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

3 Months Ended

Mar. 31, 2018

NOTE I – 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.


	Three Months Ended
	April 1,	March 31,
	2017	2018

USANA® Nutritionals	85%	83%
USANA Foods	8%	8%
Personal care/Skincare
Sensé – beautiful science®	6%	4%
Celavive®(1)	N/A	4%

(1) The Company launched the Celavive® line in every market except China in the first quarter of 2018, and anticipates launching in China during the fourth 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, Belgium, and the Netherlands.

NOTE I – SEGMENT INFORMATION - CONTINUED

Selected Financial Information

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


	Three Months Ended
	April 1,	March 31,
	2017	2018

Net Sales to External Customers

Asia Pacific
Greater China	$ 131,738	$ 157,808
Southeast Asia Pacific	50,406	56,228
North Asia	12,956	18,084
Asia Pacific Total	195,100	232,120

Americas and Europe	60,223	59,878

Consolidated Total	$ 255,323	$ 291,998

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


	Three Months Ended
	April 1,	March 31,
	2017	2018

Net sales:
China	$ 115,457	$ 140,592
United States	$ 30,166	N/A


	As of
	December 30,	March 31,
	2017	2018
Long-lived assets:
China	$ 96,248	$ 99,365
United States	$ 59,589	$ 56,520