Nu Skin 2010 Annual Report - Direct Selling News

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Following are the weighted-average currency exchange rates of U.S. $1 into local currency for each of our international or foreign markets in which revenue exceeded U.S. $5.0 million for at least one of the quarters listed. 1st Quarter 2nd Quarter 2009 2010 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Japan (1) . . . . . . . . . . . . 93.6 97.3 93.5 89.9 90.6 92.0 85.7 82.6 Taiwan. . . . . . . . . . . . . . 34.0 33.1 32.8 32.3 31.9 31.8 31.9 30.3 Hong Kong . . . . . . . . 7.8 7.8 7.8 7.8 7.8 7.8 7.8 7.8 South Korea . . . . . . . 1,418.4 1,282.8 1,237.3 1,167.4 1,142.0 1,163.2 1,182.3 1,133.5 Malaysia . . . . . . . . . . . 3.6 3.5 3.5 3.4 3.4 3.2 3.2 3.1 Thailand . . . . . . . . . . . 35.3 34.7 34.0 33.3 32.9 32.4 31.6 30.0 China . . . . . . . . . . . . . . 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.7 Singapore. . . . . . . . . . 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.3 Canada . . . . . . . . . . . . 1.2 1.2 1.1 1.1 1.0 1.0 1.0 1.0 (1) As of February 1, 2011, the exchange rate of U.S. $1 into the Japanese yen was approximately 81.35. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The information required by Item 7A of Form 10-K is incorporated herein by reference from the information contained in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Currency Risk and Exchange Rate Information” and Note 15 to the Consolidated Financial Statements. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 1. Financial Statements. Set forth below is the index to the Financial Statements included in this Item 8: Consolidated Balance Sheets at December 31, 2009 and 2010 51 Consolidated Statements of Income for the years ended 52 December 31, 2008, 2009 and 2010 Consolidated Statements of Stockholders’ Equity and Comprehensive Income for the years ended 53 December 31, 2008, 2009 and 2010 Consolidated Statements of Cash Flows for the years ended 54 December 31, 2008, 2009 and 2010 Notes to Consolidated Financial Statements 55 Report of Independent Registered Public Accounting Firm 77 2. Financial Statement Schedules: Financial statement schedules have been omitted because they are not required or are not applicable, or because the required information is shown in the financial statements or notes thereto. Page 50
NU SKIN ENTERPRISES, INC. Consolidated Balance Sheets (U.S. dollars in thousands) December 31, 2009 2010 ASSETS Current assets Cash and cash equivalents $ 158,045 $ 230,337 Accounts receivable 22,513 25,701 Inventories, net 105,661 114,475 Prepaid expenses and other 51,724 52,013 337,943 422,526 Property and equipment, net 79,356 133,722 Goodwill 112,446 112,446 Other intangible assets, net 81,968 78,270 Other assets 136,736 145,260 Total assets $ 748,449 $ 892,224 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 25,292 $ 25,480 Accrued expenses 124,520 146,108 Current portion of long-term debt 35,400 27,865 Related party payable — 16,995 185,212 216,448 Long-term debt 121,119 133,013 Other liabilities 66,431 71,514 Total liabilities 372,762 420,975 Commitments and contingencies (Notes 9, 13 and 19) Stockholders’ equity Class A common stock—500 million shares authorized, $.001 par value, 90.6 million shares issued 91 91 Additional paid-in capital 232,219 256,505 Treasury stock, at cost—27.8 and 28.5 million shares (433,567) (476,748) Accumulated other comprehensive loss (68,134) (58,539) Retained earnings 645,078 749,940 375,687 471,249 Total liabilities and stockholders’ equity $ 748,449 $ 892,224 The accompanying notes are an integral part of these consolidated financial statements. 51
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NU SKIN ANNUAL REPORT 2010 ELEVATE
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35,676 32,939 30,588 30,002 2007 20
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BUILDING FOR THE FUTURE In 2011, we
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$163M AGELOC GALVANIC SPA AND GELS
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8 8
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5 INCREASING OPERATIONAL EFFICIENCI
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* GAAP RECONCILATION TABLE 2007 200
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Can we sustain growth? Yes we can.
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UNITED STATES SECURITIES AND EXCHAN
Page 21 and 22: TABLE OF CONTENTS PART I 1 ITEM 1 B
Page 23 and 24: PART I ITEM 1. BUSINESS OVERVIEW We
Page 25 and 26: The following table summarizes our
Page 27 and 28: Other. We also offer a limited numb
Page 29 and 30: introduction of additional ageLOC a
Page 31 and 32: ness model utilizing sales employee
Page 33 and 34: in a manner to attract the general
Page 35 and 36: take longer than we anticipated. Pl
Page 37 and 38: chases, management services and con
Page 39 and 40: These declines could continue or in
Page 41 and 42: ous markets, including Japan, South
Page 43 and 44: creased scrutiny by the government.
Page 45 and 46: pact the cost associated with manuf
Page 47 and 48: on a sustained basis. Factors that
Page 49 and 50: negotiated contracts with shipping
Page 51 and 52: System failures could harm our busi
Page 53 and 54: consumption taxes based on an audit
Page 55 and 56: STOCK PERFORMANCE GRAPH Set forth b
Page 57 and 58: ITEM 7. MANAGEMENT’S DISCUSSION A
Page 59 and 60: estrictions on the importation of f
Page 61 and 62: RESULTS OF OPERATIONS The following
Page 63 and 64: South Asia/Pacific. The following t
Page 65 and 66: employees in Mainland China who had
Page 67 and 68: We currently have debt pursuant to
Page 69 and 70: the legal form of the transaction.
Page 71: closures related to vendor’s mult
Page 75 and 76: NU SKIN ENTERPRISES, INC. Consolida
Page 77 and 78: NU SKIN ENTERPRISES, INC. Notes to
Page 99 and 100: Report of Independent Registered Pu
Page 101 and 102: PART III The information required b
Page 103 and 104: corporated by reference to Exhibit
Page 105 and 106: *10.56 Form of 2010 Plan Director S
Page 107 and 108: BOARD OF DIRECTORS Blake M. Roney E
Page 109: 18 NU SKIN ENTERPRISES, INC. 75 WES
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Nu Skin 2010 Annual Report - Direct Selling News

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