NU SKIN ENTERPRISES, INC. (NYSE:NUS) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05
Costs Associated with Exit or Disposal Activities.
On December 12, 2018, Nu Skin Enterprises, Inc. (the “Company,” “we” or “our”) adopted a restructuring program. This program is a strategic plan to align our resources and capabilities to support our vision of being a world-leading business platform. We believe that this restructuring program will accelerate our ability to achieve our future growth objectives and priorities. It primarily impacts our information technology infrastructure and organization and other departments within our corporate and Americas offices. We expect that the actions contemplated under the restructuring program will be substantially completed by December 31, 2018.
We estimate that the implementation of the restructuring program will result in pre-tax charges of approximately $70 million in the fourth quarter of 2018, consisting primarily of non-cash charges for the impairment of information technology infrastructure, including internally developed software, of approximately $50 million and the balance related to severance payments and other related expenses. The Company determined that the impairment charge was required on December 13, 2018. These charges were not reflected in our previously announced 2018 fourth-quarter or full-year financial guidance.
| Item 2.06 |
Material Impairments. |
The information set forth in Item 2.05 is incorporated by reference herein.
Important Information Regarding Forward-Looking Statements: This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the Company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements regarding the restructuring program, including its outcomes and anticipated charges and the timing of such charges. In some cases, you can identify these statements by forward-looking words such as “will,” “believe,” “expect,” “estimate,” “plan,” “would,” “could,” the negative of these words and other similar words. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the Company’s ability to successfully execute the restructuring program; uncertainties that may delay or negatively impact the timing, completion, or anticipated outcomes and costs associated with the restructuring program; damage to the Company’s reputation; workforce attrition beyond planned reductions; and any legal challenges related to the restructuring program. Other risks and uncertainties that can affect actual results are set forth in the documents the Company has filed with the Securities and Exchange Commission. The forward-looking statements set forth the Company’s beliefs as of the date that such information was first provided, and the Company assumes no duty to update the forward-looking statements contained in this report to reflect any change except as required by law.
About NU SKIN ENTERPRISES, INC. (NYSE:NUS)
Nu Skin Enterprises, Inc. is a direct selling company that develops and distributes personal care products and nutritional supplements, and a range of other products and services. The Company offers anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Nu Skin brand offers a range of products, including ageLOC Spa systems, ageLOC Transformation anti-aging skin care system and ageLOC Tru Face Essence Ultra anti-aging skin care serum. The Pharmanex product line includes ageLOC TR90 weight management and body shaping system, and LifePak and ageLOC R2 nutritional supplements. The Company has operations in various geographic regions, including Greater China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa (EMEA). It is focused on offering ageLOC Youth nutritional supplement and ageLOC Me personalized skin care system. The Company also offers household products and technology services.