Nu Skin 2010 Annual Report - Direct Selling News

NU SKIN ENTERPRISES, INC.
Notes to Consolidated Financial Statements
Amortization of finite-life intangible assets totaled $6.0 million, $6.8 million and $6.9 million for the years ended December 31, 2008, 2009 and
2010, respectively. Annual estimated amortization expense is expected to approximate $6.0 million for each of the five succeeding fiscal years.
All of the Company’s goodwill is based in the U.S. Goodwill and indefinite life intangible assets are not amortized, rather they are subject
to annual impairment tests. Annual impairment tests were completed resulting in no impairment charges for any of the periods shown. Finite
life intangibles are amortized over their useful lives unless circumstances occur that cause the Company to revise such lives or review such assets
for impairment.
6. OTHER ASSETS
Other assets consist of the following (U.S. dollars in thousands):
December 31,
2009 2010
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,030 $ 45,027
Deposits for noncancelable operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,713 14,261
Deposit for customs assessment (Note 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,476 65,255
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,517 20,717
$ 136,736 $ 145,260
7. ACCRUED EXPENSES
Accrued expenses consist of the following (U.S. dollars in thousands):
December 31,
2009 2010
Accrued commissions and other payments to distributors . . . . . . . . . . . . . . . . . . . . . $ 50,332 $ 66,335
Other taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,596 15,948
Accrued payroll and payroll taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,790 13,063
Accrued payable to vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,438 9,744
Accrued severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,537 112
Other accrued employee expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,800 19,704
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,027 21,202
$ 124,520 $ 146,108
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