consolidated Statement of Stockholders' Equity and Comprehensive Income.  

 

          

 

Consolidated Statement of Stockholders' Equity and Comprehensive Income Items          
(in thousands)          
                   
          For the nine months ended October 2, 2010
          As Previously Reported   Adjustment   As Revised
    Accumulated other comprehensive income (loss), foreign currency translation adjustment      $          1,431    $             874    $          2,305
    Accumulated other comprehensive income (loss), total comprehensive income                34,691                   874              35,565
    Accumulated other comprehensive income (loss), balance at October 2, 2010                  2,954                   874                3,828
    Total stockholders' equity at October 2, 2010              129,947                   874  

         130,821