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

6 Months Ended

Jun. 30, 2018

NOTE K – 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		Six Months Ended
	July 1,	June 30,	July 1,	June 30,
	2017	2018	2017	2018

USANA® Nutritionals	84%	82%	85%	82%
USANA Foods	9%	9%	8%	9%
Personal care/Skincare
Sensé – beautiful science®	6%	4%	6%	4%
Celavive®(1)	N/A	4%	N/A	4%

(1) We launched Celavive® in every market except China in the first quarter of 2018, and anticipate launching 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 K – SEGMENT INFORMATION - CONTINUED

Selected Financial Information

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


	Quarter Ended		Six Months Ended
	July 1,	June 30,	July 1,	June 30,
	2017	2018	2017	2018

Net Sales to External Customers

Asia Pacific
Greater China	$ 136,702	$ 167,841	$ 268,440	$ 325,649
Southeast Asia Pacific	48,665	54,771	99,071	110,999
North Asia	13,948	18,986	26,904	37,070
Asia Pacific Total	199,315	241,598	394,415	473,718

Americas and Europe	57,748	59,862	117,971	119,740

Consolidated Total	$ 257,063	$ 301,460	$ 512,386	$ 593,458

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


	Quarter Ended		Six Months Ended
	July 1,	June 30,	July 1,	June 30,
	2017	2018	2017	2018

Net sales:
China	$ 120,831	$ 151,110	$ 236,288	$ 291,702
United States	$ 28,870	$ 30,250	$ 59,036	N/A


			As of
			December 30,	June 30,
			2017	2018
Long-lived assets:
China			$ 96,248	$ 93,281
United States			$ 59,589	$ 52,551