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. 30, 2017

NOTE I – SEGMENT INFORMATION

USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care 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 and personal care products for the periods indicated.


	Quarter Ended		Nine Months Ended
	October 1,	September 30,	October 1,	September 30,
	2016	2017	2016	2017

USANA® Nutritionals	85%	83%	83%	84%
USANA Foods	8%	9%	10%	9%
Sensé – beautiful science®	6%	6%	6%	6%

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(1)

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, Belgium, and the Netherlands.

_________________

(1)The Company’s business in China is that of BabyCare, its wholly-owned subsidiary.

NOTE I – SEGMENT INFORMATION - CONTINUED

Selected Financial Information

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


	Quarter Ended		Nine Months Ended
	October 1,	September 30,	October 1,	September 30,
	2016	2017	2016	2017

Net Sales to External Customers

Asia Pacific
Greater China	$ 124,470	$ 131,273	$ 373,308	$ 399,713
Southeast Asia Pacific	54,351	52,310	154,335	151,381
North Asia	11,555	15,708	33,376	42,612
Asia Pacific Total	190,376	199,291	561,019	593,706

Americas and Europe	63,843	62,474	192,163	180,445

Consolidated Total	$ 254,219	$ 261,765	$ 753,182	$ 774,151

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
	October 1,	September 30,	October 1,	September 30,
	2016	2017	2016	2017

Net sales:
China	$ 108,355	$ 116,174	$ 324,689	$ 352,462
United States	$ 34,352	$ 34,183	$ 101,245	$ 93,219


			As of
			December 31,	September 30,
			2016	2017
Long-lived assets:
China			$ 91,909	$ 94,938
United States			$ 63,654	$ 61,384